Learn promotion through the search engines

Written by Chuck McCullough

According to a new survey carried out by Alliance & where ID_NUM=9270; Leicester, one in five small business owners view tax as their greatest concern. The Chancellor has announced in his last budget that companies with profits below œ10,000 will not have to pay any corporation tax with effect from 1 April 2002. The question to be asked is: does that announcement make incorporation a more attractive option compared to being a sole trader?

The answer is that from a tax point of view, it is advantageous to trade through a limited company as long asrepparttar income is drawn fromrepparttar 128176 company byrepparttar 128177 owners as dividends from their shares andrepparttar 128178 amount of dividends drawn is restricted belowrepparttar 128179 40% band rate (i.e. œ31,063 for tax year 2002/03). That way,repparttar 128180 owners have no further personal tax ("income tax") to pay. Moreover, dividends are not subject to national insurance contributions. This is excellent news of course. But, if dividend income falls withinrepparttar 128181 higher rate bracket of income tax (i.e. above œ34,515), they will be taxed at 22.5% onrepparttar 128182 excess, which of course will increaserepparttar 128183 tax burden. The company profits are subject to corporation tax rates. Those are lower than income tax rates.

The most catastrophic scenario is whenrepparttar 128184 director takes his reward fromrepparttar 128185 company as salary. Then his/her salary is taxed at income tax rates (like a sole trader's income). That is because, unlike sole traders,repparttar 128186 tax system treats companies as separate from their owners because a company is a separate legal entity. The problem is thatrepparttar 128187 income taxes are higher than corporation tax rates. On top of that, they will be subject to employee and employer national insurance contributions, which of course increaserepparttar 128188 tax burden and render his position worse than even an unincorporated business ("sole trader"), because NIC Class 1 on payroll are higher than NIC Class 2 paid by self employed.

In contrast, a self employed person ("sole trader") is taxed at income tax rates onrepparttar 128189 profits from his business, which are added to his other sources of income. As it has already been mentioned, income tax rates are overall higher than corporation tax rates. On top of income tax, national insurance contributions class 4 are payable onrepparttar 128190 business profits within a specified band (7% on profits between œ4,615and œ30,420). National insurance contributions Class 2 are also paid by self-employed people, although those are lower than those payable by company directors on their salaries.

To illustraterepparttar 128191 above, let's take a simple example. We have a limited company and a sole trader. They both make œ60,000 profits each inrepparttar 128192 tax year 2002/03. We assume thatrepparttar 128193 company director takes a salary equal torepparttar 128194 amount of his personal allowances (untaxed income) of œ4,615 andrepparttar 128195 balance as dividends. The company will pay corporation tax at 19% equal to œ10,523 and nothing else. The sole trader will pay income tax œ16,542, National insurance Class 2 œ104 and National insurance Class 4 œ1,806. Total œ18,452. The bottom line is thatrepparttar 128196 person that has incorporated his business into a limited company will make a tax saving of œ7,929 compared to a sole trader! Isn't that fantastic?

Somebody might be wondering: why is this entire happening? The official explanation is that, this government, to helprepparttar 128197 economy grow, encourages people to leave as much profits within their businesses to be reinvested, instead of being taken out and spent.

The "unofficial line" is that, as a matter of fact, for yearsrepparttar 128198 Inland Revenue has tried to reclassifyrepparttar 128199 self-employed. The 1% in NIC hike on staff salaries aboverepparttar 128200 NIC threshold from next April adds to bothrepparttar 128201 employees' and employers' tax burden and may more than offsetrepparttar 128202 saving fromrepparttar 128203 corporation tax zero rate onrepparttar 128204 first œ10,000 of profits.

"Getting On Page One Is Easy...Getting The Sale Is The Hard Part."

Written by Roger J. Burke

Here is my latest article. It may be freely used in ezines, on websites or in e-books, as long asrepparttar Resource Box is left intact.

I would appreciate notification of where it was used, and if possible, a copy ofrepparttar 128175 ezine or newsletter that it was used in. Please send notification mailto:webmaster@online-wealth.com


Just how difficult is it to develop and promote a domain that will rank on page one or two of allrepparttar 128176 majors?

Well...like anything, that depends upon many factors.

You can buy your way torepparttar 128177 top, of course, with pay-per-click SEs. That can get very expensive, and may well be beyond a person's budget. Atrepparttar 128178 moment, however, there aren't too many pay-per-click SEs. (You can expect that technique, just quietly, to grow and get more expensive.)

You can get what's called a "sponsored" listing to appear atrepparttar 128179 top (or side) of page one when certain search terms are entered. That can cost, too.

A lot of sites, I'm told, resort to cloaking techniques i.e. presenting a certain page to each SE and then redirectingrepparttar 128180 prospect torepparttar 128181 real page. SEs don't like that, I'm also told, and rightly so. When, f'instance, wasrepparttar 128182 last time you looked in your Yellow pages for a certain business, called it onrepparttar 128183 'phone and then found out that you were connected to something entirely different?

You wouldn't stand for that, nor would I. Nor would anybody. Dittorepparttar 128184 SEs regarding cloaking (although, just quietly again, I understand that there are inherent problems in exposing those who cloak).

Onrepparttar 128185 other hand, appropriate advertising is good - good for you and me, good for business. Too much, fromrepparttar 128186 same source however, is tiresome. It battersrepparttar 128187 senses, sometimes to stupefaction, almost. Many sites seem to revel in that, with hundreds of doorway pages in areas you would not suspect, yet which lead you torepparttar 128188 same old stuff.

Spammers delight in that tactic, so I understand, but SEs are developing techniques to root them out. And so say all of us, right?

So, let's put aside cloaking and zillions of cloned pages...bandwidths shouldn't be burdened with bandits, right? ;-)

So...getting back torepparttar 128189 question: just how can any regular Joe or Jane develop a website that will rank high, without resorting to trick or treat tactics (or sponsored / pay-per-click payments)?

Actually, it's easier than you think - provided certain limitations are recognized and accepted:

1. Whatever you're selling, sell one product per domain name. 2. Have a domain name, if possible, that describes your product explicitly. 3. Have a TITLE for your main page that enhances and specializes your product even further. 4. Have a "killer" headline, asrepparttar 128190 first sentence inrepparttar 128191 BODY, that talks only to your targeted group of prospects. That headline is alsorepparttar 128192 META Description you must use. 5. Fromrepparttar 128193 BODY of your sales copy, extractrepparttar 128194 most significant and repeated words or phrases asrepparttar 128195 Keyword META tags to use inrepparttar 128196 HEAD.

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