Latest Posts on USATaxAid's Blogs
Creating Multiple Streams of Income
July 30, 2010 | Posted in Megan Hughes, USATaxAid's Blogs
Instant gratification. For some people, it’s a lifestyle. For business owners, it can be a trap. I see instant gratification in business terms as a deal or a project that makes you money right now. Nothing wrong with that – we’ve all got to keep the lights on and food in the cupboard. And in the early days, it’s essential. You’ve got a reputation to build. But if you run your business solely on... Read More »
3 Types of Business Income
July 29, 2010 | Posted in Diane's Blog, USATaxAid's Blogs
Does your business make you tired, day in and day out? If so, chances are you’re working at just one type of business income: active income. Active income means that you have to work to get paid. It also means that you haven’t looked at ways of leveraging your time. You’re caught in the entrepreneurial time trap. Bootstrapping in the beginning got your through what you needed to, but... Read More »
Why ‘Work Your Passion’ Won’t Make You Rich
July 28, 2010 | Posted in Diane's Blog, USATaxAid's Blogs
There is a popular saying that if you work at your passion, the money will follow. Sometimes it works, most often it doesn’t. Why? Or, let’s look at it the opposite way. What about the people who work at something that they are good at and that makes them money, only to burn out? They never had the passion for the work. There are actually three elements to creating that... Read More »
Why Do Business Owners Have More Money?
July 27, 2010 | Posted in Diane's Blog, USATaxAid's Blogs, Uncategorized | 3 Comments
One of the real life stories from Smart Business Stupid Business is about a client of mine who went from employee to business owner and discovered $10,000. Before he lost his job, he was making $50,000 per year as a middle manager. His credit cards were maxed out and he worried everyday driving to work because his tires were shot. If he lost a tire, he’d have no way to buy another. Then... Read More »
Two Ways To Put Money In Your Pocket
July 26, 2010 | Posted in Diane's Blog, USATaxAid's Blogs, Uncategorized
Want to be $1,000 richer this Friday? Sure! Who wouldn’t? There are two ways to make that happen: make more money or pay less in expenses. If I stopped there, though, this would be the shortest blog post I’ve ever written. This week we’re going to take a bit of a departure from taxes to talk about how to put more cash in your pocket. If you pay less taxes, you’ll... Read More »
5 Reasons Why Series LLCs Rock
July 23, 2010 | Posted in Diane's Blog, USATaxAid's Blogs
The best structure these days, hands down, is the Series LLC, if it works. There are currently 8 states that have Series LLC law. They are Delaware, Illinois, Iowa, Oklahoma, Nevada, Tennessee, Texas and Utah. If you’re not in one of these states, you still may be able to take advantage of the Series LLC law. California is causing a bit of a ruckus on the fees, but still allows a... Read More »
Member or Manager? Which is Better for Your LLC?
July 22, 2010 | Posted in Megan Hughes, USATaxAid's Blogs
There are two kinds of LLC: those managed by all of the members equally, and those managed either by one or more members, or by a third party individual or business structure. When you're trying to determine which one is better for you, the crucial issue to consider is control. The choice of making your LLC member-managed or manager-managed has no bearing on the LLC’s tax election. It doesn’t matter if you’re planning to... Read More »
Why Can’t I Find an LLC Tax Form?
July 21, 2010 | Posted in Diane's Blog, USATaxAid's Blogs
Every so often I get an email question about tax preparation. I’ll send those questions one of two places: (1) Information on how to become a client or (2) (if they want a free answer) over to the USTaxAid form. That way there is leverage from answering the question. Other people get the benefit from both the question and the answer. I get versions of this question often enough that... Read More »
Basics of an Operating Agreement
July 20, 2010 | Posted in Megan Hughes, USATaxAid's Blogs
Here's an indisputable fact: An Operating Agreement is THE most important document you'll ever prepare for your LLC. No other document is as important to your LLC’s operation. It needs to be accurate, it needs to be complete, and it needs to set out what you want it to say. With a bad, incomplete or incorrect Operating Agreement, you're potentially exposed to liability, increased IRS scrutiny, and more. With no Operating Agreement you're at the... Read More »
LLC vs S Corp
July 19, 2010 | Posted in Diane's Blog, USATaxAid's Blogs | 2 Comments
LLC vs S Corporation Starting or growing a business? Chances are one conversation you’ve had (or wish you’d had) with your attorney and CPA is about the type of structure you need to have for your business or investments. If you have appreciation assets, I think every informed advisor will tell you not put them inside a C Corporation. There are a few guys out there who will tell you to use a C... Read More »
The Risky World of Pensions
July 16, 2010 | Posted in Megan Hughes, USATaxAid's Blogs
If you’re fortunate enough to still have a pension, chances are you’re wondering how to rebuild it. Will real estate come back? Is the stock market your best bet today? How about self-directed investing? What’s involved in charting your own pension destiny? There are all kinds of ways to self-direct a pension, and the levels of self-directedness vary. For example, if you’re contributing to a company-sponsored 401(k) plan, your self-direction is likely limited to whatever... Read More »
The Great Nevada Corporation Myth
July 15, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 1 Comment
“Come to Tax-Free Nevada and incorporate your business! Never pay income tax!” Nice try, but it's a fantasy so factually incorrect it’s hard to know where to begin. It’s a permanent point of contention for me, being in the formation and structuring world, to see Nevada STILL being touted as a tax-free state. Here are the facts: FICTION: Forming a Nevada entity means you don’t owe taxes. FACT: Every business formed in the United States and deriving... Read More »
