Casual Articles

Tips For Getting The Right Mortgage
Applying for your mortgage and being able to get it are two different things. Also knowing when to apply and where can enter into the picture, too. Here are some tips to help you be better prepared to get the mortgage you are looking for.Check Your Credit ReportGet a copy of your credit report and look it over for mistakes. Often times, there may be entries made on it that were made erroneously. These potentially bad marks could reduce the likelihood of your getting a mortgage - even if you always pay on time. If you find bad marks, then talk to the people involved and work to get it settled - before you apply. If you find that your rating may not be as good as you had hoped, then you may want t

usiness? Maybe we need more in order to preserve the family's earnings stream of $350,000. This might require life insurance in the amount of $5 or $6 million dollars and might warrant use of an irrevocable life insurance trust (ILIT).

If the business has multiple owners, a buy/sell agreement should be in place reflecting the proepr valuation of a given owner's interest. The plan might include life insurance and some degree of self-insuring and will include a mechanism for carrying out the buy-out in the event of an untimely death.

If retirement is within sight, knowing the value of the business will help with proper structing so that both buyer and sell can get much needed tax attributes from the transaction. The seller will be looking for long-term capital gain essentially while the buyer will be looking for radpid write-offs to help ease the financial burdens of paying back any loan obligations. Typically, the transaction will in

Start New Business with Cheap Business Loans
Business needs money to generate money. Sufficient funds are the first requirement to start a new business. But, the question arises from where to arrange the required amount? The best and reliable source of finance for business is cheap business loans.Cheap business loans can be used for the following purposes:• Starting a new business • Investing in existing business • Buying machinery and equipments • Consolidating business debtsCheap business loans are easily available in the financial market. Majority of the lenders including banks, financial institutions and other private lenders provide cheap business loans on competitive rates. There are many online lenders that pr

How does one go about determining the value of his closely held business? There are many ways to make this determination and in all too many circumstances, the valuation is given little or no consideration by the business owner. Not knowing a business' value can lead to improper estate planning, a poorly written buy/sell agreement, and a lack of planning regarding the business owner's retirement. If this is the situation regarding your closely held business, give this article your undivided attention as we will explore my favorite method of valuing a closely held business (a business that is not publicly traded). If you are just starting a new business. please read this article and gain from it the importance of developing a strategic plan and thinking beyond it's normal day-to-day operations.

The value of a business is comprised of two components, its existing asset base or net worth and its going concern value or goodwill. It is rear for a closey held business to own real estate or similar assets so we will not consider a fair market assessment of this asset type. Let's assume that we have a business organized as a C corporation (a C corporation is a taxable entity in and of itself and the owners have th ability to determine whether the entity will pay tax or the shareholder group-beware of double taxation). The net assets fo the business total $100,000 after taking total assets and subtracting total liabilities. During the upcoming year it is projected that the business will have $50,000 in net earnings and it's sole shareholder will take compensation in the amount of $300,000. We have our net asset base but now must arrive at a going concern value. Let's assume that if the owner went out to hire a replacement for himslef, he would pay fair market value compensation of $150,000. To arrive at our going concern value, we must first adjust our earnings to what is known as stabilized earnings. The following is our calculation:

Net Earnings $ 50,000
Add officer salary adjustment 150,000 ($300,000-$150,000)
Return on net assets 8,000 ($100,000 times 8% return
assumed)
Stabilized Earnings $ 208,000

After calculating our stabilized earnings, we multiply this number by our average important factor multiplier. This is determined by assessing a number of factors important to the business and is very subjective. The facotrs should range between 0 nad 6 and should be compared to such factors as competition in the market place, companies roll in being a market leader, patents if applicable, employee skills, etc. The sum of the factors are added and the average is taken. Let's assume that our average factor is 5. This would make our going concern value $1,040,000. To this we add our net assets and we have a total value for the company of $1,140,000.

This valuation exercise is based on the assumption that we are operating the business as a C corporation. If this business were operating as a sole proprietorship, the salary add back would have bee a salary subtraction instead. The total earnings from the sole proprietorship would have been $350,000 as there is no salary deducted for the owner of a sole proprietorship. We would still arrive at our same valuation number givne the same set of circumstances as we would subtract $150,000 from $350,000 to arrive at our stabilized earnings number.

Now that we have an idea of the value of this closely held business, we can make some strategic plans. The first order of business is maintaining value if something were to happen to the business owner. Do we have a life insurance policy equal to the value of the business? Maybe we need more in order to preserve the family's earnings stream of $350,000. This might require life insurance in the amount of $5 or $6 million dollars and might warrant use of an irrevocable life insurance trust (ILIT).

Canadian Term Insurance Explained
Canadian term insurance may be a new idea for many people who think of whole life insurance as simply a policy you pay throughout your lifetime, but term insurance is actually a better option for most people for several reasons.Term life insurance is basically a life insurance policy that lasts for a specified period of time. Unlike whole life insurance policies which last from the moment they are purchased until the policy holder's death, Canadian term insurance may last for 10, 20 years or to age 100. While this sounds the same, you will pay much lower premiums and get higher coverage when you opt for term insurance from any of the major insurers in Canada.Term life insurance is ideal protecti

or a closey held business to own real estate or similar assets so we will not consider a fair market assessment of this asset type. Let's assume that we have a business organized as a C corporation (a C corporation is a taxable entity in and of itself and the owners have th ability to determine whether the entity will pay tax or the shareholder group-beware of double taxation). The net assets fo the business total $100,000 after taking total assets and subtracting total liabilities. During the upcoming year it is projected that the business will have $50,000 in net earnings and it's sole shareholder will take compensation in the amount of $300,000. We have our net asset base but now must arrive at a going concern value. Let's assume that if the owner went out to hire a replacement for himslef, he would pay fair market value compensation of $150,000. To arrive at our going concern value, we must first adjust our earnings to what is known as stabilized earnings. The following is our calculation:

Net Earnings $ 50,000
Add officer salary adjustment 150,000 ($300,000-$150,000)
Return on net assets 8,000 ($100,000 times 8% return
assumed)
Stabilized Earnings $ 208,000

Consumerism - Its Causes and Consequences
"You work in a job you hate, to buy stuff that you don't need, to impress people that you don't like."- UnknownAs a trustee in bankruptcy, I am seeing an increase in problem debtors whose financial difficulties arise from poor spending habits, particularly compulsive spending and lack of financial discipline.This article will address one of the key causes of financial difficulty today: consumerism, and will examine its causes and consequences. The trend of consumerism is particularly pronounced in the younger generation of consumers, and this article will focus on this particular demographic.I am hopeful that readers shall find this article insightful and will cau

ilized earnings. The following is our calculation:

Net Earnings $ 50,000
Add officer salary adjustment 150,000 ($300,000-$150,000)
Return on net assets 8,000 ($100,000 times 8% return
assumed)
Stabilized Earnings $ 208,000

Shipping Company - How To Get Your Goods To Any Place In The World!
Shipping Company delivers almost anywhere in the world. Masters of logistics the shipping co will take care of your needs whether it is just to the next state or thousands of miles over land and sea. No matter what size or shape there will be a shipping co that will be able to take care of it for you Today's shipping companies can be responsible for moving thousands of container loads per year all around the globe. The movement of goods so vital for economies is all handled by computers and experts who never have to leave their offices.Shipping companies are not all about big business. Every time we send overseas we are using some shipping co or other. How convenient it has become for us, there wil

uld make our going concern value $1,040,000. To this we add our net assets and we have a total value for the company of $1,140,000.

PPC Campaign Management as an Internet Business Opportunity
PPC campaign management, management of pay-per-click advertising campaigns, is a service that can certainly be provided through an internet-based business.Once you have learned the ins and outs of managing a pay-per- click advertising campaign, and you have perfected your own strategy, you may be prepared to offer your services to clients.Of course, if you don't know much about managing a pay-per-click campaign, you will need to brush up on your skills before taking that big step and launching a consulting or advertising agency that provides ppc campaign management services.There is definitely a market for such services because the internet has become an att

Finally, I think it is important to mention here that estate planning is essential. Imagine not knowing the value and leaving your family to deal with having to get a valuation. In addition, they might have to come up with funds to pay federal and state estate taxes and culd be forced to make an untimely sale of the business.

Don't take the valuation of your closely held business lightly. This formula is for planning purposes only to offer some idea of how to go about setting a value for the business. For estate valuation purposes, there will need to be a valuation prepared by someone who is certified to make such an assessment. Knowing your business' value through this formula can help guide the process.

Ron Piner, CPA Host of "Better Business" Saturday Mornings at 10ET On WBIS AM 1190 www.wbis1190.com www.mwibonline.com taxguy9@hotmail.com

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Venture Capital is the prize that many entrepreneurs seek, but what are your odds of success. In this article a technology focused investment banker shares his views.

When you're setting up a website, whether business or personal, you need to go through a series of steps to be sure you cover all your bases. Find out what you need to know about hosting a website, from domain registration through getting it online.

A credit report is document that contains the record of a person’s credit payment history. A credit report typically contains four kinds of information: identifying information (your name, your current and previous addresses, your social security number, your year of birth, your current and previous employers, if you're married, your spouse's name), credit information (with banks, retailers, credit card companies and other lenders), public record information (bankruptcies, tax liens and monetary judgments), and inquiries relating to other credit grantors. The credit report can be viewed by creditors to determine a person’s creditworthiness. It can also be analyzed by employers and land lords for knowing a person’s credibility.

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