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Casual Articles - Tax Tips for New Ecommerce Entrepreneurs
One of the best ways to increase sales of carwash fundraisers and to make more money for your nonprofit youth group, soccer team or high school band is to sell presale tickets. Let me tell you why; you see, if you have 20 people in your group and each person sells 20 tickets at five dollars each and that is $100 per person times 20 which equals $2000 and the best part of this equation is you have not even washed a car yet.Even better 80% percent of the people who buy carwash tickets historically do no
Tip #3: Automate Your Bookkeeping & Accounting
By law—and some people don’t know this—you’re required to maintain an accounting system that lets you clearly measure your income. As a practical matter, this means you need to use a product like Quic
What’s the biggest threat to your company? Competition? Regulation? Changing technology? Maybe you should put fear on your list. Fear is a small word that somehow touches our lives in a big way. Fear of danger is a survival mechanism. Fear of the change and the unknown is a destructive force that can consume workplaces and degrade the performance of our companies. As leaders, one of our most important jobs is to ensure that fear does not take root.The way to diminish fear in the workplace is direct and
With that in mind, I offer up the following tax and accounting tips:
Tip #1: Don’t Incorporate
A true corporation—whether a C corporation or an S corporation—saddles your business with more complicated tax accounting and a bunch of state filing requirements. You don’t want to deal with this redtape—or at least not until you’re profitable.
Instead, operate your business as a sole proprietorship. If you’re concerned about legal liability protection, note that you can setup a one-owner limited liability company, or LLC. A one owner LLC is treated as a sole proprietorship for income tax purposes.
Tip #2: Start Your Business Before Making Investments
Expenditures you make before you’re actually in business-in other words, before you’ve got a business license and before you’re selling or trying to sell your stuff—aren’t very deductible.
Specifically, you can probably deduct the first $5,000 of these expenses. But any amounts in excess of the $5,000 must be amortized over the next fifteen years.
What this means is that you want to start your business before you start spending money on advertising, training, web development, accountants and lawyers and so on.
Tip #3: Automate Your Bookkeeping & Accounting
By law—and some people don’t know this—you’re required to maintain an accounting system that lets you clearly measure your income. As a practical matter, this means you need to use a product like Quick
If you are graduating high school or thinking about going back to school for a degree in graphic design, you may be wondering if there is any advantage in doing so. You may already be an accomplished artist or designer and think you have the right skills to go out and find a great job. Why bother with an advanced degree when you could be exploring employment opportunities without one?Even if it is true and you have all the skills you need for an entry-level position with a graphic design firm or to sta
With that in mind, I offer up the following tax and accounting tips:
Tip #1: Don’t Incorporate
A true corporation—whether a C corporation or an S corporation—saddles your business with more complicated tax accounting and a bunch of state filing requirements. You don’t want to deal with this redtape—or at least not until you’re profitable.
Instead, operate your business as a sole proprietorship. If you’re concerned about legal liability protection, note that you can setup a one-owner limited liability company, or LLC. A one owner LLC is treated as a sole proprietorship for income tax purposes.
Tip #2: Start Your Business Before Making Investments
Expenditures you make before you’re actually in business-in other words, before you’ve got a business license and before you’re selling or trying to sell your stuff—aren’t very deductible.
Specifically, you can probably deduct the first $5,000 of these expenses. But any amounts in excess of the $5,000 must be amortized over the next fifteen years.
What this means is that you want to start your business before you start spending money on advertising, training, web development, accountants and lawyers and so on.
Tip #3: Automate Your Bookkeeping & Accounting
By law—and some people don’t know this—you’re required to maintain an accounting system that lets you clearly measure your income. As a practical matter, this means you need to use a product like Quic
Running an advertising campaign can take much of your time, effort, and money. And if you are using direct mail marketing or advertising as a medium, you are bound to worry about many things like logistics, addresses, and the mailing system.Just generating a mailing list can be tedious and time-consuming. But with an agency to help you, you can sit back and count on effective and creative direct mail advertising.Agency ServicesThe success of an advertising campaign rests on the quality of
Instead, operate your business as a sole proprietorship. If you’re concerned about legal liability protection, note that you can setup a one-owner limited liability company, or LLC. A one owner LLC is treated as a sole proprietorship for income tax purposes.
Tip #2: Start Your Business Before Making Investments
Expenditures you make before you’re actually in business-in other words, before you’ve got a business license and before you’re selling or trying to sell your stuff—aren’t very deductible.
Specifically, you can probably deduct the first $5,000 of these expenses. But any amounts in excess of the $5,000 must be amortized over the next fifteen years.
What this means is that you want to start your business before you start spending money on advertising, training, web development, accountants and lawyers and so on.
Tip #3: Automate Your Bookkeeping & Accounting
By law—and some people don’t know this—you’re required to maintain an accounting system that lets you clearly measure your income. As a practical matter, this means you need to use a product like Quic
Being an entrepreneur is one of the world's best opportunities, but it can also be stressful at times. Like when you've got an important client meeting scheduled that you have to cancel because of an emergency trip to the dentist. Or you come down with the flu right before a big conference that you've rented a booth for. Or your return home from vacation gets delayed and you find that you're a day behind in your work ;).It's times like these that overwhelm can zap your energy, making it even harder to
Specifically, you can probably deduct the first $5,000 of these expenses. But any amounts in excess of the $5,000 must be amortized over the next fifteen years.
What this means is that you want to start your business before you start spending money on advertising, training, web development, accountants and lawyers and so on.
Tip #3: Automate Your Bookkeeping & Accounting
By law—and some people don’t know this—you’re required to maintain an accounting system that lets you clearly measure your income. As a practical matter, this means you need to use a product like Quic
Once you've decided to incorporate, the question becomes, “Where?” For many, the best choice is Nevada . Why?The corporate veil in Nevada has only been pierced twice in the last 29 years, and both cases involved outright fraud.In fact, there were other Nevada cases where the corporation did not do resolutions, minutes and meetings, they had thinly capitalized the company, commingled funds – and still Nevada protected the corporate veil! Nevada is a pro-business state, meaning they strongly prote
Tip #3: Automate Your Bookkeeping & Accounting
By law—and some people don’t know this—you’re required to maintain an accounting system that lets you clearly measure your income. As a practical matter, this means you need to use a product like Quicken or QuickBooks.
But you ought to go one better than simply using desktop accounting software. Make sure that you’re taking advantage of online banking and bill payment features which integrate your accounting system with your banking. As much as is possible, for example, you want to be able to move money from PayPal to your bank to QuickBooks simply by typing a few keys or clicking your mouse a few times.
Tip #4: Hire a Payroll Service Before Hiring Employees
Many successful ecommerce business owners can run their operations without employees. And if that’s true for you, hey, congratulations. If and when you do need employees, however, don’t try to handle the payroll yourself. Oursource the payroll to one of the large payroll service bureaus like ADP, Payroll, or QuickBooks.
These services are expensive. Figure $1000 to $2000 per year. But the services let you avoid the bookkeeping nightmare called payroll and prevent you from getting into payroll tax trouble.
Tip #5: Consider S Corporation Status After You’re Profitable
I’ve written and talked much about how S corporations save taxpayers money and how the right way to set up an S corporation is first create a limited liability company and then ask the IRS to treat the LLC as an S corporation for tax purposes.
Let me review the basics here again, however. Suppose that you’re making $90,000 a year off your web site. If you just treat your business as a sole proprietorship—or an LLC treated as a
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