Tag Archive | LLC

Banking made easy

You are working rigid to receive money. Naturally, you want to take care of your earnings and make it grow to meet your needs. You also want to take good care the income of your business. These are your reasons to put up a bank account. Well, it is easy to put up a bank account but choosing the right bank for you entails efforts. Like shopping for good, you also have to look around for more banks and compare their services and benefits.

There are available banking services that really help people manage their cash easily. The range is from basic saving accounts to investments. There are also payroll processing if you have a huge company, accounts payable processing if your company buys assets, online transactions and insurance service to support the operation of business.

Here are tips you can use in choosing the right bank. Find a bank that would meet the banking requirements of your business. The right bank should secure the best deals for you and avoid unnecessary expenses. Say for example you have to transact business in other countries at times. You need to have access of your cash anytime so look for a bank that has global presence. If your business is based locally, choose a bank with personalized services. Often times, smaller banks are friendlier for small businesses.

Next thing you should consider is if banks have online banking. This will allow you to pay your bills conveniently or transfer money. Online banking should also enable you to make online downloads of your banking transactions and reports. Consider the branches of the bank and how close they are to your house or to your business site.

You may try boutique investment bank if your business have to acquire funds or if you need guidance and advice regarding transactions you will encounter. An example of this is the LIATI Group, LLC of .

If you have selected a bank already,examine the things you need in terms of their services, charges and penalties. Research about your bank, its clients and get information regarding their checking and saving accounts. Find out their loan interest and other services that might be useful for you. If you need wealth management, consider having boutique investment banks like that of .

After researching, visit your chosen bank and make final assessments. See if they have friendly employees and if they are professionals too. Approach the manager and ask if they also have a branch in investment banking similar to and LIATI. If not, pursue your choice with their bank if you are convinced and satisfied.

Tax Tips for New Ecommerce Entrepreneurs

New ecommerce entrepreneurs can find them confused and confounded by the tax and accounting requirements of their venture. And thats a shame: If someones spotted a great new category and successfully built a web presence, heck, that someone shouldnt find themselves bogged down with the accounting minutia. The entrepreneur should focus on increasing traffic, expanding margins, and growing cash profits.

With that in mind, I offer up the following tax and accounting tips:

Tip #1: Dont Incorporate

A true corporationwhether a C corporation or an S corporationsaddles your business with more complicated tax accounting and a bunch of state filing requirements. You dont want to deal with this redtapeor at least not until youre profitable.

Instead, operate your business as a sole proprietorship. If youre 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 youre actually in business-in other words, before youve got a business license and before youre selling or trying to sell your stuffarent 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 lawand some people dont know thisyoure 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 youre 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 thats true for you, hey, congratulations. If and when you do need employees, however, dont 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 Youre Profitable

Ive 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.