Small Business

You can get a free copy of the IRS Small Business TXA Guide'S via the internet from the IRS at http://www.irs.gov/businesses/small/article/0,,id=99083,00.html and click on the desired guide.

Your customers or target market is the group of people at which you aim all your marketing efforts. People with common characteristics set them apart as a group. The more statistics you have about a target market, the more precise marketing strategy you can develop.

A board of directors should be comprised of people who are interested in the development and the success of the business as well as community minded individuals. The board of directors shall constitute the selected governing body of the corporation. The initial board shall be appointed and afterwards elected by other members of the board. All operational and managerial authority regarding the corporation shall reside with the board of directors. Generally, the board of directors includes a president who acts as the CEO, vice president, secretary and treasurer.

An employer must pay its employees at least the minimum wage for all hours worked, and time and one-half overtime pay based on an employee's regular rate of pay for all hours worked in excess of 40 in a workweek unless the employee is exempt for some reason. The minimum wage and overtime pay are based on the hours worked each workweek and not by the number of hours worked each day or the number of days worked. Each workweek stands on its own regardless of the length of the pay periods. For purposes of overtime pay, employers of tipped employees must calculate the time and one-half overtime pay based on the employee’s regular rate of pay, which includes both the cash wage paid to the employee and the tip credit counted as wages for the employee at least equal to the minimum wage, which becomes the regular rate of pay for a tipped employee. Employers must apply tipped employees' hourly wage rate when determining overtime compensation. That rate can never be less than the minimum wage even if the employer is actually paying less by taking a tip credit. Take the example of a waiter who receives $2.13 an hour and enough in tips to make at least the minimum wage per hour. The employee's overtime wage would be 150 percent of $7.25 --- the standard minimum wage --- rather than $2.13. If the waiter receives a base wage higher than $7.25, in addition to tips, 150 percent of that higher amount would be his overtime wage.

Forecasting is a projection of the anticipated financial performance of a company. Forecasts typically include a projected income statement,a pro-forma balance sheet and a cash flow statement. In order to arrive at projected figures, extensive research should be done to including statistical information on the competition, product trends and client demographics. This information will help you obtain reasonable estimated sales amounts. You should also get quotes from suppliers and realtors to obtain estimated expense amounts. Projections are not a picture of what you would like to see happen to your company, but carefully calculated, realistic numbers. Speak to your local CPA to assist you in this process

Your personal credit history is considered for a business loan because it gives the lender or bank a history of your personal money management, demonstrates repayment of debts and it lets the lender know of existing debts including delinquencies, bankruptcies, references, liens, student loans, etc. It is also important because if your business is a sole proprietorship or individual, there in no difference in credit history for loan purposes. Generally, if you business is a corporation, LLC, partnership, trade company, etc., then the bank or lender looks at the business history.

Your personal credit history is considered for a business loan because it gives the lender or bank a history of your personal money management, demonstrates repayment of debts and it lets the lender know of existing debts including delinquencies, bankruptcies, references, liens, student loans, etc. It is also important because if your business is a sole proprietorship or individual, there in no difference in credit history for loan purposes. Generally, if you business is a corporation, LLC, partnership, trade company, etc., then the bank or lender looks at the business history.

Incorporation can provide many benefits. The most important factor is that incorporation can help limit your personal liability as a business owner.
Generally, creditors of your corporation must satisfy their claims by seizing the assets of the corporation rather than your personal assets.
In contrast to a sole proprietor or partner in a partnership, you are financially responsible for all liabilities of the business, and your personal assets are subject to seizure or lien by creditors.
Other benefits of incorporation can include greater tax deductions for health insurance and medical expenses, lower payments for Social Security tax and Medicare tax, and greater opportunity to raise capital for the business through the issuance of stock.

A limited liability corporation offers limited liability to its owners, but may elect to be taxed as a partnership which passes all the income and losses through to its owners. A C corporation is taxed at the federal level and profits are either retained by the corporation or distributed to the shareholders. A profit distribution is called issuing a dividend. These profits are then taxed as income in the shareholders personal taxes. Witha LLC, the owner has options of how to be taxed. Ithe IRS allows 3 choices. A Corporation tax like a general C corporation, Partnership taxation like a S corporation or