Small Business

The standard mileage rate(s) for 2012 and 2011 is Charity = 14 cents a mile.

Small businesses especially those performing contracting services will be asked to bond their work in advance. In some states certain types of contractors are required to be bonded. A bond is sometimes referred to as a surety bond is a third party obligation promising to pay if a vendor does not fulfill its valid obligations under a contract. There are various types of bonds; (LICENSE, PERFORMANCE, BID, INDEMNITY & PAYMENT). A bond is a financial guarantee that you will honor a business contract.

A Performance bond is a guarantee that you will perform work in accordance with the terms of a contract. A BID bond is a guarantee you will perform work if the bid is won by you. A Indemnity bond promises to reimburse loss incurred if you fail to perform or if you fail to pay other vendors in the performance of the contact. A License bond is required by some states for certain businesses. In some cases you pay the state directly rather than obtaining a bond.A Payment bond promises you will pay all subcontractors and material providers utilized in the performance of a contract.

Contact local and other insurance companies and agencies to see what they might be able to offer you in the way of becoming bonded. Be sure to keep a list of each place you contact as well as the information you find out so that you can compare each one to find out which is best for you. Once you find a company you will have to fill out an application. Before you purchase a bond from any bonding company, have the bond documentation reviewed by your local CPA or lawyer to ensure that you understand exactly what the bond can and cannot protect you and your customers against.

DBA is an acronym for "Doing Business As". It is also known as a Fictitious Name. Most states require that sole proprietorships and partnerships that are conducting business under a name other than the owner(s) must file for a DBA certificate in the county where business is conducted. The DBA certificate is generally obtained at the Clerk of Court of the county in which business will be conducted. Fees are typically between $100 and $225 and most courthouses have records that may be searched to determine if your suggested name will be unique.

Worker's Compensation is a pretty straightforward type of coverage. It provides payment for all work-related injury medical bills, rehabilitation, and provides a certain amount of income after a waiting period (usually 7 days). It provides a death benefit, as well. Workers Compensation premiums are based on the payroll earned by employees during the policy period which usually is for one year. Rates are determined on the type of work performed. Your insurance agent can explain this coverage as it relates to the laws in your particular state.

DUNS stands for the Data Universal Numbering System. It is a database maintained by Dun and Bradstreet that is used by the Government to identify each contractor and their location(s). This number is required to register with the Central Contractor Register (CCR) that is used by the government's electronic commerce/electronic data interchange (EC/EDI) system called FACNET. You can obtain a DUNS number at no cost by calling Dun and Bradstreet at 800-814-1435

SIC stands for the Standard Industrial Classification Code. It is a four digit number assigned to identify a business based on the type of business or trade involved.
The first two digits correspond to major groups such as construction and manufacturing, while the last two digits correspond to subgroups such as constructing homes versus constructing highways.
A company can determine its SIC number by looking it up in a directory published by the Department of Commerce, or by checking in the SIC book in the reference section of a local library.
SBA size standards are based on SIC codes.

Surety Bonds provide reimbursement to an individual, company or the government if a business fails to complete a contract. The Small Business Administration (SBA) guarantees surety bonds in a program much like SBA's guaranteed loan program.