1031 Tax Exchange
A 1031 tax exchange is an exchange in which capital gains tax deferral is possible to real estate owners who sell their investment, rental, business or vacation real estate, and reinvest the net proceeds in other real estate. Real Estate held for these purposes are called 1031 properties. Sometimes they are called like kind sales.
A 401k is a defined contribution retirement plan that allows employees to have part of their pre tax pay deducted from their paycheck and put into an account that will be held tax exempt until such time as the money is actually used.
A 529 Savings Plan for education is a state-sponsored program designed to help finance education expenses. Section 529 plans are administered by certain investment companies and subject to contribution requirements and investment guidelines.
SBA 7(a) Term Loan Guaranty Program Defined - The U.S. Small Business Administration's 7a Term Loan Guaranty program provides loan guarantees to approved banks and approved lenders. In the event of default by the borrowing Small Business Concern (SBC), the SBA is willing to reimburse up to 90% of the loss that the lender would otherwise sustain.
Accounts Payable definition - this is a listing of accounts in which money is owed to specific companies, vendors or individuals for products or services that have been purchased on credit. Accounts payables are usually an item that will be paid for in a relatively short period of time, less than one year.
Accounts Receivable Financing helps you convert your private business or government invoices into cash quickly and easily, with usually no personal guarantees and no long-term contracts. Accounts Receivable financing or factoring also helps you improve your overall accounts receivable positiions.
Alter Ego Doctrine Definition-corporation used by an individual to conduct personal business. It’s illegal. In alter ego scenario, individuals will be held liable to the corporation. See also piercing the corporate veil.
Angel Investors - Individuals or groups who invest in businesses looking for a higher return than they would see from more traditional investments. In return for their investment they often are highly involved in the business.
Anonymizer Definition: An Anonymizer is an intermediary which prevents websites from seeing a user's Internet Protocol (IP) address. An anonymizer, also called a web anonymizer, is a privacy service that allows a user to visit Web sites without allowing anyone to gather information about which sites they visit and without allowing a visited Web site to gather information about them.
Articles of Incorporation - Definition The Articles of Incorporation are the primary legal document of a corporation; the Articles of Incorporation serve as a corporation's constitution. The articles are filed with the state government to begin corporate existence. The articles of incorporation contain the most basic but mandatory information on the corporation as required by state law.
The State of California requires that every person, firm, corporation, partnership, llc or other business organization occupying real property within the State for business purposes shall obtain a Business License.
Chapter 11 bankruptcy is the type of bankruptcy used by financially struggling businesses such as companies in the Airline Industry to reorganize their affairs. It is also available to individuals. Individuals who consider Chapter 11 bankruptcy usually have debts in excess of the Chapter 13 bankruptcy limits or own substantial nonexempt assets, such as several pieces of real estate.
Chapter 13 bankruptcy, called the reorganization bankruptcy, is very different from Chapter 7 bankruptcy (which wipes out most of your debts). In a Chapter 13 bankruptcy, you use your income to pay some or all of what you owe to your creditors over a period of time. Most Chapter 13 bankruptcies last three years. Some last longer a court can approve a case as long as five years. A few are shorter if you pay off 100% of your debts in less than three years, your case will be over sooner.
The COBRA health benefit provisions became law in 1986. The law amends the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code and the Public Health Service Act to provide continuation of employer-sponsored group health coverage that otherwise might be terminated.
A Computer Firewall is a shield that protects your computer system by creating a barrier between your computer, or internal (inside) network, and the outside world. Computer Firewall filters traffic into and out of the firewall is blocked or restricted as you decide.
Copyright is a legal protection for the creator or of a creative work. This protection allows the creator to control how the work is used and by whom. Also a bundle of exclusive rights conferred by a government on the creator of original literary or artistic works such as books, articles, drawings, photographs, musical compositions, recordings, films, and computer programs.
Debt vs Equity: Starting up a business can be a strain on your personal finances. Understanding financal basics, will clarify the process. It can take several months or more before your new business is profitable and can provide financial support for you and your family.
Disability insurance replaces income you lose if you have a long-term illness or injury and cannot work. This is an important type of coverage for working-age people to consider. Disability insurance does not cover the cost of rehabilitation if you are injured. Check your major medical insurance to see if it is covered there.
Employers must apply for and obtain a federal Employer Identification Number, EIN from the Internal Revenue Service. The EIN is an employer's account number for the collection and reporting of taxes withheld and wages paid to the employees.
Factoring refers to an arrangement whereby a factor purchases an account(s) receivable from a business at a discount to the face value of that receivable. The factor earns a fee based on the number of days that the receivable remains unpaid, i.e., the longer the receivable remains unpaid, the larger the fee incurred.
When your Foreign Corporation expects to transact business outside your state of formation, your company may be required to qualify as a "foreign corporation". There are many "company formation companies" that can file the necessary paperwork to qualify your business as a foreign corporation in any of the 50 states.
When your company expects to transact business outside your state of formation, your company may be required to qualify as a "foreign LLC". There are many "company formation companies" that can file the necessary paperwork to qualify your business as a foreign corporation in any of the 50 states.
Traditional franchising is an established business technique that brings together the owner of a branded product or idea with another. A franchisor provides a trademark or trade name and a very specific business arrangement; a franchisee pays a royalty and often an initial fee for the right to do business under the franchisor's name and system. The contract binding the two parties is the franchise.
A health savings account is a new tax exempt health account. Under a health savings account employees or the self employed can accumulate pre-tax savings inside their health savings account for smaller expenses such as co-payments, non-covered health services, or medical services before the deductible are met.
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) was signed into law on August 21, 1996. This law includes important new protections for millions of working Americans and their families who have preexisting medical conditions or might suffer discrimination in health coverage based on a factor that relates to an individual's health.
Independent Contractors are defined by the IRS, as the people who contract to perform services for others, but don't have the legal status of employees. Businesses can save time, money and headaches by hiring Independent Contractors instead of employees.
An Individual Taxpayer Identification Number (ITIN) is a tax processing number
issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and has a 7 or 8 in the fourth digit, example 9XX-7X-XXXX.
A Joint Venture is a General Partnership typically formed to undertake a particular business transaction or project rather than one intended to continue indefinitely. Most often, joint ventures are used in real estate matters where 2 or more persons undertake to develop a specific piece of real property.
Key Man Life Insurance If you or any other individual are so critical to the operation of your business that it cannot continue in the event of your illness or death, you should consider key man insurance.
A Limited Partnerships, one or more general partners manage the business while limited partners contribute capital and partake in the profits and/or losses but take no part in running the business. In a Limited Partnership the general partners remain personally liable for partnership debts while limited partners incur no liability with respect to partnership obligations beyond their capital contributions. The major purpose of this form of business entity is to encourage private investors to invest without risking more than the capital they have contributed.
A living trust avoids probate and therefore gets assets distributed significantly more quickly than a will does. It also offers a higher level of confidentiality, because probate proceedings are a matter of public record. In addition, trusts are usually harder to contest than wills.
A Living Trust avoids probate and therefore gets assets distributed significantly more quickly than a Will does. It also offers a higher level of confidentiality, because probate proceedings are a matter of public record. In addition, Trusts are usually harder to contest than Wills.
Long-term care insurance is designed to cover the costs of nursing home care, which can be several thousand dollars each month. Long-term care is usually not covered by health insurance except in a very limited way. Medicare covers very few long-term care expenses.
A Medicare HMO is an HMO that has contracted with the federal government under the Medicare+ Choice program to provide health benefits to persons eligible for Medicare that choose to enroll in the HMO, instead of receiving their benefits and care through the traditional fee for service Medicare program.
Merchant Accounts - Being a Small Business or a Home Based Business, accepting credit cards with a merchant account can increase your sales potential by seventy million customers in the U.S. Credit card processing analysts estimate 9 out of 10 people use a credit card for their online orders.
A patent is the grant of a property right to the inventor, issued by the Patent and Trademark Office. The term of a new patent is usually twenty years from the date on which the application for the patent was filed in the United States.
Piercing the Corporate Veil
Officers, directors and controlling shareholders have a general fiduciary duty of loyalty and care which should govern all their corporate conduct. Unless they breach that duty by gross negligence or acts in bad faith, they usually will have no personal liability to third parties. Piercing the Corporate Veil.
Probate is the legal process by which property owned by someone who is deceased has passed to his or her heirs after the death. Simply stated, probate is simply passing a title or, determining who gets what when someone passes away, either by looking at the will, or if none exist, then the laws of intestacy or laws that determine the hierarchy of heirs.
Registered Agent - Almost all states require corporations and Limited Liability Companies (LLCs) to appoint a registered agent in the state where the company is formed. The registered agent is responsible for receiving legal and tax documents including: notice of litigation, franchise tax forms and all annual report forms.
Regulation D is a government program created under the Securities Act of 1933, instituted in 1982, that allows companies the ability to raise capital though the sale of equity or debt securities. The programs were designed to provide two main things, an exemption to sell securities in a private transaction without registering the securities (something that happens in any transaction involving investors) and the appropriate framework and documentation for doing so properly. Regulation D Offerings are the practical method companies use to raise capital from individual investors.
S Corp-A corporation with 75 or fewer shareholders, that has elected and qualified for a special tax status with the Internal Revenue Service (IRS). The main advantage associated with the S-Corporation is that the income passes through to the shareholders, therefore avoiding a perceived double taxation of a C-Corporation.
The best way to show bankers, venture capitalists, and angel investors that you are worthy of financial support is to show them a great business plan. Make sure that your plan is clear, focused and realistic. Then show them that you have the tools, talent and team to make it happen. Your business plan is like your calling card, it will get you in the door where you'll have to convince investors and loan officers that you can put your plan into action.
A Shelf Corporation is a corporation that is formed, but has never been used. Shelf corporations should come with a certificate of incorporation and franchise tax documents that have been filed with the Secretary of State of where the shelf corporation was formed.
Statutory Employees occupy a sort of middle ground between independent contractors and regular employees. If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute ( statutory employees ) for certain employment tax purposes if they fall within any one of the following four categories and meet the three conditions described under Social security and Medicare taxes , below.
A tax election only; this election enables the shareholder to treat the earnings and profits as distributions, and have them pass thru directly to their personal tax return. The catch here is that the shareholder, if working for the company, and if there is a profit, must pay herself wages, and it must meet standards of "reasonable compensation".
You purchase (for a tiny fraction of the value of the property) the tax lien (or what's sometimes called a tax lien certificate) from the government agency that owns it because they don't want to deal with waiting around to collect their money.
A Trademark is defined by law as a word, name, symbol, slogan, design or any combination thereof adopted and used by a manufacturer or individual or any word, name, symbol, device or any combination thereof which the person has a bona fide intention to use in commerce to identify and to distinguish the person's goods from
those goods manufactured or sold by others.
For most of us the actual difference between 1099 Independent Contractors and W-2 Employees is clear cut for several reasons. But there are many of us out there that have never encountered it or never even thought to discover and understand their differences. In this article, I will convey to you the proper and necessary information so that you may determine which situation is best suited for you.
Wrap-Around Mortgaging can be used for your Small Business Startup. Wrap Around Mortgages - usually means that there is an assumable loan on the property, say $30,000 at 6 percent, and that a seller or other party takes back a loan for the buyer, say, $100,000 at 8 percent.