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Top 4 Mistakes to Avoid Before Forming an LLC and Filing Your Taxes

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Mistakes to Avoid Before Forming an LLC

the rise of Small business ownership has exploded in recent years. Of all these business structure options, none is as popular as a Limited Liability Company (LLC). However, despite the popularity, some business owners are still unsure whether an LLC is the right business structure for them.

You can always consult a tax professional and get their opinion, but as a business owner, it is always good to have a basic understanding of what you are dealing with. This is especially important when it comes to your LLC tax preparation Because tax season is where many business owners tend to make tax planning mistakes as they hesitate about what to do.

Top 4 Mistakes to Avoid Before Forming an LLC and Filing Your Taxes

Now, let’s take a look at some of the common tax planning mistakes to avoid so that you are better prepared to run your business:

1. Understand the type of forms you need to use

As a new business owner, the tax forms that apply to you are something worth examining. Invest the time and energy to educate yourself on the type of tax forms that apply to your business because you will be glad you did in the future.

Understanding the business forms you need is one aspect, the second aspect is working with a tax accountant or a company that specializes in your type of industry. If you do this, then your accountant will take the time to sit down and explain in more detail what forms are and what you should know about them because this is what they do. They specialize in handling taxes for small business owners in their specific industry.

Many new business owners find out the hard way after being in business for a year what kind of forms they need and you could easily avoid becoming one of these businesses. For example, if you are a single-member LLC, then one of the forms that would apply to you is Schedule C. This is one of the easiest forms a taxpayer can use to fill in their income and expenses. If you have a multi-member LLC, then the form you would need is Form 1065.

You would also have to file a K-1 form. LLC owners would also have a Form SS-4. This is the form that will allow you to request your EIN number. Your EIN number is your employer identification number. Think of your EIN number as a social security number for your business. Form SS-4 must be applied and completed accordingly for any new business that is established as an LLC.

Yes, there are many forms that you should become familiar with and luckily you have a whole year before tax season to familiarize yourself with these forms and learn as much as you can before submitting your application.

2. You need to know your income type

Before you start setting up your LLC, you need to know the type of income you are making. There are three types of income categories that a business owner could fall into.

The level of income you are in will determine whether you need an LLC or some other type of business structure like a C Corporation or an S Corporation. The first type of income category is called ordinary income. This is the daily W-2 income you work hard for. Your 1099 compensation would also fall into this category. The second type of income category is called passive income.

Technically, any income you earn that you don’t have to work for is classified as passive income. Some examples of this type of income include investment property or interest you earn. The third category of income is called Portfolio Income. You get this type of income from capital gains or from the sale of capital assets.

These three categories of income will help you decide whether to register your small business under the LLC structure.

3. Use your EIN number for income and expenses

When you set up an LLC, this number should be used for your income and expenses. Use this nine-digit number to your advantage as it will help you through tax season. Open a business bank account with your EIN number.

In this way, you can avoid the use of your personal credit and separate your personal expenses from business expenses. When tax time comes, it will be much easier for you and your accountant to sit down and review all your business income and expenses, as long as you document all expenses through your business account and your EIN number.

Some new LLC owners in the past made the mistake of establishing an LLC but never used an EIN number. Come tax time, they realize there are a lot of things they end up not qualifying for because they never used their EIN number for their income and expenses.

If you already have a registered LLC and an EIN number that you haven’t used, set up a business account today and start tracking all your business income and expenses through that account.

4. You need to know how to get reimbursed

If you own an LLC, it is important that you know how to repay yourself. This is one of the mistakes that many new business owners are guilty of. They don’t know how much they should reimburse themselves for their business expenses.

This is an example of why it is important to have a separate business account for all of your business expenses. Without a separate dedicated business account, you could find yourself paying for many business items out of your own pocket when they really should be classified as business expenses.

Hopefully, these tips will help you avoid some of the many mistakes new small business owners make. Becoming a smart entrepreneur is much easier than it sounds. All it takes is the willingness to spend time studying and learning about the different aspects of owning and operating your LLC.

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Jay Z invests USD 19 million in company in cannabis products

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Jay Z invests USD 19 million in company in cannabis products

Jay Z invests USD 19 million in company in cannabis products.

Jay-Z is considered one of the most legendary rappers in the world of Hip-Hop. In addition to his musical prowess, Hov is also a smart businessman and is worth over a billion dollars for good reason. You also realize that people love to gamble.

Jay-Z was one of the names linked to the acquisition of the Denver Broncos from the NFL for a lucrative $ 4 billion. This would have made Jay-Z the first black owner of an NFL team.

Unfortunately, that ultimately didn’t happen, as Jay-Z was said to have no interest in investing that much money in the Denver Broncos in the first place. Instead, he decided to invest a lot of money in a smart home company.

Now it appears that the music mogul has decided to invest $ 19 million in payment company Flowhub as it is entering the marijuana industry alongside venture firms Headline and Poseidon.

Worth $ 200 million, Denver-based Flowhub helps cannabis dispensaries process payments and has raised a total of $ 50 million to date. While talking to Forbes, Flowhub founder and CEO Kyle Sherman spoke about Jay-Z’s investment in the business.

“When Jay says, ‘I’m not a businessman, I’m a businessman,’ it’s true. “He has incredible business acumen, he really knows how to surround himself with brilliant people and build great companies.

We are delighted to announce this capital increase. Headline is an incredible Silicon Valley-based venture capital firm, Poseidon is a pioneering investor in the cannabis industry, and JAY-Z is a global cultural and creative force no matter what industry they are involved in.

I couldn’t think of a better group to work with as we take this company to the next stage. This funding not only underscores the significant value that Flowhub offers to our clients, but also the maturation of the cannabis industry in general. We remain committed to developing innovative products that help our retail customers do better business. “

Jay-Z will continue to shine in whatever business endeavor he sets out to do and that is unlikely to change anytime soon.

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Best Tips to Boost SEO for Your Business in 2021

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Boost SEO for Your Business

The coronavirus epidemic continues to change the way that consumers shop for products and services. E-commerce adoption has been increasing in recent years and will continue to grow in 2021. 

The Internet is an excellent way for consumers to learn about brands. Consumers want to interact with companies on their terms. Your business can benefit from giving them an exceptional and simplified online experience.

Brands must be aware of the changing digital marketing trends. At the same time, they constantly update their digital presence to remain more accessible, visible. As a result, they will quickly find their target audience. 

A business must keep up with current marketing trends to remain competitive. Search engine optimization (SEO) is one of the best ways to stay competitive.

You might be a total outsider to digital marketing or a newbie and wonder what SEO is. We will be discussing why SEO is so essential for your marketing efforts and how it can benefit your business.

Understanding SEO

Generally, SEO refers to the process of optimizing your website to increase site visitors’ quality and quantity. There is a huge chance that people will find your business by creating content they see online.

However, to increase visibility, your pages and content must rank top in search engines. Your business will be the most valuable and relevant answer to your audience’s question as long as it is pertinent.

Contrary to popular belief, SEO goes beyond just filling websites with keywords. SEO is about more than just optimizing keywords. It also involves improving key aspects such as interactivity and content quality.

However, it is all about satisfying customer needs and adhering to search engine standards. Generally, three things are the core of SEO: answering consumer queries, understanding their content preferences, and anticipating the user’s intent. 

However, it is essential to understand your target audience and their preferences to achieve them. These concepts make SEO an effective sales channel and research tool for your business.

Miromind B2B SEO agency experts emphasized that putting together strategic and technical SEO elements is the key to digital marketing success. It allows you to satisfy both search engines and your customers by making your website more attractive.

Why SEO is so crucial for businesses in 2021

According to SEMRush Report, 60% of marketers believe that improving SEO and increasing organic presence should be the primary concern. In 2020, US brands and agencies spent an estimated $ 79.26 billion on SEO services. 

Among American consumers, around 93% use search engines to find a local business, more than 90% from the previous year. Consumers use search engines to search for new products, services, and companies. Search engines can be a powerful tool in helping consumers make informed buying decisions.

How will customers find out about your business if it is difficult to find? They won’t likely do a deeper search.

Search engines will likely consider brands (including those of your competitors). Even if you have terrific products and services, it doesn’t matter if consumers can’t find them. 

SEO is a must-have for any business or website to boost. Due to the Coronavirus pandemic, we were able to shop online more and have more video streaming. However, your business won’t rank high in search results if you don’t get it there.

SEO is more important than ever due to changing consumer behavior. Many brands and agencies have relied on SEO practices such as B2B lead generation options for your digital marketing in 2020, with much more expected in 2021.

Boost SEO for Your Business to grow more

SEO is easy to implement and is available for anyone. SEO is not like paid advertising, such as traditional print ads or sponsored posts. Everyone should learn it. 

You are perhaps doing effective keyword research for B2B. Although it can take time and effort to learn the basics and understand them, it is possible. 

As a result, you will get long-term benefits for your digital marketing campaign and your business in general.

Follow these tips to Boost SEO for Your Business in 2021

  • SEO brings organic traffic to your site that you can convert to customers.
  • SEO can improve your business’ reputation. People consider brands that rank highly in search engines to have high quality and trustworthiness.
  • SEO makes it easy to create a trustworthy and authoritative web experience for your users. SEO helps you keep your website in top shape and relevant to users.
  • SEO enhances the web experience. A website that is simpler, smoother, and more user-friendly will encourage new visitors to stay longer. It increases the likelihood of them becoming actual buyers.
  • SEO is helpful, optimized, and high-quality content. It includes text and video.
  • SEO increases brand awareness. Users will notice your brand once they reach the top of the page. Even if users don’t click through, their search results may show that your brand is associated with solutions.
  • SEO can give your business an edge. Effective SEO is a competitive advantage for brands that invest in digital marketing. They can get more traffic than 90% of their competitors.
  • SEO will keep you informed about the most recent trends in online technology. You can stay competitive by implementing SEO.
  • You can achieve higher conversion rates through SEO. Optimizing your website will increase the likelihood of converting occasional visitors into loyal customers or subscribers.
  • You can do SEO even if you have a limited budget. You can learn SEO and purchase a few subscriptions. You can also learn how to implement SEO yourself, even though agencies or specialists may offer you services.
  • Unlike traditional marketing, you can track SEO, which makes it challenging to measure each initiative’s impact. You can track the traffic patterns and use this information to adjust your SEO efforts.
  • SEO is a crucial component of your overall marketing strategy. SEO involves researching and gathering information about your target audience as well as the competition. This information is valuable in all of your marketing efforts.

SEO is a must-have for any business in 2021 because of all the benefits. SEO will not only get your website to the top of search engine results, but it will also bring long-term benefits to your business. 

A crucial part of any digital marketing strategy is to build trustworthiness and a reputation for your brand.

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How to Deal with Home Loan Interest Increases On Loans

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Deal with Home Loan Interest Increases

Deal with Home Loan Interest Increases: In recent years, the interest rates on mortgage loans have been in a steady decline. Market fluctuations can cause interest rates to rise at any moment. Interest rates rise when the RBI Repo Rate increases. 

However, interest rates on loans drop when the RBI decreases the Repo Rate. There are fluctuations in interest rates charged to borrowers by the market. 

Borrowers have two options for payment: floating and fixed interest rates. Fixed interest rates are those where the interest rate remains the same if the mortgage loan is taken advantage of. 

Floating rates are those where interest rates change with market conditions. Clients are charged a range of 6-9% annually for mortgage loans. Different lenders may charge different rates for home loans. 

Some lenders charge lower interest rates while others charge higher rates.

Also, read Top 4 Mistakes to Avoid Before Forming an LLC and Filing Your Taxes.

How to Deal with Home Loan Interest Increases On Loans?

Lenders charge interest rates to borrowers based on the accrued interest. Therefore, the repayment value for loans used is very high. The repayment value of loans can vary depending on their tenure. 

However, the repayment value of loans will be higher if the tenure is longer. The repayment value of loans will also be lower if the term is shorter. It is, therefore, better to take advantage of short-term loans than long-term loans. 

If your loan’s interest rates are floating, rising interest rates could affect the borrower. A loan made in the female’s name may result in lower interest rates than if it were taken only by the male borrower. 

If the loan repayment is for home loans, a woman can co-own it. To boost their business, lenders also offer limited-duration loans. In these limited-term offers, banks will charge borrowers lower interest rates. 

The discount period has a longer disbursement than usual. Here are some ways to handle future rate increases

You can make advance payments to Deal with Home Loan Interest Increases.

If the borrower receives a bonus or incentive, salary, and other variable components, they can repay loans earlier. You can replay loans with excess funds. 

The borrower can reduce the amount of interest due to the loan by paying higher installments. It will also help reduce the term of the loan.

You can change the lender to get a lower interest rate.

However, the borrower can switch to another lender if the lender charges very high-interest rates for the loan. It will allow them to take advantage of lower interest rates loans with another lender. Hence, it is better to change lenders to take advantage of lower interest rates loans.

Before approving a lender for loans, conduct a thorough survey.

Lenders can thoroughly study interest rates charged on loans to determine which ones are the most affordable. It will help avoid higher interest rates. 

Generally, you can find the interest rate comparison chart on many websites. You should pay attention to the lender with the lowest interest rate and the nominal processing fees.

You can take advantage of floating interest rates rather than fixed rates:

High-interest rates can be a benefit to the borrower. The interest rates are decreasing, so the borrower should make use of the variable interest repayments. The borrower might have to pay more if interest rates go up. 

However, interest rates will drop most times, and the borrower will be able to save more on their interest payments.

Last Words about Deal with Home Loan Interest Increases

There are many ways about how to deal with home loan interest increases. These include paying higher monthly payments, switching to another lender, choosing the lowest tenure, or switching to another. 

Similarly, borrowing on behalf of women can also significantly lower interest rates.

 

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