Taxes - And Your Online Business

Trying to land a great job which gives a good pay is
quite difficult to do these days. Not everyone can
actually have the job of their dreams with a good
salary to boot that’s why more and more people are
resorting to having their very own online business to
suffice their needs and wants. If you are one of the
many people who is interested in starting your very
own online empire, you should be aware of the basics
of taxes and your online business.

More Than Just Social Networking

More often than not, people initially become exposed
to the wonders of the Internet thanks to social
networking sites or online games. However, people grow
up and their interests expand beyond just meeting new
friends and people and they become more interested in
exploring the income generating power of the net.

If you just have the know-how on making your own
website and promoting your very own webpage, you can
actually go a long way in the realm of online
business.

Know The Basics Of Starting An Online Business

Once you decide to start your very own online business, you
have got to ditch your amateurish ways of thinking and
move on to more professional and business-like
practices.

The first thing you should know when planning to start
an online business is that you are not exempted from
the responsibility of paying for taxes. Income tax,
sales tax, use tax - those are only few of the
different kinds of taxes that you might encounter once
you start your online business.

The second thing you should consider is what specific
kind of online business you would want to start. Do
you want to sell clothes online? Do you want to sell
your painting online? Or maybe you would like to buy
and sell pre-owned stuffs? Well, whatever kind of
online business you would like to have, just make sure
that you coordinate it with the laws and regulations
of your state.

Your website or webpage should also have its own terms
and conditions. If the law in your state requires you
to make the customers pay for tax for the items that
they would like to purchase from you, don’t forget to
make your costumers aware that they will be paying an
additional tax for the items that they will purchase
from you.

That way, your customers or clients will be impressed
by the fact that you are so open and honest with how
you handle the fees and income of your USB headset website.

Never Try To Dodge Your Tax Responsibility

The best way to ruin the future of your online
business is to try and avoid your responsibility as a
tax payer. When you start your very own online
business, do try to consult a lawyer or your local
government town hall for assistance on legal matters.

No matter how small you think your online business may
be, there will always be a corresponding tax payment
for your online transactions.

Be sure that you are aware of the different states
that are offering tax-free sale transactions as well
as the states that have different tax collection
percentages. In issues that concern taxes and your
online business, ignorance is definitely not an excuse
so you might as well gear up and fill yourself with
adequate knowledge for your online business to
prosper.

If You don't Do the Loan Workout Now, You May be Throwing Out Valuable Revenue

Why pay your debt when you will end up doing the loan workout eventually? Consider the following... You all know how bad things really are for you and your business. Revenues are way down and overhead continues to creep upwards despite your attempts to reduce payroll. Realistically, things are quite grim. You may have already stopped taking a paycheck, as if that will save the day. Why not do the loan workout now and save your cash?

You may, however, be perfecting the age-old art of avoidance, not recognizing the clear reality that you are losing money and there will be a point in time that you will cease to be able to operate. Then what? You know when you are at that point. Why not consider a loan workout?

For most of you that point is now. Few will act, and those that do not stop and reconsider their plan are truly wasting valuable life-preserving money---money currently being spent on a note that will soon be in default. So, what's the point? In fact, maybe the debt service money you are about to spend this month and for the next few, if invested in your turnaround or loan workout, would yield a far greater return. It may, in fact, save your business life.

If it is true that at some point you will default and be forced to do some sort of loan workout---or leave the bank with its loss---why spend one more dollar on one more payment? If you're going to default, default now while you remain in control. Default now, while you still have the life force to reform, do a loan workout and redirect your business energies.

You may be throwing away valuable revenue if you are paying the bank when you know you will ultimately default. It makes no sense. Paying the bank one more payment to "keep things going" instead of doing the loan workout, is a waste of the money. Hoping things will change and that you will be able to continue to pay the notes? Another waste of the precious funds.

The only thing that can, and must, change is you and how you handle this long-term downturn. Stop making payments on debt you can no longer afford and that you will eventually default on. Stop wasting precious capital when you could use it on your own business loan workout or turnaround.

You are throwing away valuable revenue; use it on yourself, do the loan workout. This is called survival. Call us for help and direction and we'll help you do the loan workout. Norm will set up a no-obligation teleconference. Call 413-584-2581.

Overhead vs. Productivity: A Battle That Must Be Won

I have hired a professional contractor to convert a porch into a three-season sun-room. It is not a big project, but certainly a project that is expensive, time-consuming and deserving of close attention, as it is an example for the many contractors working on a fixed-price contract. What was projected to be a "three-week project" is now a nine-week project, and it is not over yet. The price is still the same, but the time allocated extends to three-times the time projected. My guess is that the contractor is still thinking he has made profit on the project, but the sad truth is, not only has he not made money, he has probably generated a loss and does not even know it yet... not a clue.

Here is the problem: Overhead.

It is not just payroll---although that is also a huge factor and likely filled with waste from the time extension---but I will assume his employees worked the prescribed number of hours he computed it would take, and that it just took a few extra weeks to organize and complete. Downtime results from subcontractors not showing up when they said they would, and taking longer than they thought they would waiting for materials to arrive, weather issues, sick days, personal days, whatever days... it simply took too many extra weeks.

Here is the point: Every single day costs money. All the fixed costs, insurance, note payments, utilities, staff, everything the small business owner must pay for---whether or not he is earning---equal a daily overhead burden. This job absorbed at least six extra weeks of overhead burden, probably not computed into the cost of the job as it was only scheduled for three weeks, not the nine it has taken thus far. Not to mention the lost opportunity and the cost of time unable to be used for generating additional profit (now lost irrevocably). But who is counting? Not most small business owners!

That extra one month and two weeks of overhead destroys the profit of this job. Time costs money. If the job completion time is lengthier than the time allocated, productivity goes down and profits go out the window.

Pay attention. Follow your plan---the one you bid---and make it happen, on time, on budget and to spec. This is where your cash and profit disappear: low productivity and not delivering on time. Profits sucked up by overhead and, yes, by payroll.

Reluctant Small Business Owners: Necessity Driven, not Opportunity Driven

I hope that the following article will help you to better understand this topic of small business ownership in relation to SBA loan default workout.


Main purpose of this article is to give you an insight on the topic and guide you further into understanding everything related to this subject.

We have discussed the natural path the unemployed can consider in this tight job market: Converting hobbies to small home businesses, pursuing one’s lifelong passion, or exploiting one’s expertise and experience. These are very exciting, stimulating, a great alternative to the rat race, but not for everyone.

Now, however, we see a new breed of entrepreneurs, what is being called 'reluctant business owners', necessity driven, not opportunity driven.

With millions of workers out of work, and bills piling up, there is a steady flow of talented out of work men and women who simply need to create revenue for the family's survival. They are making little progress in getting a job and the future looks very grim.
What to do?

Jon the ranks of many, create a new business, become an entrepreneur, reluctantly and necessity driven but we all do what we must to survive and support our families. Income is a requirement, so you open up a business and pray for success.

I get it and salute the bravery required to support such a decision, especially when motivated by necessity not passion, a whole different story.

The context will control the situation, so you must get your context correct. Define your context, what are your basic parameters that will support and define success? Define this and stay on track.

First question is how much cash do you have to invest? Be careful about capitalizing your new business with borrowed cash, it requires debt service, monthly payments and this can be the beginning of the end if things do not work out as planned or as quickly as planned.

Do not withdraw your IRA money by borrowing it, accepting the tax and penalty and diminishing its value significantly. Seek assistance; you can invest your IRA without penalty or taxes if you do it properly. I caution you against using your retirement money fora start up, but it is a source of needed cash and will be done by many so do it carefully and correctly.
Please have a plan and a cash flow pro forma; it is the road map to success and review it weekly.

It must be kept in mind that you have to create income as soon as possible, it is the objective. Do not embark on a business journey that does not promise a relatively immediate return, cash in to live off and invest with. 

Revenue first, growth second. Do not create an organization in anticipation of the inflow of expected revenue. Create an organization after you demonstrate you need it. Income first, growth and development second.
Have a plan and have it reviewed by someone qualified and willing to tell you the truth.
Will it work is the question? You have no time for mistakes.

There is no moment like the present. The man who will not execute his resolutions when they are fresh upon him can have no hope from them afterwards: they will be dissipated, lost, and perish in the hurry and scurry of the world, or sunk in the slough of indolence. ~Maria Edgeworth

Call if you need an opinion or direction.

Remember this is not about a passion; it is about creating revenue and income. Plan accordingly. It is an important decision and a necessity for many, as many jobs will never return and many unemployed will never find other employment in the near or long term future. Thus, entrepreneurship is about survival, not passion.

I hope you have stumbled across some great information please keep browsing.

Welcome to SBA Loan Workout Blog

Welcome to SBA Loan Workout Blog! In this blog, I will be discussing and posting articles on SBA loans specifically on SBA loan workout. I will be posting some tips and guidelines to small business owners in managing their businesses. These articles could be my own or from several SBA loan experts such as Don Todrin of Second Wind Consultants. Sources will be acknowledged whenever articles are taken from anywhere in the Internet.

This article is based from the article “There are three things that cannot be hidden: the sun, the moon and the truth – Confucius” from Second Wind Consultants site and authored by a distinguished SBA loan default workout consultant, Don Todrin.

According to Confucius, "There are three things that cannot be hidden: the sun, the moon and the truth" I say, this is the best business policy we can all get behind and follow.

Think about how much better our business world would be for all involved if we set this standard as the standard we conduct business.

Think of what we could all accomplish.

Some would argue that we all cannot agree on the same truth.

I would say that's nonsense, there is only one truth, and it’s a matter of recognizing it when we see it, hear it and then live it.

The truth is: Business cannot be successfully run when overpowered by debt.

The truth is: We are all in this economic mess together and we will all have to pay a price for the correction. There is no free pass, no escape and the sooner the banks and financial institutions and our political leaders and corporate leaders recognize this truth, the sooner we will be on the mend.

The truth is: If one business is living a lie we all suffer, the economy suffers. If many are living outside of the truth we will have deep issues.

We have deep issues. We are not living in the truth

Is it a little lofty? Maybe.

We need to mend our ways, we have gone astray. This is the path back. Honestly, it’s the truth. The pain will continue until we recognize this and act accordingly.

This blog will attempt to provide help and tips to small business owners as they endeavor to rise above the water during this time of economic recession.