Small Businesses Skip the Health-Care Tax Credit

Insurance brokers say response is low because the value of the benefit declines quickly for companies that pay average annual wages of more than $25,000 or employ more than 25 workers.

By David Lerman and Liz Smith

Sales are off by 20 percent this year at Image Computer, which repairs printers in suburban Detroit. So President Steve Olis is worried about whether he can continue paying the $71,000 a year it costs him to provide health insurance for his employees.

The Obama Administration's answer for Olis and other small-business owners: a tax credit of as much as 35 percent of the insurance premiums they pay for employee medical coverage, a signature part of the health-care reform bill signed into law in March. Image Computer, however, doesn't qualify for the credit because Olis pays his 15 employees an average of $55,600 annually, and companies with average salaries above $50,000 aren't eligible. "At some point I can't do this any longer," Olis says of his rising health-care premiums.

Eager to promote the new small-business tax credit, the government this spring mailed 4 million eligible companies postcards with highlights of the program. The response has been tepid, according to insurance brokers who sell small-group policies. The reason, they argue, is that the credit starts to phase out for companies that pay average annual wages of more than $25,000 or employ more than 25 workers. The value of the benefit declines quickly, so many business owners in high-cost states get no tax break, and those elsewhere often say the credit is too small to make much of a difference. Sales of health plans have gotten "very little traction so far," says James Stenger, director of business development for BenefitMall, which sells small-group plans in New Jersey.

Stenger says most of his clients pay their workers more than $25,000 a year, so the average tax credit he's seeing for the few who qualify is about 10 percent of the cost of the policy. That's less than $200 per worker—not enough to spur many business owners to start providing coverage. Brokers across the country report a similar response. JLBG Health in Warrenville, Ill., contacted 460 small businesses about the tax credit. Roughly 40 percent were eligible, though only seven of those companies qualified for the full benefit. Not one of the 400 New England employers served by Hampstead (N.H.)-based Landmark Benefits is eligible, the broker says. The legislation "is just not doing what we had hoped," says Steven Selinsky, the incoming president of the National Association of Health Underwriters.

U.S. Small Business Administration chief Karen Mills says complaints about the tax credit are premature. "This is all still in anecdote land," Mills said in an interview. She maintains that the income cap was needed to keep a lid on the cost of the tax credit and that the people with the greatest need—low-paid workers at the smallest companies—will be able to get coverage. Companies "want to provide health insurance [because] they're losing good employees when they don't," Mills says. "The math says [the program] is likely to be positive."

One company that has had success selling policies under the program is Blue Cross and Blue Shield of Kansas City, which launched a marketing push to promote the tax credit when the law was enacted. Although less than a quarter of small businesses in the Kansas City area qualify for the credit, the ad campaign paid off. Blue Cross has sold 227 plans to small businesses in the past three months—80 percent more than in a typical three-month period, says Tom Bowser, chief executive officer. Now, Blue Cross affiliates in other states are hoping to replicate the Kansas City marketing strategy—a combination of print ads, radio spots, and direct mail explaining the program's advantages. The success "is tangible evidence that this legislation is having some effect," Bowser says, "and we're cashing in on it."

The bottom line: Many small businesses can't take advantage of a tax credit designed to reduce the cost of providing health insurance.

Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

Do We Need a Partnership Agreement?

Starting out on a new business venture with others you know and trust is normally about planning all things you will do to make your business a success. It will very likely involve a range of issues focussing on finances, how to promote and sell the product or service and providing excellent service.

However, for most business ventures there will come a time when relying on 'what was said during the early days' is not going to work out. So what happens if things are going wrong in the business or someone wants to leave and sell their share of the business? How will you deal with it if you are having a problem agreeing between yourselves?

In the absence of a Partnership Agreement ("PA") The Partnership Act 1890 provides the legal rules that govern a partnership. Importantly, it provides that all partners are entitled to share the profits equally no matter how much money, capital, effort or skill they have put into the business and any partner can bring end the partnership by simply giving notice to all the other partners. Also, if one of the partners dies the partnership is automatically dissolved.

With a Partnership Agreement in place there is an agreed written structure for your business, which can spell out each partner's responsibilities, rights, profit/liability sharing, how to go about entering and leaving the business and also the terms on which disputes are resolved.

Typically they cover the duties and responsibilities of each partner, the management of the business, salaries, allocation of profits, borrowings and reimbursement, non-competition, powers of attorney, admission of new partners, leaving or retiring from the partnership, termination and the dispute resolution arrangements.

Having a Partnership Agreement is definitely not to be seen as a negative thing like planning how you divorce while getting engaged. It is a practical and entirely prudent way of ensuring that the business has proper foundations to deal with a range of fundamental issues that will very likely come up at some time or other.

Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

Why Should You Incorporate?

Because of the length of time corporations have been in existence, there is a long record of statutory and case law which supports the use of a corporation for asset protection.

Consequently, corporations are traditionally considered for use as the “First Line of Defense” to accomplish the goal of limited liability. Following are some important attributes and advantages to a corporation which allow it to be used for limited liability as well as other purposes.

•The corporation is a totally separate entity from any individual- it is not you, and you are not it. This is important to remember in maintaining the limited liability protection. It must be treated as a separate individual

•A corporation can buy, sell, trade, own property, own stock, make loans, etc. and anything else that an individual can do; such actions are governed by the Board of Directors

•The shareholders of the corporation do not have to live in the state in which the corporation is domiciled. Fortunately, here in Nevada, neither do the Officers or Directors

•Corporations have perpetual existence- if a Director or Officer becomes deceased, the corporation will still exist, unlike with some other entities

•There are many tax deductions available to corporations, which are not available to other entities

•It is easy to transfer assets and ownership of a corporation

•Centralized management allows ease of doing business

•Full fringe benefits can be established through a corporation

•A corporation has all of the rights of an individual except for the Fifth Amendment

Please be advised that we are not engaged in rendering legal counsel or accounting services. If legal advise, or other such services and assistance is required, the services of a professional person in that area should be sought. At your request, however, we may consult with you and render our opinion based on our business experience.

American Corporate Enterprises works with and provides services to Attorneys, CPAs, Financial Consultants, etc. in order to meet the needs of our clients. We would be happy to refer you to such a professional at your request.


Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

Still Upbeat About the Recovery - from "You're the Boss - The art of running a small business"

I know I raised some eyebrows a few months ago when I wrote that the economy was turning around (“Here Comes the Recovery!“). While lots of folks commented that they, too, were experiencing a resurgence in their business over the past few quarters, there seemed to be just as many naysayers who saw only dark clouds ahead. With the recent news that gross domestic product grew at a less-than-expected 2.4 percent in the second quarter (down from a revised 3.7 percent in the first quarter), the naysayers (including economists) who are predicting a double-dip recession are getting louder than ever.


I can tell you that I remain bullish on the recovery, especially as it applies to our company, SRC Holdings. For example, Guildmaster, our home furnishings division, closed out a record-setting July, which is historically the industry’s toughest month for sales. Last year, the company lost $110,000 for the month. This July, it turned a profit for the month for the first time in company history. And given the response it received at the recent industry trade show in Atlanta, we expect those results to continue for the rest of the year.

Sales are improving throughout every division of our business. Things are going so well, in fact, that we have been on something of a hiring spree to keep up with demand. Total United States employment at SRC is now 884 — up from 658 in July of last year. This gives me hope that other companies will begin hiring aggressively.

But, I have to admit how frustrated I am by all the contradictory news out there these days. It’s as if most people see the glass as half empty no matter what the evidence. Growth may have been slower than expected in the second quarter, but it was still growth. It sometimes seems as if we want to kill the recovery before it has a chance to gain momentum.

I wonder why we don’t focus more on all the good news out there these days. Take, for example, the news that second-quarter earnings at Caterpillar jumped 91 percent over the previous year while revenues were up 31 percent. After several years of painful job cuts, the manufacturer has begun to hire again.

Another example comes from the trucking industry, where Mark Pigott, the chairman and chief executive of Paccar, which manufactures trucks under brands like Peterbilt and Kenworth, recently outlined the good news he sees both for his company and the industry. In an earnings call with analysts, Mr. Pigott said that you can track the progress of the trucking industry by three measures: sales of parts and services, values of used trucks, and orders for new trucks. He said that through the first six months of the year, sales of parts and services are up 10 percent to 15 percent, prices for used trucks are up 10 percent, and orders for new trucks are up 30 percent.

These bits of good news were echoed by other positive earnings reports from lots of other companies, including Dupont and Microsoft. Yet, when you tune in to the news each day, you seem to find far more stories that focus on the potential downside. I feel like I’m always reading headlines like these:

“Can this earnings season keep up its winning streak?”

“Housing sales up, but still weak.”

“Chinese spending can’t save the economy.”

“Is there anything else Bernanke can do?”

Granted, hiring has yet to pick up steam and companies have been using their gains to shore up their balance sheets. But the fact that any company is still around let alone thriving after steering itself through all the storms of the past few years should be considered a positive thing. We should be celebrating these companies rather than dwelling on what they aren’t doing. It’s like we’re playing a game of Ping-Pong, where there is a constant back and forth between good and bad news. Rather than celebrate our victories, we seem to worry about our next loss.

I think part of the reason for the confusion is that there are more economic indicators than ever for people to follow. They seem to change on a daily or even hourly basis. One of the problems is that nobody seems to have faith in any of the numbers, which adds to the feeling that the glass is half empty.

But, when you talk to businesspeople — rather than just the academics, politicians or financiers — a different story starts to emerge. That’s what Timothy F. Geithner, the Treasury secretary, says he did before making his recent positive comments about the recovery. I saw Mario Gabelli, the investor, say on television that if you want to get the real story behind the economy, you should talk to leaders from businesses of all sizes, large and small. Too often, though, we read stories that ignore the folks with their boots on the ground.

The point is that we won’t be able to enjoy the fruits of a recovery until we begin to shift our vision, to stop looking back and worrying about how bad things were and begin looking forward and recognizing that things are turning around. Recoveries are fragile and we need to celebrate our victories to build on that momentum.

I’m interested in hearing from you. How do you see the world these days?

Jack Stack is the founder and chief executive of SRC Holdings in Springfield, Mo. SRC is a collection of 37 businesses and 1,200 employees who make, among other things, racecar engines and home furnishings.


Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

Are Clients Squeezing Big Law into Small Law?

Partners leaving big firms to go out on their own isn’t new, but it seems to be picking up. A growing reason is that clients have become more careful about spending. And lawyers can lower their rates after leaving BigLaw.

Clients have clamored in recent years for reduced rates, fewer associates assigned to cases and alternative billing arrangements.

"Some make a point of objecting to junior associates on the bill," Joshua Stein, a former real estate partner at Latham & Watkins, who left last month to start his own practice, told Slate for a story headlined “Leaving big law behind.”

"In the context of [my practice], those issues won't exist and, so far, what I've seen is that it's appealing to clients."

And in a recent Crain’s New York Business story along the same lines, headlined “Partners flee big law firms to go their own way,” there was this: “Clients no longer feel their day-to-day needs justify paying the $800- or $900-per-hour rates of a partner at a large firm,” says Joseph Gioconda, who left a partnership at DLA Piper last December to found the Gioconda Law Group, an intellectual property boutique that specializes in protecting corporate brands and trademarks.

Giocanda’s new firm gets a third of its income from billable hours, at $450 to $550 per hour, another third from flat-rate fees and a third from contingency arrangements.

In the past. lawyers have left BigLaw to make bigger money, because they can then eat more of what they kill; for pride of ownership in a practice that is more closely their own; for more tailored selection of clients and issues; for less bother with extra duties such as cross-selling for other lawyers in far-flung offices whom they hardly know; and for lifestyle matters.

But now, the external economics—what clients want and demand—might be holding as much or more sway.

Crain’s New York reports that more than half of 231 corporations polled last fall by Hildebrandt International—many of them Fortune 500 companies—negotiated with outside counsel on nonhourly billing arrangements, and nearly two-thirds of the companies said they were implementing a rate freeze on outside legal fees.
This, according to Crain’s, leads to lawyers leaving big firms to open boutiques. The article lists some recent moves in New York City:
• White-collar defense partner Daniel Horwitz, who was co-counsel last year for fraudster Bernard Madoff and defended David Letterman against an extortion attempt by a CBS producer, left Dickstein Shapiro in June to join the 11-lawyer firm Lankler & Carragher.

• Patent attorney John Desmarais, a top partner at Kirkland & Ellis for 15 years, left in June to start his own firm, Desmarais.

• Six partners from LeClairRyan's Securities and Exchange Commission enforcement group bolted, taking 10 lawyers with them, to form specialty boutique Murphy & McGonigle this summer.

• The chair and vice chair of Sonnenschein Nath & Rosenthal's Internet practice, Marc Zwillinger and Christian Genetski, left the firm in February to form boutique Zwillinger Genetski.

• Andrew Sandler, former head of the consumer financial services practice at Skadden Arps Slate Meagher & Flom, left last spring with 14 colleagues to form BuckleySandler.


Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

SBA on You Tube

Here's a helpful link to the SBA's You Tube Channel.   (Small Business Administration)

GO NOW

Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

Use a Virtual Office as a Profitable Alternative to Paying High Rent

Here is another example of how obtaining a Virtual Suite is beneficial to your business!

A money-saving service that is being used by many professionals today is the virtual office. With so many business professionals working from their homes or on the go, the virtual office has evolved into a popular alternative to leasing a permanent office. It provides a creative solution which benefits the small business owner tremendously.

What is a Virtual Office?

A virtual office gives small business owners a presence in the business world for a fraction of normal rental costs. It is an alternative to leasing an office space, which can be costly for a new business owner. Virtual office services may also provide a set of online tools to help manage the small business. Although virtual office services differ, below is a list of some of the most common features.

1. Physical Business Address

Clients are provided with their own physical mailing address where business mail and small packages can be received. Virtual offices are not typically used to receive heavy volumes of mail as in a mail order business, but normal business mail quantities only. Those who operate a business from their home can use the virtual office address instead of their home address, which provides a safe and professional way to receive mail. Mail to a virtual office can be forwarded to the client 's home address.

2. Local Phone Number

Virtual office services also include a local phone number where a business owner can receive calls and messages. Voice mail and forwarding are usually included so the client can check messages at any time. This works great for someone who works from home or does not wish to tie up a cell phone line if they are continuously on the go.

3. Fax Capabilities

Being able to receive faxes is important to any business. Faxes are used to conduct business, send reports, take orders and receive memos every day. Using the virtual office fax, the client receives faxes which can be forwarded directly to his/her email.

4. Office Access

Access to a desk or work station with Internet capabilities, office equipment and more is crucial for a business. This is available for those times when the client needs to organize a presentation before a conference or use the Internet or computer for business purposes.

5. Conference Room Access

Conference rooms are available for rent with some virtual office setups. The client can hold business meetings or give sales presentations without interruption.

6. Web Conference Room Access

Web conference rooms are available for virtual meetings. Rather than hold a physical meeting, the client can hold virtual business meetings or give virtual sales presentations. Virtual meetings have gained popularity in recent years because they save time and money while providing instant presentation opportunities. Some virtual office services offer this tool as an added service.

7. Online virtual tools

Online tools such as calendar, address book, webmail, document repository, to do 's , forums, digital fax and digital voice mail have become common among many large businesses. Some virtual office services offer these tools and others as an added service.

Who can benefit by using a Virtual Office?

People of all trades find virtual offices useful. Executives, salespeople, accountants, marketing consultants and online business owners each benefit by using a virtual office for certain tasks. Those who work from home and wish to establish a business presence find that a virtual office meets this need. Corporations also use virtual offices as a means of testing a business location before opening a new branch.

When renting an office is not an option, a virtual office can be used by small business owners to meet the daily needs while saving time and money.

For more information, we encourage you to visit our affiliate, Pinnacle Executive Suites - located in Carson City, NV:  Their mission statement is:  "Our goal is to provide the finest office space and best service possible to make the professionals and their guests feel comfortable with their surroundings. This goal is accomplished when you come in and enjoy your surroundings. We have tried to accomplish this through upscale furnishings, to show some affluence, without being ostentatious. Our staff has been selected for their genuine desire to help our professionals with their business needs and graciously welcome your guests. Our staff has many years of experience to assure the best possible service. Contact us today at 775-884-6123 or visit our website at http://www.pinnacleexecutivesuites.com/"



Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

What to Do if You Are Attacked Online: Setting a Social Media Policy for Your Business

I have always been a big promoter of social media as a way to increase business. I’ve talked about it, read about it, and written more than I can tell you. But in all my years online, I had never personally been the brunt of the ugly side of social media. Until one day – I was.

Instead of a paper trail, there was a trail of online comments. There were IMs, text messages, e-mails, blog comments and even a website that all quickly led to some serious (but thankfully short-lived) issues.

Has it happened to you? Maybe a blogger you know writes something about you in a blog post that really stings. Or worse, someone you don’t know deliberately attacks you or your reputation in public–and permanently–through search engines. You may have been through something similar. No one is exempt-it happens to individuals, but it attacks small businesses too. And if you think it stings personally, imagine the blow it can deal to your small business.
That being said, I want to make this clear: A social media policy in your workplace should not shut down social media activity. To the contrary, I believe a policy should encourage activity. A policy should also protect your business and employees from getting into trouble with the law (issues like libel, defamation, leaking of confidential or damaging information, etc). It should inform employees what is acceptable and what is not, before an issue arises.
Things can blow up quickly when you least expect it.

Most people treat social media policies like long-term care insurance-they don’t think about it until they need it. By the time you need it, it’s either too expensive or too late. When something goes wrong online, it can catch you off-guard. If someone targets you or your business, it might start while you’re asleep. The next thing you know, it’s in the news headlines. And if you respond poorly, you have a fire you can’t put out (just ask Nestle).

Before you know it, the negative blog post or comment is one of the first things that comes up on Google. If you wait too long and a lot of people comment on the post, it can be very difficult to get the reference removed or displace it in search engines.
Inexperienced businesses may take situations too casually in the beginning. It’s better to address issues early on. Name the people at your company who should be informed, and plan who should respond. Make sure employees know the plan so they don’t address the attack individually. This is not a job to leave to your intern.

Decide what to do when you’re attacked online.

Let’s say someone writes something damaging about your business as a comment on your Facebook page or blog post. How would you respond? Don’t retaliate no matter how strong the urge.

Here are three possible responses:
Acknowledge the complaint, then transition to a statistic or how you are helping clients. Then offer to address the issue privately. This is the option I’d recommend for most cases – but it depends on the situation.

Delete the comment. If the comment is on your Facebook page, your blog or another site you moderate, you could delete the negative comment. If you have a policy, refer to it. Write something like, “This comment has been deleted because it violated [state reason].” I’ve deleted comments that were personal attacks on people mentioned in my post or for vulgar or explicit content. Sometimes I only delete part of the comment, always explaining why. Be careful though, as deleting comments can turn into a PR nightmare.

Ignore the negative comment, post or review. If the person is just being belligerent (it happens) and they aren’t going on a rampage, you can probably ignore it. This can backfire, though-giving the person reason to be even angrier and fight even harder to destroy your reputation–so keep an eye on the item.

Here is some helpful information from Fast Company about the social media policies of various companies.
Remind employees to be professional – this is all public.
It’s easy to type something without thinking of the implications. Time Warner Cable’s social media policy states: “On social networks where you identify yourself as an employee of TWC, be mindful that the content posted will be visible to coworkers, customers and partners. Make sure the information posted is the most professional reflection of your opinions and beliefs.”
I also liked this language from this article about libel online:
Twitter and Facebook have become a great way to sound off online. But remember that you have an audience.
Remember you always have the possibility of causing someone serious harm when you make those statements on the Web. Unless you know you’re fully protecting yourself, you should be careful what you say.
I appreciate that OrangeSoda not only allows but encourages employees to be active online. It helps the company to have people with their own networks who can send a tweet out. Sometimes we get asked to speak at conferences thanks to our social media activity. It will probably help your business too-just don’t forget there are also risks.
Bottom line: We need to have zero tolerance for cruelty online and a plan to address the downsides of social media. When you set up your policy, don’t discourage participation but do set clear boundaries for what’s acceptable and what’s not. Have a plan that you can implement quickly before an issue explodes and is harder to address.

ABOUT THE AUTHOR: Janet Meiners Thaeler is an Evangelist for OrangeSoda Inc. and the principal blogger for their corporate blog and Twitter account. She regularly advises clients on blogging and social media strategies. Her own blog is Newspapergrl.com (and Twitter account @newspapergrl). She is passionate about online marketing and is always looking for new insights, resources and trends to help her clients.

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Obama Urges Increase To Clean Energy Tax Credits

United States President Barack Obama has made an appeal to Congress to pass the increase to the clean energy manufacturing tax credits that now form part of the draft text of the Domestic Manufacturing and Energy Jobs Act of 2010.


The draft Act includes up to USD6.5bn in investment tax credits for taxpayers that re-equip, expand or establish domestic manufacturing facilities that produce advanced energy equipment.

As the government provides 30% of the investment for eligible clean energy projects, with the private investor providing 70%, these tax credits are expected to encourage more than USD22bn of total investment in domestic manufacturing facilities. It will add to the USD2.3bn of such tax credits that were originally provided by the American Recovery and Reinvestment Act.

House Ways and Means Committee Chairman, Sander Levin, said: “As the world moves toward renewable energy and a greener economy, it is necessary to accelerate a new era of American manufacturing and innovation. With the US government as a full, active and effective partner, the private sector can expand our green manufacturing capacity, ensuring that these jobs and products will be created in the US, competing globally and protecting our environment.”

Pointing to the success of the original issue of investment credits, President Obama said: “The only problem we have is, these credits worked so well, there weren’t enough to go around. More than 180 clean energy projects in over 40 states received USD2.3bn in tax credits, but the program was such a success that we received 500 qualified applications for USD8bn in tax credits.”

“I believe that if an American company wants to innovate, grow, and create jobs right here in the US, we should give them the support they need to do it. That’s why I’m urging Congress, once again, to invest USD5bn in these clean energy manufacturing tax credits. It’s an investment that will generate (an additional) USD12bn or more in private sector investment and tens of thousands of new jobs.”
Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

Audit Triggers: The Biggest Red Flags to Watch Out For

All in the family. When employing a spouse, child or close relative, be careful not to give them any extra-special treatment. Make sure the responsibilities of their job description are commensurate with their age and experience. Pay them the same salary you'd pay anyone else doing the same job.

In the money. An excessively high income compared to previous years can stand out and trigger an audit. And high-income taxpayers are more likely to be audited since they're more likely to be involved in complex transactions and have partnerships, trusts or businesses.

Consistency is key. The IRS will notice if your federal return is disproportionate to your state return, so be careful to ensure they're consistent.

Stay on the up and up. People who've filed frivolous lawsuits in the past are most likely always going to be audited. Considering not filing your taxes at all? Here's something that may cause you to re-think your decision: People who haven't filed their federal taxes can be picked up for fraud, hit with a felony and do jail time. Even if you don't have the funds to pay off everything you owe, Brown strongly suggests filing anyway--it's better to file and not pay all you owe than wait until you have all the funds and risk getting hit with penalties or worse.

Know your preparer. More and more, the IRS is using a software program to check up on tax-return preparers. If they notice a high error rate, they'll not only audit the return-preparer, but they'll also audit that person's clients as well. So do your homework before choosing a preparer. And if you ever have any doubt as to whether they're guiding you in the right direction, seek an outside opinion before proceeding.

Protect yourself. If you are selected for an audit, Brown recommends standing up to the IRS by getting representation. As a former IRS insider, Brown says that these days, the IRS is "a bit out of control--they aren't enforcing the tax law with professionalism."


Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

Charging Order Protection - By: Kerry Kolvet, Esq.

The protection of assets is generally one of the biggest reasons to form a legal entity. Specifically, the protection of business assets from an owner’s personal liabilities is critical to a business’ continuing success. In many states, a personal creditor may charge a stockholder’s stock with payment of a judgment. Such a remedy could result in the forced liquidation of a viable business to satisfy an owner’s personal debt to the detriment of other owners.

In Nevada, charging order protection is extended to partnerships, limited liability companies and, more recently, corporations. What this means is that a personal creditor’s only remedy against an owner’s stock is a charging order and, as a result, that creditor must wait for distributions from that entity to satisfy any judgment. The creditor cannot force distributions from the entity, nor can the creditor exercise any control over the entity, thereby allowing the business to continue operations despite the creditor’s claim.

READ ENTIRE ARTICLE (by Nevada Small Business Development Center)



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How LLCs Are Taxed

LLC owners report business income and losses on their personal tax returns.

A limited liability company (LLC) is not a separate tax entity like a corporation; instead, it is what the IRS calls a "pass-through entity," like a partnership or sole proprietorship. All of the profits and losses of the LLC "pass through" the business to the LLC owners (called members), who report this information on their personal tax returns. The LLC itself does not pay federal income taxes, but some states impose an annual tax on LLCs.

Income Taxes

The IRS treats your LLC like a sole proprietorship or a partnership, depending on the number of members in your LLC.

Single-Owner LLCs

The IRS treats one-member LLCs as sole proprietorships for tax purposes. This means that the LLC itself does not pay taxes and does not have to file a return with the IRS.

As the sole owner of your LLC, you must report all profits (or losses) of the LLC on Schedule C and submit it with your 1040 tax return. Even if you leave profits in the company's bank account at the end of the year -- for instance, to cover future expenses or expand the business -- you must pay income tax on that money.

Multi-Owner LLCs

The IRS treats co-owned LLCs as partnerships for tax purposes. Like one-member LLCs, co-owned LLCs do not pay taxes on business income; instead, the LLC owners each pay taxes on their share of the profits on their personal income tax returns (with Schedule E attached). Each LLC member's share of profits and losses, called a distributive share, should be set out in the LLC operating agreement. 

Dividing up the profits between members. Most operating agreements provide that a member's distributive share is in proportion to his or her percentage interest in the business. For instance, if Jimmy owns 60% of the LLC, and Luana owns the other 40%, Jimmy will be entitled to 60% of the LLC's profits and losses, and Luana will be entitled to 40%. If you'd like to split up profits and losses in a way that is not proportionate to the members' percentage interests in the business, it's called a "special allocation." 

Taxes assessed on entire distributive share. However members' distributive shares are divvied up, the IRS treats each LLC member as though the member receives his or her entire distributive share each year. This means that each LLC member must pay taxes on his or her whole distributive share, whether or not the LLC actually distributes all (or any of) the money to the members. The practical significance of this IRS rule is that, even if LLC members need to leave profits in the LLC -- for instance, to buy inventory or expand the business -- each LLC member is liable for income tax on his or her rightful share of that money.

File Form 1065 with the IRS. Even though a co-owned LLC does not pay its own income taxes, it must file Form 1065 with the IRS. This form, the same one that a partnership files, is an informational return that the IRS reviews to make sure that LLC members are reporting their income correctly. The LLC must also provide each LLC member with a Schedule K-1, which breaks down each member's share of the LLC's profits and losses. In turn, each LLC member reports this profit and loss information on his or her individual Form 1040, with Schedule E attached.

Consider Electing Corporate Taxation

If you will regularly need to keep a substantial amount of profits in your LLC (called "retained earnings"), you might benefit from electing corporate taxation. Any LLC can choose to be treated like a corporation for tax purposes by filing IRS Form 8832, Entity Classification Election, and checking the corporate tax treatment box on the form.

Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to most LLC owners, this can save you and your co-owners money in overall taxes.

US Business Fears International Tax Bill

US business groups have criticized the Senate's approval of a bill which proposes to tighten international tax rules with the intention of curbing what Democrats consider as large scale corporate tax avoidance.

An amendment to a bill which aims to provide cash-strapped state governments with billions of dollars in additional aid to cover teachers' salaries and Medicaid bills, among other costs, would make several changes to the US foreign tax credit rules to prevent multinationals from over-claiming for tax refunds in the US in relation to income earned and already taxed abroad.

According to the Business Roundtable, the amendment, submitted by Washington state Democrat Patty Murray, would raise nearly USD10bn in new taxes on US companies with overseas business operations.

"Keeping American companies and workers competitive should be the number one goal of US tax policy," commented Johanna Schneider, Executive Director, External Relations of Business Roundtable. "However, [the] Senate vote only adds to the growing disparity between the tax policies of the United States and most other major world economies."

Schneider observed that companies in the US are already subject to the second-highest corporate income tax rate among developed countries. "Further raising these taxes will make America’s largest employers less competitive, which will undermine US economic growth and job creation," she said.

The Business Roundtable, the US Chamber of Commerce and the National Association of Manufacturers have been joined by several other US business associations in signing a letter to Congressmen which warns that the amendment would have the effect of "reducing the earnings US companies bring back from their foreign operations."

In something of an unusual step, the House of Representatives may return from its summer recess to vote on the state funding bill this week.



Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

What is a "Non Profit" Organization?

A Non Profit organization (NPO) is a business entity where making a profit is not a primary mission.  Typically, Non Profits are engaged in charitable, educational, religious, or artistic activities of public or private interest. Since Non Profit organizations cannot distribute profit to their directors, officers, or members (those who participate in the management of the Non Profit) any income generated by the Non Profit must ultimately go back into the organization. However, Non Profits can hire and pay staff to carry out operational and administrative functions.

If you choose to incorporate your Non Profit as a 501(c) corporation, you can choose from 26 types – 501(c)(1) to 501(c)(26). Section 501(c)(3) is the most common federal tax exemption for Non Profits, which exempts the Non Profit from taxes on income directly related to the organization’s mission. Therefore, many Non Profits are often referred to as 501(c)(3) corporations. Refer to IRS.gov to learn more about other types of 501(c) incorporation.

Forming a Non Profit 501(c)(3) Corporation
Incorporation for Non Profits is very similar to creating a regular corporation, but with the extra steps of applying for tax-exempt status with the IRS and your state tax department. Becoming a Non Profit corporation requires some paperwork, but for many groups the benefits of Non Profit status outweigh the complications.

Here are the steps you must take to incorporate your Non Profit:

Choose a Business Name. Your business name (1) must be different from an existing corporation registered in your state’s office and (2) must indicate that it is a corporation by ending with the words: “corporation,” “incorporated,” “limited,” or a variation of those designations.

File your Incorporation Paperwork. You must next file formal paperwork, or articles of incorporation, and pay a small filing fee to your state. These "articles" contain basic structural information, such as the Non Profit name, its registered agent and office address, and membership structure, if any. You can find information about filing articles of incorporation by state on Business.gov’s Business Incorporation page. You can also look up your state office through the National Association of State Charity Officials* (NASCO).

Create Corporate Bylaws. Corporate bylaws outline the rules of operation for your Non Profit corporation, which includes procedures like holding meetings and electing directors. Tax regulations and other state laws are often covered in the bylaws to ensure that the Non Profit is running legally.

Appoint Directors and Hold a Board Meeting. Depending on your state, your Non Profit must appoint at least 1 or sometimes even 3 directors to make major decisions in the corporation. Some states require that you appoint directors before filing your articles of incorporation. Afterward the appointment, directors formally adopt the bylaws and elect officers at the board meeting.

Obtain Licenses and Permits. You must obtain relevant business licenses and permits like any other business. Regulations vary by industry, state and locality. Use the Licensing & Permits tool on Business.gov to find a listing of federal, state and local permits, licenses, and registrations you'll need to run a business.

Start Fundraising. Now that your NPO is officially established you'll need to pay attention to its bread and butter - fundraising. State offices of the National Association of State Charity Officials* (NASCO) provide local fundraising regulations. While individual donors amount to the largest contributors to Non Profits, federal, state and local governments offer grants, loans and programs to fund NPO projects. Learn more about funding opportunities for your Non Profit on USA.gov.

Hiring Employees.  If you are hiring employees, read more about federal and state regulations for employers.

Taxes: Most businesses will need to register with the IRS and state and local revenue agencies, and obtain a tax ID number or permit.

Non Profit organizations are not automatically exempt from federal and state taxes. Therefore, Non Profit organizations seeking tax-exemption must formally apply for federal recognition and in many cases state recognition. Before you apply, make sure that your Non Profit organization satisfies the following requirements from the IRS.

Eligible Non Profits can file for federal and state tax exemptions once their articles of incorporation are registered with the state. The instructions below outline the application process for Section 501(c)(3) status, the most common federal and state tax exemption for Non Profits:

Apply for Non Profit Federal Tax Exemptions. Submit an application to the IRS for your federal Non Profit status as a 501(c)(3) organization. You must file a Form 8718, User Fee for Exempt Organization Determination Letter Request and Form 1023, Application for Recognition of Exemption with the IRS. It's best to file within 27 months after the date of your incorporation. Learn more about the application process and other requirements and responsibilities of 501(c)(3) Tax-Exempt Organizations from the IRS.

Apply for Non Profit State Tax Exemptions. Laws from each state vary. Some states require a separate application, while others automatically grant you tax-exempt status when you obtain federal tax-exempt status. Other states require a copy of the letter from IRS that you have obtained federal tax-exempt status. Contact your state tax agency to find out what steps you must take.

Annual Filing Requirements. Once your Non Profit is deemed 501(c)(3) tax-exempt, you must file annually Form 990 Return of Organization Exempt from Income Tax, Form 990-EZ Return of Organization Exempt From Income Tax, or Form 990-PF Return of Private Foundation. Learn more about annual filing requirements for exempt organizations at IRS.gov.

Filing Requirements for Unrelated Business Income Tax. If your Non Profit earns over $1,000 from unrelated activities, you must file Form 990-T. For more information on taxes on unrelated business income, refer to Publication 598.

Read more about the rules and regulations of Non Profit 501(c)(3) corporations at IRS.gov.
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Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

Focus on Small Business - Virtual Offices Save You Money...

Virtual offices allow you to work from home, save daily gas and commuting expenses. You can still have a professional image for meetings with your customers and use professionally staffed conference space on a daily or hourly basis only when you need it.

Are you thinking of starting your own business, but concerned what it will cost? Virtual offices are a unique way for small businesses to save time, money and energy while allowing them to deliver the products and services that keep their business “in business”. No need to purchase property, maintain a building, or pay added utilities and insurance premiums.

Work from anywhere. A Virtual Office gives you the freedom to operate from just about anywhere including your home. With a dedicated phone line, you can even forward calls to your home or cell, offering a professional appearance to your clients.

Works all day every day. Since the Virtual Office is there 24/7, just like any other office, customers, calls, and mail can be received on youy behalf. If a client decides to visit the physical address of your Virtual Office, they will be met by a trained, professional receptionist who can receive packages or pass on a message to you. They can even give a package to the client on your behalf if you arrange for this in advance.

Reduces the need for employees. The staff of the Virtual Office gives you the advantages of having a fully trained staff at your disposal. In addition to the reception services, some Virtual Office operations even include access to business services such as copying, secretarial services, notary services. A few centers, like Pinnacle Executive Suites, may even offer business consulting, accounting and tax services onsite.

Face-to-Face meetings. Need an office for a day or conference room for a few hours for that special meeting or interview? You can schedule that time in an upscale atmosphere on an "as needed basis" at reduced rates by being a Virtual Tenant.

Improve Your Bottom Line. By catering to large number of people with the idea of providing the services which are otherwise not affordable, Virtual Offices can help your bottom line. It is particularly advantageous to self-employed professionals and small entrepreneurs who need to be in the field delivering their services to customers.

Cost-effective. Since the additional services of the Virtual Office can be reserved on a daily or hourly basis, you only pay for those services when you use them.

Legal Address. Meet local government requirements for an occupational license by having the commercial office address of a Virtual Office and also gives the option of business mailing address. It’s of great help to those who operate from home. The client can give the address of the Virtual Office with a suite number and Pinnacle Executive Suites will accept all the mail on your behalf. What a smart way to do business!!  Call Pinnacle Executive Suites today at 775-884-6123 or visit our website at http://www.pinnacleexecutivesuites.com/.


Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

US Small Business Relief Bill Stalls

Legislation which would extend tax breaks available for small business in the US will now not be considered until September after Congress failed to agree on a number of new amendments before the summer recess.

The Small Business Jobs Act of 2010 was introduced in Congress in June, but was first delayed as lawmakers rushed to complete the Wall Street regulation bill and then stalled as Democrats and Republicans argued over a number of amendments added by both sides.

The main thrust of the bill is towards the creation of a new lending facility to assist small firms trying to obtain credit from banks, many of which remain reluctant to lend to small businesses and start-up companies. However, the bill also contains a number of important tax breaks, measures which attracted broad Congressional support.

The legislation seeks to encourage investment in small businesses by allowing investors to exclude the gains from the sale of certain small business stock from their income for tax purposes if the stock is held for more than five years. The bill would also reduce the tax burden for small businesses by allowing them to carry back general business tax credits to offset their tax burdens from the previous five years. Additionally, small businesses would be able to count the general business credits against the Alternative Minimum Tax.

Another section of the bill would permit taxpayers to write off more of the cost of purchases for their business, such as equipment and machinery, in the year the purchase is made, and increase the types of purchases that would qualify for special expensing to include some types of real property, such as leasehold, retail and restaurant improvements.

Other proposals offered in the bill would double the amount of start-up expenditures that may be deducted by someone starting a small business, and allow self-employed individuals to deduct health insurance costs for tax purposes.

In his recent weekly radio address, President Obama accused Republicans of "holding America’s small businesses hostage to politics" by refusing to allow a vote on the bill.

"It’s a bill that includes provision after provision authored by both Democrats and Republicans," he said. "But... the Republican leaders in the Senate once again used parliamentary procedures to block it. Understand, a majority of Senators support the plan. It’s just that the Republican leaders in the Senate won’t even allow it to come up for a vote."

Senate Republican leader Mitch McConnell, however, countered that if anyone is to blame for holding up the bill, it is the Democrats.

“Our friends on the other side have outdone themselves," he stated. "We first got on this bill in late June, and since then, Democrats have set it aside six separate times to move to something else. So from the beginning this bill clearly wasn’t a priority to them."

With unemployment stubbornly high across the US, debate on the legislation, which Democrats claim will create an additional 500,000 jobs, is likely to form a key battle ground in the run up to the mid-term elections, and President Obama would be keen to put his signature on the bill before the November vote.


Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

Brand Protection - How to Protect Your Brand

Your name is your brand. I know that may sound like an obvious statement, but as the internet continues to emerge as the marketplace of choice you will have to become more aggressive in the defense of your brand.

Long before Google, if a customer had an issue with your business they would simply storm into your location and demand to speak with the manager. Now they storm onto Google and trash the reputation of your business with the use of Consumer Complaint Sites. In no way am I discrediting all consumer complaints as shallow, but the popularity of sites like Rip off Report and Complaints.com has become a hub for insidious content.

And to make matters worse search engines like Google take no responsibility for the content posted by 3rd parties, however Google is also financing and legitimizing these sites with their Google Adsense campaigns. So now you have two separate parties benefiting from one lie posted about your business. To paint an even clearer picture for you, we will now examine what I call the "Slander for Cash Scheme."

Slander For Cash Scheme

1. A customer enters your mechanic shop interested in getting a wheel alignment on their 2004 Honda Civic. After you check their car you discover that they also need four new tires and back rotors. You give the customer the price for the wheel alignment, but also inform them that they really need 4 new tires and 2 back rotors or the problem will persist. The customer determines that they will only pay for the wheel alignment and nothing more. After two months has passed, the wheel alignment is now offset again due to the poor quality of the tires. The same customer storms into your location demanding a refund, in which you pull your notes from the transaction and politely inform them of your recommendations at the time of their last service visit. The customer becomes angry because you refused to give them a refund or re-align the car for free.

2. Customer then in turn contacts the local Better Business Bureau and files a complaint claiming that your business is a scam. In addition to the complaint with the local BBB the customer also posts a one paragraph entry on Rip off Report calling you a scam artist, and your business a scam. In their posting on the complaint site the customer makes no mention of the fact that you advised them that they would need 4 new tires, and new rotors. Now you are noticing a decline in your clientele, and the national roadside companies are no longer sending you emergency calls. Despite the fact that you have been in business for over 15 years and have built an impressive reputation in your town, this one post online is now eroding your business. You have no idea why you're losing sales and have dropped down to a few loyal customers. Then one day your 16 year old daughter informs you that there is a negative article about you in Google. You heart rate increases as you type your name into the Google search box, and there it is in bold at the top of the page "ABC Auto Is A Scam."

3. You try to repost what actually happened in an attempt to prove that your business is not a scam. You even try to contact the complaint site and ask them to take the page down because it is not true, but no would reply to your emails. As you look closer at the negative post you notice that a few people have added anonymous comments also calling your business a scam. Your gut feeling tells you that the other posts are from the same guy because they were entered only minutes apart, but never the less all of the post or listed under your name. You also notice that several ads for Reputation Management companies are along the sides of the complaint site, advertising that they can remove negative sites like the one you're on. Then to add insult to injury you receive an email from the host of the site 6 weeks later saying that they are willing to remove the link for a fee of $3500. You contact your attorney in an attempt to sue the site for slander only to be informed that they are protected under freedom of speech laws.

In a recent interview with Ron Collins COO of Remove It Now.com, he shared with us a few of the challenges that small business owners are facing as they try to protect their brands from Cyber Slander.

"I'm sure that when President Bill Clinton signed into law Section 230 of the Communications Decency Act in 1996, he had no idea that it would be used in such a horrific manner. Everyday thousands of false allegations are posted online by customers who are unfairly accusing legitimate businesses of operating as scams."

How To Fight Back!

As a business owner you have the right to defend yourself against online attacks from both disgruntled customers, as well as competitors. Your brand took years to build and is in fact a symbol of your life work, which also means that it's worth protecting. Listed below are two things that you can do today that will begin the process of building a fence around your brand.

1. Create several versions of your website - The only way an attack site like Rip off Report or Complaints.com can really hurt you is if they land on the 1st page. Google will display on average 10 links on the first page that are associated with the searched keyword. In your case that keyword is the name of your business. This strategy will begin the process of taking up space on the first page of your search results, thus leaving less room for anything else to land.

2. Become your own publicist - You have a right to publish positive content about you and your business, exercise this right! Remember what I said earlier, Google remains on the sidelines of this big mess that they've created by referring to all published content as "3rd Party Submissions", therefore get your own 3rd party to defend your company. You can accomplish this without spending all of your profits, especially with the help of Social Media.

I encourage you to defend your brand as vigorously as major corporations defend their brands. What it all comes down to is money; negative online articles can put you out of business before Thanksgiving arrives. The defense of your brand is a personal fight that you must take very personally in your intensity; your legacy is depending on it.

About the Author

For more information on how to protect your brand from online attacks please visit http://www.removeitnow.com/Business-Reputation.html



Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.