How can I protect my business name?

Trade names can be registered through the Indiana Secretary of State, and for wider marketplace protection, throught the U.S. Patent and Trademark Office. A search can be done through the USPTO's online system for all state and federal trademark registers to see if a proposed name is being used.

For many businesses that operate on the Web, trade names are synonymous with domain names, such as Amazon.com and Monster.com. Domain names are not registered through state or local government; rather they can be obtained through numerous online businesses, most of which will allow you to conduct a name search prior to purchase to make sure your chosen nmae is not taken.

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How to reduce the number of programs which start automatically when I launch my computer.

For most people, all you need as you start your computer is your anti-virus software. To eliminate other automatic programs follow the following steps:

1. Click on the start button, go to "run".
2. Type in "msconfig" and hit enter (do not use quotation marks)
3. This will bring up a window with several tabs. Select the "startup" tab.
4. This is a list of all the programs starting up with your computer.
5. First, locate your anti-virus software out of that list.
6. Then, click on "disable all".
7. Once everything is unchecked, put a check in the box next to the anti-virus software.
8. Click "apply", and then click "OK".
9. Restart your computer.
10. A popup will come up on restart. all you need to do is check the box and click "OK".

Answer Provided by Eric Pettit Desktop Networking Solutions LLC

Make the Most of Your Connections with LinkedIn!

This is where the real power of LinkedIn comes in. While you may have only 100 people in your contact circle, each of those people know other people. These same connections exist in the off- line world. Your friends know people you want to meet, and sooner or later they may get around to introducing you.

With LinkedIn you can accelerate the process by requesting invitations. You can search by skills, type of company, jobs held, geographic regions, and common interests. If you find someone who fits your search criteria, LinkedIn will tell you how you are connected, who you know in common, and you can request an invitation.

LinkedIn will never replace the face-to-face interaction, but it can give your traditional networking an extra buzz.

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What should I name by business?

There is more to naming your business than just coming up with something that sounds good and you happen to like. Thought must be given to state and local requirements and making sure you don't infringe upon the rights of someone else's business name. You will need to determine whether your trade name will be the same as the full legal name of your business.

Of equal importance is finding out whether your name or a very similiar name is being used by another business, and if so, what rights they may or may not have to use the name in the area where you do business. Keep in mind that some businesses only file trademarks within their locality, so it is possible that the same name can be used elsewhere.

Answer provided by Chuck Roach - Roach Law Office

Are you LinkedIn?

As a confirmed networking junkie, I am always looking for my next fix. My new fix is LinkedIn. An on-line social network, Linkedin is often described as FaceBook for professionals.

With an emphasis on career history, educational background and association membership, Linkedin has millions of members, with thousands more joining each day.

Once you register (basic membership is free) you can invite people to LinkIn (connect to you through the online tool). You can search the LinkedIn data base for people you know or upload your email address book. You will only be able to view contact information for people with whom you are directly connected.

Go check out LinkedIn and find out why I am an a LinkedIn addict!

Register for LinkedIn

Comment provided by Lorraine Ball - Roundpeg

Should I be an LLC or a Sub-S Corporation?

Before the early '90's, the "preferred" form of organization generally was an S corporation because it combined the limited liability associated with a corporate structure with flow-through treatment of tax benefits to its owners. An LLC is sometimes preferred because in addition to each of the aforementioned benefits, an LLC is not subject to many of the restrictions to which an S corporation is subject. In addition, future restructuring of an LLC genearlly avoids certain negative income tax consequences that future restructuring of a corporation may involve.

A rule of thumb has developed among many accountants that if the business will be actively managed by the shareholders[s], and it will be a small business, a sub-S corporation is the choice. For real estate or other "passive" investment type companies, the LLC is the choice. Again, because this decision is vitally imporant to the financial health of the company and its owners, you are strongly advised to obtain advice from your accountant before proceeding. If you do not have an accountant we can recommend one to you.

Answer provided by Chuck Roach - Roach Law Office

Is personal liability protected by the corporate form?

In all corporations, shareholders are not personally liable for corporate obligations unless corporate formalities have not been observed. Such formalities provide evidence that the corporation is a separate legal entity from its shareholders. Failure to do so may open the shareholders to liability of the corporation's debts. Corporate formalities include issuing stock certificates, holding annual meetings, and recording the minutes of the meetings. Many of these tasks invovle simple preparation of documents, which can be prepared by your attorneyon an annual basis and included in your corporate book.

Answer provided by Chuck Roach - Roach Law Office

How Can I use the Kiddie Tax?

The Small Business and Work Opportunity Tax Act of 2007 introduced a number of tax incentives for small business, but included a few pitfalls for individuals. For 2007, a child under the age of 18 is subject to the "kiddie tax" (and thus pays tax at his or her parents' highest marginal tax rate on unearned income in excess of $1,700).

But in 2008, the applicable age rises and the kiddie tax will apply to a child under the age of 19 and full-time students under age 24. In light of this development, parents should consider selling appreciated stock and other assets belonging to their children now, especially if they will be in the 19 to 24 year-old category next year.

Answer Provided by Andrew Taylor, CPA - Haffley,Taylor & Company

What is the difference between a C corporation and an S corporation?

Both S and C corporations are formed the same way - by the filing of Articles of Incorporation with the Secretary of State's office. As a legal matter, the S corporation is identical in many ways to the C corporation because both limit the shareholders' personal liability. But as a tax matter, the S corporation offers the advantage of avoiding taxation at the corporate level. In order to obtain S status, a company files Form 2553 to "elect" to be treated as an S corporation. If accepted by the IRS, the company is then taxed like a partnership. The corporation is not taxed, but the income flows through to shareholders who report the income on their individual returns.

Note that the 2553 is a tax election only; and enables the shareholder to treat the earnings and profits as distributions, and have then pass thru directly to their personal tax return. The catch here is that the shareholder, if working for the company, and if their is a profit, must pay herself wages, and it must meet standards of "reasonable compensation." This can vary by geographical region as well as occupation, but the basic rule is to pay yourself what you would have to pay someone to do your job, as long as there is enough profit. If you do not do this, the IRS can reclassify all of the earnings and profits as wages, and you will liable for all of the payroll taxes on the total amount.

Answer provided by Chuck Roach - Roach Law Office

How can I use the State and local sales tax deduction.

Despite being one of the more popular tax breaks, the deduction for state and local sales taxes is not permanent and is set to expire at the end of 2007. The American Jobs Creations Act of 2004 gave taxpayers who itemize deductions the option of claiming either state and local income taxes or state and local general sales taxes.

If you have been contemplating the purchase of a big-ticket item, such as a car or boat, you should consider making it sooner rather than later because the deduction for state and local general sales taxes expires at the end of 2007.

However, you first need to compute what any potential state and local income tax deductions will amount to and then compare it to your potential sales tax deduction.


Answer Provided by Andrew Taylor, CPA Haffley,Taylor& Company

How can I reduce my 2007 taxes - Gift-giving

Take advantage of the 2007 annual and lifetime gift-giving limits to reduce your income and estate tax liabilities. For 2007 and then again in 2008, you can transfer $12,000 per person, per year, without paying gift tax on the amounts transferred.

Married couples can gift $24,000 per person, per year without tax liability on the amounts transferred. That strategy not only avoids the possibility of paying a hefty estate tax later, but it removes earnings from those gifts from your taxable income bracket into that of the lower-bracket gift recipient.


Answer Provided By Andrew Taylor, CPA - Haffley, Taylor & Company

How can I reduce my 2007 taxes _ Retirement planning

Year-end planning for 2007 also involves maximizing annual contributions to your retirement plan accounts, since one year's limit cannot be added to the next year's if not taken in time. While contributions to IRAs may be applied retroactively if made before the filing deadline, an individual's elective deferral contribution made as an employee to a qualified plan must be made before the end of the calendar year.

Maximizing contributions to your retirement plan (or plans) before year end also allows you to reduce your adjusted gross income in direct proportion to those contributions. This in turn can give you the benefit of increasing the deductibility of medical and other deductions subject to adjusted gross income floors.

It is also not too early to think about a Roth IRA conversion plan if your present adjusted gross income is too high under the usual conversion rules. Although the adjusted gross income limit is not lifted until 2010 for a one-year only conversion opportunity, certain year-end maneuvers now can better set you up for maximizing conversion benefits in 2010. For example, if leaving employment, you may want to consider rolling over 401(k) balances to an IRA rather than leaving it in the plans.

Answer Provided By Andrew Taylor, CPA - Haffley, Taylor & Company

How can I reduce my 2007 taxes - Portfolio timing

The end of the year is an ideal time to examine your investments (winners and losers over the course of the year) to take the steps necessary to minimize your capital gains income and maximize the benefit of any capital losses. Long-term capital losses can be used to fully offset long-term capital gains. Losses taken in excess of gains can also be used to offset up to $3,000 in ordinary income (or $1,500 for a married couple filing separately). The strategy for short-term gains and losses follows a similar game plan, although coordinating the two sometimes takes special care.

Starting in 2008, traditional strategies in connection with capital gains and losses also need to accommodate a special, nontraditional opportunity -- the zero percent net capital gain rate for tax years 2008 through 2010. While this zero rate is only available for individuals in the 10 or 15 percent income tax brackets, it is well worth families, retirees, and others to manage their income tax brackets starting in 2008. That management starts at year-end 2007, as does the decision over whether to postpone a sale of a capital asset until January 2008 to take advantage of this favorable, zero rate.

Answer Provided By Andrew Taylor, CPA Haffley, Taylor & Company

How can I reduce my 2007 taxes? Deduction management

Essential end of the year tax planning requires determining whether you will take the standard deduction or whether you will itemize your deductions. Consider "bunching" deductible expenses into one or the other year depending upon whether the standard deduction may be taken in one year or whether the adjusted gross income limits for medical (7.5 percent) or miscellaneous itemized deductions (2 percent) may be more easily met.

Even if you know you will itemize deductions, accelerating or deferring them is often a question of determining your probable tax bracket for year end and the next year to maximize their after tax value. Sometimes planning is as simple as paying your state estimated tax or real estate taxes in one year or the other; at other times, it's a question of making certain you gather the right proof and follow the proper steps in time to be entitled to a deduction in one year or the other.

Answer Provided By Andrew Taylor, CPA - Haffley, Taylor & Company

How can I reduce my 2007 income tax? Income shifting

One of the most fundamental year-end tax planning techniques involves accelerating deductible expenses in 2007 and deferring income, if economically feasible, into 2008. By delaying taxable income you defer taxes. Delaying taxable income may also prevent you from losing lucrative tax breaks that can be reduced or eliminated altogether as your income level rises and propels you into a higher tax bracket.

With only a month left until the end of the year, you can probably anticipate with reasonable certainty what income and deductions you will be reporting on your 2007 tax return. You may also be able to predict with relative accuracy what your income and expenses for the first few months of 2008 will include. The ability to gauge your income and expenses for 2007 and into 2008 provides a golden opportunity to shift income or expenses into one year or the other, depending on what will enable you to save the most overall taxes.

Shifting income, however, is not always a matter of simply delaying receipt of funds. Tax rules may require you to recognize certain types of income when you have earned to right to receive it, even if you arrange for its delayed payment.

Answer provided by Andrew Taylor, CPA - Haffley, Taylor & Company, LLC

What is a corporation?

A corporation is a more complex business structure generally. It is a legal entity separate from its owners, called "shareholders," who own shares of stock in the company. For "regular" or C corporations (often used for large and publicly traded companies), profits are taxed both at the corporate level and again when distributed to shareholders. This is the tax disadvantage which is avoided by the "pass through" entities such as LLCs and S corporations.

Answer provided by Chuck Roach - Roach Law Office

Are You Backed Up?

Today's post is made possible because of Gary Hubbard at Data Doctors. He and his store manager Tony, got my computer running in under an hour after I broke something. The drive to the computer store was not scary because I knew my data was securely backed up thanks to Kevin Vanover of Reliance Technology.

If your computer crashed today, would you be in business tomorrow?

Comment provided by Lorraine Ball of Roundpeg.

How is the LLC treated for tax purposes?

The LLC enjoys the same "flow-through" tax treatment that partnerships and S-Corporations do. The rules concerning capital accounts, contributions and other basic partnership taxation principles apply to LLCs as well. In short, this means that although the LLC must file a tax return, the LLC owners report income and pay the taxes owed on such income using their personal returns.

The LLC itself does not pay taxes on its income. (Currently, the IRS has not developed a separate tax return form for LLC, so the same form used for partnerships is used, Form 1065). The owners will each file a Schedule K-1 with their personal income tax return, which will show their "share" of the LLC income. While this structure avoids the double taxation dilemma of the C-corporation, an LLC (like the partnerships and an S-corporation) cannot retain earnings without the owners of the business having to pay income taxes on those earnings anyway.

One of the very best features of the LLC is the fact that the owners can divide up the ownership interests differently from the rights to distribution of profits (and losses). For example, an individual goes into business with another person, and both wish to own 50% of the business. However, one individual is going to work for the LLC full-time while the other wishes to keep another full-time job and work for the business part-time. Each may still own 50%of the ownership while dividing the profits interests into a 75%-25% split or some other ratio, to reflect the different levels of effort.

Answer provided by Chuck Roach - Roach Law Office

How does the LLC end?

The death, retirement, withdrawal, or bankruptcy of a member or manager may end the existence of the LLC, depending on the terms of the operating agreement. Apart from the death, retirement, bankruptcy or withdrawal of a member or manager, an LLC usually only ends upon the date of expiration (often set 25 - 30 years from the date of formation) or, if there is no expiration date, then upon mutual agreement of a majority of the members.

Answer provided by Chuck Roach - Roach Law Office