Financial Resource: Beginner Investing to Financial Independence!

A financial education blog to share experiences on 401K, assets, budgeting, cashflow, early retirement, finance, financial freedom, investing, money management and retirement planning using posts, podcasts and video.

Archive for the 'Tax' Category

Wealth and Prosperity through Character Development

May 7th, 2008 by Mind Treasures

Do you think your character has any relationship with your finances?

Are you Purposeful (goals & objectives)? Are you Patient (saving)? Are you Responsible (borrowing)? Are you Moderate (balance & budgeting)? Are you Selfless (retirement)? Are you Reliable (credit)? Are you Courageous (business & investing)? Are you Punctual? (35% of U.S. FICO is based on this character) and the list goes on.

True Wealth & Prosperity can only be achieved by discovering and developing one’s hidden treasures:

“Regard man as a mine rich in gems of inestimable value. Education can, alone, cause it to reveal its treasures, and enable mankind to benefit therefrom.”

Of course development of hidden potentials (virtues) must be complemented with learning and implementing various elements of local economy in daily financial activities.

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Category: 401(k), Bonds, Business, Environment, Financial Markets, Financial Planning, General, Investing, Mortgages, Real Estate, Retirement Planning, Spending, Stocks, Tax, World, financial education | No Comments »

Got the Tax Blues? Is Your Business Structured with Tax Breaks in Mind?

April 16th, 2008 by Dollar$ & Sense

Are you suffering from post-tax syndrome? Feeling exhausted after rushing to the accountant’s office and completing your return just in time? Did you check and re-check your tax returns to see if you really have to pay that much to the IRS? Run to the banks to deposit sufficient money in your account to cover those check amounts to the IRS? Stood in long lines at the post office yesterday? April 15th - tax deadline day when most Americans line up at neighborhood post offices with their tax returns and certified mail with return receipts filled out (just to make sure the IRS knows they mailed it in time) - is now past us, for another year.

It was a similar experience for me this year and probably the most hectic compared to past years. If you are like me, self employed and running your own business, then you know what I am talking about. We wait till April 15th to pay our self-employment tax and most likely file extensions so that we can complete our business books, review with our accountants, and file tax returns at a later date.  A topic that has been on my mind lately is whether I have selected the most appropriate business entities, such as Limited Liability Company (LLC), Limited Liability Partnerships (LLP), Sole Proprietor, Partnerships, C corporation, or S corporation, for my businesses and investments to optimize the tax breaks that are out there. As they say, the rich get richer because they know how to make their money work for them. They also know what legal tax breaks and strategies to use to pay the lowest amount of tax. The poor and middle or employed class pays the highest tax rate in America due to their ignorance of tax strategies and the inability to incorporate their work and run it like a business.

Deciding to incorporate and selecting which business entity fits best for your business needs can be a daunting task. However, spend the time to research and understand the implications of each entity and what it means to your business.  Further below in this post, some basic questions are posed for you to consider and some additional information on some of the more commonly used business entities. These questions and basic information will guide you along the path to figuring out the best tax strategies for your business. Additionally below are some recommended books from Amazon.com that have a wealth of valuable information on tax planning.





Here are some questions to guide you along the path of tax planning and tax strategies whether you are a home business owner, self employed or run a larger corporation:

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Category: Business, Financial Planning, General, Tax | No Comments »