Small Business Tax Write Offs
If you own a home based business, or even a small business, here is a list of some of the small business tax write offs you should be aware of. The tax laws are setup in such a way as to help you with starting a business. So we should make sure we are writing off everything we are entitled to.
Home Office: This constitutes a room, where your office equipment is located, which only has one entrance and exit. The rule of thumb is you should be able to shut a door, and not need to go I there except to work in the office. The way the deduction works, is take the square footage of the office, and divide by the square footage of the house. This gives you are percentage, like 15%. Then you can take 15% from the mortgage (or rent), home owners insurance, electric, gas, water, and trash bills, and write this off to the business. Business supplies: This can include computers, laptops, PDA’s, printers, office supplies, business cards, stamps, postage, and anything basically used to maintain the office. Internet connection: You will need, or have , one of these already. This is a legal business write off, so make use of it. I would personally upgrade to cable internet if you have not done so already. Business phone: In this scenario, you must have a 2nd line in order to deduct it. I would also recommend going with VOIP service. For a fee of less than $30 per month, you can have everything unlimited. Meals and Entertainment: If you go out to eat, or for a coffee, and discuss the business, you can write this off. Just write on the top of the receipt who the meeting was with, and keep the receipt. Mileage: Driving anywhere for a business purpose allows you to write off the miles it took you to get from point A to point B, and back. Get a mileage book to help keep track of this. Coffees and Sodas: If you would normally buy and drink these at an office, you can also deduct the same things even if you are at home. Just save the receipts.?
There is a brief list of deductions you can take towards your business. Just remember, the tax laws are written in our favor, so make use of these small business tax write offs.
The Business of Insurance – How Profitable Is It?
Investing in insurance companies is not something that a lot of people think about when they first get into investments, but it is a suitable investment option for some people. If you think about it for a second, you will realize that while investing in specific companies might carry some risk, the industry of insurance is practically guaranteed in certain aspects. People NEED insurance, and that’s the bottom line. If you invest in a company like Starbucks, you do so knowing that while the company fares well people do not need it to survive.
Investing in insurance allows you to get your own portion of the more than $3 trillion dollars in profits that the insurance industry makes every single year. Of course, just like investing in any other stock or commodity, you do have to be careful in how you go about this and which companies you choose. Financial results actually have quite a variation among health and life insurance companies, but if you do the homework you can find higher ratios and better rewards for your investment than you might get anywhere else.
Investing in insurance companies is something that you need to study carefully, including things like timing of cash flow, payor mix, diverse products offered, and the reputation and financial stability of the company in the first place. The company needs to have the power to underwrite all the profits that you are looking for and prove to you that they are worth investing in. you have to ask yourself whether the offered reward is worth the risk of losing all of the money that you invest before you dive into insurance investing situations. One of the most critical elements to look at in a company is their combined ratio. A ratio of less than 100 means that the company is earning underwriting profits while a ratio of over 100 means that the company is spending too much and not earning underwriting profits.
The level of regulation and the ability to share the risk with other investors makes insurance investing very appealing to many people. However, fluctuating markets, cutthroat competition, and many other factors affect the insurance industry and investors who are involved, which means that you need to be extra careful in planning your investments for the best results. If done correctly, investing in insurance companies can be a high-profit investment vehicle for anyone.
Business Credit Builder – Dun & Bradstreet Products Get a Makeover
After speaking with my contact at Dun & Bradstreet yesterday about its duns credit builder products there have been recent changes made this year that are important for you to be aware of. These enhancements are good news for small business owners and make the programs offered at DNB more streamlined and affordable to establish, improve, and protect your corporate credit.
Now keep in mind that obtaining a DUNs number does not cost anything to your company but receiving your number can take over 30 days if you choose the free route. However, you can obtain your DUNs number in less than 24 hours by either purchasing one of its business credit builder programs or if you are a government contractor, government vendor, or grant recipient.
Now let’s review each of its business credit solutions and how they can help build company credit for your small business much faster than the traditional route of waiting for your creditors to report.
DUNs File Creator
Price $149
This product is ideal for you if you need to have a DUNs number issued right away. As soon as you purchase this product they will issue your number in 24 hours and you can have a DNB business file in their system within 5 business days. You have the ability to add extensive information on your file like company background information, operational information and financial statements. One of the drawbacks is that it does not include the ability to add trade references to your file. You will have to wait for vendors, creditors or suppliers to report their payment experience with you to Dun & Bradstreet. So if you are trying to build business credit history fast then this would not be the best choice for you because you have to wait until your suppliers report your payments.
* Tip – there are credit builder companies like the Business Credit Insiders Circle that provide access to vendors, suppliers, and companies that report to DNB for building small business credit.
DNBi Self Monitor Basic
Price $449
If you choose to purchase this product then most likely they will waive the DUNs File Creator fee so don’t hesitate to request it. This particular product is ideal for you if you already have existing trade references that you want to add to your file. This service allows you to submit up to 8 references over a period of 3 months for a total of 4 payment experiences to be added. They allow this extra cushion just in case they are unable to contact one of your references for payment experience verification.
Now if the price on this is a bit of stretch for you then you may want to take advantage of their monthly payment option. It costs $39 per month and requires a 3 month minimum term. Keep in mind that if you select this option you are only allowed to add 1 trade reference per quarter with the option to add more if you continue the service.
The product features for this are similar to the DUNs file creator with the main difference being the ability to add trade references.
*Tip – there are credit builder companies like BCIC that report your payments to Dun & Bradstreet. Not only do they give you access to vendors, suppliers, and companies that report to DNB but they also help you build business credit history too!
DNBi Self Monitor Plus Inquiries
Price $799
This product is similar to the DNBi Self Monitor Basic except that it allows you to submit up to 24 references over a period of 3 months for a total of 12 payment experiences to be added. The basic version allows you only a total of 4 payment experiences to be added. They provide this extra cushion just in case they are unable to contact one of your references for payment experience verification.
In addition you have the ability to track the inquiries that others are making into your business credit file. This is a great way to make sure you are up to speed on the latest information that vendors, banks, suppliers and customers are seeing and an effective way to determine if your business is generating the positive interest it needs in the marketplace.
If you choose to purchase this product then most likely they will waive the DUNs File Creator fee so don’t hesitate to request it. This product is ideal for you if you already have existing trade references that you want to add plus closely monitor the activity and inquiries on your file.
DNBi Self Monitor Premium
Price $1,399
This product is the grand daddy of DNBs business credit solutions. In my opinion it’s a big upgrade to DNBi Self Monitor Plus Inquiries product because it allows you to submit up to 200 references over a period of 6 months for a total of 100 payment experiences to be added. The ‘Plus Inquiries’ version allows a total of 12 payment experiences to be added. That is 88 additional references you can add with this product and 6 months time frame to do it.
Some of my members who have been in business for years who now realize they need to build business credit history found this product to be a no brainer. Since they already have long standing relationships with many companies they quickly have the ability to add dozens of trade experiences to their files and create a paydex score of 80+ in a matter of weeks!
I hope you find these product reviews helpful so you can get started building corporate credit for your business today.