Welcome to Susan James & Associates, Inc.
Thanks for visiting The Money Talks Cafe, the blog of Susan James & Associates.
We provide high-quality financial and tax advice and complete accounting services to small business and individuals at a reasonable price. Our complete range of accounting, taxation, and small business consulting services are delivered with a personal touch. You can learn about our full range of services and view our company profile at www.susanjamesandassociates.com.
We welcome new clients!
If you are looking for professionalism and excellence in your financial and tax services, contact our office today. We will be happy to review your situation and give you the best recommendations possible.
Susan James & Associates, Inc.
10061 Riverside Drive #171
Toluca Lake, CA 91602
susan@susanjamesandassociates.com
Phone: (818) 846-1619
Fax: (818) 301-2556
Start up Businesses -Turnkey Websites
It’s a great time to start a small business. One quick and easy way is to purchase a turnkey website using sites like Flippa.com (a site whose biz model is similar to Ebay, but that specializes in the buying and selling of websites for anywhere from the start-up rookie to the more experienced e-commerce business person).
I recently visited Flippa.com and went through the process of selecting and purchasing a website. For disclosure sake I want to tell you that I am not completely clueless about how internet businesses work, I would say I am just slightly above rookie status. That being said, I took some time to look through the Flippa.com site for easy, turn-key operations that I could control, and hopefully learn to monetize. I did purchase a site, fully set up, for $110 called TheRecipeNetwork.info. With the sellers assistance I was able to transfer the domain,transfer the site to my WordPress, and then in trying to transfer the hosting of the site to my hosting account I lost it and haven’t had the time to go find it. My intention was/is to find an attractive website that was fully functioning and to add advertising from Amazon, Clickbank and Adsense to it.
All of these easy advertising methods are free to use and come with pretty clear instructions about adding them to your site as well. My main intent was to drive traffic to the site so I could increase its value and hopefully collect some passive income from the advertising. Not to mention, I wanted to try it out before I wrote about it here.
As in any business venture, proceed carefully. Know how much money you have available to risk, ask a lot of questions, buy into a niche that interests you. No matter how easy it seems, e-commerce takes time, and depending on your experience, can involve a substantial learning curve. But I would advise taking a look at the site (or other sites like it) if you’d like to get your feet wet at an easy startup.
Thought for Today
“Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands” – Judge Learned Hand
The Newer, Younger, Better Way to Make Money
It’s crucial to get the inside tips from people who have already found money-making success if you want to follow in their footsteps.
That’s why you should check out this video:
It’s a bunch of the world’s top young entrepreneurs (like Michael Dunlop and Adam Horwitz) sharing a little bit of inspiration with whoever has a few minutes to listen. Well worth it.
The video was specially made with audio compiled from a brand-new book called “50 Interviews: Young Entrepreneurs – What it Takes to Make More Money than Your Parents.” This book is really important because young people know the internet like the back of their hands – and if you don’t learn how they’re making $10,000 a month while still in high school, then you’re going to get left behind.
Don’t let it happen to you.
“I was obliged to be industrious. Whoever is equally industrious will succeed . . . equally well.”…Johann Sebastian Bach
3 Start Up Business MUSTS!!!
So you’ve decided to try to take your finances by the horns and started your own business. Congratulations!!! Whether you started a new full-time enterprise or are still working while operating a business part time until it can support you or whether you just want a small business on the side to supplement your income – there are at least three absolute requirements that you need to be aware of.
1. Business License -
No matter how you operate (whether corporation, LLC, partnership or sole proprietorship) you need to check with the city you are located in or operate in to see what their licensing requirements are. Whether its called a business license or business tax, each city regulates the ability of business to operate within their borders. And with the current economic climate, cities are becoming much more aggressive about collecting their fees. No matter where you are in the country, even if you are operating a home based business, most cities have a licensing/tax requirement and you should definitely call your city office to determine what your requirement is.
2. Fictitious Business Name (aka DBA or Doing Business As) -
A Fictitious Business Name is a requirement for any business who operates under OTHER THAN their legal name. You must file a Fictitious Business Name in your location in order to operate under a name other than your own. To complete this process you need to file for a Certificate at the County or City Recorders office and then get it published in a local newspaper. Most cities or towns have publications who offer services to get it all filed and published for one fee. This document is also extremely important if you will be receiving payment in a name other than your legal name since banking institutions will not deposit funds received in your business name if that name doesn’t match the registered owner of the business’ bank account.
3. Income Tax Filing –
No matter how big or small the business size, you must report the income and expenses for your enterprise each year and pay the tax on that business if applicable. Be sure to keep good records of any revenues received and any expenses incurred in the attempt to generate that revenue. Even if you believe you did not make enough to report, the government requires that you report it. You may find you operated at a loss which could be to your advantage since business losses may be qualified to offset your other taxable income. Check with your tax advisor. If you need an idea of information that your preparer will need, please check out our Home Based Business P&L worksheet on the General Information for 2011 Tax page in this blog.
Alright, before the year is up, be sure you’ve completed all these steps!
5 Tax Tips For Year End Tax Planning
Its November now and time to start preparing for our year end tax planning meetings. The tax code is so fluid and has been rapidly changing over the past few years that some of the things tax accountants were worried about at the beginning of the year have been repealed while others have been clarified. It is important to get with your tax accountant before the end of the year to get an understanding of what your tax situation will be like in the coming filing season. Doing so could save you more than the cost of the consultation either by executing tax saving strategies by year end or by avoiding interest and penalties by making sure you have paid enough taxes for the year.
Here are five tax credits for 2011 and/or 2012 that might help you save a bit in the upcoming filing season if proper actions are taken now. Keep in mind tax credits are dollar for dollar reduction of your tax, not your income, which is much more valuable.
SAVERS CREDIT:
This credit may be available to households with incomes less than $56,500. You must be 18 or older and have contributed to a specific qualified retirement plan including 401Ks and 403bs or IRAs. The credit is up to 50% of your retirement plan contribution for a maximum credit of $1000. This is in addition to the deferred tax benefits you receive from participating in these programs. The 2011 income limits for Single filers is an AGI of up to $28,250, Heads of Households with AGIs up to $42,375 and Married Filing Jointly filers with AGI up to $56,500 in the 2011 filing year.
CREDITS FOR HOME IMPROVEMENTS
Many of the tax credits for energy efficient home improvements were severely decreased after December 31, 2010. However, if you made qualified energy efficient improvements to your home in 2011 you may still qualify for a tax credit. For most of the improvements the credit is limited to a lifetime credit of $500 which means that if you took an energy credit for things like insulation, windows, doors and heating/air systems in the past and received a credit of $500 or more, you would no longer qualify for any further credits after 2010. If this is the first time you are claiming this credit you may be qualified to tax a credit for 10% of the cost up to $500 in credits. Act quickly, though, those credits expire as of December 31, 2011. There is also a 30% credit that exists through December 31, 2016 for solar energy systems, wind turbines for residences and geothermal heat pumps.
HEALTH INSURANCE CREDIT
Small businesses with under 25 employees may be able to claim this credit if the average wage of their employees is under $50,000 and they pay a portion of their employees health insurance costs. The credit is up to 35% of the non-elective contributions made on their behalf. The amount of the credit is dependent on the number of employees and the average compensation.
CREDIT FOR HIRING NEW EMPLOYEES
Hiring a member of an IRS identified target class can lead to a 40% credit of the first $6000 of wages paid to that employee. Disabled Vets, food stamp recipients and ex-felons are some of the classifications that qualify. Several conditions apply but be sure to ask about it in your tax planning.
RESEARCH & DEVELOPMENT CREDIT
This credit is currently due to expire on December 31, 2011. However, nearly every industry has credits that may reward businesses for daily efforts to improve an existing product line. There are many conditions, but be sure to ask your tax accountant about this credit.
The New World of Business-Building Cell Phone Apps
By T. Ciarfalio
Most start-ups get underway while their founders are employed full time at a ‘regular’ job, and more than a few future CEOs put their businesses together while still in school. This puts time at even more of a premium for these budding entrepreneurs.
Fortunately, technology has come to the rescue. Specifically cell phone technology, which puts business-building apps at your disposal 24-7. Today we’re introducing you to an excellent all-in-one app educational app as well as leading mobile tools that transform your cell phone into a super-productive office-on-the-go.
Startup Entrepreneur Learning Studio by Intersog
“#1 among 8 Educational iPhone Apps for Small Business Owners” – Mashable
iPad
Here’s an excellent starting point for future business owners who still need to master the fundamentals of business-building. It’s also an invaluable resource for those looking to increase the efficiency and competitiveness of their existing business.
The app is essentially 8 apps in 1 that cover all the fundamental aspects of entrepreneurship and small business development. Topics range from introductory surveys of general entrepreneurial concepts, to more advanced courses focusing on specific applied concepts important to opening and developing a small business. You’ll delve into accounting and marketing fundamentals, cost analysis, legal considerations, and economic factors you’ll need to navigate throughout the life-cycle of your business.
Information is presented through course text, interactive flashcards, charts and other visual aids, and testing that includes explanations of right and wrong answers. The goal is effective reality-based teaching provided in a range of learning styles.
Scanner Pro by readle.com
“Must-Have Business App” – Entrepreneur Magazine
iPad, iPhone, Android
Scan multi-page documents on the go! From meeting notes to contracts and invoices, this high-quality image processing app does the job with powerful features like batch processing, automatic edge detection, PDF production, custom page sizes and password-protection. Scanner Pro allows you to transfer your completed documents to Mac and PC, send by email and upload to any WebDAV enabled online storage including MobileMe iDisk, Box.Net and Humyo .
MightyMeeting by MightyMeeting Inc.
Winner of 2010 Founder Showcase in Silicon Valley
iPad, iPhone, Android
MightyMeeting is a brilliant pitch partner that enables you to conduct a powerful meeting or presentation anywhere, anytime right from your cell phone. It features a cloud-based server where you can access and manage all of your essential uploaded materials including PowerPoint presentations, product videos, slideshows documents and more. You can start or join a meeting at any time, conduct ongoing discussions and stay up-to-date with push notifications.
Quickoffice by Quickoffice Inc.
“…our favorite productivity app for Android” – Business Insider
iPhone, iPad, Android Smartphones and Tablets, Symbian Smartphones, HP webOS
The essence of simplicity and productivity, the award-winning Quickoffice software allows mobile professionals to view, edit and create Microsoft® Word, Excel and PowerPoint documents on their mobile device. In addition, the software’s seamless cloud integration enables simple, anytime, anywhere access to important content. The Quickoffice Pro HD for iPad offers the added bonus of connecting with Facebook, Twitter and LinkedIn.
Dragon Dictation By Nuance Communications
Top 10 Apps for the Entrepreneur – Noobpreneur.com
iPhone
Dragon Dictation is the easy-to-use mobile voice recognition application powered by industry-leader Dragon® NaturallySpeaking® that allows you to easily speak and instantly see your text or email messages. In fact, it’s up to five (5) times faster than typing on the keyboard. All you need to do is speak into the phone and you’ll end up with a text file of your notes, ideas and memos. From there, you’re ready to text, tweet or send emails – all without the laborious job of typing on your phone’s tiny keyboard or the annoying wait until you can reach a computer.
Catching Up on Child Labor Laws
By T. Ciarfalio
Integrating your teen into your family business, your job or even a side business carries a number of benefits. It can be a terrific way for them to learn responsibility, earn money, and prepare them for the workplace. But one of the first steps a responsible parent should take is understanding the legalities and safety issues involved with hiring your own teenager.
The Department of Epidemiology and Population Health at the University of Louisville in Kentucky recently conducted the first study ever to examine teenagers working in family owned businesses. They developed a questionnaire that was distributed to 8,085 teens in high schools throughout the five public health regions of Wisconsin and compared the experiences of teens working in family businesses to the experiences of other working teens.
84% of teens responded, and of that group, 42% or 2,858 high school teens aged 14-17 reported working (42%) and 963 or 34% said they worked in a family business. It was found that teens working in family businesses were more likely to report that their injury was severe, affecting their activities for more than three days, compared with other working teens by a rate of 33% to 21%. The percentage of teens working in family businesses that reported broken bones or crushed body parts was 17% compared to only 5% of other-working teens. Additionally, teens employed in family businesses were more likely to file for workers’ compensation – 28% vs. 12%.
In sum, the study found that teens working in family owned businesses were more likely to report engaging in dangerous tasks, including some that are illegal under the Hazardous Occupation Orders and may be at a greater risk for more severe injury based on the jobs and tasks they are doing.
The high rate of teen injuries in family owned businesses sends a clear message: parents need to understand both federal and state laws regarding putting their children to work Further, they need to be aware that youthful enthusiasm and willingness does not equal maturity, and take all safety precautions accordingly.
For your convenience, we’ve included a rundown of federal laws for teen workers. We recommend you also check your state laws regarding state labor as any states have stricter standards that take precedence over these.
No worker under 18 may:
• Drive a motor vehicle as a regular part of the job or operate a forklift at any time.
• Operate many types of powered equipment like a circular saw, box crusher, meat slicer, or bakery machine.
• Work in wrecking, demolition, excavation, or roofing.
• Work in mining, logging, or a sawmill.
• Work in meat-packing or slaughtering.
• Work where there is exposure to radiation.
• Work where explosives are manufactured or stored.
No one 14 or 15 years old may:
• Bake or cook on the job (except at a serving counter).
• Operate power-driven machinery, except certain types which pose little hazard such as those used in offices.
• Work on a ladder or scaffold.
• Work in warehouses.
• Work in construction, building, or manufacturing.
• Load or unload a truck, railroad car, or conveyor.
Hours limitations
• Work must be performed between the hours of 7 a.m. and 7 p.m., except from June 1 through Labor Day, when evening hours are extended to 9 p.m.
• Youths 18 or older may perform any job, whether hazardous or not, for unlimited hours, in accordance with minimum wage and overtime requirements.
• Youths 16 and 17 years old may perform any non-hazardous job, for unlimited hours.
• Youths 14 and 15 years old may work outside school hours in various non-manufacturing, non-mining, non-hazardous jobs up to
• 3 hours on a school day
• 18 hours in a school week
• 8 hours on a non-school day
• 40 hours on a non-school week
.
http://www.ncbi.nlm.nih.gov/pubmed/21717209
http://www.dol.gov/dol/topic/youthlabor/index.htm
Astonishing Companies Built by Teens
By T. Ciarfalio
In an earlier posting we recommended hiring your teen to help you with your business. Today, we want to tell you about entrepreneurs who started their businesses when they were just teens. These young go-getters were featured in a recent American Express Open Forum article entitled, 10 Awesome Companies Built by Teens.
17 year old, Fred De Luca, borrowed just 1,000 dollars to start the now-famous Subway sandwich restaurant. He started the restaurant as a way to earn money for college. He eventually attended the University of Bridgeport, when he began his sandwich stand. Peter Buck, Fred’s co-founder, have also founded Franchise Brands, a resource to help franchisors and entrepreneurs grow their companies.
The popular social networking site, Facebook, was created by Mark Zuckerberg while he was at Harvard. He initiated the site from his dorm room, and since that very day, has become the youngest self-made businessman who is worth more than a billion dollars. Mark dropped out of college and became the CEO of the fastest-growing site on the Internet. Facebook has since recorded over 400 million users and is now one of the most successful websites ever built.
At only 9 years old, Jason O’Neil created one of the most successful businesses started by someone under the age of 10. O’Neil started Pencil Bugs, colorful pencil toppers in the shape of bugs. Away from his business, Jason has been featured on many major network shows, not only for his young entrepreneurship, but also for his devoted efforts toward foster children and various charities. He has since shut down the business. Jason states, “We worked with many manufacturers over the past few years but I am sorry to say that none of them were able to produce Pencil Bugs at the quality and price necessary to continue that part of my business. I have kept a small supply of them for safe keeping and will continue to work on other ideas.”
Romero Bryan started designing clothes at the age of 12. In 2003 he was listed number 5 on the Bank of Scotland Rich List 2020, with the prediction that he would be worth 30 million dollars by then. Romero graduated from the London College of Fashion in late 2005. His own clothing line has taken off like a rocket. He’s dressed Victoria Beckham, Cameron Diaz, Beyonce, and even Alicia Keys.
Born in Seattle, Washington, Kristopher Tate started working with HTML at age 4, programming in Think-C at age 5 and started Zooomr at age 17. Since then the company has grown into one of the most popular photo sharing services on the Internet. In August, 2007, Kristopher moved Zooomr’s HQ to Harajuku, Japan and since then has brought a team of dedicated people to work on projects. Tate is also involved in creating Japan’s first society-based community website.
Every now and then there are motivated young teenagers who create profitable companies quite frequently even before they are old enough to vote, buy alcohol, or even drive. These enlightening stories can give an abundance of hope and confidence to any young teenagers to pursue their passions.