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- Sole Proprietorships vs. LLCs: Things All Entrepreneurs Must Know [Infographic]
- 3 Fun and Creative Jobs That Don’t Require a College Degree
- How to Avoid Footing the Tax Bill For Your Facebook Fundraiser
| Sole Proprietorships vs. LLCs: Things All Entrepreneurs Must Know [Infographic] Posted: 03 May 2021 02:24 PM PDT  When you're starting a business, you've got to secure funding for it, build a team, register your company, and much more. Among all of this, you also need to select the company's structure. This is an important step that you need to take as it will define the various rights and obligations of your business. Each corporate business structure has its advantages and disadvantages and you have to consider them well before choosing to go ahead with a particular structure. The four main structures you can select from are:
Among these, Sole Proprietorships and LLCs are quite popular among entrepreneurs. But if you've got to choose between them, how can you decide? Let's find out. The TaxationEach business structure is taxed differently. Sole Proprietorships and LLCs both offer the pass-through taxation feature. This allows the business loss or profit to flow through to the individual and you can report the same on your personal income tax returns. What's more? As a Sole Proprietorship owner, you'd also be required to pay a self-employment tax. The same also applies to multi-member LLCs. To avoid this double taxation, you can decide to get your LLC taxed as an S-Corporation. When you do so, all the members would start being treated as employees of the business. However, you'd have to pay corporate taxes for the S-Corporation. The Ownership AspectWhen you're starting a company, you'll likely want to know about its ownership structure. Sole Proprietorship businesses are simple in that regard as only a single individual can be the owner of such a business. LLCs, on the other hand, allow both single and multiple owners. Additionally, those owners don't necessarily have to be individuals as well. LLC owners could be individuals, other LLCs, and even foreign firms. The Company Formation ProcessThe process for forming a company varies based on the business structure you choose. While the steps required for Sole Proprietorships are few, LLCs have a slightly longer process. How so? Sole Proprietorships allow the business owners to start their business under their own name with ease. However, you can also apply for a Fictitious Business Name (FBN) and start operating under a separate, fictitious name. But what about LLCs? When you want to start an LLC, you have to file Articles of Organization. This has to be done at the office of the Secretary of State. After that's done, you also have to create an agreement called the LLC Operating Agreement which covers the various responsibilities and roles of the members. Finally, you're required to pay the state filing fees and continue paying them each year. Regardless of the type of business entity you choose, it's essential that you go about the formation process well. You must complete all the legal requirements and paperwork correctly to make sure that the business is set up correctly. Want to learn more about how LLCs and Sole Proprietorships are similar yet different? Check out this infographic developed by GovDocFiling. Embed this infographic on your website: About the Author: The post Sole Proprietorships vs. LLCs: Things All Entrepreneurs Must Know [Infographic] appeared first on moneyminiblog.  |
| 3 Fun and Creative Jobs That Don’t Require a College Degree Posted: 03 May 2021 02:05 PM PDT  It is estimated that approximately 60% of jobs are filled through networking connections as opposed to online services or traditional job-seeking methods. In the workforce today, many job seekers worry that they won’t be educated enough to get and keep a job. The truth is that even college graduates today are struggling to find something in their field. Many are struggling to find something at all, even with networking. Finding a job the traditional way, by going to college and then entering the workforce, just isn’t as easy today as it used to be. It’s just as hard to get a job without a degree as it is with a degree in some areas today. If you don’t have a degree, here are a few fun and creative jobs you can aim for, without even having a college degree. 1. CosmetologistA cosmetologist is an interesting job for many, if you like people and like making things pretty. Many will say it’s not just about the pretty face though, it’s also another job that helps people in its own special way. People feel good after a visit to the cosmetologist. As many as 88% of women say their hair has a direct impact on their confidence levels. If this sounds like something you want to do, take the time to prepare yourself for the field. You’ll have to be at least 16 years old and you need a high school diploma or a GED before you can enroll in cosmetology school. That will take approximately one year to one and a half years to complete. During that time you will complete anywhere from 1,000 to 2,300 hours of training and classroom work. Then you take your state licensing exam. From there you can start building your client lists. The money for cosmetologists is approximately $16.95 per hour. 2. FloristA florist is an expert in many things, including product design and customer service. It’s also a $7 billion dollar industry and many employed do not have a college degree. You need to love to do it. You need to sell, they need to create, you need to tidy the shop, you need to be able to do anything inside a florist’s studio. If you like flowers or creating, and you like people, you will do well. You don’t need a high school diploma or GED for this job, but if you have one, it will be easier for you to get a job. If you don’t have any training in interior design or horticulture, you may be able to start at entry-level in a florist’s shop and work your way up to the designer. To prepare for the job, get ahead by finding inspiration wherever you can. Examine art, fashion, and magazines, to see what contemporary flower trends are doing right now. If you land an interview, bring a design with you. With some effort, the money can reach $52 thousand a year. 3. DJA DJ is both a creator and an entrepreneur in their own right, and that’s why you don’t need a college degree to be one. If you had one, unless it is in business, you probably wouldn’t be able to apply those textbook skills to the field. The money is there if you work hard, and some DJs can make as much as $50 per hour, more if you market your work well. To become a DJ, you need to love music and know at least one genre inside and out. Your job will be to provide soundtracks at parties, weddings, festivals, and bars. You also need to have the drive to be creative in the field. Many DJs today are producing music under their name so that they can remain competitive. Loving people is a good skill because you’ll be talking to them all night. Not only will you be talking to them all night, but it’s also your job to inspire them to have fun. To break into the field, put a mixtape together and then begin visiting local clubs to see if they will listen to it. You have to pound some pavement and build a following, but with passion, you’ll get the job done. You can find creative work without a college degree if you really want to. Spend the time building your creative portfolio or resume while you are looking. The post 3 Fun and Creative Jobs That Don’t Require a College Degree appeared first on moneyminiblog.  |
| How to Avoid Footing the Tax Bill For Your Facebook Fundraiser Posted: 02 May 2021 01:50 PM PDT  It’s the sort of nightmare tax story many people fear. Louis Goffinet, a 27-year-old, tried to raise $200 on Facebook to help an elderly couple during the pandemic. After raising over $40,000 to support the couple, he received a bill from the IRS for $16,000, stemming from the cash that he had raised. His confusion quickly turned to fear as he tried to figure out what was happening and how he could possibly pay that staggering amount. Unfortunately, Goffinet hadn’t documented his charitable intentions properly in the eyes of the federal government. The IRS believed that he had made this money for his own needs. They do expect a cut of all cash income, which is how these earnings were designated. Even though the funds were used for charity and not personal gain, neither Facebook, the IRS, or Goffinet himself made that distinction clearly enough. As such, Goffinet was expected to pay this bill by the IRS. Understandably, he wasn’t sure how he would afford it. This frightening situation might be successfully resolved by proving that the funds were raised for charitable purposes and not personal gain. However, many other people may find themselves in this situation after trying to help out another person or organization in need. How can others avoid this scary scenario? It’s crucial to understand that, while the market went bear on March 23, 2020, the S&P 500 Index has since jumped by about 75%. This means some individuals are doing quite well, but others are struggling. Social media and crowdsourcing platforms apparently make giving back to the community a bit easier, but it’s also easier to get burned in the process. When trying to help someone in need through social media fundraising, pay close attention to the fine print. For instance, you must understand:
These factors are essential to consider because platforms like GoFundMe and Facebook may be used to bridge gaps in medical expense coverage. Around 30% of all healthcare bills come from a patient’s pocket, meaning that even those who have insurance coverage may find that coverage to be insufficient. What’s more, medical bills aren’t the only expenditures that can put a strain on your budget. And if you’re faced with a huge tax bill after trying to help someone else, this could negate the positive impact of any donations if you aren’t careful. Thankfully, the following tips should help you avoid this danger.
These simple steps will save you from a huge tax bill by showing that the cash you earned was used for charitable purposes and that you weren’t anticipating getting any for your work. The essential step here is documentation. Make sure that every step you take is generous and that you won’t be spending any of the cash yourself. In this way, you’ll be able to protect yourself and your family and help your community without getting a huge and unfair tax bill in the mail for the money you aren’t using. The post How to Avoid Footing the Tax Bill For Your Facebook Fundraiser appeared first on moneyminiblog.  |
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