Daniel F. Iuculano
Contact: Dan Iuculano
Phone: (904) 302-8911
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When starting a home based business there are numerous factors to consider. Accounting or bookkeeping systems, business plan , business software, marketing, sales and web design to name a few. This web site will help you with the needed resources to reach your business goals.
Private practice since 1983 , I have used numerous strategies which would include business software, marketing, books, training, online marketing. I will discuss what has worked ,what has not, the good, bad and ugly in the world of small business.
If you are interested in starting an online internet business, specifically an affiliate marketing home based business, you will find this as a extremely valuable business resource.
I will provide you with the best resources I found and in the case you are already in the affiliate marketing business or have reach super affiliate status, this will help you keep what you have earned. Through the use of proper business classification, tax planning, retirement planning, cash flow analysis you can reach your business and personal financial goals.
Useful tools such as software, books, eBooks, subscription services will be reviewed. Some are available for free, others low or moderately priced.
If you need information on writing your own business plan, here is a resource of the largest business plan database in the world,suppling OVER 2500 business plans. Just click on the above link or the "Everything you need to know about" image.
Books on starting a business and setting up an accounting system is available from Amazon. Click the book image on the left column.
Business Types of Ownership - Whether you already have an established business or considering forming a new small business, one of your first consideration will be choosing a business type of ownership.
The form of ownership will impact you legally as well as how your business will be taxed. This decision will have long-term implications, so consult with an accountant and attorney to help you select the form of ownership that is right for you. In making a choice, you will want to take into account the following:
The level of control you wish to have.
The business' vulnerability to lawsuits.
Tax implications of the different ownership structures.
Major Types of Ownership
Subchapter S Corporations
Limited Liability Company (LLC)
Proprietorships - The vast majority of small
businesses start out as sole proprietorships. These firms are owned by
one person, usually the individual who has day-to-day responsibilities
for running the business. Sole proprietors own all the assets of the
business and the profits generated by it. They also assume complete
responsibility for any of its liabilities or debts. In the eyes of the
law and the public, you are one in the same with the business.
Partnerships - In a Partnership, two or more people share ownership of a single business. Like proprietorships, the law does not distinguish between the business and its owners. The partners should have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes will be resolved, how future partners will be admitted to the partnership, how partners can be bought out, and what steps will be taken to dissolve the partnership when needed. Yes, it's hard to think about a breakup when the business is just getting started, but many partnerships split up at crisis times, and unless there is a defined process, there will be even greater problems. They also must decide up-front how much time and capital each will contribute.
Corporations - A corporation chartered by the state in which it is headquartered is considered by law to be a unique entity, separate and apart from those who own it. A corporation can be taxed, it can be sued, and it can enter into contractual agreements. The owners of a corporation are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes.
Subchapter S Corporations - A tax election only; this election enables the shareholder to treat the earnings and profits as distributions and have them pass through directly to their personal tax return. The catch here is that the shareholder, if working for the company, and if there is a profit, must pay him/herself wages, and 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 profit as wages, and you will be liable for all of the payroll taxes on the total amount.
Company (LLC) -
The LLC is a relatively new type of
hybrid business structure that is now permissible in most states. It is
designed to provide the limited liability features of a corporation and
the tax efficiencies and operational flexibility of a partnership.
Formation is more complex and formal than that of a general
partnership. The owners are members, and the duration of the LLC is
usually determined when the organization papers are
filed. The time limit can be continued, if desired, by a vote of the members at the time of expiration. LLCs must not have more than two of the four characteristics that define corporations: Limited liability to the extent of assets,
continuity of life, centralization of management, and free transferability of ownership interests.
For the pros and cons of different business types of ownership, including sole proprietorship, partnering, corporations, and limited liability companies select the provided link at "The Money Alert."
I cannot stress enough the importance of keeping accurate and detailed records of your business transactions also referred as bookkeeping or accounting.
Your choice of an accounting system will be based on numerous factors such as size of company, ownership type, product or service offered and level of accounting skills.
Depending of specific requirements your accounting system can be as simple as a spreadsheet programs such as Microsoft Office (MS Excel) or a free office compatible product such as OpenOffice. I have written a software review of both products, click on the provided links.
There are higher end accounting products such Intuit QuickBooks, Sage Peachtree, and others. A comparison of accounting software can be found at the link provided.
Small businesses need nearly everything a large company requires to manage their books, but have a smaller budget and less personnel to support those needs. Therefore, look for affordable, all-in-one software that can manage numerous aspects of small business accounting, including invoicing, customer and vendor contact information, inventory, payroll and reporting.
How to Choose the Right Accounting Software for Your Business
When evaluating accounting software, consider three main factors:
Ease of use
Whether it has the particular features and functionality you need
The likelihood that the vendor will continue to be around to update and improve the software
Choose your accounting software very carefully. It’s very hard to pull up stakes and switch to another software package. Changing just one module in your accounting software can be difficult.
Security! You need very tight control over all aspects of using the accounting software and who's authorized to make changes in any of the modules of the accounting software.
Finally make sure your accounting software leaves very good audit trails. The lack of good audit trails looks very suspicious to the IRS.
Depending on which business ownership type you chose will determine on how you handle your income taxes and what tax forms you will need to complete.
If you operate as a sole proprietorship you will file form 1040 Schedule C to record your income & expenses.
If you are in a partnership then file tax form 1065 and the gains and/or losses will carrying to your individual return on tax form1040.
Corporate taxes - If C Corp. file tax form 1120 or 1120s for sub S Corp. Corporate form requires all employees including officers of the corporate to be issued W2 wages. However if a Sub S Corp then like a partnership gains and or losses are handle as a pass through on form K1 directly to each shareholders individual tax return on tax form 1040.
If you select to form a Limited Liability Company (LLC) depending on which state you operate in; you have an election as to which tax entity you wish to choose, a sole proprietorship , partnership or corporate.
Regardless of what business ownership form you choose, excellent record keeping is a must in order to eliminate potential problems with the IRS.