How To Avoid Being Targeted By The IRS In Your Home-Based Business!

If you run a home-based business, you might be confused about what you can and cannot deduct as reasonable expenses.Some home-based businesses make critical mistakes and are red-flagged by the Internal revenue service.However, with a little guidance, you can start a business that will stay under the radar and keep you out of hot water:

Understand home office deductions.

While you don't have to have a separate room as a home office, the area you use must be used exclusively for conducting business.This includes a place where you meet clients, patients, or customers.You can also claim a home office deduction if you store inventory for your business.In the strictest sense of the word, a home office cannot include personal items, such as personal mail, your children's toys, etc.

Incorporate your business.The IRS keeps an eye on home-based businesses.In fact, sole proprietorships, especially those that are home based business owners, are more frequently audited than corporations.One tactic that you can use to decrease your chance of an audit is to incorporate (form an LLC or corporation) your business.Incorporated businesses are audited far less frequently than home-based businesses.The IRS is more likely to question deductions in a home environment than a corporate setting.

Keep separate bank accounts for personal and business use.One of the biggest mistakes that small businesses make is to combine both personal and business expenses.Keep separate accounts for personal and business use.In case of an audit, it's much easier to refer to an account that is used for one purpose than to wade through 12 months of personal and business expenses and attempt to separate them.

Deductions should be reasonable for your business.Avoid extravagant deductions.Another red flag for you home business is when the deductions are high in comparison to your income or the industry norm.Obviously, you'll have deductions, but over-the-top claims will catch the eye of the IRS.If you have large deductions, keep the proof on file for at least three years.

Use specific amounts.Most costs don't end in rounded numbers.Be specific.Rounded numbers imply estimates, and this could flag your business for an audit.Also, if you believe that a deduction will flag you for an audit, attach proof to substantiate your claim.

File online.Math errors are another audit magnet.While one small error probably won't create a problem, multiple errors will most likely bring attention to your business.When you file online, the software will do the math for you, eliminating the margin of error.

Don't underreport earnings.Keep in mind that in this technological age, the IRS can easily find your earnings.Don't be tempted to underreport your income, or you could find yourself at the losing end of an audit.

Run your business like a business, not a hobby!Use some type of accounting software to track your monthly revenue and expenses so you can track your profit and loss.Running your business based upon your online checking account balance and 'let's just see how it goes,' sounds more like a hobby to the IRS vs.a real business.

Operating a home-based venture is a rewarding experience and doesn't have to create IRS headaches.Know the tax laws, keep good records, and your home business will thrive.For more information about what you can and cannot deduct as a business expense, go to the Internal Revenue website and download Publication 587: Business Use of Your Home.

About the Author

Scott Letourneau is the CEO of Fast Business credit, Inc.

and has a valuable free guide to help small business owners get access to capital plus a new program to help business owners understand the importance of credit!Go to our Business Credit Program page for powerful details!

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6 Things Dating Teaches Us About Investing

Bad date last night?Don't despair.It's not as bad as you may think.Here's some good news: you may not know it, but when it comes to your money, that bad date can teach you an awful lot about successful investing.

Think I'm joking?Think again.Although I was a far cry from being the King of Dating, I did have a few albeit rare lucky streaks in me.And looking back over those rare few times, my moderate success on the dating circuit did teach me quite a few things about prudent investing.

Here's a few quick examples:

1) DON'T JUDGE A BOOK BY ITS COVER

Dating: The guy was over a half-hour late, his outdated shirt barely matched his Taco Bell stained pants, the rain gave him a lethal dose of bed-head and back then the busboy was making more than he was.

If that wasn't bad enough, his humor was a bit stale and the car he drove had a weird putter that attracted nothing but aliens from the evil Planet X.While at first the girl thought it was going to be a dinner date from fiery hell, little did she realize that guy was I, and I'd soon wind up being the one she'd marry.

Investing: The receptionist was sure nice, but the carpets were dull and the musty furniture reminded you of grandma's place in Brooklyn.You were ready to take your money to that Private Wealth Management Firm --- the one with the white marble staircase and baby grand --- but when the well-mannered financial advisor appeared, you figured you'd be courteous and give him a few minutes of time.A little into his pitch, you were most pleasantly surprised when he touted low cost, tax efficient investments that perfectly matched your goals.It was then you realized there's a reason the furniture in his place is a bit out-dated, mainly, because the guy isn't touting the high fee investments.

Lesson Learned: First impressions can easily get the best of us.Whether it's a date or your money, taking a step back to peek behind the curtain will typically put both your money and heart in a much better place.

2) COSTS COUNT

Dating: She liked Dylan Thomas, idolized Ginsberg, despised the conformists and was clinically depressed that she missed last year's Monterey Pop Music Festival.

The perfect 10 from down in the Village strummed an acoustic, wrote poetry and even donated your favorite Levis to a homeless guy on the street.While at first lust got the best of you, months after helping her pay the rent, her organic meals and for all those Warhol movies you pretended to like, you were finally worn out, leading you to realize that when it comes to dating, costs most definitely do count.

Investing: The mutual fund was barely moving.Five years into it, you just couldn't quite figure out why you weren't making much money.Then, one fine day, you wisely took the time to research the fees you were paying, only to realize the fund was charging you way too much per year in annual costs and causing you all sorts of taxes.

Lesson Learned: When it comes to investing and dating, costs most definitely do count.Taking the time to evaluate how much you're paying for your dates and funds is an essential part of anyone's success.

3) DIVERSIFICATION IS THE KEY TO SUCCESS

Dating: Adam looked like Alan, Alan acted like Arnold, Arnold smelled like Arnie and Arnie reminded you of Alex.

And just when you thought you found the Perfect-A, Aden stood you up just like Albert and Abe once did (or was that Alfonse?).It was then, in one fleeting moment of revelation, you finally realized the problem had nothing to you, but everything to do with guys whose names start with the letter "A."

Investing: Dot-coms, late 90s.

Financials, 2008 Need I say more?

Lesson Learned: Diversifying your investments is a critical key to investment success.Load up in one sector or stock and it's not a question of if disaster will strike, it's usually a question of when.Spread the risk, diversify your investments into the prudent, timeless fundamental asset classes and of far more importance, consider dating guys whose names start with the letter A.

About the Author

Nationally recognized personal finance expert and bestselling author.

His unique strategies have helped people across the nation significantly reduce their investment risk, taxes and fees.For More Info: www.haftreport.com

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Digital Signage: Why Digital Signs Are Important

Often in this space, I explore a small slice of digital signage development, such as the role of digital signage in meeting the evolving media appetites of people; the ability of digital signs to blend the functions of traditional signs with the interactive aspects of digital kiosks; or the potential of digital signage to command an increasingly larger slice of the media budget of marketers.

While those are important topics, this month I want to get back to the basics of digital signage -specifically why should professional communicators turn to digital signage to convey their important messages?Actually, there are several reasons, including:

-To increase a company's visibility.

One of the biggest problems retailers have when it comes to self-promotion is cutting through all of the marketing noise generated by every other business -be it on radio or TV, in newspapers and magazines or from competing store front signs.Digital signage can cut through those distractions by attracting and directing the attention of the most important potential buyers of all -those in a store who are ready to spend money on a purchase.

-To help solidify relationships with customers and vendors.Consider an auto dealership waiting room with customers seated waiting for their cars to be fixed.With well-positioned digital signage messaging -as opposed to an ordinary TV displaying a cable news channel- the dealership can promote special offers aimed at its captive digital signage audience as a reward for choosing to do business with the dealership.Or, in a corporate setting, a digital sign in the lobby can be used to welcome scheduled vendors, guests and other visitors as they arrive -a simple move that builds goodwill.

-To deliver critical information more efficiently.In times of emergency, an existing digital signage network can be a lifesaver, providing critically important messages alerting employees, customers and other patrons of exit locations, storm shelters and other vital information.

-To save time.Preparing a static, printed sign is labor-intensive, expensive and time-consuming.The same message can be created and displayed far more quickly with a digital sign.Add to that the recurring expense of printing new signs as needs change versus simply updating a digital sign with a few keystrokes and it doesn't take long to begin earning a tidy ROI from a digital sign.

-To attract greater attention than is possible with static, printed signs.The other drawback of print is that it is static.Human brains are programmed for motion.Our eyes are automatically drawn to moving objects.Digital signs displaying full of motion video are dynamic not static.They tap into something that is innately human to demand attention and hold it.

-To increase the efficiency of employees.Imagine a small industrial plant where management wants to communicate vital information to hundreds of workers.Perhaps it's production quotas vs.actual performance; perhaps it's mean time between accidental employee injuries; perhaps it's delivery information regarding vital components that are en route.In all of these instances -and others too numerous to recount here- digital signage has the ability to convey important information to a workforce that is vital to employees maintaining a safe, efficient environment.

There you have it -several reasons why digital signage is an important, effective communications alternative that professional communicators cannot ignore.Sometimes it's good to get back to basics.

Digital Signage...
1) Can increase your company's visibility,
2) Can help solidify your customer and vendor relationships,
3) Can deliver critical information more efficiently,
4) Saves time,
5) Attracts attention better than static signs,
6) Can increase the efficiency of your employees.

And, digital signage can be less expensive than what you are already using.

What do you think?

About the Author

David Little is a digital signage enthusiast with 20 years of experience helping professionals use technology to effectively communicate their unique marketing messages.

For further digital signage insight from Keywest Technology, visit our website for many helpful tips and examples.

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British Virgin Island Offshore Company. Favored By Tourists And Investors Alike

British Virgin Island offshore company: Enjoy yourself while saving your wealth.

If you plan to take a break from work to spend your vacation in a peaceful and beautiful place, the British Virgin Islands should be one of your favored destinations.Here you can enjoy the beauty of the sea, shop, buy souvenirs for your friends and family and dine out on various exotic foods.

Also while enjoying the surf and the sands, you can do an offshore incorporation of a British Virgin Island offshore company.So if you want to incorporate an offshore company, the British Virgin Islands is the perfect destination and the British Virgin Island offshore company is the perfect choice for you.

The concessions granted and incentives offered by friendly British Virgin Islands laws and regulations attract numerous businessmen to the islands every year, keen to have their own British Virgin Island offshore company.A BVI offshore corporation incorporated in the British Virgin Islands for the purpose of offshore business is termed as an International business Company [IBC].IBC incorporated in the British Virgin Islands is also known as a British Virgin Island IBC or a 'bvi ibc'.

For the purposes of regulation of this business, the BVI Companies Legislation was introduced in 1984.This legislation was subsequently amended to accommodate client friendly changes required by the international company registration BVI.

Since 9/11, both the EU and the US have been glaring at tax havens and pressuring them to disclose the names of their clients, as also conform to various tax laws, reducing the incentives for investors to incorporate in tax havens.Hence, The government of British Virgin Islands has signed treaties with the UK and the European Union to impose certain taxes.in the same way as these are imposed in the EU countries.This has greatly reduced the tax benefits previously provided to BVI companies.The taxes imposed are withholding taxes and are charged at the rate of 15%.

Greater privacy was enjoyed by BVI offshore companies previously.But as a result of signing of a treaty between the government of British Virgin Islands and the government of the United States of America the privacy available to any British Virgin Island offshore company has been cut down to a considerable extent.

But still British Virgin Islands is considered as one of the best destinations for a BVI formation offshore.I think mostly because people have knowledge about it and are probably already incorporated there!

If all the requisite information is provided and the documents are filed accordingly and the relevant authorities grant approval, the process of company registration BVI can be completed in 3 working days.However, most of the time is spent on collecting the required documents!

There are many advantages of having your own British Virgin Island offshore company.Some of these are bulleted below:
* Only one director or shareholder is needed for company formation in the British Virgin Islands
* Both a natural person or a corporate body can be directors and / or shareholders
* Keeping of accounts, records and financial statements is not required
* A resident secretary is not required
* Company meetings can be held anywhere in the world
* Meetings of shareholders and directors are also not required
* If records are kept, they can be held anywhere in the world
* Appointment of local shareholders or directors is not required
* Director and shareholder can be one and the same person
* Meetings can be held by using telephone or any other means of communication through which voice can be transmitted and clearly heard.










* Cost of incorporation are low.
About the Author

Ramapati Singhania specializes in creating and managing web businesses.

His latest website http://www.incorporation-offshore-saves-wealth.com focuses on helping you to incorporate offshore companies in Seychelles, Mauritius and BVI.You can also visit his blog, http://www.ramapatisinghania.com

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What Difference Can a Colour Make?

Have you ever walked down a street and turned the corner - and there in front of you is the most hideous coloured car you have ever seen in your life? A hideous purple, or gaudy green? The car itself may be quite fabulous (in the dark) but the owner has seen fit to cover it in the most awful paint imaginable. Sure, there are boring colours that seem to dominate particular years of car design - Audi metallic sand was the colour of choice for many years. Ford even saw fit to allow buyers to adorn their Mondeos in a hideous semi fluorescent yellow. Maybe its all a ploy to distract buyers from how bad a particular model is. As if in some way if they can distract the general public with the colour they can draw their eye away from the terrible safety, poor quality and general nastiness of their offering?

Looking around the office furniture market, one could easily be lead into thinking the same could apply. At launches of new products we often see wacky colour schemes which are clearly meant to make us remember them. Or conversely everything is so bland and all white that we are supposed to think of them as cool - as if an association with iPods would make the chair in question cooler. Okay - well maybe that does work.

A popular brief received by office furniture dealers all over the country is fresh and contemporary so then we try hard to find the best catalogue photography to show a customer the look that can be achieved.
Most designers and furniture suppliers have virtually begged a client at some point to pick a different colour. Knowing that to choose that particular colour would make an office look boring, or staid - or possibly dated and faddish.

Whilst office furniture suppliers have seen some great colour schemes in place - whether through a customer with a good eye for detail, or as a result of a good interior designer - we have also seen some hideous ideas see the light of day too. I had a client about 8 years ago who set his heart on installing different pastel colours (about 8 different shades in all) blinds to each window in the office. He then colour matched the various pillars in the office to match a window blind. A nice idea in theory perhaps, but it looked awful. Embarrassingly so. It was so bad that visitors would come into the office and audibly draw breath at the choice. He was the boss though and he liked them, so it stayed. That is until some months later when the staff finally broke and demanded that new blinds were installed and paint applied put in to stop them walking.

The problem is that some sales people worry that they will lose an order if they start getting too involved with something that is such a personal choice anyway. They lose sight of the fact that perhaps the customer would like some help - rather than a Yes man just agreeing Oh yes sir that would look fabulous!. This is an element of service that a good supplier can easily overlook in the quest for a quick sale. One must consider that if a customer suddenly realises in a years time that it really does look awful - theyll be looking to blame someone for such a poor choice and the salesman looks like a likely scapegoat. The end result of this is that they may never return with repeat business in case you let them choose something else hideous.

Colour choice needs to be a considered affair. Often the colours chosen are governed by the need for a corporate logo colour, or a carpet colour to be matched. If these arent relevant then you can really have some fun. But remember that colours have their own psychological symbolism . Black can mean style, power, mystery, solemnity. White can mean purity, sterility, and cleanliness. Red says sex, speed, arrogance, strength, bravery and more. Blue symbolises calm, productive, confidence, conservatism, and seriousness. Unusual colours like orange mean enthusiasm, flamboyance, creativity, and playfulness. Choosing pink can have mixed messages too including appreciation, admiration, sympathy, femininity, health, love, or homosexuality.

The message is clear therefore. When choosing a colour - take a moment to consider. What is the colour saying about your company to everyone that visits?

Now would you like that office chair in red, black or blue......?


About the Author

For further information regarding our range of reception furniture please visit our website at http://www.evolutionfurniture.co.uk/

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