Friday, February 26, 2010

Why bookkeeping is necessary for my business?

Bookkeeping, commonly referred to as keeping the books, is the process of keeping full, accurate, up-to-date business records It is the process of recording and classifying business financial transactions (activities), maintaining the records of the financial activities of a business or an individual.

A bookkeeper assists you in effectively managing your company’s accounting records, receipts and payments, income and expenditures. stay abreast of profits and losses. Furthermore, accurate bookkeeping is required by both federal and local tax agencies.

Bookkeeping involves making a record of the monies received by your business as well as the monies paid out. It encompasses money your company owes to vendors, employees, tax agencies, contractors and any other individual or entity. Likewise, accurate records of amounts owed to your company by outside individuals and organizations are also recorded in a company's books.

A proper bookkeeping system helps to determine the amount of taxes your company must pay. They are also used in preparing your tax returns. Sometimes, a tax agency may decide to investigate the information reported on a tax return or other type of tax-related document. In such cases, you are required to present accurate records for the tax agency's inspection. Failure to do so could lead to hefty fines, penalties, or in severe cases, imprisonment.

Thursday, February 25, 2010

Income Tax

Preparing your own income tax return can be a hassle. According to a study released by the US Government's General Accounting Office last year, most taxpayers believe they benefited from using a professional tax preparer.

Whether we like it or not, today's income tax laws are so complicated that filing a relatively simple income tax return can be confusing. Even if you use a computer software program there's no substitute for the assistance of an experienced tax professional.

Your personal income tax return will be checked and rechecked by our experienced certified Professionals, identifying potential problems the IRS may look at more closely and reviewing the math to limit IRS contacts.


Wednesday, February 24, 2010

Business Taxes

Your business success depends on your focused attention. Why let tax and accounting concerns distract you from your main goals. As a business customer you will find that we try to get to know your business in depth in order to provide excellent service. When appropriate we will spend time at your work site to gain a better understanding of your business operations.

 Business tax return preparation
 Timely preparation of all state and federal tax forms
 Income tax planning
 Payroll tax reporting
 Online Bookkeeping
 General ledger set-up
 Accounting system design
 Cost accounting systems
 Internal control evaluations
 Audited or Reviewed financial statements
 Compilations of financial statement
 Profit and Loss Statement, monthly or quarterly


Tuesday, February 23, 2010

Difference Between Employer ID Number and State Tax ID Number

Most frequently asked question by our callers is the difference between Employer Identification Number (EIN) and State Identification Number or also known as (Sales Tax Number).

* EIN assign by Internal Revenue Service
* State ID Number Assign by the state
* EIN is used to hire employees
* State ID Number is used to collect sales tax from your clients and to avoid sales tax to your supplier.
* EIN is used to file business taxes
* State ID Number is used to file Sales Taxes
* EIN can be requested to IRS to cancel
* State ID can we cancelled by filing final sales tax return
* State ID Number is also known as Sales Tax permit, Certificate of Authority, Reseller Permit, Sales and Use Tax Number,
Excise business Tax and Taxpayer ID Number
* Employer Identification Number also known as Federal Employer Identification Number (FEIN).

Sales tax id number or sales tax exemption certificate is a legal document issued by the state. This certificate of authority gives your business the authority to collect the required sales and use taxes, and to issue appropriate sales tax exemption documents, including resale certificates used for purchasing inventory.

Other names: Sales tax id number also known as

* Reseller permit
* Sales tax vendor id number
* Sales tax registration
* Reseller tax id
* Sales tax permit
* Reseller certificate and
* Sales tax exemption certificate
* Certificate of authority
* Sales tax ID number
* State tax ID number

A sales tax or a retail sale is a tax on the end-purchase of a good and provision of services including internet sales. Normally sales tax is levied on 'tangible personal property'; it has to be movable. Intangible property (e.g. stocks and bonds) are excluded.

Sales taxes can be applied to tangible goods like food (in some states), clothing, cars, furniture, household items, and other goods. By comparison, the sales tax does not generally apply to landscaping services, attorney fees, private school tuition, stocks and bonds, real estate investments, and other purchases more typically made by higher-income families.

A seller has to charge sales tax if it has 'nexus' where it is located. Nexus, or physical presence, is established if a business maintains a temporary or permanent presence of people (employees, service people or independent sales/service agents) or property (inventory, offices, warehouses) in a given locality. There is no over-arching definition of nexus, so each taxing locality may define it differently - and many do, leading to endless problems for businesses which have operations in multiple states.

Thursday, February 18, 2010

A trademark is any word, name, symbol, or device, or any combination, used, or intended to be used, in commerce to identify and distinguish the goods of one manufacturer or seller from goods manufactured or sold by others, and to indicate the source of the goods. In short, a trademark is a brand name.

Trademark rights may be used to prevent others from using a confusingly similar mark, but not to prevent others from making the same goods or from selling the same goods or services under a clearly different mark. Trademarks which are used in interstate or foreign commerce may be registered with the Patent and Trademark Office.

Some people confuse patents, copyrights, and trademarks. Although there may be some similarities among these kinds of intellectual property protection, they are different and serve different purposes.
Reduces Personal Liability:

Incorporating helps separate an individual's identity from that of his or her business. Insurance may still be necessary, but incorporation contributes an added layer of protection.

What is the difference between a service mark and a trademark?
A service mark is used in connection with services, while a trademark is used in connection with tangible goods. The general terms "mark" or "trademark" may be used to describe both trademarks and service marks.

Do I need to register my trademark?
It is not required that you register your trademark or service mark in order to establish ownership rights. Registration of the trademark creates a legal presumption of the registrant's ownership of the mark and the registrant's exclusive right to use the mark in the state commerce in connection with the goods or services described in the application.

Do you need to be a corporation to obtain a trademark?
The trademark applicant is the person who owns the mark. Normally, this is the person who produces the goods or who renders the services associated with the mark and who controls the use of the mark. That person can be an individual sole proprietor, a general partnership, a limited partnership, joint venture, corporation, Limited Liability Company, unincorporated nonprofit association or other legal entity.

What is the duration of registration?
In Most States Trademark renewals are done every Ten (10) years.

Can a trademark or service mark be reserved before using it?
No. A mark must be in use prior to filing with the State.

What is the difference between a trade name and a trademark?
A tradename (also know as an assumed name or "doing business as") is the name an owner uses to identify his or her business. A trademark is used to identify the goods and products that an individual or business offers to the public.


Wednesday, February 17, 2010

Our services to register foreign llc or a foreign corporation

* InfoTaxSquare will prepare your Foreign Qualification documents for your review and submission to the appropriate state agency in any state so that your corporation or LLC may operate as a foreign entity within that state.
* Obtaining Certificate of Good Standing from your home state.
* Registered Agent Service.
* Name Availability Search.

Tuesday, February 16, 2010

Professional LLC

Professional limited liability companies (PLLC's) are corporations for the purpose of providing professional services. Usually, professions where the state requires a license to provide services, such as a doctor, chiropractor, lawyer, accountant, architect, or engineer, require the formation of a Professional Limited Liability Company (PLLC)

A professional Limited Liability Company (PLLC) formed with the intention of engages in one of the learned professions, as the law, as medicine, or as the architecture. Traditionally, the Professional Limited Liability Company (PLLC) were forbidden of engages in such professions because they lacked the human, the necessary personal qualifications to follow them. In the recent years nevertheless most of the states promulgated a (PLLC) or an association act that allows the professional persons to practice in the form of business provided that all shareholders are members of the profession


Friday, February 12, 2010

Adantages of Assumed Name/DBA

When you are starting up, you definitely want to keep costs low and the process simple. DBA Filing helps you to do that. You do not have the ongoing maintenance or the costs associated with forming a corporation or LLC. Once your business is running profitably, you may want to convert it to a corporation or LLC.

* It allows you as a sole proprietor to use a business name rather than your personal name.
* It allows a single legal entity (corporation, LLC, etc.) to operate multiple businesses without creating a new legal entity for each business.
* Having an Assumed Name gives the business owner some creditability.

Tuesday, February 9, 2010

Being a Non-Resident USA, Can I starts a business or forms a company in USA?

Being a Non-Resident USA, Can I start business or form a company in USA? To establish a company in USA it is not required to be neither a resident nor citizen to form company in USA. Non-USA Resident has to follow the following guidelines.

  • They are required to have a physical address
  • Any legal person can be a registered agent of entity.
  • PO Box is not acceptable
  • To maintain company which are required to file yearly annual report
  • To keep that company in a good standing it is required to file State Taxes if applicable, Federal Taxes
  • Being a Non-Resident USA, it will only be liable for State and federal taxes and it may not be required to pay USA Social Security and Medicare Taxes
  • They can either form a C-Corporation or an LLC but not an S-Corporation, because to form an s-corporation they have to be a resident or a citizen
  • But the C-Corporation can be converted any time to an S-Corporation once the individual get the status mean become a permanent resident of USA
  • There is no restriction to open a bank account as a non-us-resident
  • There is no restriction to hire employees under their entity
  • Non-resident USA can open a foreign entity of their existing oversees company to conduct business in USA, or if they have the same members or shareholders then they can open a separate entity.It will serve the same purpose
  • To create a foreign entity of existing oversees company they have to obtain certificate of good standing/certificate of existence or certificate of status that the company is legally registered
  • To create a foreign entity, existing company has to be in a good standing to execute a business.

Tuesday, February 2, 2010

What is Coporation

A Corporation is also referred to as a standard corporation. It is also called a C-Corporation or a Regular Corporation. A Corporation is a legal form of organization of persons and material resources, chartered by the state, for the purpose of conducting business and may have an unlimited number of shareholders, which may include shareholders who are foreign citizens. A Corporation may be public - one in which shares is offered for sale to the public or privately held - one in which shares is not sold to the public. Usually shares are held by the founders, by board members and by private investors, such as venture capitalists, who may or may not sit on the board of directors.
Shareholders are protected from the corporation's liabilities. "Double taxation" frequently occurs, because the corporation is taxed on its profits, and shareholders are also taxed on the distributions they receive, such as profit sharing payments or dividends
The most common type of incorporation is the C Corporation, which is a for-profit, state-incorporated business. A company registration is done with state authorities and must abide by corporate laws in the state where it is incorporated.
To incorporate or register company, you will need to register your business name, file a certificate of incorporation or articles of incorporation and pay a fee. You will also need to draft corporate bylaws and hold a board of director's meeting.