Daily Archives April 12, 2015

Tax Benefits of A “C” Corporation – Funding

Tax Benefits of A “C” Corporation – Funding

by: Richard A. Chapo

If you are going to form a corporation, you might be surprised to learn a “C” corporation comes with a lot of tax benefits. While this article isn’t intended to replace the advice of a good tax professional, it may serve to open your eyes to the value of a “C” corporation.
“C” Corporation
The “C” in C corporation has a few legal ramifications, but it is primary a designation for tax purposes. Put in layman’s terms, the designation simply means the corporation will act as its own tax entity. In contrast, an “S” corporation acts as a pass through tax entity, pushing its financials down to the shareholder who report the information on their personal tax returns.
The Internet Revenue Code sets out the law on tax and it contains a few juicy provisions for corporations. Lets take a look at one of the advantages.
Incorporating
When a party transfers something of value to another party, the IRS gets interested. It views the receipt of something of value as a taxable event. In simply terms, if you pay me for forming a corporation, I have to report and pay taxes on the money. Since a C Corporation is a stand alone tax entity, what happens when you purchase stock?
You have made arrangements to form a “C” corporation. Now you have to buy stock in it to become a shareholder. If you exchange money or property for the shares, the IRS takes the position no taxable event occurred. In essence, this means the corporation will not have to report you contribution as part of its revenues. If the money isn’t considered a part of the corporate revenues, no tax must be paid on it.
The exact rules for funding a corporation are a bit more complex...

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Do You Own Your Web Site Design?

Do You Own Your Web Site Design?

by: Richard A. Chapo

Your web site has been up for a few months and you are making money hand over foot. While surfing sites one evening, you are shocked to find a competitor using your design. You find out your designer sold them the same design. They must be breaking the law, right? It all depends on whether you own the copyright to your web site design. Many site owners are shocked to find out they do not.
What is Copyright?
Copyright is a method of protection for authors of original works such as literature, computer programs, music, artistic pieces and photographic images. The protection provided by copyright arises under Title 17 of the United States Code. A copyright gives the owner the exclusive right to do or authorize others to: reproduce, prepare derivative works, distribute copies, publicly display and generally use the material that carries the copyright in exchange for something, typically a royalty or fee. The copyright owner often grants this use through a license agreement, but can sell it outright.
Who Can Claim Copyright?
Copyright protection is created IMMEDIATELY upon the creation of a fixed form of the material in question and granted to the person that created the material. For instance, I automatically own the copyright to this article upon completing it. I am not required to file for an official copyright with the US Copyright Office to prove that I am the owner of the content. However, if I want to sue a person for using my article without permission, I must first register it.
What If I Hire Someone To Create A Web Site For Me?
If you hire a person or company to handle the design of your site, the complexities of copyright become a major issue for you...

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Identity Theft Shield

Identity Theft Shield

by: Mark Freink

We live in an information-oriented society. Technology allows us to do business and make transactions literally in a matter of seconds. This abundance of information has given rise to a new crime – identity theft. In fact, according to a 2003 release from the Federal Trade Commission, almost 10 million people in the United States may be victimized by identity bandits each year.
So what does that mean? Someone has stolen your credit card – your credit card company can help you with that, right? Well, according to the FTC, almost 60% of identity theft issues don’t pertain to your existing credit card accounts. Identity theft can occur as a result of new lines of credit being opened in your name either through credit cards or bank loans as well as phone/utility fraud and even employment related fraud. Because we are susceptible through so many avenues in our daily life, we are all at risk.
What can you do? Where would you turn if you found yourself in this situation? Would you know where to start to clear your name? Well, now you don’t have to worry about what to do as we have the answer.
As you already know, Pre-Paid Legal Services®, Inc. is a pioneer of the legal services industry. With more than 30 years of experience in providing legal rights protection to our members, we have now teamed with Kroll Inc., the world’s leading independent risk consulting company. Kroll is a 30 year old, publicly traded company that provides a broad range of investigative, intelligence, financial, security, and technology services to help clients reduce risks, solve problems, and capitalize on opportunities...

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Seven Sets of Documents You Need For Your Divorce

Seven Sets of Documents You Need For Your Divorce

by: Scott Morgan

This article is designed to give someone who is considering or planning for the possibility of divorce an idea of what documents are needed. Even if you believe your case is ultimately agreed to and settled without a trial, you will be in a much better position if you already have the relevant documents in your possession. Better safe than sorry.
You should locate the relevant documents, make copies, and keep them somewhere secure, like your office or with a friend. You will then have access when it is needed.
Here are the most important seven categories of documents you should focus on.
1. Income Documents
Your spouse’s income is relevant to a number of issues in a divorce case. At a minimum, get your spouse’s last paycheck statement and your most recent tax return. Ideally, you would have access to all tax returns filed during the marriage, along with all supporting documents and schedules.
2. Bank Records
The monthly bank statements are very important and can lead you to other documents (cancelled checks, deposit slips, registers, etc.) that you also may need to obtain. Get at least the most recent statement for each account that is either held in your name, your spouse’s name, or jointly. If possible, get copies of all statements going back to the date of marriage. In most cases this volume of records is not required, but in some cases these records can be very helpful and even necessary to analyze the case.
3. Retirement and Other Investment Records
Often the biggest asset a couple will own will be a 401k or pension account. So you will definitely want the most recent account statement and ideally all statements dating back to the time of marriage...

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How To Avoid Injury Compensation Claim Dilemmas

How To Avoid Injury Compensation Claim Dilemmas

by: Mumtaz Shah

Amazing isn’t it when a salesperson gets you to sign some documents and briefly explains what it entails. Only to discover at the end of an injury compensation claim that it wasn’t mentioned. And only to be told then ‘well, it’s all in black and white and you signed the papers’…
You then become frustrated with salespeople asking, or begging for a compensation claim? You don’t know them and they want to be your best ‘buddy’. For a while, I guess?! You don’t have a clue about their company, what they do and how they complete. But you’re about to make a mistake, thanks to their sweet talk…
An injury claim service is something we need in society. A service, we may not need right now, but could surely need it in the future. It’s just like insurance… we pay a premium for an intangible item. A premium to cover costs of an accident that ‘might happen’, not ‘will happen’.
Compensation claims is nothing new, it’s been going on for years. However, as time goes by, procedures and conditions change. Sometimes for the better… but not always!
Loan Agreements
Loan agreements came about, with banks, large banks such as RBS, funding a personal injury claim. It wasn’t needed for a claim, but handlers were making money, substantial amounts, per case. As the clock ticked, people caught on and slowly found it’s way to the back door. But not completely with every company, so beware!
Once service providers figured out the lack of business generation due to the use of loan agreements, they needed something new. A new direction to help them to be more profitable… another business strategy! Anyway, back to the drawing board and after weeks of playing with the small print, the birth of kick backs came alive!
Kick backs?
A kick...

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