Posts Tagged ‘small business’

Commercial Sewing Machines Are An Asset To HaveIt is very difficult to sew layers together with a commercial sewing machine as it will not pass through the feeder easily. You will also experience difficulty when using fabrics like silk and satin as these types of fabrics tend to slip and one usually ends up sewing a skew line.

Besides which, a commercial sewing machine is a must have product in every home, and if you are unemployed you could use your machine to make income. If you are creative you could make many items which could be sold on a flea market or you could also do alterations to peoples clothing. There are endless things you could create when owning a sewing machine.

If have never previously bought a commercial sewing machine and you are thinking about buying on go on-line and browse through the many sites that offer sewing machines as you will be able to find one that is reliable and that does not cost a fortune. And for those that already have a sewing machine there are additional accessories for embroidery and other fine stitching attachments.

One thing to bear in mind is that Commercial sewing machines are adequate for the average dressmaker as these machines have a wide variety stitch options and a variations of accessories enabling one to sew your own clothing as well as many other little sewing tasks like making curtains cushions covers and one can also create crafts.

Nevertheless a commercial sewing machine is a must in every home and if you are unemployed you could use your machine to make income. If you are creative you could make many items which could be sold on a flea market or you could also do alterations to peoples clothing. There are endless things you could create when owning a sewing machine.

Dont forget that Commercial sewing machines only allow you to use thin fabrics as the machines have not been designed to take heavy fabrics like tapestries, canvas, leather or any other industrial materials and should you try and sew any heavy fabrics you will either seize the machine completely or will have to spend money on repairing it.

Want to find out more about Commercial Sewing Machines, then visit Janine Rose Morley’s site on how to choose the best Commercial Sewing Machines for your needs.

Feel like things are going too fast? Slow down and work from home, you will notice the benefits immediately.

It is raining and cold and your alarm has gone off before the sun is even up just so that you can catch the bus, train or tram to work and be there on time. Imagine if you were able to work from home, no more public transport, getting up before the sun just to catch it, no more wind and rain at the station or bus stop, when you work from home, you can forget about this forever.

To be there for your children when they go to school and arrive home in the afternoon, is this a dream? It is a reality when you work from home. You can be there to see them off to school, be there to participate in their school activities and after school activities. You can be there to greet them when they return home, be there for family meal times, no more rushing in the door, getting dinner ready, bathing the kids, tucking them into bed and feeling as though you have missed the past years of their lives as you realise how much they have grown, where have you been? Travelling to and from work, working overtime, juggling 2 jobs, long hours in the office, that’s where. This can potentially add hours onto your already long day when you have to travel to and from work, this can add up over a week and a year. Imagine if you could work from home, imagine how much time you could save and spend with your children, you can be there every step of the way if you work from home.

In a normal job, most of us get 4 weeks annual leave, perhaps some sick leave. What do you do when you need to attend to something at home, such as a plumber to fix the hot water system that has unexpectidely died? You have to dip into your leave or take time off without pay (even worse), what about short notice to your employer? Do you think they would be happy about an early morning phone call to say that you have to stay at home to wait for the plumber and you don’t know what time they will be there? If you were working from home you would not have to worry about taking time off, you could continue to work from home and be there for the plumber or whoever you need.

I can speak from experience when I say that most of us spend the 1st day of our weekend catching up on household jobs such as washing and cleaning. We are away from home at work during the week and then spend the 1st day we have off work doing the housework. If you were able to work from home, you could fit your housework in around your work and actually have quality time with the family on your weekend.

When you work from home, you still need to feel as though you are working. Some people like to work in their pyjamas and others feel that they still need to put on their shirt and tie to put them into their work mode. You decide what works for you but the benefits of being able to work from home are worth it.

The sun is shining and it is a great day, too good to be stuck inside don’t you think? When you work from home, you can control where you work, pick up your lap top and phone and work from the beach, the park, anywhere you want.

To work from home is cost effective. Think of how much money you could save on public transport, fuel, buying lunch, parking fees, dry cleaning & business attire.

Learn more about work from home. Stop by Kylie Benton’s site where you can find out all about work from home tips and what they can do for you.

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At some point in every small contracting business, a decision has to be made on how to structure the business for growth. Although some contractors prefer to remain a one man operation, most would prefer to see substantial growth. This doesn’t have to be a stressful decision, but important tax and legal considerations come into play, so it’s good to do your research.

 

Taking a Contractor Business for Small to Large

Business structure has a lot to do with why some businesses grow and others don’t.

 

There are three types of legal business entities that should be considered:

1. Sole Proprietorship

2. Limited Liability Corporation (LLC)

3. S Corporation

 

Which of these you choose depends on what fits the best with your existing business. This is a discussion that should occur between you and a qualified attorney. We can only tell you how you shold think about the process.

 

As any good lawyer will tell you there will be certain trade-offs made on each of the three options. Set-up costs, liability, and investments are just a few of the areas that should be discussed. We will go into a summary of these trade-offs later in this article. The decision ultimately boils down to a few main considerations, including set-up, liability, investments. Trade-offs will be made regardless of what you decide. For extensive information on taxes and filing for different business structure, go to the IRS website at http://www.irs.gov/businesses/small. When structuring decisions have to be made retaining a tax attorney is essential. In short: starting a business? Get a lawyer.

 

Sole Proprietorship

From a set-up standpoint, establishing as a sole proprietor is the easiest way to go. Sole proprietors own all assets and profit from the contracting business. This also means you assume all the debt and liability. In a sole proprietorship you and the business are one and the same! This is an extremely important detail, as it means were the business to get sued for any reason, both the business and your personal assets are at risk. Think about the nature of your business and the services you provide. What are the chances of being sued? This question requires serious consideration.

 

In terms of tax preparation, the sole proprietorship is the easiest. Using the individual 1040, Schedule C (or C-EZ) and Schedule SE for self-employment tax is a necessary filing requirments for sole proprietorships. The full list of forms needed can be found through the IRS link above.

 

Partnership

It is understandable why some contractors would want to go into a partnership. Sharing the work-load, decision-making, and other responsibilities can make the task of getting a business off the ground seem much more bearable. Laying dpwm ground rules is an important part of planning a strong partnership and requires that you establish definite roles and commitments and how profits will be split. A beer and a handshake shouldn’t cut it. Because partnerships and sole proprietorships are viewed the same by the legal system, both business structures see no difference between the business and its owners. Take the time to write up an agreement before establishing a partnership.

 

There is more than one type of partnership, too. There are general partnerships, limited partnerships, and joint ventures. Joint ventures are intended for a limited time or one-off situations, and most likely will not apply for a contracting business situation. In a limited partnership one or more of the partners assumes limited liability and limited input and decision-making ability. These are common in situations when attracting investors, and might not suit the contractor business scenario.

 

When filing as a partnership, Schedule K-1 (Form 1065) may have to be filed, as well as any employment tax forms. Partnerships require that each partner file a 1040 and self-employment and estimated tax forms to report individual profits from the partnership. W-2s are not issued to partners as they are not employees of the business. A partnership structure is a “pass-through entity” allowing profits to go directly to owners.

 

Corporation

Corporations are entities considered separate from those who own and/or run it. As shareholders, owners assume limited liability. Corporations have an elected board of directors who must meet regularly and determine and oversee policy-making and enforcing. Set up and maintenance require more work when choosing a corporation and yearly tax preparation can also require more paperwork. An additional benefit to corporations is that it allows for easier capital funding through the sale of stocks while maintaining limited liability fo its owners. To incorporate, the business must be granted a charter by the state in which the business is based, and an assortment of expenses incurred for incorporation fees, legal matters, and purchasing of stock certificates can set the business back as much as $1500 or more. Corporations are taxed once when the income is earned and again on the individual tax return.

 

A subset of the corporation business structure is the S Corporation, or Subchapter S Corporation. Earnings and profits are passed through to owners and their individual tax returns in this structure. In this way the double taxation scenario is avoided. There are certain limitations that come with being an S Corporation, but for some small businesses the easier tax process makes the choice worth it.

 

Limited Liability Company (LLC)

Although neither a partnership nor a corporation an LLC combines a few features from both of those structures. Unlike a corporation or a general partnership, owners of an LLC are considered members of the entity and recieve the same liability protection as a corporation but have the flexible profit distribution of a general partnership. Setting up an LLC is easier than a corporation, although there is still more filing to be done than in a sole proprietorship. Paperwork and fees will apply, and specific state regulation may mandate written operating agreements that determine many of the same guidelines needed in a successful partnership, such as profit distribution, responsibilities, and rules to determine ownership changes.

 

Personal Experience

Josh Macmichael is the sole proprietor of a successful seamless gutter business based in New Hampshire, called New London Seamless Gutters http://www.nlseamlessgutters.com/title=”nlseamlessgutters”/>nlseamlessgutters. For Macmichael, business structure was a fairly simple decision. “Sole proprietorship is just a heck of a lot easier,” says Macmichael. “It’s easier to set up, easier to deal with payments, and doesn’t cost the money that incorporating costs.Accidents can happen to anyone, but to Josh Macmichaels, the conveniences of a sole proprietorship ourweigh the risks of full liability. “From a liability standpoint, sure, I should probably be an LLC, but you can be looking at $3,000 or more to get a lawyer to go to work on all the filing and paperwork. Obviously remaining a small business is not the goal of most contractors.”

 

What Should You Do?

Contractors, like any small business, are often caught between where they are today and where they want to be in five or ten years. A small contracting business owner should understand that his business growth may depend on how he structures his business. Changing the businesses legal structure is possible if the one you choose isn’t the right choice. This can be time consuming and expensive and confusing to the government.

Discussions with a knowledgeable lawyer can help you think through the consequences that each business structure provides.

Another option you might want to check out is the ContractorBlab