When I travel abroad – and most of my trip was financed by credit cards over the years – I only use credit cards for emergencies. I am fortunate to have a Nationwide debit card which does not pay at all for overseas transactions and allows you to draw your interest free cash too! I am well aware that the cost of my trip will increase dramatically if you use one of my credit cards for purchases or cash.

This is because the credit card companies typically charge what is called a commission charging each of your overseas operations. What’s most often do not even have to register the tax on your bank account – so you can be blissfully unaware of this institution for some time. Every £ 100 you spend will bring a charge of £ 2.75 for a typical fee of 2.75%. Is it worth it?

The most important thing is to avoid drawing cash on your credit card – of course this is just plain common sense even when you’re at home, because of the fee of 2-2.5% is slapped on top of each levy. But when you are abroad is even worse because there is not even an interest-free period so you will find the interest charged for your withdrawal ugly too! Are really as bad as these are also likely to be higher than your highest current rate – 27.9% in some cases. Talk about robbery!

And it gets worse. Have you ever heard of “hierarchy of payments? No? Well you are not alone. This is something that is only in much smaller somewhere, God knows exactly where, on your statement. In many cases, the bank held on payment of cash withdrawals last of all – this means that you will be stuck with this ridiculous inflated interest for the life of the balance. It may be something worse short of serious illness or death itself?

Another thing to look out for when using credit cards abroad is to remember to pay in local currency to avoid the dealers using the conversion rate for your purchases, often in the region of 3%. Do not be misled by the apparent support shown to you so you can see the amount you have spent in Stirling. It is only in order to pay more, so beware!

So it makes sense to opt for a credit card that does not carry all the drawbacks mentioned above. If possible, find a debit card like mine that allows you to use it without interests abroad. Of course, make sure you have sufficient funds to cover expenses. If you do not have enough in the bank and is relying on credit to finance the trip, consider a facility approved discovered. And ‘certainly solve a lot’ cheaper than a credit card expensive!

However, if you decide to use your credit card issuing bank abroad always let you know if they decide to block the unauthorized use abroad. This could apply to debit card too but I always use my debit card abroad and have never had any problems. As always, it is better than cure – but sometimes it can be more careful!

E ‘is an option to get a credit card that is geared to use abroad. Make sure there is no fee charged on it in April and low for cash and purchases. By now you realize that the APR is not the only criterion to watch out for the election to use a credit card for that trip overseas. You may also take into account the benefits of the cards that are tailor-made for frequent travelers, because they have air miles and travel insurance offers cheaper to them. In fact, a whole range of air miles credit cards to choose from. For example, Virgin Money offers one mile for every pound of air purchases and if you are willing to pay an annual fee which will be doubled. But in reality this is only to be taken into consideration if you’re a frequent traveler and also like to live the good life! If you also book your travel by Virgin Holidays and Virgin Atlantic is even more profit with double miles flying club, this means 4 miles for each pound of expenditure. Hmm you might want to consider … Indeed, there are a number of additional advantages of using a card from Virgin – travel accident insurance up to € 250,000 and if possible on a flight delayed or canceled a useful £ 750! It ‘s really a very good deal especially if you need to transfer balances to your card as Madonna are also offering an introductory rate of 0% for those!

Personally, I chose my debit card at any time, supported by a credit card to purchase Virgin sensitive as more odd or unexpected contingencies. But you should be aware of all the options so you can make an informed choice!

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The common questions for anyone who want to start business are: How to raise money to start business, and where to get money for my business?

To raise money to start business is not as difficult as most people seem to think. This is especially true when you have an idea that can make you and your backers rich. Actually, there’s more money available for new business ventures than there are good business ideas. We will help you for where you can get money for business.

A very important rule of the game to learn: Any time you want to raise money, your first move should be to put together a proper prospectus.

This prospectus should include a resume of your background, your education, training, experience and any other personal qualities that might be counted as an asset to your potential success. It’s also a good idea to list the various loans you’ve had in the past, what they were for, and your history in paying them off.

You’ll have to explain in detail how the money you want is going to be used. If it’s for an existing business, you’ll need a profit and loss record for at least the preceding six months, and a plan showing how this additional money will produce greater profits. If it’s a new business, you’ll have to show your proposed business plan, your marketing research and projected costs, as well as anticipated income figures, with a summary for each year, over at least a three year period.

It’ll be advantageous to you to base your cost estimates high, and your income projections on minimal returns. This will enable you to “ride through” those extreme “ups and downs” inherent in any beginning business. You should also describe what makes your business unique—how it differs form your competition and the opportunities for expansion or secondary products.

This prospectus will have to state precisely what you’re offering the investor in return for the use of his money. He’ll want to know the percentage of interest you’re willing to pay, and whether monthly, quarterly or on an annual basis. Are you offering a certain percentage of the profits? A percentage of the business? A seat on your board of directories?

An investor uses his money to make more money. He wants to make as much as he can, regardless whether it’s short term or long term deal. In order to attract him, interest him, and persuade him to “put up” the money you need, you’ll not only have to offer him an opportunity for big profits, but you’ll have to spell it out in detail, and further, back up your claims with proof from your marketing research.

Venture investors are usually quite familiar with “high risk” proposals, yet they all want to minimize that risk as much as possible. Therefore, your prospectus should include a listing of your business and personal assets with documentation—usually copies of your tax returns for the past three years or more. Your prospective investor may not know anything about you or your business, but if he wants to know, he can pick up his telephone and know everything there is to know within 24 hours. The point here is, don’t ever try to “con” a potential investor. Be honest with him. Lay all the facts on the table for him. In most cases, if you’ve got a good idea and you’ve done your homework properly, and “interested investor” will understand your position and offer more help than you dared to ask.

When you have your prospectus prepared, know how much money you want, exactly how it will be used, and how you intend to repay it, you’re ready to start looking for investors.

As simple as it seems, one of the easiest ways of raising money is by advertising in a newspaper or a national publication featuring such ads. Your ad should state the amount of money you want–always ask for more money than you have room for negotiating. Your ad should also state the type of business involved ( to separate the curious from the truly interested), and the kind of return you’re promising on the investment.

Take a page from the party plan merchandisers. Set up a party and invite your friends over. Explain your business plan, the profit potential, and how much you need. Give them each a copy of your prospectus and ask that they pledge a thousand dollars as a non-participating partner in your business. Check with the current tax regulations. You may be allowed up to 25 partners in Sub Chapter S enterprises, opening the door for anyone to gather a group of friends around himself with something to offer them in return for their assistance in capitalizing his business.

You can also issue and sell up to $300,000 worth of stock in your company without going through the Federal Trade Commission. You’ll need the help of an attorney to do this, however, and of course a good tax accountant as well wouldn’t hurt.

It’s always a good idea to have an attorney and an accountant help you make up your business prospectus. As you explain your plan to them, and ask for their advice, casually ask them if they’d mind letting you know of, or steer your way any potential investors they might happen to meet. Do the same with your banker. Give him a copy of your prospectus and ask him if he’d look it over and offer any suggestions for improving it, and of course, let you know of any potential investors. In either case, it’s always a good idea to let them know you’re willing to pay a “finder’s fee” if you can be directed to the right investor.

Professional people such as doctors and dentists are known to have a tendency to join occupational investment groups. The next time you talk with your doctor or dentist, give him a prospectus and explain your plan. He may want to invest on his own or perhaps set up an appointment for you to talk with the manager of his investment group. Either way, you win because when you’re looking for money, it’s essential that you get the word out as many potential investors as possible.

Don’t overlook the possibilities of the Small Business Investment Companies in your area. Look them up in your telephone book under “Investment Services.” These companies exist for the sole purpose of lending money to businesses which they feel have a good chance of making money. In many instances, they trade their help for a small interest in your company.

Many states have Business Development Commissions whose goal is to assist in the establishment and growth of new businesses. Not only do they offer favorable taxes and business expertise, most also offer money or facilities to help a new business get started. Your Chamber of Commerce is the place to check for further information of this idea.

Industrial banks are usually much more amenable to making business loans than regular banks, so be sure to check out these institutions in your area. insurance companies are prime sources of long term business capital, but each company varies its policies regarding the type of business it will consider. Check your local agent for the name and address of the person to contact. It’s also quite possible to get the directories of another company to invest in your business. Look for a company that can benefit from your product or service. Also, be sure to check at your public library for available foundation grants. These can be the final answer to all your money needs if your business is perceived to be related to the objectives and activities of the foundation.

Finally, there’s the Money broker or Finder. These are the people who take your prospectus and circulate it with various known lenders or investors. They always require an up-front or retainer fee, and there’s no way they can guarantee to get you the loan or the money you want.

There are many very good money brokers, and there are some that are not so good. They all take a percentage of the gross amount that’s finally procured for your needs. The important thing is to check them out fully; find out about the successful loans or investment plans they’re arranged, and what kind of investor contacts they have—all of this before you put up any front money or pay any retainer fees.

There are many ways to raise money—from staging garage sales to selling stocks. Don’t make the mistake of thinking that the only place you can find the money you need is through the bank or finance company.

Start thinking about the idea of inviting investors to share in your business as silent partners. Think about the idea of obtaining financing for a primary business by arranging financing for another business that will support the start-up, establishment and developing of the primary business. Consider the feasibility of merging with a company that’s already organized, and with facilities that are compatible or related to your needs. Give some thought to the possibilities of getting the people supplying your production equipment to co-sign the loan you need for start-up capital.

Remember, there are thousands upon thousands of ways to obtain business start-up capital. This is truly the age of creative financing.

Disregard the stories you hear of “tight money,” and start making phone calls, talking to people, and making appointments to discuss your plans with the people who have money invest. There’s more money now than there’s ever been for a new business investment. The problem is that most beginning “business builders” don’t know what to believe or which way to turn for help. They tend to believe the stories of “tight money,” and they set aside their plans for a business of their own until a time when start-up money might be easier to find.

The truth is this: Now is the time to make your move. Now is the time to act. the person with a truly viable business plan, and determination to succeed, will make use of every possible idea that can be imagined. And the ideas I’ve suggested here should serve as just a few of the unlimited sources of monetary help available and waiting for you!

Now you should get idea for how to raise money to start business, how to get money for business, and where to get money for my business.

Almost every state in US calls for the need of an authentic insurance coverage, while you intend to drive the vehicle, whether it is a car, or any SUV. The general aspects of Insurance Coverage include:

-Liability Cover against Bodily Injury. If a car driver knowingly or unknowingly hits any pedestrian, or any other person in any other vehicle, the injured person can sue the driver to recover medical and rehabilitation expenses and any damages thereof. The insurance coverage offers $15,000 to $30,000.One person injured paids upv to $15,000. Per accident is up to $30,000.

-Liability against Property damage. If damage to property is done in an accident, then, the driver is liable to pay the property owner certain amount as written in the Insurance coverage. Many states provide $5,000 worth of Insurance Coverage, whereas, some of the standard policies also dispense higher insurance coverage ,but is limited to $25,000.

-Coverage for Medical Reimbursement. Irrespective of who’s caused the accident, or who was at fault, the medical benefits covered under the auto insurance policy offers facility to both the car driver, as well as injured to get their injuries treated. Generally, in many states, a car owner buys $5,000 of medical auto insurance coverage. However, in many of typical cases, a car owner can also purchase medical auto insurance coverage worth $ 10,000. No deductibles are charged on this insurance coverage.

Still there are many other types of auto insurance coverage, which though not required, are otherwise necessary. These include:

-Coverage against Collision Damage. This coverage entitles the car owner to repair any kind of damage caused in the accident. It is a no-fault coverage. Usually, the auto insurance provider will provide you with a $500 deductible, if not, you have specified the amount. Remember, Higher your deductibles, lower would be the premium amount.

-Coverage against Thefts and Other Hazards. This car insurance coverage would provide you safeguard against any kind of car theft, or hazards such as fire, flood, vandalism, or animal collision. The best thing of the coverage is that you decide your own deductible.

-Coverage against Uninsured/Under-insured Motorist. If a pedestrian is hit by a car driver who is not insured or the insurance amount is not sufficient enough to cover the damage costs, in such an event, the coverage proves very useful. Under the coverage, the injured person would also be entitled to reimburse medical bills, lost wages, besides, trauma.

Optional Car Insurance Coverage also includes:

-Extrinsic Medical Coverage — This coverage provides $1 million insurance, and is utilized if the medical and rehabilitation expenses surpasses insurance policy.

-Loss in Income – This coverage entitles the insurer an amount equivalent to take-home pay, in case you are rendered unfit as the result of accident. This coverage is over and above disability insurance coverage will take over.

-Funeral Coverage — Maximum limit of $2,500, in case car owner or any of family member expires as the result of car accident. The cost the coverage is about 50 cents
per $1500 worth of insurance.

-Coverage for Rental Car Replacement — A minimum amount is allocated on daily basis, should your automobile is under repair as the result of accident.

-Coverage for towing and other labor costs — The coverage costs at less than $5 a year.This for if you break down as a result of a flat tire(s), out of gas, or your car needs a jump start, or most anything that may occur.

The way insurance has changed

Auto insurance coverage is a significant aspect of your vehicle. It offers complete security to you, your family and your beloved vehicle. The insurance policies across country keep changing with times. Prior to 1980s, the common question which car buyers often asked to themselves was — Is the car affordable for me? But things changed marvelously after 1980s, and the question has transformed into — Can I afford the car, and on it, will I be able to afford auto insurance?

The auto insurance companies decide which car insurance policy is to be sent, and to whom. Remember! Every car insurance policy differs from the other and this difference is the result of thought process of auto insurance company.

As per the statistics collected and analyzed by auto insurance experts, on an average a household in US spends $7,500 over a 10-year period in auto insurance alone, and out of which, he or she claims approximately $500.00.One begins to wonder.

Different modifications and changes are making the headway in a car insurance market, and which can further affect you in any of the following three ways:

-The nature of sale of auto insurance is changing with times. Earlier, an insurance agent, working under an individual or a stand alone company or a conglomeration used to dispense the insurance policy. It was only during the early 1990s, that insurance companies started to dispense the policies directly to auto insurance holder. An insurance agent, on the other hand would charge 15 percent commission upright, and another 12 to 15 percent commission on renewal. The insurance commission was utilized by many other insurers in buying extra insurance coverage.

-Many states in US often change and regulate the sale and use of auto insurance deals. Every state appoints insurance regulators to keep a close watch on auto insurance coverage, based on two factors namely, rate setting and claims disbursement., the auto insurance companies have built up the reputation of not even dispense legitimate insurance claims, and this has resulted in wide amount of distress among the consumers. It is also felt and observed by insurance commissioners of different states that most common complaints concerning the auto insurance is claim handling.

-In generic sense, the very scope and role of auto insurance is undergoing massive changes. As people are accumulating wealth, they have more reasons to protect their virtues than any thing else.

Why do you need car insurance?

Auto insurance is the need of every car owner. The law clearly states that every car owner should insure his or her vehicle under car insurance, specifically related to liabilities. Under such kinds of insurance covers, the car owner is bound to pay the liabilities in cash for the damage caused to pedestrians, or other people, or causing damage to any property.

These auto insurance laws are governed under what is called, financial responsibility requirements. Car owners can also manipulate other alternatives, beyond the realm of insurance, in order to have the insurance needs fulfilled completely. Still further, there are many states, which offer alternative to the insurance in the form of cash bond. In case of any accident caused by the car driver, the person injured can claim for the expenses against the cash bond, in a similar manner, as an injured person would claim under the auto insurance.

However, for most of the car owners, insurance seems to be the only cost-effective way of meeting the requirements. A point to note here is that every state has its own individual laws which govern the financial responsibility, insurance coverage, or no-fault coverage. Therefore, a food idea out there would be to know the laws prevalent in your state, and then march ahead.

Again, since every state has its own financial responsibility legislations, and this can really make the mind of a car owner go round and round. In fact, the car owner would be in a dicey situation and unable to decide their probable action.

As per standard car insurance policy given out by the Insurance Services Office (ISO) –

ISO is a clearing house for the insurance industry. The office provides standard car insurance policy stating — “When this policy is certified as future proof of financial responsibility, this policy shall comply with the law to the extent required.”

In case a car driver’s license has been annulled and/or suspended as the result of causing accident due to reckless driving, bad driving record, or any kind of falsified judgment occurring due to previous accident, or otherwise, the same can be activated, provided the car driver/owner provides evidence of financial responsibility. There are many ways in which the insurance holder can provide proves, of which, the most common and simple way is to file the document with the state a ency. Filing the documents with the state agency would ensure the state administration that driver license is in force, and valid.

If you have financed you car, then the financial institution from which you have hired the money would demand collision insurance from you. If you are grappling with the situation where your insurance policy has lapsed, and you still have to pay your installments on the car, then the finance company is likely to buy the insurance on your behalf, and add the insurance cost to total cost of the vehicle. A word of caution here! Such kinds of replacement insurances are expensive options to exploit.

Though generally, car owners need auto insurance so that they can drive without any hassles, many also avail the auto insurance to keep their vehicle secured and safe. The standard Personal Auto Policy, also called as “Coverage for Damage to Your Auto,” is one sound policy offering damage covers to your autos.
This policy is also referred to as physical damage coverage policy.

The auto insurance coverage for vehicular damages primarily consists of “Collision” and “Other than Collision.” An insurance buyer has the freedom to buy any or both type of insurance coverage on the car purchases.

The policy clearly outlines that an auto insurance provider in wake of the direct and accidental loss, will be responsible for paying to the car owner. The policy also covers physical damage to non-owned auto, damage caused to the equipment, excluding the deductible. However, if the collision occurs in such a manner that it covers more than single “covered auto,” a highest deductible is settled.

The out-of-state coverage highlights given under the standard auto policy does not only delineate to the minimum insurance coverage available, but also takes into account different types of coverage for different car models. Therefore, it is necessary for the car owner to ensure which insurance policy is good for his car, and which one is odd.

As per the highlights, if the driver drives into the state where insurance policy demands to have no-fault benefits or other types of coverage, the policy would automatically provide a basic minimum coverage.

And in case you are traveling with your insured car outside your home state, the auto insurance policy would again adjust to the insurance laws and liability limits of that particular state. In such an event, the insurance coverage would conform to the laws available in the non resident state.

Taking into account the holistic viewpoint and conducting in depth research on different types of insurance coverage, a car owner would get the best product for their car. The best thing is to shop around in line with individual requirements.

When renting a car, do I need to be insured?

It is often invoked in the minds of the car insurance buyers that is it necessary to buy the insurance even on a rented car? When a car is rented by a person, he or she is offered with a collision damage waiver or CDW. Some of auto rental companies vocalize the term “loss damage waiver” or LDW, but the amount of coverage endowed is the same.

Such a waiver keeps the person safe, in case, any potential damage is caused to the rental car. However, you need to comply to other terms listed in rental contract terms. In an event where you ignore the car coverage insurance, and the rented car meets with an accident, then, obviously, you’d be held responsible for the entire damage.

The common problem associated with these waivers is that they have many loopholes, and loose points, and the car renter would be completely unaware of such limitations, ultimately rendering the coverage null and void. For example, coverage as given under CDW can turn void, if the driver is driving a car on n unpaved area or if the driver is indulging in any kind of reckless driving. It is important to mention here that the term “Negligent” is defined by the rental company at his own terms. The CDW policy is usually expensive, as much as $16 every day to the rental costs.

Still more, there are many regular auto insurance policies available which offer comprehensive coverage to the rented cars. However, what covers in the printed matter differs a lot, as the re are certain limitations on certain types of car rentals.

Before covering any rental coverage, it is important that you assess the type of insurance you hold. However, in case, your personally owned car has collision insurance, and above that you have a car insurance policy covering the rented vehicles, it’d be perfectly right to ignore the CDW coverage. The liability insurance coverage is covered under your private auto policy, and is sufficient enough to protect you and the passengers in the car.

Insurance coverage for rented cars may also depend on the purpose of using vehicle. There are certain policies which put a limit on the number of rental days. Some of the insurance policies also apply the deductibles and reduce the liability amounts substantially.

In the end it is for you to decide when you go for rental car insurance coverage! The underline idea is shop and compare.

Getting the Right Insurance, the First time

Thinking of getting right insurance coverage for your needs? Well, take some time out and read through some of the key highlights outlined below, which would help you in obtaining appropriate car insurance for your adorable car:

-You need to present Primary Factors your name, age, sex, marital status etc. These are essential for taking the insurance coverage of your choice and means.

-The insurance company should know your Sub-class, which is also your driving record. If you have a good driving record, getting insurance coverage is easy. Probably, buying car insurance is a difficult task in such a situation. Many of the auto insurance companies take into consideration “Secondary Rating Factors,” where companies analyze the statistics of how many car accidents have been done by a car owner.

-State of Residence. An auto car insurance company would charge you more, if you are living in a metropolitan or a cosmopolitan town.

-The Net Assets. Depending on the assets which a car owner holds, he or she can buy car insurance liability coverage. In an event where you do not have appropriate assets for the liability coverage, the state minimums cover the liability.

-Manner of Usage. Car owner can use the car either for business purpose or as a commodity of personal usage. Auto insurance company will decide on this under the Automobile Use Classification. This classification encompasses variable categories such as pleasure use, business use, farm use, and driving to work. The question of how you use the car comes into play when the car owner holds more than one car. If any car owner has three or four cars under the business use, or driving to work. Allocate one car and insure it under the pleasure use coverage.

-Check the Model, Age and Manufacturer’s Name of your car. These factors play crucial role in deciding what type of insurance coverage you’d eventually buy. This is a risky venture altogether. If your car is of older model, you would have to pay less money for the insurance. It is because; the replacement value of the car would decrease substantially. If you have bought an antique car, then you have to go as per the pre-replacement price.

-Choosing between Single and Multiple car risk policies. Auto insurance policies are differentiated into single-car risks insurance policies, and multi-car risks insurance policies respectively. Multiple car risk policies are cheaper as the car owners who are going for such kind of insurance are offered discounts.

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Active Income – Income for which services have been performed. This includes wages, tips, salaries, commissions and income from businesses in which there is material participation. Active income is income from any of the following:

– Wages, salary, commissions, bonuses, or other payments for services rendered;
– Profit from a trade or business in which you are a material participant;
– Gain on the sale or other disposition of assets used in an active trade or business;
– Income from intangible property, if your personal efforts significantly contributed to the creation of the property.

Passive income is income from either of the following:

– Any trade or business or income-producing activity in which you did not materially participate; or
– Subject to certain exceptions, all rental activities, whether you materially participate or not.

In general, if you receive income (or losses) from a business but are not an active participant in the business, it is passive income. So why do I need both? Well, to get a good passive income online, it is going to take some time and energy and some cash. Keep the active income flowing while working on the passive income. You ask, if I have active income, why do I need passive income?

“I would rather earn 1% off a 100 people’s efforts than 100% of my own efforts.” – Rockefeller, John D. (America’s first Billionaire).

If you have a physical store, there are only so many hours you can have your store open without hiring someone,100% of your own efforts. However, your online store can be open continuously; your online store is your 1% of 100 people efforts. You cannot be everywhere, every time someone needs what you are marketing. Even when you are at your active employer or at your children’s game or play, your store is working for you.

Ready for the bad news about passive income? The “passive” part is deceptive. To create a business that will continue to spin off money for you when you are doing very little in the “business” takes time and effort to create. A lot of focused work will be necessary at the beginning. If you are new to your choosen niche or the internet there will be a LOT you have to learn. But just like a garden it’s well worth the effort to plant extra, because once you’ve set up your passive income plants, with just a little watering now and then, you really can make steady autopilot profit.

The American Dream is, and always will be, to come up with an idea, start a business and become rich from your own efforts. Based upon this motivation, thousands of businesses fail each year, due primarily to not being familiar with the basics involved in running a business.

This report will enlighten you, and give you a number of suggestions you can use to better guarantee your chances for success. This report is written with the warning that any and every business venture contains certain inherent risks, and any number of alternatives. We do not espouse that any one way is the right way or that our suggestions are the only way. On the contrary, we advise that before investing any money in a business venture, you seek counselling and help from a qualified accountant and/or attorney.

Just about the first thing you should consider before deciding to start or purchase a business is the legal form you’ll be operating under. There are basically four choices: sole proprietorship, partnership, limited partnership, and/or corporation.

Each has a number of advantages and disadvantages. We’ll try to enumerate some of them for you.

As much as anything else, for many people starting a business is a form of ego-gratification, and they form a corporation for some sort of prestige gain – just to say, “I own a corporation.”

With just a little bit of observation, you’ll find that one of the major causes of business failures is due to the founder wasting start-up capital on frills, such as an impressive store- front office, expensive furnishings, and corporate legal costs.

One of the basic traits you must develop it you’re going to be successful in business, is a tight hold on your expenditures. In fact, a good rule of thumb is that anything that does not make money for yo or protect your investment, should not be purchased at this time. Very definitely, this applies to the expense of setting up your own corporation.

Unless you have a partnership and start your business as such, the only real advantage to forming a corporation would appear to be that a corporate structure will semi-protect the property you personally own.

As an example, you own a home and car. You form a corporation to protect these possessions from business losses. Yet, if you can be found guilty of misusing corporate funds, your business creditors can pierce the corporate shield and come after your possessions.

Basically, if you invest everything you have in your business, as most newcomers do, you don’t usually need a corporation because you have nothing to protect. Your household possessions, personal belongings, generally your car, and even a portion of the equity in your home is protected by the homestead provision of the Federal Bankruptcy Act, and cannot be taken away from you.

As a sole proprietor or partner of a business you’ll be paying taxes on your overall earnings, much the same as if you were holding down a salaried or hourly paid job. Whether you do or don’t take out money as a salary will have no bearing on the earnings of your business and tax return.

The often advertised advantage of incorporating, that you can manipulate your salary in order to save on tax dollars, is real because of corporation laws. However, the IRS frowns on this practice. When your business is successful and making a lot of money, definitely check with your accountant on the advantages of incorporating.

As a corporation, you’ll be subject to a number of other drawbacks as well: generally higher state taxes, stricter laws concerning the operation of your business, more elaborate accounting procedures, and legal papers that are required just about every time you make a major move or sign almost any contract. Thus, your legal and accounting fees will be much higher as a corporation than will those required for a sole proprietorship type of business.

As a sole proprietor or partnership, you’ll find many areas require the registration of your business name. The cost however, is minimal, ranging from $5 to $100. About the best way to find out what laws apply in your area, is to call your bank and ask if they need a fictitious name registration card or certificate in order for you to open a business account.

Selecting a name for your business is quite important to you and particularly relative to advertising. Your business name should describe the product or services you offer. Fancy names such as, Linda’s Clipping Service will lose potential “walk-in and passing” customers to the beauty shop across the street that calls itself, Patti’s Beauty Salon or Jane’s Hair Styling Shop.

The advantage of using your full name in the title of your business, such as Johnny Jones’ Meat Lockers, has the advantage of making credit somewhat easier to come by – provided you pay your bills on time – but it also includes the disadvantage of confining your services to a local or at most, a regional area.

Should you buy, lease, or rent a space for your business? think twice before you make any decision along these lines. Most businesses tend to grow quickly or they never get off the ground.

There are a few exceptions, but only a very few, that tend to grow at a modified rate.

So, buying a piece of property and setting up your business on or within that property, obligates you to ownership regardless of what happens to your business.

Leases are almost always very strong contracts written by attorneys to the advantage of the property-owner. When you sign an agreement to pay someone for the use of their space over any length of time, you’re “nailed in” to paying for that space regardless of what happens to your business.

In the beginning, it’s wise to either get the shortest-term lease possible, or arrange to rent with an option to lease at a later date. This does not apply to a retail business, unless your particular business happens to be an untried one.

Definitely, you should open a business bank account. In selecting a bank for your business, scout around and look for one that can, and will help you. Determine what your banking needs will be, and then via telephone, interview the managers of the banks in your area. The important convenient bank to your business location.

A point to remember: the closer you can make the relationship between you and the bank manager, the better your chances are going to be for approval on loans and/or special favors you may need at a later date.

Try to become acquainted with as many of the bank employees as possible. The better you know them, the more courtesies they’ll be extending especially to you in the course of your association.

Just as a doctor is a specialist in his field, and you go to him for medical problems, your banker is a specialist in his field and you should go to him for your money problems. In business, you’ll have to learn that everyone is an expert in his own line of work, and in your associations with other business people, refrain from acting like a “sharpie” and/or pretending that you know exactly how everything works in someone else’s specialty.

You’ll find that very often, different banks specialize in different types of businesses. As an example, you’re sure to find banks that specialize in real estate transactions, export- import businesses, and even manufacturing operations only.

What I’m saying here is that if you’re planning to sella fairly expensive item, your customers will probably need and/or want financing. It will behoove you to select a bank familiar with your type of product that will afford your customers, through you, contract financing.

Some of the questions you should ask of your banker include the following:

Is it necessary to maintain a certain balance in your account before the bank will approve a loan for you? What qualifications must you have in order to obtain a line of credit with the bank?

Does the bank limit the number of loans, or types of loans it will approve for small businesses?

What is the bank’s policy regarding the size of a check you might deposit that requires holding for collection?

And what about checks less than that amount – will they be immediately credited to your account?

In almost all types of businesses, it will be to your benefit to set up with your bank, a method of handling VISA, Master Charge, and regional credit cards. The important thing here is to ultimately set up your account in the bank that will service all of these credit transactions for you – one stop for all your banking needs. In most instances, you’ll find that having the capability to fill orders/make sales via credit card transactions, will increase your volume of sales appreciatively.

Once you’ve made the decision as to which bank is going to handle your account, you’ll need your Social Security Number or your Federal Employer’s Identification Number, your driver’s license, the fictitious name certificate, and if you’re requesting a VISA or Master Charge franchise, you’ll also need a financial statement.

For corporations, you’ll also need a corporate resolution approving of the opening of your business account.

There are different policies exercised in just about every state regarding installation/hook-up charges by the telephone and utility companies. Some require a deposit, and some don’t.

You’ll find that a great number of city business license departments are there solely for the purpose of collecting another tax. Depending on the type of business you’re asking a license for, the building and zoning people may inspect your premises for soundness of structure and safety. Generally, you won’t encounter any difficulties – you simply pay your fee to operate your business in that city, and the clerk types your name onto a city license certificate.

Relative to sales tax permits and licenses, each state’s rules and regulations very widely. The best thing to do is call your state offices and ask for information concerning registry and collection procedures. Many states require an advance deposit or bond, and you’ll find that some wholesalers or manufacturers will not sell to you at wholesale prices until you can show them your sales tax permit or number.

Should your business entail selling your products or services across state lines, in another state, you’re not required to collect taxes except in those where you have offices or stores.

You may find also that your particular business requires the collection of Federal Excise Taxes. For information along these lines, check in with your local office of the Internal Revenue Service.

Some states also require certain businesses to hold state licenses, such as those required in many states for TV Repairmen.

These are known as “occupational permits” and are most often required of barbers, hair stylists, real estate people and a number of other consumer oriented businesses. If you have any doubts, check with your state offices for a list of those occupations that require licensing.

Any business doing business in any type of interstate commerce is subject to federal regulations, usually through the Federal Trade Commission. This means that any business that shops, sells or advertises in more than one state is subject to such regulation, and this includes even the smallest of mail order operations.

Normally, very few business people ever have and contact with the federal regulatory agencies. The only exceptions being when there is a question of your operating your business unethically or illegally.

Any business that sells or distributes food in any manner almost always requires a county health department permit. If your business falls into this category, simply call the county health department and invite them out to your place of business for an inspection. The fees generally range from about $25, depending on the size of your business when they first inspect it for permit approval.

There are also a number of businesses that require inspection by a fire marshall, and fire department approval. Generally, these are those that handle flammable materials or attract large numbers of people, such as a theater. Overall, the local fire department has to be allowed to inspect your premises whenever they desire to do so.

You may also run into a requirement for an air and/or water pollution control permit. These specifically apply to any business that burns anything, discharges anything into the sewers or waterways, or use any gas-producing product, such as a paint sprayer.

Without a doubt, you’ll need to check on local regulations relating to advertising display signs. Each city or township makes its own rules and then enforces those rules according to its own thinking -check before you contract to have a sign made for your business.

The design and placement of your sign is very important to your business – specifically to retail establishments – but let me remind you that your business sign is usually the first thing a potential customer sees and as such, it should catch his eye and leave an impression that lasts. It would be a good idea to ride around your town and take a look at the signs that catch your eye, and try to determine the impression of the business that sign leaves on you. This is a basic learning formula for determining the design, size and placement of your business sign.

Some of the other things to consider before opening for business – If you intend to employ one or more employees, you’ll be required to deduct Federal Income Taxes, and Social Security payments from their checks. This will involve your filing for a Federal Tax Number and necessitates contact with your local IRS Office.

Most states have “unemployment taxes” which will have to be deducted from the paychecks of any employees you hire. And there are a number of states that have income taxes – disability insurance – and any number of other taxes. Again, the best thing to do is check with your local office of the IRS. And above all else, don’t forget to ask for the rules of the minimum wage law, and comply.

When your business grows to the point of needing additional help, don’t be afraid to look for and hire the help you need. when you’re ready to hire someone, simply run an ad in your local paper and/or register your needs with the local office of your state’s employment service. Businesses either grow or die, and those that grow eventually need more people in order to continue growing.

When that time comes, hire the additional people you need, and your business will continue growing. If you don’t, for whatever reason, you’ll find yourself married to your business and your business growth stymied.

Regardless of how small your business is when you begin, never walk in with the thought in mind that it’s something to keep you busy. Anyone with an attitude of that kind is a fool. You begin and make a business successful in order to realize financial freedom. Establish your business. Put it on its feet, and then hire other people to do the work for you. And those businesses that require an operations manager, or someone to run a phase of the business you’re too busy to handle, hire the person needed or the business will surely suffer.

To protect the investment of your business, you need business insurance. If you’ve never had any experience with business insurance, simply look under the heading of “business insurance” in your phone directory. Ask for bids from several different companies or agents…Primarily, you should have a policy that gives you general liability, fire, workmen’s compensation, business interruption, and vehicle coverage. You amy also want coverage against possible losses related to burglary, robbery, Life & Accident, Key Man, and Fidelity Bonds.

As the sole proprietor of a business, you won’t be paid as an employee, so there will be no income tax deducted from whatever you withdraw from the company’s earnings. What you’ll have to do is a gain check with the IRS Office for a Tax Guide For Small Businesses Handbook, and probably end up filing an estimated tax return on a quarterly basis.

The minute you open your doors for business, you’ll have to spend some time engaged in the work of bookkeeping. Exactly how, and using what forms, you keep books, should be on the recommendations of a good tax counselor…The same holds true for your overall business and/or payroll accounting system. Look for an experienced CPA that knows the accounting problems to your particular kind of business, and solicit his advise/counseling.

If your business is going to involve the possible purchase or lease of operating equipment, again seek the help of your tax counselor for the most advantageous method of obtaining the needed equipment.

Basically, arranging for your suppliers to give you materials on credit will depend upon your honesty and personal financial statement. The best way is usually a personal visit to the person with the power to approve or disapprove of credit at the company where you want to set up a credit account. Show him your financial statement, and explain your prospects for success. Then assure him that you’ve always honored all of your obligations, and that if ever there’s a question or problem, you’d like for him to call you at home. And of course, give him your home phone number.

We won’t go into the exigencies of advertising your products, services or business here, but there is something along these lines you should always keep in mind. The best kind of advertising your business can receive is that you don’t really pay for – publicity.

When something unusual happens to you, your business, or your employees – that’s news, so be sure to tell the news media in your area about it.

The most important ingredient of your eventual success will be the soundness of the planning you did before you started your business. Any number of bad things can really throw your business into a tailspin, but it you’ve done your homework well – really set up a detailed business plan before starting – your losses or setbacks will be minimal. Success takes planning, and within this report, you’ve got a basic checklist…The rest is up to you…Good luck, and may your life overflow with success in all that you undertake from this moment forward.