Month: December 2012

The Sole Proprietorship – The Basics

Sole Proprietorship

Of the four business entity types, the sole proprietorship is by far the most flexible and easiest to manage.  There are very few drawbacks.  In the world of business, the key is to maximize profit with the least amount of risk.

The Franchise Relationship

Business Trusts

A franchise relationship is a partnership between two parties.  The primary party is the Franchiser.  This entity owns a master group of similar business selling/providing the same product or service.  The Franchiser sells a ‘Right’ to his name and his conditions in exchange for a royalty fee.  The second party is the Franchisee.

FUTA – An Explanation to the Federal Unemployment Tax Act

FUTA

Federal Unemployment Tax Act or FUTA for short is a part of the Internal Revenue Code and is an employer tax on wages paid to employees.  It is used to fund unemployment benefits.  The tax is paid on the first $7,000 of wages paid to every employee.  It is reported via Form 940 https://businessecon.org/resources/ .  The Form must be filed and all taxes paid by January 31, 2019.

Who is Your Customer?

boy playing baseball

You would think this is a simple question with an easy answer.   But for most folks, they can’t identify their customer.  It seems elusive or undefinable.  If you are in business, you need to answer this one question.  You need to know. 

How to Start a Non-Profit Organization: Step 1 – Form a Brain Trust

brain trust

Before you do anything towards starting a non-profit organization, you need to form a brain trust.  This is a group of friends that will add their thoughts to your idea and provide you with a platform to begin the process.  Their ideas, questions, suggestions, misgivings, and other thoughts expand your thinking beyond a simple idea to a core value of what is important. 

Form 941 – The Basics

form 941

Form 941 is the employer’s quarterly federal tax return.  It reports how much federal income taxes were withheld; Social Security taxes and Medicare taxes that are due and how much was paid in deposits to the Internal Revenue Service.  The report is filed every three months for each of the four calendar quarters.

What is a Contract?

Contract

Article 1 of the Uniform Commercial Code copyrighted by the American Law Institute is considered the primary source for the definition of a contract.  All of the 50 states have incorporated all or most of the definition of this code as statue.  A contract is defined as a legal obligation between two or more parties.  A contract has to have four elements for it to be binding on the parties. 

Use Phase Accounting in Construction – Part II (Trades)

This section covers the three traditional trades that require a license from their respective state. This is your HVAC installer, the electrician and the plumber.  In some contractor may wish to include the septic tank and water well installer.  However, I prefer these two be included in the site development phase as they do impact the site and there is only one connection to the main builder for these two particular trades. 

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