Business Objective

TAX TIME IS HERE

Tax time is right around the corner for individuals, small business owners and corporations.  All are looking for any type of tax break they can deduct out of the thousands of pages of the federal tax codes.  Many are going through their income and expenses to see where their bottom line will end up. 

Some individuals file their own taxes online but many business owners hire a professional accountant to perform that dreadful task.  You need to provide your accountant with any major equipment purchases, changes that occured during the tax year and possibility staff hiring or firing during the year.

10 Common Business Tax Deductions

SMALL BUSINESS TAX BREAKS

Employees – If you are operating as a sole proprietorship or S-Corp and have your spouse employeed in a flow-through entity this can lower your taxes by deducting the wages and contribute the funds to some sort of retirement plan, speak with your accountant.  If you hire a person under 18 in some states, dependents of the self-employed that qualify may be exempt from Social Security and Medicare taxes. 

Tangible Property/Equipment – Most business equipment is tangible property and is known as an asset.  Assets mainly are depreciated over a period of time, depending on the type of equipment, could be 7 years.  Some accountants may elect to deduct the entire purchase price in the same year.  These write offs must pertain to your business and be resonable.  When the economic stimulus package was signed section 179 set new, higher limits (and bonus 50% depreciation) that were first introduced in 2008 have been extended for 2009. This means the limits are almost double from previous (pre 2008) years.

When you purchase an asset and take the tax deduction you must also report when the asset was sold and the selling price.  Some assets may be sold for more than the purchase price and the difference is taxable income, which must be reported and taxes paid.  Most equipment purchases will depreciate and won’t be sold for a profit.  Speak with your accountant on this issue before selling any asset.

If you finance equipment, any finance charges that you incur may also be deducted.

Outside Sales – If you use a vehicle for your business and want to deduct mileage of your trips, it is required you keep a mileage log.  The government may change the current mileage rate allowed from year to year.  For the 2009 tax year the mileage rate is $ .55 per mile.  I believe this rate will change for the 2010 tax year to $ .50 per mile.

Home Office – When working from your home office, make sure the office space contains only items to operate your business.  Computers, business phone lines, faxes and office furniture if fully allowed for a write off.  You may also deduct a portion of the other expenses you incur in your home if they are necessary to operate your business like utilities, homeowners insurance, property taxes and mortgage interest.  This is usually calculated by taking your square footage of your office divide that by the total square footage of your home.  This percentage is what is allowed to be deducted as operating expenses.

Travel and entertainment – When traveling keep all receipts pertaining to hotel room, tolls and bridges and flights. If traveling for a coporate meeting these expenses are allowed if you keep records of the business activity that is conducted. Also note the reason for any employee that needed to attend.   As far as meals are concerned the government has standard deductions for this.  Employee or client meals are at 50% but if you are working past your normal working hours and buy dinner for your working employees this is 100%.

Health Insurance – A few years ago a small business owner could not deduct 100% of their health insurance cost.  This has finally changed where the small business owners can deduct the same cost like the big corporations have done for years. 

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Drew Miles on Maximizing Business Tax Deductions and Tax Write-offs 

When people are out of work or tired of their existing job they consider forming their own business.  Which type of business structure and what to sell or service to offer is the big question.  First decide what you are interested in and what type of experience you may have.  Second is which form of business, sole proprietorship, partnership, corporation, limited liability company or S corp.

Once you decided which type and form of business, you should also have a background of business operations, setting up accounts with suppliers, negotiate pricing, marketing and hiring employees.  There are helpful tools to help you learn about forming a business, you can start with an accountant or search for your help online.  Make sure you comply with the law within your own state.  Starting your business correctly may save you from failure and unnecessary expenses and exposure.

Coming Up With a Business Plan
You want to outline what your goals are with the business and what is needed to get there.  Outlining a strategy is very important to your success.  Your business plan should include the following:
An outline and how to sell your business.
Description with an overview, history and structure.
Products or services.
Strategy of marketing your business.
Outline the operations, everything from location to staffing, also include policies.
Employee job descriptions and responsibilities.
Analysis of your financials. 

Many owners need to consider how their new business venture will impact their your own finances and may dictate the way they operate the business.  This is mainly true when anyone starts a home based business or small to medium size.  Some will use their own savings, borrow from family members or apply for a small business loan.  Others starting on a larger scale may look for investors.

Share Business Ideas

Networking with other business owners is one way to learn marketing, promoting your product and gather business ideas.  Some organizations hold meetings that are essential to owners to learn about challenges and successes from other business owners.  There is a wealth of information that you can learn whether it is from meetings or online articles.

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How to choose the right promotional pen for your next company event.

Since there are so many choices in the market today how do you know which pen is right for you.  BIC has been the number one ballpoint pen manufacturer for more than 50 years.  BIC not only manufacturers pens but also offers stationery, lighters, razors and more.  The BIC Cristal ball pen was manufactured in 1959 and cost 19 cents a pen. BIC has developed pens that are offered as a Clic Stic with or without a rubber grip, widebody pens and a popular 4 color pen.  Most of the BIC pens are offered in different cap colors, ink refill colors and a large variety of imprint colors. So many consumers choose the BIC pen for family reunions, company events, community celebrations and even weddings.

Promotional pens and pencils are used everyday by consumers and can help in promoting your company or organization.  Since pens are available in so many varieties you can start your search by determining which type of pen is suitable for you like a clic, twist action, pull action, gel, roller or stick pen.  In most pens you may choose the ink refill in fine or mediun point and black, blue or red ink. 

Deciding on an imprinted pencil

Pencils are normally manufacturered with No. 2 Lead.  Most pencils have a red eraser but some are available in white, yellow and green, it depends on which pencil and the manufacturer.  Pencils are painted in various colors, foil wrap, camouflage, patriotic and neon.  Constuction companies can choose between a regular or red lead pencil.  You can request to have the pencils sharpened before shipping.  This option is great if you are attending a trade show.

Most pencils are imprinted toward the eraser so your company, school or organization name will last a very long time.  The imprint is large to include your logo, address, phone number or slogan.  Pencils are one of the most inexpensive ways for advertising your business. 

L & R Promotions has been assisting their customers in selecting the right promotional pen or pencil for their next event.  If you’re not sure about the imprint you want to place on the pen, we can help.  L & R has the capabilities of converting art files into camera ready art for the best quality imprint.

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Promotional Bags and Totes

Promotional bags and totes are popular giveaways for companies, organizations and schools. There is a large variety to choose from like backpacks, duffels, drawstring, sling, messenger, portfolio, tote and eco friendly bags. You can customize them with screen printing, embroidery and even debossing on some. If you’re searching for that perfect promotional item that will last for a long time consider a bag or tote for your next event or marketing campaign.

How to choose the right promotional bag or tote that will fit your needs. Which type of business or industry where you work and what type of promotional event you are attending. Some tote bags have a gusset and some do not. So if you looking to carry items with more weight then a gusset and reinforced bottom are needed. If you need a tote for small thin items than absolutely you would not need a gusseted tote. For those trade show events, fundraisers and company giveaways you will be able to locate a tote bag to fit your budget. Tote bags may be imprinted or embroidered 1 side or 2 keeping your company name and logo in view to everyone to see.

If you’re searching for those corporate gifts, may I suggest a leather duffel, backpack or laptop bag that can be debossed with your company name and logo. Maybe you are searching for a type of bag that is less expensive, try a bag that is made from 600 Denier Polyester which can be screen printed or embroidered like backpacks, duffel bags, sling bags, messenger and portfolio bags. The price ranges on all types of bags for every budget.

When selecting a promotional bag or tote for that special event or giveaway choose a type of bag that your customers will love and use everyday. Keeping your organization or company name exposed everytime your customer uses their promotional gift.

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Promotional Kitchen Products

Possibilities are endless when using the home to promote your company name and logo on promotional kitchen products.  Kitchens are the central point of all households.  You see everthing from spatulas to refridgerator magnets to measuring cups just to name a few. 

Promotional jar openers, custom imprinted scrapers and bag clips are inexpensive giveaways.  The imprint areas may be small but gives a lasting impression of your business name.  Some customers prefer to receive that promotional product that is slightly different like a pizza cutter.  There are so many possibilities for the kitchen it’s hard to choose just one.

If you searching for a particular kitchen item, research our products at L & R Promotions.  We can assist you in choosing the right item for your next event.  So if you’re a pizza shop, taste of home distributor or food vendor giving a promotional kitchen product is right for you.

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Promotional Mugs / Drinkware

There are many choices and inexpensive ways to promote your company.  Promotional mugs / drinkware is a product that will last and customers use everyday.  They come in various colors, shapes and sizes for you to choose from.  Ceramic, travel, glass and stainless steel are only to mention a few.

Drinkware products can be handed out to your regular customers or at a trade show or special event.  Glass entertainer mugs / mason jars can be a great gift for your guests that attend your wedding or holiday event for your employees.  Stainless steel mugs are available with a plastic liner or stainless steel inside, all customers would appreciate them for their commute to work or taking the kids to school or traveling.  Promotional mugs are a great way for organizations and schools to raise money, placing their name and logo on one side and sponsors on the other.

Ceramic mugs are imprinted then fired for the ink to harden that won’t wash off.  Stainless steel may also be laser engraved that your company logo will last forever.  Some glassware may be etched instead of screen printed. 

Whatever you choose in the drinkware line for a special giveaway or promotion can be affordable and is available in a broad range of prices, sizes and colors. 

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Promotional Calendars

Nearing year end and wanting to thank customers for their continued support, thank them by handing them a promotional calendar imprinted with your company name and logo.  Calendars are an inexpensive way to say thank you and remind them about your company and services.

Customers use calendars whether it is for their wall, refrigerator, handbag, and even at their computers.  Calendars are available as a magnet calendar, pocket planner, wall or desk calendar.  This is a great promotional item that is frequently used for daily or weekly scheduling, around the home or office.

Calendars are personalized with your company logo and name which means everytime a customer sees your imprinted message it is a reminder about your company and where you’re located.  It takes several times seeing a particular ad or company name and logo for someone to remember.

To choose which type of calendar to giveaway you should look at the location of the customers you do business with.  Choosing more than one calendar type can accomodate several types of schedules for your customers.

Customers are always searching for that promotional calendar that they can use year round.  Promotional calendars are a constant reminder for advertising your company.  For an inexpensive item, an imprinted calendar can advertise your company day after day. 

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