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Being A Better Decision Maker

Being A Better Decision Maker published on

One key difference between an entrepreneur and the average individual: the entrepreneur is a natural-born problem solver. While simple decisions can easily be taken care of, the more difficult problems require making difficult decisions. Successful entrepreneurs have found the following strategies helpful in the decision making process:

  • Don’t waste time. It is all too easy to delay a decision because of the sheer fact that it is a difficult decision. Consider setting aside a block of time during the day (or over a span of several days) to work the pros, cons, risks, and outcomes of your decision. Remember that ignoring problems will never help you make better decisions.
  • Put your ego and emotions on the back burner. It is completely natural to be too personally invested in your business. However, this can make decision-making especially difficult. Transcend your emotion and ego by practicing self-awareness. Strive to objectively arrive at the root of the problem. List potential causes of your problem. For example, if your business isn’t making enough money, ask yourself what the specific cause may be. Is your pricing right? Do your customers identify with your brand or services? Did you hire a bad employee? Better decisions will result from objective facts instead of wounded egos.
  • Ask an expert or neutral third party. Remember that while your problems may seem unique to you, there are entrepreneurs and professionals out there who have solved the same problems. A neutral third party also aids in keeping you objective in your decision-making process.
  • Understand the worst-case scenario. An entrepreneur understands the underlying risks of the decisions he or she makes. Always take a moment to deeply consider the worst-case scenario of the decision you’re about to make. Identifying your risks will help you rest easier when making decisions.

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Why You Should Open A Commercial Bank Account For Your Business

Why You Should Open A Commercial Bank Account For Your Business published on

Essentially, one of the most basic steps in starting up a business is opening a bank account. Opening a bank account for the business separate from the individual bank account of the owner has many benefits. For instance, it makes it easier to organize the business’ expenses, pay taxes and maintain financial records.

If your business is an entity such as a limited liability company or a corporation, a separate bank account is necessary as the company is a legal entity separate from its members or owners, respectively.

In order to set up the business account, the bank will require certain documentation including the incorporation records for the entity, which will show the structure of the company and what authority you have in the company. These documents are generally the articles of incorporation or organization.

Some banks may require a certificate from the State to make sure that the company is active and in good standing.

Additionally, Banks will require you provide the Employer Identification Number (EIN), you were assigned by IRS.

Notwithstanding that the company’s corporate records, your authority within the company and the EIN number is the only basic information banks need. Other documentation required depends on the internal policy of the bank you choose, not the law.

Do not delay; call us or visit our website today for more details!

(800) 603 – 3900

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Still Making Money When Your Company Is Losing

Still Making Money When Your Company Is Losing published on

Under section 1244, shareholders of domestic small business corporations can deduct a loss on the disposal of 1244 stock as ordinary loss rather than capital loss. A deduction for capital loss is limited to $3,000 annually. Any excess capital loss has to be carried over to the next year. Nevertheless, ordinary loss under Section 1244 is deductible up to $50,000 for the individuals and $100,000 for joint returns.

How to qualify for Section 1244 stock?

To receive a tax benefit under Section 1244, a business must meet specific requirements for the insurance of small business stock, the stock itself, and the shareholders. To qualify the corporation’s equity may not exceed $1,000,000 at the time the stock was issued, the stock must be issued for money or property, and for five years preceding the loss the corporation generally must have derived more than half of its gross recipients from business operations and not from passive income.

To understand if you qualify for Section 1244 stock, speak to one of our attorneys by calling our toll free number (800) 603 – 3900

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