Company Fashion Laura

Corporation (Limited Company)

admin — Thu, 29 Sep 2011 00:00:04 +0000

A corporation is a business that operates as a legal entity separate from its owner or owners. Corporations are registered in a provincial or federal registry and must file annual reports, submit tax returns, and pay taxes.

The shareholders who own the company aren’t personally liable for the company’s debts unless they have signed a personal guarantee. Corporations may have one or more shareholders, who typically enter a shareholders’ agreement setting forth the conditions of their involvement. They also elect directors who manage the corporation on a day-to-day basis.

Corporations are a convenient means for investments by groups of two or more people. Partners hold shares in the company that can be bought, sold, or transferred. This provides a possible exit if you need or want to leave the partnership.

A corporate structure has many tax benefits. With a proprietorship or partnership structure, you have to declare and pay tax on all your income in the taxation year you earned the income. However, with a corporation, you pay a corporate tax in the year money is earned which enjoys a reduced tax rate up to approximately $500,000 if the corporation has three employees or less and other criteria are met; the regular tax rate applies after that. You don’t pay any personal tax until you take money out of your company, so in that sense you have strategic planning options. Lots of other tax planning benefits exist, too. For example, taking money out by means of bonuses, dividends, salaries, or borrowing money from your company. Your accountant can spell out the benefits in your specific situation.

While taxable income from a real estate corporation may enjoy reduced taxes, passive income from real estate assets is subject to an elevated tax rate.

Consult your accountant to ensure the most tax-advantageous arrangement if you incorporate.

Corporations are subject to strict reporting requirements set forth in the laws of the province where the company incorporates (see the appropriate statutes in your jurisdiction; these are usually available online, and in summary form from the registry where incorporations are registered), but the advantage for you, as a shareholder, is that the company accepts full responsibility for all claims made against it. Unless you sign a personal guarantee for claims against the corporation, claims are limited to the corporation’s assets.

You also want to ensure that a shareholder’s agreement and a buy-sell clause are signed and in place before entering any deal or providing any money to a corporation. These documents set out formulas for dealing with the management and dissolution of the partnership, as well as possible issues and scenarios relating to your participation in the corporation. Your lawyer can help you determine whether the agreements in place are satisfactory.

A Professional Logo Maker for Your Company

admin — Thu, 29 Sep 2011 00:00:02 +0000

A logo can make or break a business. This is not an exaggerated statement by any standards. The importance of a logo for any business is paramount. After all, it is the symbol or face of a company. That is why a lot of thought and planning go into making a logo. Most companies take professional help when it comes to logo design. This is one area where nobody wants to take a chance and jeopardize their possibility of success. There is a huge demand for a professional logo maker in the market. Everybody wants their business to stand out in the crowd and an attractive logo is one method of ensuring that.

What should an ideal logo be like? This is one of the trickiest questions since there is no proper answer to it. It is difficult to say what would click with the consumers. Sometimes, an apparently simple logo might create waves and attract maximum eyeballs while an attractive one might bite the dust. However, there are certain ground rules that are followed by professionals while designing logos. One of them is simplicity. A logo making professional knows the art of making a simple thing look appealing and eye-catching. A normal person would assume that a logo can attract the attention of the consumers only if it is visually striking and colorful. However, that is not exactly true.

Simplicity always scores when it comes to logo design. There should not be any room for confusion in the mind of the consumers. Another important thing is relevance. The logo should constitute the essence of the company and have a strong relevance to the product or service the company is endorsing. This is especially important for small business logo design. Since your main intention is to reach out to maximum number of consumers, you should make sure your logo clearly conveys the purpose of your company. Once you gain recognition and credibility in the market, you can experiment a bit with your logo design.

If you want to be in the race, you have to take the assistance of a professional logo designer. Logo making is an art by itself. If you are not a qualified designer, you cannot expect to come up with a logo that perfectly symbolizes your company. There are many designers who offer small business logo design as well as big business ones. Therefore, irrespective of the size of your company or business, you can find a designer that presents you with an attractive-looking and effective logo.

While choosing a professional logo maker, you should, however, take a few things into account. Firstly, his reputation in the market has to be considered. If he is known to design effective and out-of-the-box logos within the required deadlines, you can go for him. Most designers now-a-days offer 100% money back guarantee. This means you do not have to pay to the designer if his designs do not attract you. So what are you waiting for? Hire a designer and give a new face to your company.

Owner Financing – Seven Reasons to Use a Servicing Company For Your Contracts

admin — Thu, 29 Sep 2011 00:00:00 +0000

Many investors who carry their own paper on real estate contracts like to receive the payments themselves. It’s OK to do this if you know all the rules and laws about servicing contracts. But, there are things to watch out for, and it may be better to have a professional servicing company handle the payments.

In some states, receiving payments from the buyers, calculating principal and interest, and then sending the money on to the seller is called “account servicing.” In others it’s called “escrow” or even “contract collections.” Whatever the name here are seven important reasons why you should use a servicing company to handle your notes.

1. No Balance Disputes

With a disinterested third party figuring principal and interest, buyer and seller can’t dispute the current balance.

2. Hold On To Deeds If the contract is a Real Estate Contract, Land Contract, or similar instrument in which title is not conferred to the buyer on sale, the servicing agent will escrow the deed. At closing, the seller executes a deed handing over title to the buyer, but this deed is not released until the contract is paid. The escrow agent is responsible for releasing the deed.

3. Escrow Taxes and Insurance Impounds

The servicing agent can collect taxes and insurance from the buyer can make sure they are paid on time. The best part is that they can make sure you are collecting the correct amount for T&I each month. For example, if the taxes are $600 per year, they will collect $50/month. If the taxes go up to $660, you can increase the payment amount by $5 per month. The servicing company knows all of the rules for how much you can keep in the impound account.

4. IRS Reporting

A servicing company will properly report to the IRS. The borrower needs a Form 1098 for interest paid. The seller may get a Form 1099 for interest paid. For some contracts, if the buyer makes extra payments at the end of a calendar year and is paid ahead, it’s possible that not all of the interest can be deducted in that year. A servicing company knows all of these rules, and will properly report the interest amount to the IRS.

5. Daily vs. Periodic Interest

Most people who service their own loans just use an amortization schedule to calculate principal and interest. An amortization schedule assumes that the payment is made on the same day of the month. This is called periodic interest.

A servicing company has the ability to calculate daily interest. With daily interest, the borrower pays less interest and the seller gets more principal reduction if he pays early. Conversely, if the payment is late, more interest is paid. Daily interest is fairer for both parties.

6. Reports for More Than One Account

If you have more than one account, the servicer can give you reports on your portfolio. If you have lots of accounts, like 50, it may be easier for the servicer to collect all of the payments for the month, then send you one check every month, or two weeks, or whenever. The reports can be downloaded to Excel.

7. Late Notices and Collections

The servicing company can automatically send late notices, and even do some collection work for you.

The biggest advantage of using a servicing company is not only will it take care of all of the above items, but it frees up your time so that you are out making deals instead of doing bookkeeping. ?