#business ethics articles

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7-Eleven. Volkswagen cases show why we should push back on ‘corporate ethics’

Professor of Management and Organization Studies, Macquarie University

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Carl Rhodes does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond the academic appointment above.

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Chairman and major shareholder of 7-Eleven Russ Withers sits in a Senate Committee hearing in Melbourne. Julian Smith/AAP

There is perhaps no phrase more hackneyed in the corporate world than: “good ethics is good business”. Against the image of the ruthless business baron who will stop at nothing in the pursuit of wealth and power, the slogan tells us there is no friction between being good and being successful.

As luck should have it (for corporations that is) it is argued organisations can stand up and be righteous about their do-gooding, and this will actually lead to the achievement of self-interested business results. The cake can be had and eaten.

But does this ethical catch phrase really hold sway in the corporate world? Events this September suggest not.

The month of the corporate scandal

September 2015 was mired in corporate scandal. German car manufacturer Volkswagen was raked over the coals for installing software in its cars that ensured it falsely passed emission tests. Eleven million cars were involved over a period of seven years. VW’s CEO Martin Winterkorn resigned over the affair and now faces possible criminal charges .

American corporation Turing Pharmaceuticals was publicly vilified for its predatory pricing when it raised the price of the drug Daraprim by 4000%. This is a drug used to treat infections associated with HIV and AIDS. Turing’s CEO Martin Shkreli was described by the Washington Post as “the most hated man in America”.

In Australia trouble arrived at convenience store chain 7-Eleven when the ABC’s documentary series Four Corners revealed its use of exploitative and illegal work practices to reduce its labour costs. Employees were being paid less than half the legal minimum wage. Young and foreign workers were especially targeted. The scandal saw the resignations of 7-Eleven’s chairman Russ Withers, and its CEO Warren Wilmot.

Bad ethics is good business

Each of these scandals has been scrutinised in terms of business ethics. We are not talking here about contentious and nuanced debates about the nature of morality. In these cases the ethical issues relate to cheating, lying, deception, law breaking, exploitation, and merciless profiteering. As far as any common understanding of ethics is concerned these things are on the far side of the thick and grey line that separates right from wrong.

What do these cases have in common? Each one suggests there was an ethos in place in these corporations that held that “bad ethics is good business”. Seven years of highly orchestrated cheating at VW meant increased sales. In 2009 VW became the world’s biggest car manufacturer .

Institutionalised wage fraud and labour exploitation at 7-Eleven kept store costs down, increasing profits both for franchisees and (especially) for the parent company. 7-Eleven has twice been names Australia’s “franchisor of the year”. Price gouging at Turing meant a drug listed on The World Health Organization’s essential medicines list could bolster the company’s profits by exploiting the sick and vulnerable.

Just don’t get caught

The “bad ethics is good business” approach was going well for these businesses until they got caught. These three cases have triggered debates still raging in all sectors of society. Heads have rolled and bottom lines are jeopardised.

Does this really confirm that “bad ethics is bad business”? Of course not. There is no doubt many other corporations are profiting handsomely from deceit, lies, fraud and exploitation. The scandals of September 2015 show that “bad ethics is good business … unless you get caught”.

It’s not just about not getting caught. It is also about the political, legal, social and economic implications of being found out. In the cases of VW, 7-Eleven and Turing there has been a massive public and media outcry about their reprehensible and selfish behaviour.

Bringing these corporations to justice was not the work of one heroic individual, nor the result of government action. It was a collective effort that involved NGOs, scientists, academics, politicians, the media and the general public. This was a victory of civil society and democratic dissent.

So, we can reformulate our proposal: “Bad ethics is good business … unless you get caught … and as long as you aren’t the subject of a public outcry”.

Democratic business ethics

When corporations speak of business ethics their idea is that they can keep it all in house. The ethics of business is largely seen as a matter of corporate self-regulation so that pesky outsiders won’t stick their noses into corporate affairs. The September scandals suggest an entirely different ethics.

If we want ethics in business, what we need is more corporations being caught and more public outcry. For business ethics to be effective they must be pushed onto corporations against their will. Business ethics is democratic, not corporate.

What we can learn from the business events of September is that ethics cannot be left to corporations themselves. Business ethics requires a vigilant democracy where the public and its institutions will hold corporations to account for their actions.

Business ethics, to borrow a phrase, is about keeping the bastards honest.



#lucrative business ideas

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4 Lucrative Business Ideas That You Should Consider Starting if You Can Drive

Beyond the Ice cream trucks and the food trucks and cabby services, (which are good businesses by the way) there is a lot more you can do with a vehicle that can be lucrative and can serve either as a healthy side business or a major gig.

If you have a vehicle or are thinking of a mobile business to start, then the first question to ask is; what can I do?

There are varieties of businesses today and in a fast-lane-do-it-for me world, almost everything you can think of that a vehicle can do, can be done for profit. Interestingly, many other things you never thought a vehicle could do can also be done with a vehicle for money.

I will share a few ideas, but the key is to evaluate yourself to see if you can handle it. If you have been thinking of what to start up and perhaps you are considering a mobile business or you have a car sitting in the garage, then these few ideas will be helpful.

1. Offering Delivery Services

The business terrain is fast changing and the need to increase customer satisfaction as a prerequisite for increased patronage is largely responsible for the increased number of e-commerce websites.

Major e-commerce websites need dispatch services; they often work with smaller stores which often work with post offices. The truth is that there is enough business to go around whether you work directly with the stores or the post office.

In spite of the recent trend to take your business online. there are still many stores in your city that rely solely on e-mails and phone calls to communicate with their customers. Customers will gladly pay a little extra for you to save them the trip to the store.

2. Become an Approved Driving Instructor

Maybe you have a vehicle and it costs you money to fuel it and you either don’t have a job or you want to make extra money by the side, and to top it all off, you love to drive and are pretty good at it. Good, then you need to consider this route as one of those lucrative deals your personal vehicle can help you achieve.

All you will need is a vehicle, a valid driver’s license and good knowledge of driving and instructing other drivers (you will have to prove this through a compulsory qualifying test). Then proceed to get registered as an Approved Driving Instructor and you are in business.

3. Invest in a Mobile goods Store

Again, owing to the increasing reluctance of customers to get out of the house or to take a trip to the stores, someone has to do the job of bringing stuff to them. Online platforms have their place, but people will jump at the sight of mobile stores. Thankfully, there are various businesses that have proved this.

The innovations that can be brought to life with a moderate of large sized truck are almost inexhaustible. Mobile cloth stores, Mobile fruit Shops, Mobile Jewelry stores and even flower trucks. There is sufficient proof that these ideas can work and they tend to be quite lucrative.

All you need to do is to observe your environment and see what can be done with a truck. It doesn’t matter if it has been done before or not. Mobile stores can afford to sell at lower prices and yet bring the goods to the neighborhood because they avoid rents and all the maintenance costs of running a brick and mortar store.

What could be more enticing?

4. Invest in a Mobile Services Store

People are much more willing to start up mobile goods stores, but services are a little more tricky. I mean people can buy a T-shirt from a moving truck but will they have a haircut in a truck?

Actually, there are few mobile business ideas that have not been explored. Some have worked over time and some have been ludicrous. In the end the first thing you have to consider is what services you can offer and then if people will pay to bring it to their neighborhood.

Richard Caporizzo converted a van into a state-of-the-art doggie spa with its own power supply, water tanks and electronic grooming table. Caporizzo and his son Matthew Vernon make house calls to trim, bathe and blow dry dogs at their owner’s homes. So yes, almost anything can work if you are really good at your services.

There is a truckload of ideas that you can explore and see what suits you and or your city more. But if people will pay to have it brought to them, then you can take their money gladly.

Whether you hate office jobs and sitting at a place and love mobility or you need to add to your income
or perhaps you have a vehicle that is not being used enough you can borrow an idea here, and make some money from it. Better still, you don’t need to kill yourself over how to raise money for this. Apart from the fact that most of these businesses will not cost you millions of dollars, there are some unconventional ways you can still get the capital you need.

Don’t limit yourself, change with the changing terrain and let your imagination fly!

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#local business listing

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7 Local Business Listing Sites You Should Claim Now

Finding time to update or create your online business listings can sometimes be a challenge. But, once you claim your listing, you can control what information and images are shown on these sites about your business, which is certainly worth the effort.

In most cases, you may already have a listing, so it s just a matter of claiming the page for your business. What s the difference between updating and claiming? Updating means you ve created an account and just need to add new information to the page. Claiming means that a page for your business exists, but you may not have created or set it up. In this case, you ll need to prove it s your business before you can change any information.

There are several sites your business could be listed on, so how do you choose the best? Easy! Here are our top 7 business listing sites you should claim and/or update:

1. Google My Business Google My Business says it connects you directly with customers, whether they re looking for you on Search, Maps or Google+.

How to claim or edit your business listing: Click the “Get on Google” anywhere on the page, sign in to your Google account, and follow the steps to add your business information to Google.

2. Facebook for Business According to Facebook. it can help you reach all the people who matter most to your business.

How to claim or edit your business listing: If you need to claim your Business Page click here and if you need sign up for a business page click here .

3. Yelp for Business According to Yelp. Millions of people visit Yelp every month to find great local businesses. Help them find your business free!

How to claim or edit your business listing: Click here to search for your business. If it exists, you ll see two options: A Claim button or an Already Claimed link. Click the option you see and either log in, or set up an account to edit it.

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4. Yellow Pages According to YellowPages. they will not only get you online, but can also help you get found, drive leads and expand your reach.

How to claim or edit your business listing: Click here to update your business details and then click Get your listing fee.

5. Yahoo Local According to Yahoo. they are a comprehensive business directory complete with ratings and reviews, maps, events, and more.

How to claim or edit your business listing: Scroll down this page to Try Local Basic Listing for free and click, Sign Up. Then, update your business contact information including address, phone number, and URL. You don t need to pay for this service.

6. Bing Places for Business According to Bing , Places for Business is a Bing portal that enables business owners add a listing for their business on Bing.

How to claim or edit your business listing: Chances are, Bing already has listings for your business. Click here to claim it.

7. Foursquare for Business According to Foursquare. Over 50 million people use Foursquare to discover great businesses and share what they love about them with others. Join the nearly 2 million businesses who are already taking advantage of Foursquare to join the conversation and grow their business.

How to claim or edit your business listing: Start by searching for your business, then select your listing. If you don t see your business just click the link at the bottom of the page to add it. Click here to manage your listing.

Vital information you should include on every listing:
Be prepared to fill out the following information, and keep it consistent on each site. Consistency helps your SEO (Search Engine Optimization) efforts.

  • Business Name
  • Address (City, State, Zip)
  • Main Phone Number
  • Website
  • Business Hours
  • Description A description of your business, minimum 250 characters.
  • Business Categories
  • Logo and pictures

Keep a document of each listing so you can duplicate it exactly. Check on your listings and update your information (if applicable) every six months. Also, keep images of your business current and compelling to draw in prospects and customers.

*Bonus Tip* If you re a brick-and-mortar business, encourage people to check-in and write a review by displaying a sign in your business window that states the sites in which you re listed.

Have any sites to add to our list? We ve got more here in the Top 20 Places Your Business Needs to Be Listed Online .

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#how do business loans work

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Small Business Loans: How They Work and What You Should Know

Small Businesses are increasing their payrolls, but hours worked and wages earned are down slightly. Photo: Reuters

For small business startups, knowing how loans work and getting them are absolutely crucial.

Many entrepreneurs, however, wait until the last minute to think about loans and prefer to dwell on grandiose plans, never mind that they often need loans to fund those plans.

Asking for loans is “unpleasant; it’s like asking your dad for the car keys,” said Charles H. Green, Executive Director at the Small Business Finance Institute and author of The SBA Loan Book .

Small businesses should start this “unpleasant” process early, however, partly because it could prove to be long and difficult.

One entrepreneur Green encountered secured his loan at the 60th bank he approached.

While this might be an extreme example, small business owners often need to try at more than one bank to get a small business loan.

During the process of dealing with a bank, moreover, they may be asked to provide additional documents they previously did not anticipate needing.

Green stressed that small business owners need to be patient in this entire process.

Banks Want Their Money Back

In making any small business loans, the goal of the bank is to get its money back. Even if the loan is made through the Small Business Administration (SBA), it is still a bank that ultimately risks its capital.

Banks usually get their money back from the borrower’s revenues. If that is not possible, banks can also get their money back from selling assets pledged as collateral or from the small business owners personally.

Therefore, besides documents relating to the business projections, banks may often request documents relating to the personal finances of the small business owner and whatever assets that can be pledged as collateral.

Backing up Projection Numbers

Regarding business projection numbers – that is, assessing the probability of repayment from borrower revenues – it is all about justifying those numbers, preferably with facts, said Green. For existing businesses, that may mean financial statements.

Some of the hard questions a lender may ask include:

*How many customers do you need?

*How do you find them?

*Who are satisfying these customers already?

*Why would they feel compelled to buy from you?

*What is your capacity to deliver those products?

*What is the cost to deliver those products?

Learning from Mistakes

Sometimes, the best efforts of small businesses to secure a loan are not good enough.

When rejections happen, Green recommended turning them into learning lessons. Often times, if the small business owner manages to remain calm and polite, he can get candid responses as to why he was rejected.

These explanations often turn into keys to successfully securing a loan from another bank in the future.

Choosing the Right Banks

Other times, though, a rejection from a bank has nothing to do with the borrower at all. That is, a lender may not have any money to lend.

Therefore, Green recommended that small businesses avoid banks under consent agreement with or issued a cease and desist order by the Federal Deposit Insurance Corporation (FDIC).

Generally speaking, smaller banks have more flexibility in their lending standards while bigger banks usually offer cheaper rates, added Green.



#atm business

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Back to search results

What type of accounts should I use for ATM businesses cash flow ?

I use the cash accrual accounting style for my ATM business. I cycle cash through my ATM’s that I have entered into my QB as owners equity originally. I am wanting to balance the checking account. When that money cycles back through to my bank account and gets electronically deposited what is it considered? Is it an “other assett” or what? Then when I withdrawl to load machines again what type of account should I use for the withdrawls, a “short term liability” account? I really need some clearity.

You might say the cash is my reaccuring supplies.

Why do you want to report this?

I think I am tracking with Mistyblue. I have the income account for the surcharge fees that users of the machine owe me. The expense account for any fees for the particular bank where my money is cycled through. But what about the ST liability account. are you saying use this account type for the electronic deposits from user’s of my machine’s back to my account and use it for my withdrawls to load back into my machine. I thought I would need a “plus” and a “minus” sort of set up with the accounts?

Recommended Answer

2 people found this helpful

This is how I have done this: I’ve set up a bank account for the ATM in qb as well a income account and I used a short term liability account. Of course a bank service charge account for the ATM.

The short term liability account is the cycle account (withdraw and well as put back) – The income part I separate to its own income account. This way tracking income, expense, and your main cycle account. Which bottom line each rec balances. Note: I would check as well with your accountant on according to your area on sales tax requirements.

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I think I am tracking with Mistyblue. I have the income account for the surcharge fees that users of the machine owe me. The expense account for any fees for the particular bank where my money is cycled through. But what about the ST liability account. are you saying use this account type for the electronic deposits from user’s of my machine’s back to my account and use it for my withdrawls to load back into my machine. I thought I would need a “plus” and a “minus” sort of set up with the accounts?

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#incorporating a business

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Why Incorporate ?

Choosing how a business is organized may be one of the most important decisions a business makes. Incorporation may be the wisest decision, but for some, it may be an unnecessary decision, and so each business should carefully assess the benefits (and challenges) of incorporation before moving forward. With that said, the greatest benefits to incorporation can be summarized into the 3Ls: Life, Liquidity, and Liability. Let’s start with Life.

Life

The best way to understand a corporation is to imagine it as a separate artificial person (with limited rights and privileges). Incorporating a business is essentially creating that separate person thereby making the business separate from the owner (in a sense, the business has a life of its own). As a separate entity, the corporation exists independent from the shareholders/owners and its employees. Regardless of what happens to the shareholders, or the directors, or the employees, the corporation itself continues to exist in perpetuity until a time the directors and shareholders decide to dissolve a corporation. In a sole proprietorship or general partnership where the owner(s) is the business, what affects the owner may affect the business. Any personal debt or liability of an owner or partner allows the creditor(s) to pursue the assets of the business whether or not the debt or liability has any relation to the business itself. Furthermore, personal bankruptcy of an owner or partner will directly impact a business by opening up its assets to any creditors the owner or partner is liable to. By incorporating a business. the personal finances of an owner or partner remains separate from the finances of the corporation and allows the business to continue without disruption. In the event of an unfortunate death of an owner or partner, the business is generally dissolved regardless of the wishes of the owner or partner(s). All of this could easily be avoided by incorporating the business as a separate entity.

Liquidity

As much as we believe that all owners of a business should remain forever committed to the success of the business, there may be times when an owner or partner will need to leave the business. Regardless of the reasons for leaving the business, incorporation allows the free transferability of interest from one person to another. Generally in a partnership, a partner cannot transfer his/her interest in a business to another without the express consent of all other partners. If a partner still decides to leave the partnership against the will of the other partners, the partnership is automatically dissolved. Incorporating a business removes this limitation by allowing shareholders/owners to freely transfer his/her interest to another without the unanimous consent of all other shareholders. Small businesses may see the restrictions against transferring shares as a good thing and may want to control how a shareholder may transfer his/her interest and to whom. Incorporation allows this flexibility as well. The free transferability of shares is a default rule, but by no means is it mandatory for all incorporated businesses. Businesses have the option to place restrictions on the transferability of certain shares and so even if this benefit of liquidity may be seen as a detriment to a business, incorporation lets the business decide whether or not to take advantage of this option. More importantly, unlike a partnership, incorporation prevents the ability of a minority shareholder from dissolving a business without cause.

Liability

One of the greatest benefits for incorporation is its limited liability against the shareholders. As mentioned above, any debt or liability against a specific shareholder remains separate from the corporation. Likewise, the inverse is similarly true. Any debt or liability against a corporation does not open the doors of shareholders’ assets to the creditor(s). The shareholder’s liability in any corporate debt or liability is limited to what the shareholder invested (unless there is fraud). In a sole proprietorship or general partnership, the owner(s) and/or general partners remain completely liable to any debt or liability placed against the business. If a business is unable to pay a debt, the creditor can attack the assets of an owner or partner until the debt is satisfied. In a corporation, a creditor can only attack to the extent the shareholder invested into the corporation (unless there is fraud). This allows the corporation to make business decisions without the risk of endangering the personal assets of its shareholders beyond what was invested. Risk is a necessary element to a successful business. Anything that minimizes the risk to investors makes the business more attractive, and so the limited liability of an incorporated business is quite valuable.

Taxes

The major detriment to incorporation is the taxes involved. In a sole proprietorship or partnership, the taxable income of the business flows directly to the owner and/or partners and are taxed based upon the individual’s income tax bracket. However, because the corporation is considered a separate entity, the taxable income of a corporation is taxed first under a corporate tax. If the corporation decides to distribute the remaining income to the shareholders, that income is taxed once more based upon the individual’s income tax bracket (essentially, a double-taxation). The marginal tax rate for a corporation can be significantly higher than the marginal tax rate for a sole proprietorship. Although this characteristic of incorporation may deter a business from incorporating, small businesses can avoid this double-taxation by taking advantage of the options given to a corporation by the states. Some options include incorporating as an S-corporation (see below) or filing as a Limited Liability Company (LLC) (see below). These options allow the taxable income to flow directly to the shareholders/members without being taxed twice, while at the same time, maintaining the benefits of incorporation. The 3Ls are important benefits, but not the only benefits. There’s also something psychologically beneficial about incorporating that goes beyond the number crunching and legal issues involved. Incorporation may seem to be a daunting task, but it is also an exciting moment in the life of a business. First conceived through an idea, a business can be birthed at the point of incorporation. No longer will it simply be an idea or something intangible, but an actual and existing entity. Sometimes this psychological step of seeing the business as something real will further motivate and inspire you to bring greater success to your business.

Reduced Chance of Tax Audit

Sole proprietors tend to be more likely to file incorrect returns (many are self-prepared). and tend to under report revenue or over report deductions. For these reasons, the IRS has audited a much higher percentage of sole proprietor tax filings than corporate filings in recent years. In tax year 2006, a Schedule C filer stood a 1 in 32 chance of being audited. For non-business filers, the odds were around 1 in 124. This means that sole proprietors are significantly more likely to be audited.

Build Credibility

Distinguishing yourself from the competition by establishing a professional identity helps increase credibility with your customers. Most businesses choose to incorporate a business to prove their legitimacy to both customers and suppliers. Adding “INC.” or “LLC” after your business name gives you the credibility and professionalism that many customers are looking for.

You could file all the necessary incorporation documents yourself. However, when you consider the time involved for filing, administering, and maintaining all the documents necessary to keep your business running legitimately. why would you? Let us help you get it done, so you can get back to business!

  • Forming a business with MyCorporation is a cost-effective way to protect personal assets and gain potential tax savings.
  • Our incorporation services start at just $69 (plus required government fees).
  • Lawyers charge, on an average, over $200 per hour. With our document filing services. you’ll know exactly what you are getting, and how much it costs from the very beginning.

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Terms and conditions, features, support, pricing and service options subject to change without notice. Intuit and QuickBooks are registered trademarks of Intuit, Inc. Copyright 1997-2016, MyCorporation All Rights Reserved. MyCorporation is a Document Filing Service and CANNOT provide you with legal or financial advice. The information on the website is designed to provide accurate and authoritative information in regard to the subject matter covered. It is presented with the understanding that MyCorporation is not engaged in rendering legal, accounting or other professional services. If legal advice or other professional assistance is required, the services of a competent professional person should be sought. From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations.

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#

Why Donate Real Estate

Real Estate Donations – Why Donate Real Estate / Land /Property

Most Americans do not have a large real estate portfolio. Those that do have found out they can enjoy significant financial benefits and provide a charitable benefit to the community at the same time with a Real Estate Donation. A real estate donation to charity can help you rid yourself of nonproducing properties and also avoid capital gains tax on highly appreciated property. A real estate donation significantly reduces your legal and tax liabilities on the properties you donate and more efficiently attain personal financial goals while also supporting Real Estate with Causes and our many charitable endeavors.

Why do people decide to Donate Real Estate?

The answer is that, in many cases, if one takes into consideration ongoing property taxes, maintenance costs, income taxes–or if the property is sold, the cost of legal fees, brokerage fees, estate taxes, inheritance taxes and capital gains taxes–it is often financially preferable to donate properties to Real Estate with Causes. It also saves heirs the trouble of trying to divvy up the gains if the will is potentially contentious or inequitable. Sometimes there are intangible benefits as well. Often a donated estate will bear the donor’s name, making the property a de facto memorial.

Size of Tax Deduction Determined by Current Market Value

One of the advantages to the donor is that the size of the tax deduction is determined by the current market value of the property, as opposed to the cost of the property when it was purchased. So if you purchased your property in 1988 for $112,000 and today it is worth $412,000, the current value is what you base your tax deduction on. (Also, by donating a property instead of selling it outright, real property donors can avoid paying brokers’ fees.) Real Estate Tax Deduction

Who Should Consider Donating Real Estate?

Those that want to help improve the communities in which they live. Ideally, this should be the greatest consideration.
Businesses with properties that are idle, lacking a positive cash flow or assets that will never reach any useable potential.
Fully depreciated properties that do not serve the financial interests of the donor.
Uninsured catastrophes that are more a detriment financially to continue to maintain.
Of course these are just a few of the reasons for you to consider a charitable donation of property. See more here: Who Should Donate Real Estate

Create a Living Trust or Charitable Gift Annuity

There are also ways of donating a home but still being able to enjoy it during one’s lifetime. Property owners can create a living trust. which allows them to live in the house with the understanding that the property title will be transferred to our charity upon death. Owners still receive the charitable tax deduction while they are living, and depending on the property and its income potential, they may even be able to get lifetime annuity. At the same time, they avoid passing on the tax burden to family members after death.
A charitable gift annuity is an especially attractive option for large trophy properties, in cases where heirs may be unable to afford the ongoing maintenance costs and property taxes. That way, even if one’s family is no longer able to enjoy a home, by donating real estate they can keep more of what, in the long run, is more useful: cold cash. Click Here to Learn more about Charitable Gift Annuity.
For most of us, we hope to provide financial support for our families when “our time” approaches. The reality is, however, that some of us have family members that do not require vast financial help. In this instance, estate giving is a great option to ensure that your hard work will help those less fortunate. Even after passing away, estate giving is a way to ensure that the lives of future generations will benefit from your successes. By planning to give a portion of your assets as charitable contributions, you are making a decision to allow your legacy to live on in the form of support and funding for many great causes worldwide. Real Estate with Causes specializes in the allocation of these contributions, and provides a safe and easy way to make sure that your assets go to the organizations that could most benefit from your generosity. Estate giving occurs throughout our society, and people from all walks of life participate. Whether you are looking to donate a portion of what you leave behind, or your entire net worth, Real Estate with Causes has the experience, reputation, and ability to help you with any charitable giving services you may require. We encourage you to give us a call to speak with one of our gift annuity experts. Not only can we help you determine whether or not a living trust is the best choice for you, we also walk you through the process of actually setting your gift annuity groundwork.

Visit our Frequently Asked Questions page to learn more!



#atm business

#

Back to search results

What type of accounts should I use for ATM businesses cash flow ?

I use the cash accrual accounting style for my ATM business. I cycle cash through my ATM’s that I have entered into my QB as owners equity originally. I am wanting to balance the checking account. When that money cycles back through to my bank account and gets electronically deposited what is it considered? Is it an “other assett” or what? Then when I withdrawl to load machines again what type of account should I use for the withdrawls, a “short term liability” account? I really need some clearity.

You might say the cash is my reaccuring supplies.

Why do you want to report this?

I think I am tracking with Mistyblue. I have the income account for the surcharge fees that users of the machine owe me. The expense account for any fees for the particular bank where my money is cycled through. But what about the ST liability account. are you saying use this account type for the electronic deposits from user’s of my machine’s back to my account and use it for my withdrawls to load back into my machine. I thought I would need a “plus” and a “minus” sort of set up with the accounts?

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This is how I have done this: I’ve set up a bank account for the ATM in qb as well a income account and I used a short term liability account. Of course a bank service charge account for the ATM.

The short term liability account is the cycle account (withdraw and well as put back) – The income part I separate to its own income account. This way tracking income, expense, and your main cycle account. Which bottom line each rec balances. Note: I would check as well with your accountant on according to your area on sales tax requirements.

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I think I am tracking with Mistyblue. I have the income account for the surcharge fees that users of the machine owe me. The expense account for any fees for the particular bank where my money is cycled through. But what about the ST liability account. are you saying use this account type for the electronic deposits from user’s of my machine’s back to my account and use it for my withdrawls to load back into my machine. I thought I would need a “plus” and a “minus” sort of set up with the accounts?

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#incorporating a business

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Why Incorporate ?

Choosing how a business is organized may be one of the most important decisions a business makes. Incorporation may be the wisest decision, but for some, it may be an unnecessary decision, and so each business should carefully assess the benefits (and challenges) of incorporation before moving forward. With that said, the greatest benefits to incorporation can be summarized into the 3Ls: Life, Liquidity, and Liability. Let’s start with Life.

Life

The best way to understand a corporation is to imagine it as a separate artificial person (with limited rights and privileges). Incorporating a business is essentially creating that separate person thereby making the business separate from the owner (in a sense, the business has a life of its own). As a separate entity, the corporation exists independent from the shareholders/owners and its employees. Regardless of what happens to the shareholders, or the directors, or the employees, the corporation itself continues to exist in perpetuity until a time the directors and shareholders decide to dissolve a corporation. In a sole proprietorship or general partnership where the owner(s) is the business, what affects the owner may affect the business. Any personal debt or liability of an owner or partner allows the creditor(s) to pursue the assets of the business whether or not the debt or liability has any relation to the business itself. Furthermore, personal bankruptcy of an owner or partner will directly impact a business by opening up its assets to any creditors the owner or partner is liable to. By incorporating a business. the personal finances of an owner or partner remains separate from the finances of the corporation and allows the business to continue without disruption. In the event of an unfortunate death of an owner or partner, the business is generally dissolved regardless of the wishes of the owner or partner(s). All of this could easily be avoided by incorporating the business as a separate entity.

Liquidity

As much as we believe that all owners of a business should remain forever committed to the success of the business, there may be times when an owner or partner will need to leave the business. Regardless of the reasons for leaving the business, incorporation allows the free transferability of interest from one person to another. Generally in a partnership, a partner cannot transfer his/her interest in a business to another without the express consent of all other partners. If a partner still decides to leave the partnership against the will of the other partners, the partnership is automatically dissolved. Incorporating a business removes this limitation by allowing shareholders/owners to freely transfer his/her interest to another without the unanimous consent of all other shareholders. Small businesses may see the restrictions against transferring shares as a good thing and may want to control how a shareholder may transfer his/her interest and to whom. Incorporation allows this flexibility as well. The free transferability of shares is a default rule, but by no means is it mandatory for all incorporated businesses. Businesses have the option to place restrictions on the transferability of certain shares and so even if this benefit of liquidity may be seen as a detriment to a business, incorporation lets the business decide whether or not to take advantage of this option. More importantly, unlike a partnership, incorporation prevents the ability of a minority shareholder from dissolving a business without cause.

Liability

One of the greatest benefits for incorporation is its limited liability against the shareholders. As mentioned above, any debt or liability against a specific shareholder remains separate from the corporation. Likewise, the inverse is similarly true. Any debt or liability against a corporation does not open the doors of shareholders’ assets to the creditor(s). The shareholder’s liability in any corporate debt or liability is limited to what the shareholder invested (unless there is fraud). In a sole proprietorship or general partnership, the owner(s) and/or general partners remain completely liable to any debt or liability placed against the business. If a business is unable to pay a debt, the creditor can attack the assets of an owner or partner until the debt is satisfied. In a corporation, a creditor can only attack to the extent the shareholder invested into the corporation (unless there is fraud). This allows the corporation to make business decisions without the risk of endangering the personal assets of its shareholders beyond what was invested. Risk is a necessary element to a successful business. Anything that minimizes the risk to investors makes the business more attractive, and so the limited liability of an incorporated business is quite valuable.

Taxes

The major detriment to incorporation is the taxes involved. In a sole proprietorship or partnership, the taxable income of the business flows directly to the owner and/or partners and are taxed based upon the individual’s income tax bracket. However, because the corporation is considered a separate entity, the taxable income of a corporation is taxed first under a corporate tax. If the corporation decides to distribute the remaining income to the shareholders, that income is taxed once more based upon the individual’s income tax bracket (essentially, a double-taxation). The marginal tax rate for a corporation can be significantly higher than the marginal tax rate for a sole proprietorship. Although this characteristic of incorporation may deter a business from incorporating, small businesses can avoid this double-taxation by taking advantage of the options given to a corporation by the states. Some options include incorporating as an S-corporation (see below) or filing as a Limited Liability Company (LLC) (see below). These options allow the taxable income to flow directly to the shareholders/members without being taxed twice, while at the same time, maintaining the benefits of incorporation. The 3Ls are important benefits, but not the only benefits. There’s also something psychologically beneficial about incorporating that goes beyond the number crunching and legal issues involved. Incorporation may seem to be a daunting task, but it is also an exciting moment in the life of a business. First conceived through an idea, a business can be birthed at the point of incorporation. No longer will it simply be an idea or something intangible, but an actual and existing entity. Sometimes this psychological step of seeing the business as something real will further motivate and inspire you to bring greater success to your business.

Reduced Chance of Tax Audit

Sole proprietors tend to be more likely to file incorrect returns (many are self-prepared). and tend to under report revenue or over report deductions. For these reasons, the IRS has audited a much higher percentage of sole proprietor tax filings than corporate filings in recent years. In tax year 2006, a Schedule C filer stood a 1 in 32 chance of being audited. For non-business filers, the odds were around 1 in 124. This means that sole proprietors are significantly more likely to be audited.

Build Credibility

Distinguishing yourself from the competition by establishing a professional identity helps increase credibility with your customers. Most businesses choose to incorporate a business to prove their legitimacy to both customers and suppliers. Adding “INC.” or “LLC” after your business name gives you the credibility and professionalism that many customers are looking for.

You could file all the necessary incorporation documents yourself. However, when you consider the time involved for filing, administering, and maintaining all the documents necessary to keep your business running legitimately. why would you? Let us help you get it done, so you can get back to business!

  • Forming a business with MyCorporation is a cost-effective way to protect personal assets and gain potential tax savings.
  • Our incorporation services start at just $69 (plus required government fees).
  • Lawyers charge, on an average, over $200 per hour. With our document filing services. you’ll know exactly what you are getting, and how much it costs from the very beginning.

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Terms and conditions, features, support, pricing and service options subject to change without notice. Intuit and QuickBooks are registered trademarks of Intuit, Inc. Copyright 1997-2016, MyCorporation All Rights Reserved. MyCorporation is a Document Filing Service and CANNOT provide you with legal or financial advice. The information on the website is designed to provide accurate and authoritative information in regard to the subject matter covered. It is presented with the understanding that MyCorporation is not engaged in rendering legal, accounting or other professional services. If legal advice or other professional assistance is required, the services of a competent professional person should be sought. From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations.

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Is Paying Car Insurance in Full Really Worth the Savings?

Is Paying Car Insurance in Full Really Worth the Savings?

With finances pinching tighter seemingly every day, we have to look to creative ways to save money, both today and in the future. From finding the best rates for loans and savings accounts to choosing less expensive alternatives at the grocery store, every little bit of savings can add up. When closely researched, some great savings opportunities exist in home and car insurance costs. One way you can save significant money is by paying your car insurance in full. While this is a much larger up front cost, it can add up to hundreds of dollars in savings over a policy period.

Spending Now Vs. Keeping Money in Savings

While the argument can be made that keeping the money you would spend on a full payment gives you access to that money and generates interest, the reality is, you will spend so much more in installment charges, that it will not be even marginally profitable. With savings accounts averaging about one percent in interest, the average 2010 car insurance policy of $1,566 for twelve months would generate less than $16 in the bank. When you compare car insurance costs on a paid-in-full policy versus one paid by installments, you see that you could save between $156-$313 at most insurance companies. The math is pretty clear on this issue, but is there more to consider?

Having Your Cash Available Now

With the days of free-flowing credit apparently over, cash savings are increasingly important. The money you have in savings may be all that protects you from the disaster of an unexpected expense such as car breakdown or job layoff. Sometimes interest rates are not the only thing to consider, and you ll need to choose the best option based on your personal financial situation. You may want to make installments if paying your car insurance in full will wipe out your savings. If, however, you have an established emergency fund, saving a couple hundred dollars per year is a strong incentive to pay the full premium at once.

Striking a Compromise

Paying your car insurance does not always have to be an all or nothing situation. Many insurance carriers will offer other payment discounts, such as a discount for electronic funds transfer (EFT). EFT plans allow the carrier to automatically withdraw the agreed upon amount every month from your bank account. To reward giving them this guarantee of payment, insurance companies offer discounts, such as Progressive that offers a discount for EFT of about 10 percent.

You can also place a down payment on your premium, reducing the monthly payments and often the installment fees as well. This is a good option if you have some cash but not enough to cover the entire premium. Also, policy lengths may be different among carriers. In addition to the one-year term, you may be able to opt for a term of six months. This makes paying your premium in full much more attainable.

While paying car insurance in full will not work for everyone, it is one of multiple options that allow you to save money on your insurance premiums without sacrificing coverage. Make a point of talking to your insurance carrier before your next renewal to go over payment options and ways to save money on your premium.

Post by Jessica

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