The point of long-term disability insurance is to replace your income if you’re disabled and unable to work for an extended period of time — maybe a few years or maybe until you qualify for retirement benefits at age 65.
Depending on who you follow, Congress has either delivered a great gift to entrepreneurs and inventors, or shackled them with a terrible handicap: the House last week passed legislation to overhaul the U.S. patent system for the first time in 60 years, making the effort one step away from being put before President Obama’s executive pen. As reported by The Wall Street Journal, the House managed a bipartisan maneuver with more than two-thirds of lawmakers from each party supporting the “America Invents Act,” passing it on a 304-117 vote. The overhaul essentially breaks down into two big changes. Firstly, it…
If you have an adult child asking you for investment capital to launch a new business, you may be strongly tempted to comply. It might be a good investment, or it might not. Either way, a recent article in The Wall Street Journal points out several things you can do to preserve both your capital and your relationship. Understand that most start-up businesses fail within the first few years, so there is a good chance that your “investment” will not pay off, or if it does, it may take longer than you expected. Decide now whether you are making a…
If you’re a business owner, you may be enticed by the idea of selling your business and walking away with the cash … but chances are you’ll have a hard time cutting ties with the business you built. A recent article on Forbes.com tells the story of a business owner of 25 years who finally decided to sell his business, since his sons had no interest in running it. He spent hundreds of thousands of dollars and a year of his time prepping to sell, but walked away at the last minute. Forbes calls this “seller’s remorse,” and it’s a…
While many employees may not realize the magnitude of the Social Security tax, self-employed folks know it all too well. That's because the self-employed must pay the entire 12.4% tax rate out of their own pockets, based on the amount of their net self-employment income. This article examines the unfortunate burden that Social Security taxes pose on the self-employed, who have to pay both side of the tax as they are, effectively, both employer and employee. The article runs some hard numbers to find the actual costs in various cases and then to predict future costs with the projected increases…
This article examines the benefits created by the ability self-employed individuals had this past tax season to deduct the costs of health insurance from taxable income (when they pay the self-employment tax) and the unfortunate fact that those benefits aren’t likely to recur. The possibility to do so was opened up by the Small Business Jobs Act, but it was only allowed for 2010 and the prospects of renewing it seem dim. The article briefly looks into the politics of the situation, with an eye to deficit-reduction politics, and laments the injustice of the extra burdens put on the self-employed…
The modern office runs on technology, and so too does the modern business, large and small. For the capable entrepreneur, as Reuters reports, mobile technology may even offer the means for a mobile workplace. “Telecommuting” has been around for awhile, though not always favorably (especially by employers). As the internet and mobile devices continue to shrink the globe, however, the process has become a snap and telecommuting has become a more acceptable and more popular way to work. With mobile technology, you can do your work at home, and even run your end of a business there… but why not…
You might be surprised to learn that the new tax law actually rewards business owners for purchasing large, gas-guzzling vehicles for business use. Surprised? Me, too. But, according to a recent article in the Wall Street Journal, that is the case. If you are a small business owner who uses a vehicle in your business – especially a large one – you should take note of this new tax break. The new rules apply to vehicles purchased after Sept. 8, 2010 and before January 1, 2012. So, if you’re in the market to purchase a vehicle for your business, you’ll…
Too often running a business can also mean keeping up with the evolving patchwork of laws, regulations, taxes, and expenses, but with that in mind here’s one more. New amendments to the Americans with Disabilities Act (ADA) take effect on May 24th. If you are an employer, you may want to pay attention. The ADA was passed in 2008, but last month the U.S. Equal Employment Opportunity Commission mandated new regulations and amendments to the original law, that go into effect this month. Businessweek recently published an informative article on the subject, along with an interview with Jeff Nowak,…
According to most tax experts, now is a fantastic time to give shares of a business to family members. As you may well know (if you follow this blog) 2011 and 2012 are have unique in terms of estate and gift tax planning. As one tax attorney was quoted in a recent New York Times article, “We are in the prime transfer tax situation.” However, having said that, there’s an old saying about not letting the tax tail wag the dog. While now may be the prime opportunity, tax-wise, to give away share of the family business to the next…
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