Anyone who spends 3 minutes listening to the news understands that the Real Estate Industry is at an all-time low. If you make your living in this industry it is a struggle. More than at any other time you need to set yourself apart from all of your competition.
You also need to work smarter and not harder. Knocking on doors, running adds, passing out flyers, attending mixers and meetings all work but they are old school. By now you have got to realize that the internet is a medium that you must take advantage of if you want to compete.
Problem is most Real Estate professionals thank they can throw up a website and now they are into the internet game. Frankly having a website is simply not enough. There are other tools that you need to make the internet work for you. Just like you need the MLS, Real Estate signs, open house brochures, business cards on the internet you need Autoresponders, Conferencing Software, Blogs, Facebook Fan Pages and more.
Of all the tools the one that you can benefit from the most is having a properly set up Content Blog. Let me share with you why
- 1. Search Engines Love Blogs: Unlike websites Blogs are designed to attract search engine spiders. Blogs that are properly set up and focuses on sharing information will get traffic from search engines
- 2. Real Estate professionals are made for Blogs. Search Engines send more traffic to Blogs that have tons of information. So if write articles about market conditions, HUD, Foreclosures, VA, no money down, investing, REOs, Home owners insurance, tax benefits and the lists goes on your blog will become popular with the Search Engines which will send you not just tons of visitors but potential buyers and sellers.
- 3. You will become known as an expert in your field.
- 4. You can take your posts and create information products that you can sell and make additional money.
- 5. You can integrate your Blog with YouTube, Twitter, Facebook and more
- 6. With combined with social integration features, lead capture systems and a good Autoresponder you can use yourblog to create a list of raving fans who will send you even more business.
- 7. Blogs are easy to set up and easy to obtain and your only expenses are for your domain name which runs about $9.00 per year and your hosting service which is about $10.00 to $20.00 per month per domain.
Every Real Estate professional needs to have a blog. However if it is not properly set up and if do not it properly it will not work for you. You can plod through the search engines looking for the right information you can save time and get the Blog Pack at http://thebusinessmasters.com/blog/
Do you need more distributors, more clients, name recognition, a better way to communicate with coworkers, employees, your down line? Do you just want to be heard? If so blogging may be just the answer that you are looking for.
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Starting a home-based business, especially in these harsh economic times just makes good sense on so many different levels. Phenomenal tax breaks, unlimited income potential, full control of work hours and more can be the answer for many people’s economic situations. The problem is – What business to choose?
The choices can be intimidating especially if you are a stay at home mom. Things such as:
- Startup costs
- Operational costs
- Experience
- Time to turn a profit
- Difficulty in marketing
- Fear of the unknown
More often than not these factors create inaction turning the dream of the ideal home business into nothing more than an unrealized dream.
In today’s economy there is a strong desire among many individuals, especially stay at home moms, to start their own home-based business. However the choices available can be intimidating. The high cost of many types of businesses plus the fear that you have to put in years of effort before you can experience any kind of profit can easily turn the dream of the ideal home business into nothing more than an unfulfilled dream.
Into this scenario steps the 'direct sales business', which is considered the ideal business model for anyone who desires to create their own on potentially successful business on a shoe string.
Direct sales is the quickest way with the lowest startup costs to fulfill the dream of being your own boss. You'd be promoting someone else's products but the rest of the business is yours. Let's look at a few of the advantages of starting a direct sales business compared to starting your own business from the ground up.
- Starting with the cost aspect – which is what bothers most of us when we are about to take the plunge into our own business, you can start a direct sales business with practically a zero dollar investment. Some companies do require a joining fee, which could average around $500 but you'll know that upfront. Starting your own business on the other hand could easily set you back thousands of dollars.
- Immediate results – from the date on which you sign up and get your 'starter kit' you can begin selling and earn money. If you were to start your own business it could well be months before you see steady sales
- Product Development – When you start a direct sales business, you don't worry about product development and shipping. This is a very great advantage and will save you substantial time, money and effort.
- New Technologies – There's more to direct sales than home parties and door-to-door sales. In fact, the smart direct sales people do not even think of door-to-door sales. The new trend is working online through a websites and webinars, giving you the opportunity to take care of your home as well as business.
No matter what your passion, you will find a direct sales company to suit you. There's no dearth of products to match a variety of interests.
Direct sales can be a very satisfying business and anyone can make a success of it. You feel the same excitement when you make a sale or add a recruit to your team, as you would if you had developed your own business.
Granted that you'll need to put in consistent effort before you actually start seeing a huge earning, but you'll be doing it on your own time without all the hassles associated with a startup business. You have total control over your earnings and with proper planning, enjoy time with your kids while you make a comfortable earning.
Home-Based Business Entrepreneurs Join our
"Power To Obtain Wealth" Webinars
Every Monday Starting at 7:00 PM PST
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http://thebusinessmasters.com/workshop/
I recently spoke at the "Power To Obtain Wealth" Workshop in Inglewood Ca. The presentation was such a success I wanted to share it on this blog.
Maybe you have heard that Network Marketing or Multi-level marketing is a scam. There are some individuals who consider any thing sold through this type of distribution system is automatically a scam. Fact is they are dead wrong.
Yes there are scams out there and there are programs that are not worth the paper they print on. Fact of the matter it depends on a number of factors the most important being the product.
Let’s make this simple
If the product is not something that you would buy at its retail price even if there was no income opportunity then chances are you are involved in a scam or a company that is on the border line.
If you are a part of any type of gifting program, even if you’re church or most respected friend is involved it is a SCAM. Gifting programs only exchange cash under the guise that you are simply giving a gift to someone else and others are also giving you nothing more than a gift.
Fact is the only reason anyone is giving money in these programs is the expectation of making a profit. And that my friend is not a gift and it is illegal. Your involvement can land you in jail.
If your product is a virtually worthless eBook, or report, even if sold for $1.00 it is a scam. Once again the only, motivation is the expectation of profit and the product is worthless. Stay away from these. They are nothing but rip off programs that pop up from time to time.
If the product costs far more than similar products on the market you need to be extremely careful. Unless there is something really unique that compels individuals to purchase that product as a retail customer and not as a distributor you need to avoid the company like a plague. One day you may wake up finding that its doors have been shut.
If the company is promoting buying huge amounts of products in order to receive a commission you may be involved with a company that is front loading. Front loading is illegal and many a company has been shut down for doing so.
If your company you are distributing for does not have a method of distinguishing between a retail customer and a distributor run. That company is headed for disaster even if it has an incredible product.
There are legitimate Network Marketing Companies that have tremendous products priced right for the market place. These cutting edge companies are using the powerful viral word of mouth power of the Network Marketing distribution system with the global low cost inter-connectivity of the Internet. These new hybrid companies are truly worth looking into.
Two such businesses are owned by a friend of mine by the name Joel Therien. His business is called Global Virtual Opportunities or GVO. One of his businesses is named GVO Conferencing. This business offers a product that normally retails for about $49.95 per month at a cost of only $8.95 per month.
Click here if you would like to learn more http://gvo-go4wealth.gvoconference.com/
The second Business is called GVO Web Hosting. This is not a normal web hosting service. For only $49.95 per month they offer a unique Web Hosting Reseller program which allows you to start your very own web hosting business keeping 100% of your profits while at the same time allowing you to market the reseller package through very lucrative Network Marketing structure.
Plus if you have lots of websites like I do paying only $49.95 for unlimited domain hosting is a bargain. Just 10 websites can cost you over $100.00 per month in hosting fees. For me this feature alone is worth the cost even if I never made one cent from the Web Hosting Reseller program or the Network Marketing component.
Click here if you would like to learn more http://go4wealth.gogvo.com/ex.php
One more company you might want to look into is Sozo. This company has a product that I purchase just because I like the product even though I have no interest in marketing the product. This is the type of company you want to be involved with. The product has massive global appeal and cannot be purchased anywhere but through this company. Wish I had the time to market this one because my wife and I enjoy it every morning.
Click here if you would like to learn more http://goglobal4wealth.com/sozo/
An S-Corporation
1. What is an S-Corporation
Simply stated, an S-Corporation is legal passes through entity were all shareholders report taxable income or loss of the corporation on their personal tax returns.
S-Corporations are governed under Section §1361 of the Internal Revenue Code, Sub-Chapter S. They have been available to small business owners for a number of years, and have become increasingly more popular as tax rates continue to rise.
An S-Corporation differs from the traditional C Corporation in that S-Corporations are treated as “pass-through” entities whereby all income, expense information reported on the corporate return results in the “pass-through” reporting of profits/losses on the shareholders personal tax return.
Unlike self-employed taxpayers filing Schedule C, partnerships filing Form 1065, or C corporations filing Form 1120 where profits passing through the shareholder are subject to self-employment taxes, the special pass-through nature of S-Corporations eliminate self-employment taxes on profits distributed to the shareholder that are “passed-through”.
It is important to understand that the amount of profits reported as passing-through to the shareholder will be based upon the actual amount reported and determined on the corporate return Form 1120S, irrespective of what actually in real terms, may or may not pass-through. This special tax feature of S-Corporations make the use of an S-Corporation a more efficient means to make the business more profitable, and to eliminate the unnecessary payment of self-employment taxes on business profits.
In addition the use of S-Corporations allows business-owners to make better use of retirement and benefit plans using the corporate structure, thus reducing the level of profits that are required to be reported and passing through to the shareholder. Of course consulting with your tax advisor and your financial advisor will assist you in making the determinations of what advantages you may have by implementing corporate tax strategies.
2. How Are S-Corporations Taxed?
Unlike the regular "C" form of corporations, S-Corporations generally are not subject to taxes at the corporate level. S-Corporations therefore do not have the dilemma of double-taxation that C corporations normally have, in that the corporation pays taxes on corporate profits, distributes those profits to shareholders, who then pay taxes again when reporting them on the personal tax return.
S-Corporations have with them, special rules regarding tax on built-in gains, and dividend income. In addition, you want to be sure to consult your tax advisor about losses in excess of the basis in stock, and some restrictions that may apply in limiting loss deductions.
For the most part however, S-Corporations are favored in that these form of corporations simply do not pay taxes, and are very much preferred by small business owners, especially those where there are few employees working for the corporation.
3. How are profits treated in an S-Corporation?
Because of the special nature of S-Corporations, profits are "passed-through" to the shareholders of the corporation, thus folding two forms of taxes into one single tax. S-Corporations and their shareholders do not have to pay self-employment taxes on the profits distributed to them through their S-Corporations.
In addition, losses incurred by the S-Corporation to the extent of the shareholder’s basis in stock, also may pass-through to the shareholder to offset other regular income. This special pass-through feature is among the most attractive incentive for small business owners in deciding in favor of operating their business in an S-Corporation.
As much as is possible in the form of tax planning strategies that can be implemented, should be done within the structure of the corporation, simply for the reason that the efficiency of tax savings results in greater savings than those strategies implemented or restricted for taxpayers filing Schedule C.
4. Are there self-employment taxes on profits?
The profits on a sole proprietor are taxed at the 15.3% SE Tax Rate, and then are subject to regular income taxes at the taxpayer's normal tax rate. The shareholder profits from an S-Corporation however, pass-through to the shareholder and are not subject to self-employment taxes.
The operation of a business within an S-Corporation provides the benefit of pass-through of profits to the shareholder as previously discussed. This special feature provides the opportunity to fold both income taxes and self-employment taxes into one tax for the taxpayer, determined on their personal tax return. This can be somewhat misleading to the extent that any wages or other compensation paid to the shareholder is of course, subject to withholding taxes.
A shareholder should always use caution when making decisions about the amount of compensation paid by the corporation. Under IRS guidelines, the compensation may not be “unreasonable”. Consulting with your tax advisor is a key aspect in making the determination as to what would constitute a reasonable amount of compensation.
5. How am I compensated?
The largest concern for shareholders operating an S-Corporation is the issue of "unreasonable compensation". A careful review and analysis must be made to determine the level of compensation paid in the form of wages, so as to avoid the issue of payments being characterized as disguised payments. However, once that analysis has been completed, a compensation agreement between the shareholder and the corporation can be made, and remaining profits may pass-through without the imposition of self-employment taxes.
Clients are advised to utilize an outside payroll service for the benefit of having a third-party complete the required reporting of all compensation and tax withholdings. In addition, it reinforces the fact that the corporation is being operated clearly in a “business-like manner”.
Compensation planning should also include retirement contribution planning. Clients are further advised to review the basic compensation plan with their financial advisor to determine the level and amount as well as the type of corporate retirement plan that is best suited.
Taxable compensation includes, wages, salaries, bonuses, some forms of incentives that are not fringe benefits, and are all subject to withholding taxes as normal wages and compensation. It is important to understand that proper planning is required in developing your compensation plan. It should involve your financial advisor as well as your tax advisor because of the inter-relationship involved.
Issues ranging from basic monthly salary to those involving issues of retirement benefits all must be addressed in any compensation planning. Careful attention to the tax consequences as well as the treatment and classification are equally important.
Working condition fringe benefits, hiring your spouse or children, hiring employees and a number of other issues all must be given careful consideration. When designing compensation and benefits with your corporation, it will be important to know how these plans will impact you and your employees. Non-discrimination rules can have harsh results in the form of serious tax consequence if your planning is not done properly.
Once a compensation plan has been completed, it will be equally important to have your tax plan and forecast revised to reflect the projected tax results given the guidelines of your plan. This is important in large part for the specific reason that the tax plan operates as an independent component that projects, given certain criteria that has been defined, to indicate what tax consequences will impact you, or to reflect other hidden tax inefficiencies that may be contained in your overall plan.
It is unfortunate that few business owners see the value of taking time to properly plan their taxes, compensation and future retirement. Those that are prudent and take time to invest in developing these strategies are richly rewarded in the form of efficient planning, and wealth building.
Finally, it should be noted that compensation, retirement, and benefit planning as well as tax planning is an on-going process. It is a task that is never completed, or finished. The very nature of your financial life dictates that these planning tools be utilized often, and should be reviewed on a regular basis. The on-going review and adjustment to your plan will provide many opportunities to eliminate or reduce inefficiencies that may be hidden in your planning.
6. Nevada Corporations (Foreign) vs. California Corporation (Domestic Corporation)
Often the questions arise as to filing as a Nevada Corporation or as a California Corporation. Win making a final decision you should always consult your tax professional. Beware that there is a lot of false information circulating by individuals seeking to make profits by misleading the public.
Generally speaking you should never form a corporation unless you have a legitimate business or service to be rendered by the corporation. The forming of a corporation simply to reduce taxes or to obtain a credit rating will ultimately get you into more trouble not only with the IRS but several other government agencies as well.
Hear are three myths generally associated with forming a Nevada Corporation:
7. Three Big Nevada Corporation Myths
Myth #1 Nevada will not disclose my Corporate Information
This is a very common misconception. Many companies promote a single clerical issue into some type of protectionary measure. This argument is based upon a single sentence; "The State of Nevada and the IRS have no reciprocal exchange of information agreement." And has been inflated to suggest that there are secrets kept. Not so, the "information" that this refers to is a Tax Return. The state of California and most other states have agreed to exchange tax return information with the IRS. They can compare and make sure that you provide both with the same information. There are no secrets. All the information that the State of Nevada has about your Corporation is available from the state, most is available online at Nevada Corporate Search.
The State of Nevada does not keep records of Stockholders; But the IRS does
Nevada corporation is not “Private” or the solution to privacy issues. The IRS has Subpoena Power and can use the court system to require disclosure of any and all information about your corporation, including stockholders, signors on accounts, bank statements, etc. But they don’t have to go to all that work; if the IRS has a question about your corporation you will receive a written request called a “Letter of Inquiry” and trust me you will respond.
Myth #2 A Nevada Corporation will protect my assets
This is true if you run and operate your business in Nevada. If you run and operate your business in California you have no liability protection. The first thing that an attorney will do is look to see were you are incorporated. If you are a Nevada Corporation they will pierce your corporate veil like a hot knife going through soft butter. Everything you own could be in jeopardy.
Myth #3 A Nevada Corporation pays no California Income Tax
Nothing can be further from the truth. Any Business or Corporation doing business in California is subject to California Income Tax. It does not matter were your Corporation resides. Even if you do not pay a Nevada Income tax you do pay an annual fee of just under $200.00 per year. Your Nevada Corporation doing business in California is subject to both the California Income Tax and the Nevada annual fees. Meaning you pay double.
