Because goodwill is your name and all things your name encompasses, you must adequately protect yourself against infringement. Consider this: a businessman in your local area (Area A) finds a home renovation company. He develops and starts selling a tool of his own design, which he calls ‘Benson’. The product is a hit in the immediate area and its popularity increases along with the name of the company.

A businessman from the neighboring city (Area B) visits the home hardware store in his area and buys the ‘Benson’, and decides that he could make a profit from another man’s idea. He opens his own renovation business in the neighboring town and sells his own version of the ‘Benson’.

And yet, as he did not receive permission to reproduce the ‘Benson’, he was unaware of the original method of manufacture, and his own ‘Benson’ is a failure. Your store is out of service and several of your customers are suing you for being injured by the use of your product.

Certainly, the entrepreneur was doomed, as he stole the idea for the invention in the first place. In fact, this is something that happens frequently in small businesses around the world. However, your own failed business sends ripples of repercussions to the entrepreneur in your area. These repercussions include:

1. Consumers from Area B traveling to Area A will not buy a ‘Benson’ due to its bad reputation.
2. Consumers in Area B do not realize that the two companies are in fact not affiliated and therefore refuse to buy a ‘Benson’.
3. The entrepreneur from Area A cannot expand his business to Area B because his product already has an undeserved bad reputation there.
4. The Health and Safety department in Area B decides to visit the business in Area A to ensure that the product does not have the same faults as the defective product.
5. The media picks up the stories of injured consumers and televises them: Potential consumers condemn the Area A product.
6. The Area A business is at risk of closing due to a lack of business it receives due to an undeserved bad reputation.

Any of these situations could occur because the entrepreneur in Area A did not protect his goodwill. The entrepreneur could have registered his trade name and product name in order to gain the power to protect himself from infringement by the rogue entrepreneur. If the entrepreneur tried to open his own store and sell the same product without explicit permission, the entrepreneur in Area A would have the right to take legal action to protect his good name. Therefore, his goodwill would be protected.

The government is not responsible for the preservation and protection of your trade name. In fact, this is your own responsibility as a business owner. Just because you own a business with a unique name does not mean that you are protected from infringement. The best way to protect your company, product, service or brand name is to register it as a trademark.

Too many companies forget to protect their goodwill against infringement – this is because business owners believe that registering and protecting trademarks is too costly for them. Consider this: Trademark registration protects your business on a national scale and can include your trade name, designs, logos, slogans, and packaging, as well as other material that is unique to your business. When you are a trademark owner, you are protected against infringement for ten years and then indefinitely with renewals every decade.

Trademark registration can be simplified with the consultation of an experienced trademark attorney. Your attorney can assist you in the process of completing your applications, as well as in combating any legal action taken by your competition. You can even apply for international registration if you are an export company.

Once your trademark has been registered, you essentially get a monopoly on that name within your country. Trademark protection is simple: When your trademark is registered, you can prevent other companies from registering names similar to yours that could lead to confusion. You can also take immediate legal action in case another party infringes on your trademark rights.

Searching for a home business opportunity on the internet these days is quite a complicated process. That is, if you don’t know how to eliminate 90% of the garbage out there and choose from home business opportunities that really have merit and track record.

It works?

Information sales, auctions, shippable hard products, books, reports, network marketing, you name it!

There are only certain types of home business opportunities that you want to steer clear of. Those are things that someone you don’t know about Adam makes assurances that are too good to be true. Anyone who makes it look like money is dripping off the internet for you to simply catch it in a bucket is a liar and a thief.

You will never be successful with home business opportunities that promise you never have to work or that things seem too easy. Take it from a professional, working online or offline with a home business opportunity is work.

But home business opportunities have perks that are better than any job you can imagine.

You work for yourself and do not answer to anyone but your clients You can earn as much or as little as you want You can work as much or as little as you want You can take time off whenever you want You can make your schedule totally flexible You can work on the Internet and work from anywhere in the world You can save money on clothes you had to buy for work You can save money on gas, maintenance and car insurance You can get great tax breaks by owning your own business Travel and other expenses can be tax deductible

The list of great things I can think of about a home business goes on and on. Here are some of the things that can burden you with a home business opportunity:

You cannot leave your business at certain critical times of growth. Your family will sometimes become a distraction when you work at home. Your bed is in the same place as your work. There is no boss to keep you honest about your hours. keep you focused to complete critical tasks No one will do the work for you Clients can be a hassle at times Money can come sporadically at first (people who can’t handle any financial stress should definitely keep their jobs until their home business opportunity starts paying bills regularly).

Without pain there is no gain. No risk, no benefit. No investment, no return. A home business opportunity is like any other business. Do not let anyone tell you otherwise!

But for those of us who thrive by making our own way in the world, who love that there is no limit to what we can do, and that no one but our spouses tell us what to do, there is nothing better than a home business!

Hiring an accountant can be a daunting process for many small business owners. Before starting your search, it is important to determine the type of experience and skills you need. Are you looking for someone to analyze the numbers for you and create a budget or do you really just need someone to enter the data for the invoices and invoices?

If you have someone to help you figure out the numbers, or if you have a strong background in accounting and financial management, it will probably be okay to hire someone who is proficient in your accounting software and whose experience and personality fits your business. On the other hand, if you don’t have someone to make sure the numbers are correct, the data entry accountant is not a good idea. In this case, you’ll want to find someone with full load accounting experience. That is, the possibility of reconciling the balance and making a monthly closing. Accountants typically don’t have the skill set to help you with financial management beyond accurate financial reporting.

Once you place an ad, you will be treated with a smorgasbord of candidates. You’ll have to narrow down the number of candidates to those that meet the needs of your job description, and then the interview fun begins. You’ll want to ask questions that ensure that the accountant really has the right skills and fits into your business culture. Here are 8 questions to ask your potential accountant:

1) Do you think accrual or cash-based reporting is better for business management?

Find an advanced accountant who will explain that accrual accounting provides better financial reporting, but that the cash basis for taxes is generally preferred. We can keep the books on an accrual basis for management reports and the tax accountant can make adjustments for cash taxes. A standard accountant will probably tell you what their experience has been and will have no preference for either.

2) What is the accounting equation (or balance equation) or explain the balance sheet.

A good accountant will explain that the balance sheet has assets, liabilities, and equity. This is mandatory for anyone who expects you to provide accurate financial reports. Ideally, they will tell you that the equation is: Assets = Liabilities + Equity. If they can’t explain the balance sheet, ask them to describe an asset and liability account. You don’t want someone who doesn’t know the balance sheet responsible for the month-end close, but if someone else is ensuring accuracy, simply knowing how assets and liabilities are used will be fine.

3) The bank account has a discount of $ 0.72. How long will you spend looking for the problem and what steps will you take to find it?

This problem is complicated and it really depends on what you would like to see in the right accountant. Some will not stop searching until they find it. Sure, there could be a lot of things causing a discrepancy, so you’ll want them to spend some time looking for the problem. But how long? Is spending 2 hours looking for $ .72 the best use of time? If you look at the return on investment, it is a waste of time. If they respond 2 hours, you’ll want to investigate their tolerance for less than perfect circumstances. If you are in the creative field, an extreme perfectionist can drive you crazy. However, if you’re not looking for the bug at all, your attention to detail is probably not strong enough and you should keep looking.

When looking for the error, the ideal candidate will say that it is likely a transposition error and would start there first (transposition errors are divisible by 9). They might just say that they would match each line item to the declaration, which is perfectly valid.

4) In cash accounting, how would you record an annual insurance premium of $ 600?

The correct answer for the cash basis is the $ 600 debit, cash credit, or accounts payable insurance expense. All accountants should do well.

5) How would you record an annual insurance premium of $ 600 using accrual accounting?

The correct answer here is $ 600 Prepaid Debit Insurance, Cash Credit, or Accounts Payable. Install them to find out when insurance expenses are recognized. Must be $ 50 / mo with a debit to insurance expenses and a prepaid insurance credit. If the candidate cannot answer this question, don’t expect them to keep their books based on accrual accounting. You will want to depend on someone else for management reports.

6) How many gas stations (or coffee shops, etc.) do you think there are in the United States?

With this question, we are looking for good critical thinking skills. It’s not okay to guess a number without explanation or say they would Google it. You want the candidate to have a process to get to your guess, no matter how far away it is. There are so many gas stations in my city, I guess so many cities in my state …

7) Rank the following in order of importance to business success: Sales, Teamwork, Quality, Integrity, Profitability, Service

There is no right or wrong answer to this question, but it will indicate whether the candidate is aligned with your company culture and will also demonstrate critical thinking skills. Look for a justification for why they responded the way they did. Does it line up with how you would answer the question? For example, if they say that profitability is the most important thing. Why is that the case? If they say teamwork is the least important thing, you probably want to dig a little deeper if teamwork is high on your priority list.

A bookkeeper would preferably list profitability further down the list because he wants to know that he is considering the entire business, not just his job. You’ll also want to see integrity at the top of the list. Do you really want an accountant who doesn’t value integrity?

8) Tell me about a time when you disagreed with something your boss asked you to do.

The correct answer here will depend on the personality you are looking for. Do you want a follower who does what you say? Looking for an advisor to tell you what to do? Perhaps a combination is the right answer for you, someone who is confident enough to speak his mind, but who is willing to follow direction.

There are tons of possible interview questions to ask when interviewing accountants. The ones listed above can give you a good indication of whether or not the candidate is suitable. For a better assessment of accounting skill, see the AIPB Accounting Test. Be sure to check references and try to speak to a CPA who has had the opportunity to see your work.

Copyright (c) 2010 Kelly Totten

In stock investment trading, stock news is what investors are looking for because this is what keeps you informed about what is happening in the stock market. And where do you get all the news about the ups and downs of stocks and shares? From the stock trading newsletters, of course! With technological advancements such as the Internet, stock trading newsletters have also made their entrance through that medium.

If you want to know the trends in the stock market, newsletters are a must. Since the stock market is very complicated, you must constantly be aware of changing trends. A person who has invested much of their hard-earned money in stocks would naturally like to be updated on trends on a regular basis.

Online newsletters do exactly this. They are responsible for providing you with the necessary information on actions and actions and helping you make a decision. Especially for a beginner, an online stock trading newsletter is the ideal means of preparing to become a flourishing trader.

Newsletters are beneficial to both the reader and the newsletter company, but you need to ensure that the details offered to you over the Internet are accurate and authentic.

Usually a good online stock trading newsletter should provide investment details that are provided for free trade and investors, sensible ideas that will help safeguard your investment depending on the ups and downs of the stock market, should be sent to your email id. daily or weekly, etc.

It is vital that you sign up for one or a few of these newsletters as they are the ones with the expertise and usually getting their information from the trading gurus in the stock market. You can never predict when the stock market will skyrocket or crash, but these newsletters will keep you well informed and you will feel like you’re not too far from Wall Street with these newsletters to keep you up to date.

This is a nasty topic. Not because surety is inherently bad, but because it is a subject of great distress for contractors and their insurance / surety agents. For instance:

• Why is the surety company taking money from me when can see Am I in a weak cash position? I need it to successfully complete the new project.
• Won’t you pay me interest on the money? Why not?
• When the job is half done, won’t you give part of the warranty?
• Won’t you deliver the warranty upon accepting / completing the contract?
• Won’t you deliver the warranty until the warranty period ends?
• Etc. Much aggravating phone calls and emails.

With all this aggravation ahead, why do some surety companies require collateral? The reason is to protect yourself in the event of a bond claim.

When a loss of contract warranty occurs, the claims department expects to have two reliable resources for financial recovery:

1. The unpaid balance of the contract goes to the bond as they complete the job.
2. The bond sues the applicant / business and their owners to recover the loss.

Collateral requirements arise when the guarantor wants to have
certainty. If a problem arises, they don’t want to find out that the customer has no money left, or that they have filed for bankruptcy … or left the country. If they are going to write the bond, they want a
guaranteed way to have financial recovery.

Considering that collateral is an expensive price to pay for a surety, let’s look at an alternative approach that helps collateral, but doesn’t take a big bite out of the contractor!

“Withholding” is money that the project owner withholds (withholds) to ensure the final completion of the project and the payment of related invoices. If the withholding is 10%, the contractor receives 90% of the funds owed to him as the work progresses. In the end, the contract owner / obligee will still have 10% to keep the contractor interested in achieving full and satisfactory completion. In this way, the withholding money protects both the obligee and the bond, which makes claiming a bond less likely.

The “Bond Consent for Release of Final Payment” is a voluntary procedure that obligees can use as a courtesy to the bond. The latter part of the contract funds can be useful leverage for the contractor to move into final contract adjustments. There may be cracks in construction, broken glass, faulty lights, paint errors, little things that the obligee cares about but the contractor may find it annoying to correct. Bond Consent is another way for the surety company to avoid a claim. “Fix this or we won’t agree to release your final payment.”

How can these two useful tools be incorporated to ensure that they will help bail and thus replace the need for collateral?

The answer is to add a condition to the link (required compliance required by the obligee) indicating that there can be no release or reduction of retention or final payment without the prior written consent of the bond. Now it is guaranteed that the surety company will have a financial resource available and the amount is known in advance, as is the guarantee. But the contractor did not have to empty the company’s bank account to achieve this: Win win!

What if the terms of the contract do not provide for a retention procedure? One can be additional by contract modification. If Funds Control (an escrow agent) is in use to handle contract disbursements, a withholding procedure can be added to the funds control agreement.

Consider this alternative procedure if your bond insurer needs help getting more creative with the underwriting solution.

Speaking of fund control, see our article next week “Performance Bonds: How to avoid fund control.”

Peggy was a highly motivated and successful career woman with boundless energy who had worked long hours for several years. Healthy and vibrant, it seemed indestructible. Later, one of her sons became seriously ill, and as she helped him care for him to regain health, his own health began to deteriorate. Long after her son recovered, she still felt weak and listless throughout the day and eventually began having trouble getting out of bed in the morning. She went to the doctor, but couldn’t find anything physically wrong with her. Finally, a nurse friend suggested that she might have adrenal fatigue.

What is adrenal fatigue? Although it can be caused by a number of different things, it generally involves stress and the body’s response to stress. The stress response comes into play when the brain detects an emergency. Enter what is known as the “fight or flight” mode. In a split second, a region of the brain called the hypothalamus sends a signal to the adrenal glands. (They are glands found in the upper part of the kidneys). When they receive the signal, they excrete adrenaline that reaches the heart and other parts of the body. The heart responds by beating faster, which in turn sends extra blood to the muscles and organs. At the same time, the respiratory rate increases and the lungs carry extra oxygen to the brain. The brain then releases endorphins that help the body to function more efficiently and finally, adrenaline helps boost the body’s energy by releasing glucose from its glycogen stores.

The adrenaline surge is only the first part of the stress response; once it’s up and running, the adrenal glands also secrete cortisol. It arises through the body performing many important functions: it replaces the energy that adrenaline has depleted, it is used by the immune system to put you on alert, and it acts as a checkpoint for the overall response, and when completed, it signals the brain to do so. stop.

It is easy to see from the above that the adrenal glands play a vital role in our body. They help us respond to stressful situations and protect our bodies. The problem is that our lives are now so full of stress that stressful events often happen one after another, with several occurring in one day. And every time they occur, the adrenal glands have to respond, and if they are forced to respond too often, they begin to deplete and wear out. When this happens, they are soon operating well below their optimum; This is what we call adrenal fatigue. However, it is important to note that while stressful events are a major factor in adrenal fatigue, many other things also contribute to it. Some of them are: poor diet, lack of exercise, lack of sleep, excessive use of stimulants such as coffee and diseases.

The main symptoms of adrenal fatigue are: chronic fatigue, trouble getting out of bed in the morning, trouble sleeping, low energy, depression, weight gain, lack of stamina, trouble managing stress, and craving for salt. It is important to detect the condition at this stage; If ignored, the adrenal glands will eventually stop working, a condition known as Addison’s disease. Addison’s disease causes things like immune system suppression, muscle and bone loss, hormonal imbalance, and can be fatal.

One of the biggest difficulties with adrenal fatigue is that it is not universally recognized by the medical profession and many doctors are not aware of it. And while it’s important to talk to your doctor about it, you don’t usually need medication to get over it. The most important thing that is needed is a lifestyle change. Stress is the main thing that causes it, so the first thing to do is get rid of any stress in your life. In addition, however, several other things are needed. The main ones are:

1. Take more breaks and focus on relaxing.

2. Regular meals and better nutrition are important. Focus on getting enough vegetables, whole grains, nuts, and fish (for omega-3s). Also, avoid hydrogenated fats, coffee, simple carbohydrates, and junk food.

3. Exercise, but don’t overdo it. Aerobic exercise is particularly important, but you should combine it with some weight lifting.

4. Make sure you go to bed early and get enough sleep.

5. Various supplements are also helpful. some of the best are:

Vitamin C, Vitamin E, Vitamin B-6, Complex B, Niacin and minerals, Magnesium, zinc, selenium and chromium. Finally, licorice and ginseng are also helpful.

Viscosity measurement reveals the degree of resistance to flow of a liquid or gaseous substance, generally in terms of its unwillingness to flow under conditions where it is deformed by shear or extensional stress. A viscometer is the instrument used to measure the relative fluidity or viscosity of the material.

Almost all fluids (with the notable exception of the liquid form of the helium isotopes helium-3 and helium-4) have some degree of resistance to flow, and the measurement is used to determine the degree of viscosity over a spectrum ranging from the absence of stress. resistance (called ideal liquid) to total resistance.

The study of this property of substances is known as rheology, and researchers are engaged in measuring viscosity to determine this often important property of a given gas liquid. This property is measured with a viscometer to provide this data, which is important for quality control applications in the production of a wide variety of products, including inks, paints, motor oils, food, pharmaceuticals, and cosmetics, for example. name just a few.

Viscosity is most commonly expressed as a figure called the coefficient of viscosity; however, there are several different types of coefficients that can be used. The specific viscosity coefficient used to indicate the results obtained from the viscosity measurement is highly dependent on the type of stress applied to the fluid, as well as the particular qualities of the fluid in question.

The different coefficients used to express the results of a viscometer include absolute (or dynamic) viscosity, kinematic viscosity (which is the absolute viscosity divided by density), volumetric (or apparent) viscosity, shear viscosity, and extensional viscosity. Each of these coefficients is more or less suitable for specific fluids, being the absolute and shear viscosity the best known and most used when measuring viscosity.

There are many different types of rheometers and other instruments used to measure the viscosity of substances that can be grouped into five broad categories based on the style of measurement used. The rotational method measures this characteristic by immersing the rotors in a sample and measuring the operating torque. A vibroviscometer with an adjustable amplitude transducer immersed in the sample is used; The current used to drive this transducer is then measured. The capillary method measures the pressure difference at each end of a capillary through which the sample is allowed to flow. The falling ball method of measuring viscosity involves taking a measurement of the amount of time required for an object (usually a sphere or cylinder) to fall through the sample material. The cup method determines the viscosity of a sample by measuring how long it takes for a sample to flow out of a hole in a container.

Since the temperature of a liquid and its viscosity are correlated, a viscometer or viscometer must be used under carefully controlled temperature conditions to produce accurate results. Even a small change in temperature can have a sufficient effect to adversely affect the result of a quality control test or a production process. Measuring viscosity is a demanding task, but essential for a wide range of scientific research, as well as for the manufacture of a variety of products for the business-to-business and consumer markets.

It takes more than an idea, some money, and an office to start a business. You need an infrastructure. What does it mean to set up an enterprise infrastructure? It takes a little planning and making a few key decisions before signing any legal paperwork. For example, on a small scale, you will need someone to help you with accounting and someone to help you with payroll. But there are many more considerations.

First, you must decide what type of company you want to become. As important as it is in determining your company culture, you will want to consider the structure of your company, taking into account who is in charge, how big you want the company to grow, how many employees the company will have, and how you want to manage the operations of the company. day to day. There are many business structures in the United States. Most states have information online that covers the type of structure available.

Here are six types of business structures, each with its own legal, tax, and business ramifications:

1. Single owner It is when an individual owns and operates a business for himself.
2. Corporation, of which there are many types, it is a legal entity that exists separately from its owners. There are many benefits to incorporation, including limiting the personal liability of the owners and the separation of taxes from the owners and the business. Offering stocks or bonds can generate additional capital for a corporation and a corporation can continue to live, well beyond the death or retirement of the owners.
3. Limited liability company (LLC) offers liability protection similar to that of a corporation, but is taxed differently. One or more managers or one or more members can manage LLC.
4. Limited liability company, there must be at least one general partner acting as the controlling partner, while the liability of limited partners is normally limited to the amount of control or participation in which they have participated.
5. General Society It is when two or more people form a for-profit association.
6. Limited liability company It is designed for accountants, lawyers and architects or companies with services related to those professional areas. A limited liability company is required to maintain certain levels of insurance as required by law.

The next two components to setting up the basics of your business involve people and processes.

It is important to align your relationships with the advisors. Think of your key relationships as a group of advisers, be it an official board or some of the people you work with on a daily basis.

Ride on board.
You may not have one, but I highly recommend it. I discovered that one of the most important things in building my two companies was having a board of directors. When setting up and growing a business, it helps to have people you respect and whose opinions you respect give you advice on business matters. But the most important thing I have discovered is that a board is central to my responsibility. Having a board of directors forces me to prioritize and have discussions that I would not otherwise have. In short, I take some time to get out of the bush and think more strategically about building my business.

Pick an odd number of people for the board. (If you ever have a vote, you need an odd number.) Tres is a good place to start. Hold regular regular meetings to get the most benefit. Also, use the board for your network effect as they are tied to a larger network and can help with recruitment and any support you may need.

Befriend the owner.
It is very important to build a relationship with this person. I think of my father and his businesses: whenever he needs more space, he calls the owner and they work together. This has also been true for me. Consider your landlord part of your circle of advisers. As you grow, you will depend on him or her to help you with the physical aspects of the business.

Hire an attorney.
This depends on the type of business you are running. Does your company have special needs, such as a product that requires patents and / or trademarks? Or, you may just need an attorney to guide you through the incorporation process, or whatever your business structure is. I have always been fortunate to work with excellent attorneys who not only protect the legal interests of the company, but can also provide valuable information on the growth of the company. Think about it, a good lawyer touches hundreds of businesses in his career and all that experience can be at his fingertips.

Work closely with an insurance agent.
Find an insurance agent to help you set up your business benefits. Once you’ve found that person, work together to establish your plans. Keep in mind that the decisions you make about benefits have long-term repercussions. For example, if you want comprehensive health coverage for yourself and your family, when you have an employee, will you offer them the same? When you have 10 employees, will you offer it to them? If your business is only going to have five to 10 employees, which is the size of most small businesses, you may not be concerned about paying vastly different amounts (depending on the insured’s family and ages) for the same benefits. for all employees. But if you plan to grow, then you might be concerned, for example, that those employees with families will have to pay significantly more. If so, you may need to commit to a plan that works for everyone.

Hire an accountant and a computer scientist.
I would say that the two most critical pieces of your business operations are keeping your finances and your technical operations running smoothly.

For IT help, turn to any number of resources, including the national Geek Squad, or any number of smaller hardware and software support companies based in the region.

Equip the office.
You don’t have to spend a lot of money to have a good office. You can buy inexpensive furniture from IKEA or Costco and keep the decor to a minimum. I have done it in both of my companies and I think it reinforces some important values ​​for our clients and employees. And we have managed to make it enjoyable.

For my newer company, we opted for an open environment, no cubes, just desks and phones. We were very lucky because we got all the furniture in our office for free and at a huge discount from a company that was going out of business. Additionally, we got $ 150,000 worth of servers for $ 15,000. You have to be prepared to move fast on some of these things.

Other key decisions in setting up your business infrastructure include incorporating the tools that will manage day-to-day operations and deciding what the benefits and policies of the business are.

Line up your tools.
Take advantage of technology whenever you can. I know from experience that the Web is the best way to do business. It is the driving force for my current and past businesses and has driven many of my business decisions. All my advisers must connect to the Web. Most of our tools are accessed online, from our phones to our financial information. For me, the web allows me to work from anywhere. This is one of the key benefits of starting and running my own business. As they say, “the rope is looser and the strap is longer.” As a result of the web tools, I am able to run a business of 25 people with a limited infrastructure (one day a week of outside accounting help) and one day a month of IT.

For our phone system, we use Voice over Internet Protocol (or Voice over IP). I choose VOIP for a couple of reasons, but mainly because it is simpler to set up and cheaper than working with the phone company. An Internet connection can provide you with as many lines as you need. I had a hard time investing in phone lines for all employees as we will most likely move and most employees do not use a phone to do their jobs.

Determine your policies.
In terms of other company policies, it’s best to have a framework or, better yet, a written policy before things come up. Determining policies on the fly is uncomfortable for you and your employees. I know from experience. So take a little time to decide what you want to do with your maternity leave or vacation time. You and your employees will be happy to know what the policy is.

I think it is very important to provide stock to all employees, so that they are all owners. We spend most of our lives at work and we all want to belong. Giving employees shares is a way of telling them they belong. Of course, you get the added benefit that employees know they are an integral part of the growth and success of the business.

Another policy to consider before making a decision is whether you want to offer the more traditional vacation time and sick leave rather than general paid time off (PTO). PTO is like having a time bank account so your employees can take time off from vacation, sick leave, a mental health day, or an emergency. After experiencing traditional vacation policies for the past 20 years, I switched to PTO. The main reason is that I wanted to give the same benefit to all employees. My experience shows that some employees never get sick, while others use up all their sick time right away. It just wasn’t fair to people who didn’t get sick. With a PTO policy, all free time is the same. If you are not sick, you will have more time for the holidays. This seems like a better message to send to employees.

When I started my first company, our health insurance covered the employee but not the dependent. As the company grew, I saw how much people paid for their dependents. He wanted to do more for employees, but wanted to be fair to employees without dependents. When I started my next business, I made the decision to opt for a High Deductible Health Savings Account (HSA) insurance plan. The key to the HSA is that once you offer and contribute to the HSA, the employer must use a high deductible health insurance plan. The HSA is an employee account that employees and employers can invest money in to save for future medical expenses.

Most contributions and all earnings are tax free. Employees then use the HSA funds to cover medical expenses not covered by the health insurance plan deductible. The funds contributed by the employee and the employer are transferred immediately and are available for the employees to use today or in the future. I made the decision to contribute all the savings from higher deductible health insurance premiums and then a little more to employee accounts. In the end, I increased the contributions so that I felt like the employees’ dependents were getting some coverage. The HSA allows me to contribute equally to those without dependents to use at a future date.

Do you think the Alternative Minimum Tax (AMT) is only for stock incentive options (ISO) and the rich?

You may be subject to the Alternative Minimum Tax (AMT) in 2006, even if you have the same income and deductions as in 2005. Current AMT tax rules expire and revert to pre-reform levels, which means millions of people will suddenly be subject to AMT next year.

The Alternative Minimum Tax (AMT) is a separate tax system, with its own rates and deduction rules, that sits alongside the main income tax system. Taxpayers must calculate their taxes both ways and pay according to the system that results in the highest amount of taxes. AMT has a lower tax rate (26-28%), but allows fewer deductions. The AMT was originally passed to prevent the wealthy from avoiding taxes through creative (but legal) accounting; however, because the AMT rules were not indexed to inflation, each year more and more ordinary taxpayers are subject to the AMT.

Will this affect me? The Congressional Budget Office estimates that 16.7% of taxpayers with Adjusted Gross Income of $ 100,000 to $ 200,000 will pay AMT in tax year 2005. For tax year 2006, this percentage increases to 81.1%. In other words, if you make more than $ 100,000 per year, you will most likely be subject to AMT in 2006, unless Congress changes the law.

What can I do to avoid AMT in 2006? You may not be able to avoid AMT, but you can minimize its effects by taking deductions in 2005 that would be wasted under AMT, in fiscal 2006.

The most common deductions affected by AMT:

• no standard deduction
• no exemptions (for example, children)
• no deduction for state, local or property taxes
• no miscellaneous itemized deductions (for example, tax preparer fees)
• no mortgage interest deduction if the funds are not used to buy, build, or improve a home (for example, to pay off credit cards or buy a car)
• deduction floor for medical expenses raised to 10% AGI (instead of 7.5%)
• Incentive stock option (ISO) taxed if exercised, even if not sold

Tips for late 2005 to avoid wasting deductions in 2006:

• advance payment of real estate taxes
• prepay miscellaneous itemize deduction items
• Pay state / local taxes upfront (see tax preparer) by paying 2005 Q4 estimates or using a prepaid voucher (if you are a W-2 employee)
• prepay medical expenses
• use HELOC for home improvement, instead of other purchases
• defer 2006 income by fully funding retirement plans, IRAs, deferred compensation plans, and health savings accounts

* * Contact your tax preparer before making any tax planning decisions.

IRS Circular 230 Disclosure – As required by U.S. Treasury Regulations, you are hereby advised that any written tax notice contained in this bulletin was not written or intended to be used (and may not be used) by any taxpayer in order to avoid penalties that may be imposed under the U.S. Internal Revenue Code.

Here are some other end-of-the-year tips that you may find helpful:

There is an old saying that goes: What is the best way to eat an elephant? One bite at a time!

Personal property is the elephant of a farm. It is the responsibility that can occupy the most of your time and provides the estate with the least amount of money for the effort involved. But you can’t avoid dealing with personal property. The property must be inventoried, valued, distributed or sold. Let’s start our analysis by looking at what property we have (inventory); then we will determine its value (valuation). In a future post, we will determine what to do with it (distribution / sale).

When you go to court, the clerk will provide you with the form to complete for the inventory. The form will ask you to provide general categories and a value for each category that you have listed. For example, you would list: furniture, $ 1500; office equipment, $ 300, etc. You won’t have to list items separately, like sofa, $ 100; meat, $ 5; typewriter, $ 25. However, I suggest you keep a list of individual items. Although you won’t have to go into much detail for the court, you will likely want a more detailed inventory for yourself. You’ll want this for two reasons: to keep track of the sale of real estate, and to protect against claims from heirs and / or creditors.

You don’t have to get really fancy with inventory; pencil and paper will do. If you want, there are home inventory log books available at office supply stores, or you can purchase software online. There are also companies that specialize in bringing inventory home.

You will need a helper. One person classifies and counts while the other writes. Start inside the house and work from the top of the house to the bottom. Go from room to room in a consistent pattern so you don’t miss a thing – always clockwise or counterclockwise around the room. Also write down what’s on the walls, not just what’s on the floor. For small items, write identifiable groups of items such as 200 hardcover books, 100 paperbacks, 42 nick-knacks, etc. On your list, put a star next to any item you think may be valuable. If the nick-knacks are porcelain and the books are first editions, they are valuable items. When you’re done, follow the same procedure for outbuildings – garage, shed, workshop, or whatever. If there is a storage unit, vacation home, RV, or rented boat, they will need to inventory them as well.

When you present the inventory to the court, you must indicate the value of the personal property. For common household items, a good resource for determining value is the software program. It is deductible that comes bundled with the Turbo Tax income tax program. It is deductible can also be purchased separately. The software lists the thrift store value for most household items and is easy to use.

For items that you have identified as valuable, It is deductible it won’t work. There are several ways to determine the value of individual items or collections. A good place to start is eBay (http://www.ebay.com). To use eBay to help you set your values, you must be a registered user. Signing up for eBay is free; just follow the instructions when you get to the website. Once registered, type in the item you are researching and eBay will search for the item. When the search results appear, scroll down and look on the left side of the page where it says Search Options, click on the completed listings, then scroll down and click Show Items. The search results displayed will be for completed auctions, not for auctions in progress. The prices shown in green are the items that were actually sold; prices in red are for unsold items. If you find your item on the list and the price is green, it is a good value. Compare the item details you found on eBay with the item details you own. Use the closest match as your value.

If you can’t find your item on eBay, it’s time to go to the library or bookstore. There you will find a variety of price guides for all types of antiques or collectibles. You will also find blue books for cars and equipment.

If you have a lot of articles and don’t have time to do your research, then it’s time to call in an expert. In your local telephone directory you will find jewelers, antique dealers, auctioneers, appraisers and other professionals who will tell you the value of the property. What they will offer you is a value opinion, not an appraisal. An appraisal is based on actual sales data, not opinion. I’ll cover appraisals below; For now, keep in mind that there is a difference. For probate valuation purposes, the value placed must be the fair market value at the time of the decedent’s death. This is the value that you should ask your expert.

In my home state of Virginia, individual items or collections worth more than $ 500 must be appraised. Personal property appraisers are not licensed as real estate appraisers, but the content of their reports is regulated. For a personal property appraisal to be valid and accepted for tax purposes, it must be performed by a qualified expert and follow federal guidelines in the Uniform Standards of Professional Appraisal Practice. Most real estate appraisers do not appraise personal property. You can find a personal property appraiser online by visiting the websites of the Certified Appraisers Guild of America, the National Association of Auctioneers, or the American Society of Appraisers.

Estate executors will find that inventory and valuation of estate personal property is the most time consuming task, but there are resources available to help.