How Are LLCs Taxed?

Before considering any type of business entity, you'll want to consider the pros and cons of each structure and what will work best for your business.One of the first questions that new business owners ask is this one: "How will my business be taxed?" For small business owners who choose to form an LLC structure, there are several options to consider.

Knowing the facts before considering the tax structure for your Limited Liability Company will keep you out of hot water.There are several options to consider.You may be taxed as a partnership or sole proprietorship, taxed as an S corporation, or taxed as a C corporation:

An LLC is usually taxed as a sole proprietorship or partnership.

Under normal circumstances, the LLC is taxed as a partnership or sole proprietorship.In 1997, the IRS established federal default rules.The default rules say, if you have one owner, the LLC will be taxed as a disregarded entity, meaning all the profits and losses will show up on your personal tax return (if you are the owner).In this case there is no federal or state single member LLC that is disregarded for tax purposes.

If the LLC has two members, the default is to be taxed as a partnership.That means a 1065 is filed on April 15th federally each year.If you business is earning earned income all the profits are subject to self employment taxes in 2009 which is up to $106,800.If it is taxed as a partnership and one partner is not active (they work very few hours or are just passive) their distributions may not be subject to self employment taxes.Be sure to check with your CPA for exact input.For the one-owner LLC, you'll file a 1040 tax return and attach a Schedule C.

As a Limited Liability Company taxes as a partnership, you'll pay no federal income taxes when taxed in this manner.The LLC is often called a "pass through" entity.This means that each member (owner) of the LLC reports his or her share of the profits and losses on their individual tax returns, regardless of the number of members.LLCs with multiple members will report their individual profits and losses on Schedule C as well.

An owner may elect to S corporation tax status.Many LLC owners opt to elect S Corporation tax status because they can pay themselves a reasonable salary, tax that amount, and collect distributions from the company as surplus income.This often results in a substantial savings to the owners.First, the key is to file the federal 2553 certified to the IRS.

The EIN application is not enough to tell the IRS your entity is taxed as an S election.Plus you may have a home state form to file, make sure you check!For instance, an LLC owner that earns $60,000 and is taxed as a sole proprietorship will pay $9,180 in self-employment taxes ($60,000 X 15.3%=$9,180).If you elect an S Corporation tax status, you may choose to pay yourself a salary of $40,000 (a reasonable salary is required).That salary will be taxed at the same 15.3% rate, but you'll save $3060 in taxes.You can then pay the remaining $20,000 as a distribution from the company.

What happens when an LLC elects corporation (C corporation) tax status?If you decide to structure your LLC as a corporation, you will need to file form 8832 to the IRS.Plus you will need to amend or update the operating agreement to note the language about the C corporation election.

You will pay federal income taxes on the profits if the LLC is taxed as a C corporation.At first, this may not seem like good business sense, but if you plan to expand the business one day and would like to leave the profits in the business, you could save on taxes in the long run.To benefit from this structure, the LLC should be generating profits since the first $75,000 is taxed at a lower rate than a sole proprietorship or partnership.

Tax laws can be confusing.When you form an LLC, consult a tax professional to help you decided which tax structure will work best for you.Since tax laws change from year to year, don't leave your decision up to chance.What you don't know may significantly hurt your bottom line.

About the Author

Scott Letourneau is the CEO of Fast Business Credit, Inc.

and has a valuable free guide to help small business owners get access to capital plus a new program to help business owners understand the importance of credit!Go to our Business Credit Program page for powerful details!

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I Want to be Wealthy, If I Don't Know Anything About Forex Trading, What is the Best Way to Learn?

Before I inform you of the best way to learn Forex trading I am going to tell you by far the worst way to learn currency trading.That is by yourself though trail and error.There are so many reasons not to attempt this approach I could write a novel on it.Since I really don't care to write a book, I will only mention just a few.

Let's start with the time frame it is going to take it is going to take you to get up to speed.Next, how much of your investment do you suppose your going to lose while experimenting with different trading ideas?How about the profits you are giving up while testing many methods your not sure will work, when you could be using a proven profitable technique.

And finally your computer cost factor.I am sure your wondering what I am talking about now.See computers cost a lot of money and after you throw your computer out the window a few times because the market did something you did not expect it to do you will have to keep buying new computers, not to mention the windows you break.You think I am joking with this one; I am not, because I actually threw my computer out the window one time.Hey, I only did it one time, I learned my lesson.

Lets get serious now, absolutely the best way to learn Forex trading and make money for extended periods are through Forex mentoring courses.These are instructed by currency trading professional with years of profitable experience.The Forex courses provide a ton of leaning materials that offer a comprehensive education you can use for the rest of your trading career.

You also receive extensive one on one time with the Pro's teaching the class reviewing anything you did not understand when studying the books and videos.A key feature of the program is the real time trading sessions with the professionals where you are permitted to invest your own funds and keep the profits.More times than not these trading sessions pay for the tuition of the class.My three favorite Forex mentoring programs are The Forex Brotherhood, Straight Forex and Fap Winner.

Another great way to learn how to make money in the markets quickly is with a Forex course named Forex Made E-Z.This is not a comprehensive program where you will learn everything, but only this little great trading technique.It is based on Forex scalping.If you are not familiar with the term scalping, it means getting in and out of the market quickly while taking small profits each time and avoiding large losses.

Forex brokerage firms frown on this method and will ban your account if they catch you doing it.They don't like it because the people who know how to do it correctly make too much money and they don't get very much commission.This Forex program teaches you how to fool the brokerage firms so they don't catch on to what you are doing and don't ban your account.

Above are a few great ways to learn Forex trading quickly and are virtually guaranteed to make you a profitable trader.There are a ton of sites on the internet you can research these Forex programs and I invite you to do so.I think you will be happy you did.

About the Author

We have researched, tested and reviewed 100's of Forex Training Courses, Software Systems and Brokerage Firms.

We kept the best and eliminated the rest for you to examine at TOP RATED FOREX PRODUCT REVIEWS.

For the internets MOST comprehensive FREE Forex learning tools, which included 100's of FREE training articles and FREE tutorials check out FREE FOREX TRAINING.Good luck on the trading floor today!William R.Alheim, Jr., CPA, MA

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Metatags - What Are They And What Keywords Should You Use?

Can you explain the importance of metatags and how to search and select the appropriate metatags?What are your recommend tools for searching for metatags?How do metatags affect your page?How do you set up metatags?

Answer: A very important tool you can use to find answers to questions like these is to use Google.For example, type in "What is a metatag?" I'm not being sarcastic, but this type of question could be answered through Google.I know what a metatag is, but I am looking at Google right now to see how they define it.

Google has several short tutorials on metatags.The tutorials show you how to use metatags, how to link metatags and search engine builders, etc.

It's hard to define a metatag in laymen's terms.It is a tag that defines the properties of the page.Keywords and descriptions are properties just like metatags.

You can see the page description and metatags in your website building software.Just right click and select "Page properties".Page properties will give you the page description and keywords which are all metatags.Metatags are not directly seen on the front end of your website.

How important are metatags?Metatags have come back.Google is using metatags a lot more than ever before since they are changing their algorithms.Metatags have always been important to Yahoo.

Your title, description, and keywords are very important.Don't stuff too many keywords in your metatags.

You want your title tag to have two to three keywords and be 83 characters or less.Let's say that you wanted to use the keyword phrase Internet marketing.If your title says, "This man is an Internet genius in marketing." One thing that I have found is it doesn't matter what the order of the words are.You could still rank high for Internet marketing with this title.

How do I figure out what keywords to use in metatags?First of all, you don't search for metatags.I think anybody looking for certain keywords is doing it the wrong way.In my perspective, I look at it logically in the example below.

Metatag Example:
Let's say you have no title tag, description tag, or keyword tags on any of your website.
This is fine, but you should use some kind of paid way to get traffic to your website such as pay-per-click.You should be doing your keyword research through your paid advertising and/or pay-per-click.The reason you should do it this way is because you want to find out which keywords work from your paid advertising because that it is the fastest method to see which keywords have the most conversion.

From pay-per-click advertising you can find out which keywords make people opt-in to your page.You will find out which keywords give you the most clicks, yield the most opt-ins and turn into the most buyers.

If you want to optimize your site then look at what keywords that are converting the best.Then put these keywords in your metatags.Put them in your title tag, description tag, and keyword tags.These are words that are based on legitimate results, not just random words you "think" will work.

So research keywords for your metatags in this manner instead of using metatag tools.

Bonus Metatag Tip: Put keywords in your H1 and H2 tags.

About the Author

Matt Bacak pansy report presents Pansy Report Matt Bacak on today's topic: Membership Sites, It's all about Matt Bacak's last MEGA-successfullaunch and how he got flamed in the forums and betrayed by people he sincerely thought were his friends.

Go to www.pansyreport.com

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Five Tips for First Time Southern California Real Estate Buyers

Finding Southern California real estate isn't difficult, but knowing what to next requires a little research and effort.First time Southern California real estate buyers sometimes have the most trouble purchasing a home because of their inexperience.Here are some tips to help first time Southern California real estate seekers purchase their first home successfully.

Make Sure That Your Finances Are In Order: As a first time home buyer should spend at least the six months prior to purchasing a home getting your financial situation in order.This means checking your credit report to make sure that there are no blemishes.Paying off collections and other debts to improve your chance at obtaining and affording a mortgage is also an important step to take as a first time home buyer.It is important that you take a good look at your budget to determine how much you can comfortably afford to spend on a mortgage.It is not a good idea to stretch your money too far.

Get pre-approved for a mortgage.Once you have done the work to clean up your credit report and pay off your minor debts, as a first time Southern California real estate buyer, you should get pre-approved for a mortgage through a lender.When a lender pre-approves you for a mortgage, you are given an estimate of the amount of mortgage you will be approved for based on your credit history, debt, and income.With this pre-approval amount, you have a price range that you can use to shop for a home.

Choose your agent carefully.The real estate agent you choose will play a major role in the home shopping process.Not only should you choose an agent that is reputable and experienced in the Southern California real estate market, you should also make sure that you feel comfortable communicating with the agent.It is helpful to work with an agent that has experience working with first time home buyers.You don't have to be best friends with your real estate agent but you do need to get along with this person.After all, you will be working together for the next three to six months.

Narrow down your selection as you go.Many first time home buyers have difficulty making a decision about a home to purchase.After several days of home searching you may find yourself with several houses to choose from.This can make it difficult since you've probably forgotten many of the houses since visiting them.You should narrow down your selection of houses as you go.As a matter of fact, it is a good idea to only have three houses in mind at any given time.Weeding out the houses will make the final decision much easier.

If you must settle when it comes to Southern California real estate, do so within reason.Finding your dream house as a first time home buyer might be somewhat of a stretch, especially if you are limited by financial reasons.You might have to lower your expectations slightly to purchase a home.That doesn't mean that you have to choose a house that you hate.Instead, make a decision to sacrifice some of the things you desire in a home that can be added later.

Being a first time home buyer can be a rewarding process, especially if you have the knowledge you need to make an informed Southern California real estate decision.

About the Author

If you are looking for Southern California Real Estate, the author recommends http://www.

firstteam.com

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