Year-End Tax Strategies

Every December, I attend a tax workshop geared towards self-employed small business owners. I came away with some tips that I thought I'd share.

Your choice of business entity can have a big impact on your taxes.

• A sole proprietorship is the easiest to setup. You'll file a regular tax return with a separate Schedule C.
• The Limited Liability Corporation (LLC) offers some limited protection for your personal assets. It's the ideal business structure if you have partners -- it's easy to get into and easy to get out of.
• A S Corporation can also be a good choice for a sole proprietor. If you've been a sole proprietor for a period of time, there can be some tax advantages to evolving into a S Corp. Attorneys will often recommend LLCs, but the S Corp has an advantage from a tax standpoint because you can control the amount of money you pay self-employment tax on. You can elect to pay yourself "a reasonable salary" (which you will pay taxes on), and then receive additional "compensation" in the form of "dividends" as a shareholder of the corporation (not subject to self-employment tax). (Note: You must elect to change to a S Corporation by March 15.)
  

Is record-keeping the bane of your existence?

• Check out this link for a free "Simple Start" version of QuickBooks (Windows only). It's a good way to get into a computerized accounting system (if you've been keeping those records by hand or the "shoebox" method."
• If you'd like the flexibility to access your accounting information from anywhere, QuickBooks also offers an online version, for about $20/month. It can even import your online banking records and allow you to accept credit cards online.
• Compare QuickBooks 2008 Editions
  
  

Vehicle and Business Mileage Tax Deductions

• If you buy a vehicle for your business, you may be eligible for a tax deduction. But make a good economic and personal decision (not just based on the tax deduction) -- get the vehicle that works for you. If you are considering buying a new vehicle, consult your tax advisor BEFORE you go shopping.
• Do you track your mileage when you drive from your home-based office to the office supply store, the bank, and the post office? How about when you run these errands from work? You should be! The deduction is 48.5 cents for 2007, and 50.5 cents for 2008. It's an 8-mile round trip for me to go to the post office -- so I am able to deduct a little less than $4 per trip using the "Standard Mileage Rate" deduction.
• If you use your car more than 50% exclusively for business, you may wish to use the "Actual Expense" method. Consult your tax advisor for details.

Do you pay for your own health insurance?

• Did you know it may be 100% tax deductible? Have you considered a Health Savings Account (HSA)? I got mine through eHealthInsurance, but shop around for rates. Get a Health Insurance Quote!
  
• Your pretax contributions to an HSA will save you money, and you can roll over your account from year to year. Also, when you turn 65 and are eligible for Medicare, you can convert your HSA account to a retirement account, and not pay tax on distributions.
  

And check out this blog post for more tax strategies for 2007.

Managing the Media for an Event

If you're interested in tips on how to attract media publicity to your resume writing or career coaching business, then read on!

One great way to attract publicity is to sponsor an event, such as a career-oriented workshop.

One key consideration is how to manage the media for your event. Here are some tips to help you prepare:

1. Once you've set the date and time, invite the appropriate representatives from local television news programs, daily newspapers, industry or trade publications, etc.

2. Determine in advance if media will be invited as guests to the entire event or just a particular segment of it. If media are invited to cover only a specific aspect or portion of the event, be clear about this in your invitation. Make sure to allow plenty of time for media members to arrive so they will be able to capture the action and key aspects of the event.

3. Remember to count media members in your food and beverage calculations. Also figure out if you want them to sit in a specific place (TV camera operators in particular will need a spot with a clear view of the "stage" or "podium.")

4. Ask the media in advance what their deadlines are, and keep those in mind when creating the event schedule. For example, if an event is to be broadcast on the evening news, the film crew and editors will need time to create an appropriate clip.

5. Prepare media kits ("press kits"). This can include biographies of you and any other speakers; background information about the event, host organization and sponsors. Be sure to keep track of media no-shows so that a press kit and follow-up correspondence can be mailed to them.

— Excerpted from "Meetings and Conventions" magazine.

Wendy Enelow Leaving Career Management Alliance

Wendy Enelow has announced that she is leaving as Executive Director of the Career Management Alliance, effective Dec. 31, 2007. Wendy was the original founder of the Career Masters Institute (CMI), which was acquired by Kennedy Information. Wendy had returned to helm CMI in January 2007.

In an e-mail to members, Wendy wrote:
I love the fact that Career Masters/The Alliance and I have perhaps, to some degree, helped you to succeed in your businesses and your careers. The satisfaction I get when I hear how well one of our members is doing really does make me feel great. I find tremendous personal pride in knowing how far our industry has come over the past 20+ years as I have watched my colleagues grow, expand, launch new ventures, create new opportunities and so much more. What a magnificent group of people you all are and what a vibrant community we have created.

Liz Sumner will be taking over as Executive Director, effective January 1, 2008.

Bonnie Partridge will continue as The Alliance's Membership Services Director, while Liz will be taking over the E-Bridge, coordinating the associations' weekly teleseminar and webinar programs, responding to member inquiries, exploring new member opportunities and developing new programs.

Enelow says she will continue to write, teach, and serve clients.

Interview Questions to Assess the Candidate's Teamwork Talents

Is your client prepared to answer these eight questions designed to assess his or her teamwork talents?

1. Describe your relationship with your supervisor, your peers, or your subordinates (if applicable).
2. What would your present supervisor say about you? How about your peers? How about your subordinates (if applicable)?
3. What was the most difficult work relationship you encountered during your last job (or career)? How did you handle this difficulty?
4. Without using names, describe two or three of the worst people you've ever worked with. Why were they so hard to work with? How did you manage to work with them?
5. What do you look for in a supervisor? In co-workers?
6. What kind of supervision do you need?
7. How did your supervisor give you feedback in your last job? How did your peers assess your work?
8. Give me an example or two of your teamwork skills.
   

-- Reprinted from "50 Great Interview Questions," Richard G. Ensman, Office Solutions magazine, November/December 2006.