Entrepreneurial Spirit

In these difficult economic times all of us will be required to push harder and work smarter. We may find that the ways we were making money before the financial storm are no longer adequate. This is an opportunity to no longer let our work lives idle. Just as we have learned to make our financial resources stretch further, we can also stretch our repertoire of skills to increase our productivity. In fact, these are times of abundant opportunities. All we have to do is recognize them. Entrepreneurs are too busy to sulk. They do not get trapped in the nets of politics and market fluctuations. Entrepreneurs recognize their surroundings.

Instead of worrying about the future take action in the present to ensure your businesses learn, adapt and survive, no matter what kind of situations are thrown at them. While others are worried about drowning, the entrepreneurial spirit is busy taking action to keep from drowning. Worrying will not keep you from drowning, but the action of kicking and swimming certainly may.

We must strive to remain active in the uncertain times. This will not only keep us acquiring and fine-tuning new skills, but it will also keep us in the frame of mind that indeed can adapt to our surroundings and possibly excel in such hard times. We need to no longer buy into the effortless "get-rich-quick" schemes, but rather prepare ourselves for the hard work necessary to become successful when the economy is recessed.

American Recovery and Reinvestment Act

According to the National Federation of Independent Business, small businesses generate over 80% of new jobs in the United States annually. To maintain this high rate, the stimulus package provides tax incentives to small business owners for hiring new employees. Among the benefits is a tax credit of $2,400 for business owners who give a job to a new employee who falls in a targeted group of disadvantaged individuals. Also, the so-called Work Opportunity Tax Credit allows a 40 percent tax claim on the first $6,000 in wages paid to these new workers. The category of disadvantaged individuals now includes veterans who have left the military within the last five years as well as "disconnected youth."

These new incentives from the federal level coupled with the favorable tax structure from the State of Nevada are certainly incentives to starting a business in this economic climate.

For more information visit the SBA's website, www.sba.gov, to find a number of useful tools for entrepreneurs, including a tax-benefit fact sheet, an on-line tax benefit seminar and a depreciation calculator.

Entrepreneurs

It is no secret that many financial experts have a great deal of faith in the ability of entrepreneurs to start a successful small business and, in turn lead us out of this recession. Traditionally, small businesses, if not killed by a recession have shown the ability to rebound quicker than larger conglomerates. However, it takes a great deal of confidence for someone to start a business when the current financial climate lack reasons to build confidence.

Entrepreneurs are typically a confident bunch, and even within the economic stranglehold, many of them are finding reasons to support their decisions to start or grow a small business. For instance, thanks to the American Recovery and Reinvestment Act, small businesses with less than $15 million in gross receipts are now able to claim tax refunds by applying operating losses suffered in 2008 and 2009. Another provision awarded the Small Business Administration (SBA), which is responsible for teaming with banks to lend money to small businesses, enough money to waive the fees associated with lending for possibly the rest of 2009. Stay tuned for more on the provisions of the American Recovery and Reinvestment Act.

Bank Accounts

In an interesting development Wells Fargo Bank has decided to stop opening Resident Agent Accounts. The Resident Agent type of accounts are those where you did not need to come into the bank to open the account. You would fill out all of the paperwork and send it in along with your tax returns, verification that you are you via ID and utility bills. I do not understand how these can be problem accounts as they are completely verifying everything about you. But I do find it interesting that this occurs after the federal government "bails" them out. Anyone else find this interesting?

It's been awhile

Sorry it's been awhile since we blogged. We have been running around trying to find a new bank to work with. Surprisingly Wells Fargo called us the other day and said that they will no longer be opening Resident Agent accounts (as they call them). That means that no longer can accounts be opened through the mail. You will need to go to the bank to open the account. This puts a damper on things. It makes me wonder how much of this is due to the government giving funds to Wells Fargo?

State Tax Increases

The supporters of the $787 billion stimulus package , back in February, were armed with arguments that the package would limit the need for states to increase their taxes. Now, those arguments are being smashed with tax-hike proposals, in at least 10 states. While our federal government runs wild with deficit spending, many state constitutions prohibit carrying a deficit into the next fiscal year. Unlike Nevada, where there still are no state income taxes and corporate income taxes, New York, Arizona, California are leading the march to boost taxes. New York, for example, has raised taxes 68% from 6.85 percent to 8.97 percent at the top income level.

States with huge tax hikes are making it more expensive for people and, maybe more importantly, businesses from other areas to relocate to their state. There is also a significant amount of research that shows a link between state tax increases and a rise in the number of people fleeing the state.

This is one reason why we at Silver Shield Services, Inc. feel it is a smart business decision to form and domicile your company in Nevada. Please feel free to call us at (775) 577-4822 to discuss the advantages of incorporating in Nevada.

The New Year

I don't know if anyone else has noticed the increase of attorney commercials on TV lately. As I sat watching TV the other night I saw 8 attorney commercials in a 30 minute show. Apparently the attorneys realize that now is the time for people to start suing each other and they want to get their names in front of you. Why not? Out of work? Let's find someone to sue. That should carry us over for awhile. As sad as that sounds it is true.

So now is the time to take a look and see if you are protected adequately. (After the lawsuit starts is not the time to try and protect your assets). If you are not sure or you want some help please give us a call and we can help you determine where you stand.