#1. Think in Terms of Value, Not the Lowest Price

Value trumps price almost every time. So many small businesses get started with the idea that they need to be the cheapest. Sometimes, this is just not practical. Instead, think in terms of value. If your product costs more than the competition, the question is “why?” Do you offer 24/7 customer support? Does your product contain higher-end materials? Once you’ve identified the benefits of your small business, you can accurately estimate a reasonable cost (and you can use this list of pluses in your advertising efforts, too).

#2. Always Consider Your Community

No, I don’t mean you should investigate your market (you’ve probably already done that). As a small business owner, you should consider ways to engage the community around you. Often these people are able to be direct consumers of your product or, at least, champions of your business.

Some ways to engage them include:

• Partner with other local businesses. Not every nearby business is a competitor. Think of ways to get to know the other owners. This could be as simple as a monthly meeting to discuss events, partnerships or general community needs.
• Address needs in the area. This doesn’t have to be costly! It could be hosting a fundraiser for a local softball team or having a clothing drive for a nearby shelter.
• Host local events. Does your business have a storefront? Invite local artists and host a gallery opening with a free wine and cheese night. This is a great way to meet citizens in your area.

When you become a known part of the community, you create a firm foundation for your business, becoming integral to the region. Plus, improving the community is always a good thing.

#3. Create a Business Plan—but Make It Flexible

This is one of the most widely ignored small business tips, and it can be the most detrimental. You cannot go into business without a plan (or, you shouldn’t). This plan should include things like the value of your business, your current business strategy and a list of future goals with a well-thought-out timeline.

Once your plan is established, make sure it’s flexible. There will be unforeseen twists and bumps in the road toward success. You’ll want to be able to deviate from the plan when needed while maintaining the core elements that spurned the birth of your business in the first place.

#4. Address the Financials

Okay, here is the boring stuff (unless you’re us, of course). Along with your business plan, you will need a financial plan. There are many things to consider, including start-up costs, tax plans, and measurements for profits and losses. A trusted accountant should play a big role in this step.

#5. Take Ample Time for Hiring

As an owner of a small business, it’s easy to want to have a hand in everything. After all, this thing was built from your blood, sweat, and tears (and savings account). However, feeling the need to micromanage everything will burn you out very quickly.

Consider these two tactics:

• Hire excellent individuals. Hiring the best doesn’t necessarily mean the most experienced (and most expensive). Instead, look for candidates who seem genuinely interested in your business and have proven themselves to need little oversight in producing excellent work. Candidates like these usually come with stellar references and great examples of past performance. Keep in mind, these examples may have stellar academics, community engagement or club participation—anything that will show they’ve been able to complete big tasks with little coercion.
• Outsource to industry professionals when needed. When you inevitably reach a point within your business that cannot be done by you or your employees, hire outside professionals. This may mean a specialist in your particular industry or a marketing firm. These professionals allow you to avoid reinventing the wheel, so you can focus on profitability and expansion.

Some of these small business tips we knew immediately, and some we have learned over time. Hopefully, they will all prove useful to you in the growth of your organization. If you run a local or a small business and need a bookkeeper or a professional tax preparation specialist, contact Direct Tax Relief. We’ve been in business for over ten years and have helped small business owners become more successful with the best state and federal tax strategies for their situation.

The post 5 Overlooked Small Business Tips (Yes, Taxes Are Included) appeared first on Direct Tax Relief.

New Overtime Rules in a Nutshell

Beginning December 1 of this year, the overtime threshold for salaried employees will change from $23,660 to $47,476, meaning many exempt status employees will now be classified as nonexempt. In layman’s terms, if you have salaried employees earning under $47k, they may now be eligible for overtime pay if their weekly total hours worked exceeds 40.

Impacts on Small Businesses

The National Federation of Independent Business (NFIB) estimates these changes will affect 44 percent of small businesses, with the Department of Labor estimating a $1.5 billion cost to employers (and that includes roughly $300,000 in related administrative expenses). Many speculate that these changes could also lead to an increase in wage dispute-related lawsuits. In any case, small business owners will need to complete a plan to deal with the new overtime laws as soon as possible.

Effects on Employees

According to the Los Angeles Times, roughly five million workers, or about 40 percent of the country’s salaried employees, will be directly impacted by this status reclassification. While intuitively it may seem that these new rules will equal increased pay for overworked employees, in reality, this will probably not be so.

For small businesses unable to afford overtime pay, many newly nonexempt, salaried workers will be moved to hourly employees. The Fiscal Times believes this may mean a loss of flexibility offered by a salaried position. The fiscal impact to small businesses could also equal a reduction in promotion opportunities for employees and slowed job growth as employers process the changes.

Small Business Options

There are a few things small businesses will need to consider with the coming overtime rules. To start, employers should compile a list of all employees earning below the threshold.

Things to keep in mind:

• Also called the “white collar” exemption, employees in executive, administrative or professional roles who earn below the threshold will remain exempt. Want to determine who fits within this list? Compile a list of primary responsibilities for each employee.
• Up to 10 percent of non-discretionary bonuses and commissions can be included when calculating employee salaries. This means that these employees may potentially remain exempt depending on your earnings structure.

Once all of the non-exempt employees are identified, employers will need to consider if a boost in pay or conversion to hourly wages will be the most beneficial. As a note, employees converted from salary to hourly may consider this a demotion, so employers risk a loss in company morale with this option. For the best business protection, employers will also need to implement a way of tracking weekly hours for the office and, more than likely, discourage overtime among non-exempt staff.

The new overtime rules add costs to small businesses and complexity to payroll taxes. If you are a small business and need assistance with tax preparation and bookkeeping, contact our sister company, Connected Tax Solutions.

Sources

• https://www.nfib.com/content/issues/alabama/new-overtime-rule-add-costs-to-small-businesses-and-hurts-workers-70007
• https://www.foxbusiness.com/features/how-will-new-overtime-rules-affect-you
• https://www.latimes.com/business/la-fi-obama-overtime-rules-explainer-20150630-htmlstory.html
• https://www.thefiscaltimes.com/Columns/2016/05/22/Three-Ways-Obama-s-New-Overtime-Rule-Hurts-Economy-and-Workers
• https://www.cfo.com/compensation/2016/06/new-overtime-pay-rules-adjust/

The post The New Overtime Rules: What They Mean to Small Businesses (and to All of Us) appeared first on Direct Tax Relief.

How Is This Possible?

There seem to be myriad ways profitable corporations escape taxes. Some utilize deductions based on prior-year losses, while nearly all hide assets in off-shore accounts. That’s right! According to Citizens for Tax Justice, most Fortune 500 companies have been linked to established, off-shore subsidiaries. Unfortunately, small businesses don’t seem to have the same tax shields (or be able to utilize the same accountants) as these giant corporations. Meaning, they are left to pay roughly 35 percent federal income tax on profits.

Are Small Businesses Really Threatened?

Yes!

According to regular surveys by the National Federation of Independent Businesses, since January small business owners have reported record confidence lows. Business owners considered 2016 an especially bad time to expand, citing low sales and an unstable political climate. This all equals fewer job opportunities and stagnant economies. However, despite the lack of growth, the IRS will still be knocking. It’s no wonder so many small business owners have had to seek out tax debt relief services.

Why Isn’t the Threat to Small Businesses Being Addressed?

In such a heated election year, you would think the decline of small businesses would be a major topic. Instead, it has mostly gone unnoticed. Honestly, it seems like no one has addressed this issue because no one knows how to fix it. If the government can’t collect taxes from corporations, they’ve got to collect them from somewhere. And that is how small business owners end up stuck with the bill.

Are You a Small Business Owner in Need of Tax Debt Relief?

Let the professionals at Direct Tax Relief ease the stress of dealing with the IRS. Our tax relief attorneys understand small businesses and the steps necessary to get you tax relief. 1-877-505-4829.

Sources:

• https://www.forbes.com/sites/markavallone/2016/03/02/u-s-small-business-confidence-at-2-year-low-3-tips-for-small-business-owners-facing-an-economic-slowdown/?sh=432106cc3259
• https://www.washingtonpost.com/news/on-small-business/wp/2016/04/18/gene-marks-why-small-businesses-are-not-feeling-so-sunny-these-days-just-do-the-math/
• https://www.inc.com/magazine/201505/leigh-buchanan/the-vanishing-startups-in-decline.html
• https://www.nfib.com/surveys/small-business-economic-trends/

The post Small Businesses May Need Big Tax Debt Relief appeared first on Direct Tax Relief.

Many taxpayers that are new to self-employment don’t have the proper guidance from their accountant or CPA and incur a large tax liability when it’s time to file their tax return. Since many self-employed taxpayers are not aware that the law requires them to make quarterly estimated tax payments, they start having IRS tax problems and fall out of compliance with federal tax laws.

In 2012, Direct Tax Relief  helped over 1,000 taxpayers resolve their back tax problems. DTR consists of Certified Tax Attorneys and IRS Enrolled Agents that are very successful at negotiating and mediating with the IRS and State tax agencies.

Often, when a taxpayer becomes aware that they will owe a large sum of money due to self-employment or insufficient withholdings from their pay, they become frightened at the consequences and fail to file their tax return. This pattern of not filing returns usually repeats for a few more years until the IRS gets involved and files “Substitute Returns” on the taxpayer’s behalf. According to Tax Attorney and Certified Tax Resolution Specialist John Holland, this is the worst scenario that can occur, because he states “The IRS files your return based on income from 3rd party sources. You don’t choose your filing status, any dependents, or are able to claim any business expenses”.

The IRS has recently expanded its “Fresh Start” program, allowing more taxpayers than ever to qualify for an Offer in Compromise. The Offer in Compromise program allows taxpayers to settle their back taxes for a fraction of what they owe. Direct Tax Relief negotiates settlements for their clients at an average rate of 12 cents on the dollar. That means a taxpayer who owes the IRS $30,000 in back taxes can potentially settle for only $3,600!

If you have unfiled tax returns or owe the IRS or State over $10,000 in back taxes, contact Direct Tax Relief today. Contact us for a free consultation and find out if your tax situation qualifies for the IRS Fresh Start Program. If there is a fit, our certified tax attorneys and enrolled agents can manage all communication with the IRS and handle your case from beginning to end.

The post Resolving Tax Debt Problems with IRS Fresh Start for Self-Employed Taxpayers appeared first on Direct Tax Relief.

Payroll tax problems can be overwhelming for you, the business owner. That is why it is crucial to have a knowledgeable and dedicated Tax Attorney on your side that will fight for your rights. The tax experts at Direct Tax Relief will handle your payroll tax problems and negotiate with the IRS so you can concentrate on running your business.

As an employer, businesses are responsible for withholding several types of payroll taxes including federal income tax, Social Security tax, and Medicare tax. The business is also required by law to match the Social Security and Medicare portion of the taxes. Payroll taxes are commonly referred to as 941 taxes, named after the quarterly form that is prepared and filed with the IRS.

Recently, form 944 was introduced, but only businesses notified and granted by the IRS are allowed to file form 944, which is an annual payroll return. If these payroll taxes are not paid on time, the IRS can and will seize business assets such as business equipment, automobiles, bank accounts, and accounts receivables.

Contact Direct Tax Relief for a no-cost or obligation analysis. Direct Tax Relief is tax debt resolution company and can help solve your payroll tax problems.

The post Payroll Tax Problems (aka IRS Tax Form 941)? appeared first on Direct Tax Relief.