Small Business Reading Room

Thursday, December 30, 2004

Social Security: No I Don’t Have All the Answers

Chances are that you have been hearing a whole lot about social security lately. There are new stories, opinions and arguments every day. You can Google Social Security in the news to see that latest at any given time.

Should we be concerned?

Well, I guess that depends on each individual.

People in different stages of their life probably view this issue very differently, and when you think about it, why shouldn’t they?

Even if you don’t agree that we need to overhaul the entire system by privatizing all or portions of it, you have to recognize that some kind of reform is in order. This article found in CNN Money does a decent job of summarizing the issues of debate for those of us that need a reminder of where we stand: Social Security reform: A guide

And so here comes the New Year. President Bush has promised to address this matter and make it a priority in his new term. Ready or not, change appear to be on the horizon.

It will be interesting to see how this issue plays out. I for one feel somewhat “on the bubble”- I’ve got something to lose as well as something to gain from most proposed reforms. So far, the one plan that I like is the 6.2 Percent Solution endorsed by the Cato Institute. Will it ever happen? I don’t know. In the mean time, I’ll continue to contribute to my employer sponsored retirement plan & my Roth IRA, and dream that next year I’ll be able to max them both out.

Look for more information from me in the coming weeks along the topic of saving for retirement for small business owners.

Wednesday, December 29, 2004

Success in Selling Online

We like a good small business success story around the office.

It's the type of thing that makes us feel good about what we do.

This Wall Street Journal article targets a small business success, and is one that I enjoyed, especially since I know a few people trying to do something similar: Online Seller Succeeds In an Untapped Market.

What made this eBay merchant successful, beyond a desire to succeed, and happening to be in the right place at the right time? It looks as though he recognized a need for certain products, and worked hard to fulfill it.

The Home Based Business

The Office of Advocacy of the U.S. Small Business Administration recently unveiled a new federal government report- The Small Business Economy, 2004.

The report is based on 2003 data and outlines the state of small business and its contributions to the economy.

The findings revealed one fact that I think is interesting regarding home-based businesses.
  • Home-based businesses make up 53 percent of the small business population of the U.S.
While I do find this fact informative; I don't find it at all surprising. After all, many small businesses start in the homes, garages and dorm-rooms of America.

I know, because I talk to people like this every day.

The owners of home based and small business frequently take the step of incorporating to help separate their personal assets from their business liabilities. Oftentimes, the owner(s) of home based businesses go even further and elect to be taxes as a subchapter "s" corporation with the IRS by filing form 2553 within the first 90 days of the tax year.

Making the "s" election allows for this, helps them to eliminate the infamous "double taxation" that a regular C-corporation is subject to, and allows profits or losses to flow directly to the owner(s).

If you are starting a new home based business be sure you've looked into the advantages and protections of being an incorporated entity.

Tuesday, December 28, 2004

When Was the Last Time You Had Something to Say?

If you have something to say, you should share it.

There are many ways your voice can be heard these days. New media such as online forums and blogs seem to be particularly popular, but there's always the good old fashioned letter (or e-mail) to your local paper.

Congratulations to our own Alan Coffey for being recognized for his contribution to a recent discussion in The News Journal.

In today's opinion column by Ron Williams, Alan is credited with contributing to a discussion on Insurance Credit Scoring.

Thanks for sharing this information on a new topic that will not only affect individuals, but also small & home based businesses as well.

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Delaware Intercorp, Inc.
113 Barksdale Professional center
Newark, DE 19711-3258

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is Delaware and the best incorporator is
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