A note from Laughlin Associates’ CEO, Aaron Young

Dear Friends,

With New Year’s weekend right around the corner, we are reminded of the many blessings we’ve received throughout 2011 and remain grateful for the things we cherish most: our families, health, and the continued pursuit of our happiness and freedom.

As we bring in 2012 and savor our time with family and friends, small business owners like you and me remember why we started our companies in the first place and just how much we appreciate the ability to control our own destiny throughout this exciting journey of business ownership.

For our team at Laughlin, this is a time where we reflect on how much we value you: our friends and clients that have motivated us to continue to serve our small business owner community over the past 40 years.

We want to take this time to thank you for your continued support and belief in all that we do here. Without you, we wouldn’t be able to touch the hearts and minds of so many entrepreneurs out there like you, working hard every day to reach their dreams.

Thank you for taking part in our continued journey to share the knowledge business owners need for success, but so often can’t get their hands on.

The last couple of years haven’t been the easiest for many business owners. By joining us this past year you have taken the right step toward building your dreams and reaching your goals.

At Laughlin Associates, our family here has grown and changed over our many years in business, and we want to thank you for being a constant reminder of what the original Laughlin family had in mind when they started this business. The goal was then and still is today, to empower you as a small business owner and to help you to proactively protect, build, and grow your business.

I know the next few years will bring real change for American small-business owners. This is our time to work smarter, not harder! I can’t wait to see all that you have in store for 2012. Thank you for continued trust and support.

Happy New Year to you and yours,

Aaron Young, CEO, Laughlin Associates

Carson City, NV—Laughlin Associates, one of the nation’s oldest incorporation services providers, will hold an open house event at their headquarters on Wednesday, October 19, 2011 from 5:30 to 7 p.m. The event entitled, “The Ultimate Success Accelerator Workshop,” is intended for small business owners either running a sole proprietorship and have interest in learning more about a Corporation or Limited Liability Company, or currently have an incorporated company and want to discover the further benefits attached with such.

“We get so many questions from people wondering what the next step is for them after incorporating a business,” said Meghan Cole, VP of Sales and Marketing for Laughlin. “We want to open our doors, meet face-to-face, and give people the answers they are looking for in an intimate setting where they can really benefit and get a lot of out it. This is not just another small business seminar. We’ll really get to the root of the issues business owners want to talk about here.”

The workshop will feature two short 20 minute presentations and offers complimentary consultations for all attendees. Anyone attending will also receive a free USB drive packed with business owner resource guides, whitepapers, past webinar presentations and videos.  

The schedule is as follows for this event:

Refreshments will be served 5:30 – 6:00 p.m. 

Risk vs. Reward—Using Corporate Recordkeeping To Strengthen Your Business 6:00 – 6:20 p.m.

The 5 Things You Must Have In Your Business 6: 30 – 6:50 p.m.

Takeaways include:

• Achieve all of your business goals
• Discover how owning a business has tons of privileges you’re not taking advantage of
• Slash your taxes to ribbons
• Make real money and keep it
• Stay in business for years to come
• Don’t work IN your business, work ON your business
• Meet other business owners and gain knowledge from their experiences

To RSVP please visit http://ultimatesuccessaccelerator.eventbrite.com or call 1-800-648-0966 and ask for Shannon John. This event is completely free to attend.

This week has been a killer one for me! Two radio interviews in the past week have really brought light to the importance of small business owners incorporating and protecting their business through diligent record keeping and compliance.  Yesterday’s interview with John Cruise with The Small Business Radio Network on Houston’s 1110 KTEK, was particularly insightful into the concerns of today’s business owners and the questions they have about just how important compliance and corporate record keeping really are. It is our firm belief at Laughlin that empowering business owners to protect their assets and shield their business from the IRS, attorneys, and other government agencies will truly create jobs, wealth, security, and a better future for America. Join us as we continue on this journey to proactively protect business owners like you and ensure that the backbone of this American economy–the entrepreneurs like you–stay afloat.

Check out my interview with John Cruise on the Small Business Radio Network here. And remember, I love getting your feedback, so you can write your comments here or drop me a line on Facebook or Twitter.

If wedding bells are in your future, your tax situation will be changing also. For starters, your tax filing status will change. You will have the choice of filing a joint return with your spouse or filing a separate return as a married person.

Filing a joint return usually gives you the bigger tax savings. Both spouses’ income and deductions for the entire year will be combined onto one return. Any deductions that are subject to limitations will be determined based on the combined income of both spouses.

In some cases, filing a separate return may save you taxes. A spouse who has high medical expenses or miscellaneous itemized deductions and low income, for example, might be better off filing a separate return.

However, you may not claim certain credits and deductions if you file separate returns.  Generally, only if you file a joint return can you claim the child and dependent care credit, the earned income credit or education credits. Filing separate returns could affect the taxability of your social security benefits and the deductibility of rental losses.

The tax law has been changed to eliminate some of the additional tax that married couples once paid (called the “marriage penalty”). However, once you marry, you should review your federal income tax withholding at work. Fill out a new Form W-4 and indicate that you are married.

Several other limitations may come into play once you get married. For example, your IRA contribution may not be deductible if your spouse is covered by a retirement plan at work and your income exceeds certain limits.

Newlyweds can be faced with a surprise tax bill on April 15 unless they do advance planning. For details or planning guidance, give us a call. You can reach me at 1-800-648-0966 or shoot me an email at rrees@laughlinusa.com.

After last week’s really inspiring Small Business Week celebration we received a lot of feedback from all of you that participated. I wanted to take away some of your questions from last week and make sure that we cover some of the topics that were brought to my attention. Thanks again for making this past week’s festivities so engaging; without you this idea would not have materialized into the successful event that we plan to make an annual celebration at Laughlin Associates.

Small Business Q & A 

Q: If I am the 100% owner of a company and I am about to take out a business loan, is it possible for me to be personally liable for paying back the loan if for some reason my company is unable to repay it?

A: This question has two answers depending on your situation. If you’re operating your business as a sole proprietorship or as a general partnership, the fact is, you’ll be personally liable for any loans or other transactions taken on by the business. If you’re business is a properly structured corporation or limited liability company, then the owners are considered to be separate from the business and should not be held personally liable for the loan, as long as you don’t sign a personal guarantee.

Q: I own a small home-based business. What are the reasons I should consider incorporating?

A: Most people incorporate to reduce their liability. Owning a corporation creates a legal separation between you and the company. This protects you from being personally responsible for the actions of your business. Only assets that belong to the corporation will be at risk for satisfying corporate debts or liabilities.

Corporations are taxed at the corporate rate, which in some cases, is much lower than the rate for sole proprietors.

An owner who also works at the business can become an employee, which makes it possible for them to obtain reimbursements for many expenses, including health and life insurance.

Overall, a corporation will provide valuable asset protection and tax benefits that will far outweigh the initial cost of incorporating.
 

Q: I have been told that my Corporation needs to comply with Corporate Formalities. Could you tell me what this means and what I need to do to maintain compliance?

A: Following corporate formalities really revolves around keeping and maintaining the proper corporate records. You should have a record book to keep documentation of all major business transactions conducted by the corporation. Items like corporate resolutions, state annual filings, financial statements, and stockholder information are all documents that need to be kept current and organized in your corporate record book.

Failure to follow corporate formalities could have a harsh outcome. Your corporation could lose its corporate status, meaning you could suffer the loss of limited liability. This could leave you and your shareholders personally responsible for the corporation’s debts. It is also possible to lose all corporate tax benefits.

For more information or to get clarification on any particular areas of concern please call us at 1-800-648-0966 to speak to a Senior Business Consultant today.