As you prepare for the upcoming tax season, we wanted to give you a brief rundown of the 2012 tax changes that may apply to you:

* PAYROLL TAX CUT for employees extended through February 29, 2012. (Social security tax rate on wages up to $110,100 will be 4.2% rather than 6.2%.)

* ADOPTION TAX CREDIT decreases to $12,650 for adoption of an eligible child.

* SECTION 179 maximum deduction decreases to $139,000, with a phase-out threshold of $560,000.

* STANDARD MILEAGE RATE for business driving remains at 55.5¢ a mile. Rate for medical and moving mileage decreases to 23¢ a mile. Rate for charitable driving remains at 14¢ a mile.

* ESTATE TAX top rate remains at 35%, and the exemption amount increases to $5,120,000. The ANNUAL GIFT TAX EXCLUSION remains at $13,000.

* 401(k) maximum salary deferral increases to $17,000 ($22,500 for 50 and older).

* SIMPLE maximum salary deferral remains at $11,500 ($14,000 for 50 and older).

* IRA contribution limit remains at $5,000 ($6,000 for 50 and older).

* KIDDIE TAX threshold remains at $1,900 and applies up to age 19 (up to age 24 for full-time students).

* NANNY TAX threshold increases to $1,800.

* TRANSPORTATION FRINGE BENEFIT limit decreases to $125 for vehicle/transit passes and increases to $240 for qualified parking.

* SOCIAL SECURITY taxable wage limit increases to $110,100. Retirees under full retirement age can earn up to $14,640 without losing benefits.

* HSA CONTRIBUTION limit increases to $3,100 for individuals and to $6,250 for families. An additional $1,000 may be contributed by those 55 or older.

If you have further questions about the tax changes that may apply to you and your business in 2012, give Laughlin Associates a call at 1-800-648-0966 or drop us a line to get a qualified referral to an experienced CPA.

*Tax information courtesy of Mostad and Christensen, Inc.

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

Nevada LLC- Forming a Business

Forming a Nevada LLC can be an advantageous move for any business. The state does not require income taxes for individuals or corporations, which makes it a very popular place to live or own a business. However, you must keep in mind that unless you are a Nevada resident operating a business strictly in Nevada, you will need to apportion the other operations of your business to states where they occur. Therefore, if you don’t work solely in the state of Nevada, you still end up paying some taxes for the other states that you’re operating in.

One of the many advantages of having a Nevada LLC is that the company directors, shareholders, and owners don’t have to live in the state. Business proceedings don’t even have to take place in the state of Nevada, and it’s the invested parties aren’t even required to be US citizens. However, you need to keep in mind that any business proceedings that are conducted outside of the state of Nevada will be subject to the business laws and regulations in the state where they are conducted. Still, having a Nevada LLC can be a big advantage.

You can form a Nevada LLC for a business entity, or even if you just want a means of personal assets protection. The protections afforded by the state of Nevada for corporations keep personal assets from being attacked by people who file lawsuits or creditors seeking retribution. Another is managed of forming a company in the state of Nevada, is that there is much more privacy afforded to corporations. With fewer disclosure requirements and less public information about the businesses, many high profile business owners seek a corporation in the State of Nevada to maintain their privacy.

Forming a Nevada LLC is not a complicated process. As long as you utilize the professional resources that are available to you and take the time to understand what you’re getting into, you can easily read the rewards of Nevada incorporation in owning a Nevada LLC. It doesn’t matter whether you have a few real estate properties that you want to protect through an LLC, or if you have a full scale business operation that needs to be incorporated. Your reasons for incorporating within the state of Nevada or forming an LLC don’t matter so much because of the fact that you can do it for just about any reason you can come up with.