independent contractor agreement

4 Kasım 2012 Pazar

"I'm a new business owner -- how many different types of taxes do I need to pay?"

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Today, our friend, D Zorea of DDZ Accounting Group, submits the following article:

If you're a new business owner and are feeling overwhelmed by the prospects of paying too many taxes, it might be because there are so many different types of taxes for which to account. Depending on your type of business, an Illinois business owner will be liable for different taxes including (but not limited to):

Sales: Does your business sell widgets, or food products? You are responsible for collecting the state (and sometimes local municipality's) Sales and Use Tax and remitting these back to the appropriate taxing agencies. Sales tax rates can range around 7.5% to 10%.
Payroll: Do you have employees? You will be matching your employee's payroll withholding taxes, as well as contributing to federal and state unemployment insurance premiums based on your employees' earned wages.
Franchise: The state of Illinois charges a Franchise tax of 1.5% for corporate business owners. This includes LLC, C-corporations and S-corporations, but not sole-proprietors or unincorporated partnerships.
Income: Similar to sole-propietorships, S-corporations and LLC's are considered "pass-through" entities. In other words the net profits of those businesses "pass-through" to their owners and are taxed at the business-owners' individual tax rates. The income tax returns for S-corps and LLC's generate a K-1 form for each shareholder or LLC member; these are the business owner's equivalents to an employee's W-2 form. However, different from a W-2 which typically already includes income tax withholding, a business owner with net-income from his/her business can either file and pay quarterly estimated taxes throughout the year or pay the lump-sum with the year-end income-tax return.

For the above taxes, the IRS and Illinois state agencies may apply late file or late-pay penalties; so work with your tax-professional to calculate the correct taxes due, maximize your tax return, file on time, pay on time, and save all that time and headache of doing it alone. For other questions, please contact D Zorea at DDZ Accounting -- e: d@ddzgroup.com, p: 630-368-0183, other client-testimonials at www.facebook.com/ddzaccounting.

O'Flaherty Law is based in Downers Grove and Chicago, Illinois. Our attorneys have expertise in Corporate Representation, Commercial Litigation, Divorce, Bankruptcy, Estate Planning, and DUI defense. Please visit our website at www.oflaherty-law.com for more information and resources or e-mail us at info@oflaherty-law.com with any questions or suggestions for future articles.

Tenants' Rights 101

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Most apartment tenants have a horror story or two: busted pipes, leaks, mold, infestation, horrible neighbors, etc.--and many of these apartment tenants probably did nothing about these horror stories, believing that their only remedy was moving out. Historically this was the case, but today tenants have a variety of rights to ensure that they live in peace and comfort.
Implied in every lease is an implied warranty of habitability, which requires that the apartment be maintained in a livable condition by the landlord. Working pipes, plumbing, heat, removal of insects and rodents, and keeping the premises within the housing code are the some of the basic requirements of this warranty.
If a breach of the implied warranty of habitability arises and the landlord fails to remedy the problem within a reasonable time, the tenant has several remedies. The tenant may (1) move out and terminate the lease, (2) repair the problem and deduct that cost from the rent, (3) reduce the rent by the damage done, or (4) sue for damages. If the tenant does not wish to take advantage of these remedies, he or she should document all of the damage to ensure that the security deposit is not reduced due to the landlord’s negligence.
Additionally, If the tenant entered into a nice, clean apartment with relatively high rent, only to see the place fall into disrepair, the tenant can sue to have rent reduced by the lowered property value of the premises.
Tenants may not own their apartment, but they do own the possessory right to that apartment: they are entitled to exclusive possession of their entire apartment for the term of the lease. Unless the law of the city provides otherwise, even landlords are not allowed to enter a leased apartment without permission. If the landlord does so he or she is committing a trespass.
Further, Landlords cannot evict tenants without good cause. Good cause generally requires nonpayment of rent for no reason, illegal activities, or severe damage to the building. Historically a landlord could personally enter into your apartment and evict tenants, but today only police are allowed to evict tenants, and they need a court order to do so.
Every city has different rules regarding landlord-tenant relations. Therefore, you should consult with an attorney to determine your rights and remedies before taking action against your landlord.
--Submitted by Eric Turner

Are Appliances Included in Total Cost to Build a House?

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Carl, I was wondering if the cost to build a house usuallyincludes appliances.

Thank you, Mary

Hi Mary,

Yes, usually 1% to 2.0% of the total cost to build is allocated for appliances.

You can spend more, or you can spend less, but this is the national Average.

Check out the appliance categories on the the charts below.

And, be sure and read my pages on Cost Estimating and Cost Estimating Explained.
Thanks for writing. Your question is a good one!.

Carl Heldmann
www.byoh.com

What is Builders Risk Insurance

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Carl, I'm going to build my own house near Jacksonville, NC, and I'm confused about insurance requirements. I know that the contractors I hire should have workers comp and general liability, but what should I have in addition to theirs?

One agent says only Builders Risk (BR) insurance and tells me it covers damage to the property and also includes up to $1 million of personal liability for third parties that may get injured on the property.

Another agent says BR only covers the property, not liability, and that I should get a General Liability Policy.

Yet another says I should try to extend my current homer owners policy (different residence) to cover a 2nd residence.

And, they all require 2 yrs experience in residential home building. Why? What difference should that make to an insurance company? They are only insuring the home up to its' value at the time of a claim.Can you identify any companies that are less stringent.Can you offer any advice and/or contacts? Roger

Hi Roger, the first agent has it right. To see why, read Construction Insurance-Builders Risk Insurance-Hazard Insurance-Homeowners Insurance

As for the required 2 years of experience, who knows? It makes no sense to me other than some insurance companies have more stringent underwriting policies than others.

I suggest using an insurance broker. Brokers have access to, and do business with, many insurance companies, whereas agents are usually limited to the policies of their insurance company.

It is the same way with mortgage loans in the mortgage industry. Brokers have access to, and do business with, many mortgage lenders, whereas loan officers in banks are limited to the policies of their bank.

Brokers can usually find what you need, or they don't get paid.

Carl Heldmannbyoh.com

Ask the Architect

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Architectural home design can make a better use of space. In new home building, "bigger" is not always the answer, but "better" is.

Here to answer your questions on new home design and related issues is Harvard trained architect, David Moore, AIA.

David has experienced home construction from many points of view: as an architect, a carpenter, a general contractor, a speculative home builder, and a homeowner.

You can ask David questions concerning the design of your new home, room addition, major home remodeling, or home renovation.

Read more about this free feature on byoh.com at Ask the Architect.

Carl Heldmann, byoh.com

13 Ekim 2012 Cumartesi

Videoblog: O'Flaherty Law Small Business Seminar

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Please enjoy part 1 of the Small Business Primer seminar presented by O'Flaherty Law and DDZ accounting. Parts 2 and 3 of this seminar can be found on our youtube channel along with our previous seminar on wills and trusts and all of our informational videoblogs.

The topics discussed in our Small Business Primer seminar include:

I. Entity Selection - how to choose between S Corps, LLCs, C Corps, and Partnerships

II. How to get your business up and running

Incorporation and maintenance of your corporate book
Quickbooks
The initial meeting with your accountant
Insurance
How to obtain an EIN (Employer Identification Number)
Contacting the Illinois Department of Revenue for a Tax Identification Number
Dealing with special licenses and regulations that are necessary for your particular business

III. How to make the transition to being an employer

Hiring a payroll service
Dealing with benefits - steering clear of ERISA problems
Obtaining Department of Labor posters
Registering with the Illinois Department of Employment Security & Dealing with Unemployment Insurance
Worker's Compensation insurance
The elements of an employment agreement

Non-compete clause
Confidentiality of trade secrets and other info
Enforcement clause
Probationary period

Creating an employee handbook for systematized and documented expectations and discipline
The importance of termination letters
Considering independent contractors as an alternative

IV. Finding space for your growing enterprise.
If you are a small business owner, please do not hesitate to contact us with any questions you may have, or to set up a free consultation.

"I'm a new business owner -- how many different types of taxes do I need to pay?"

Sales: Does your business sell widgets, or food products? You are responsible for collecting the state (and sometimes local municipality's) Sales and Use Tax and remitting these back to the appropriate taxing agencies. Sales tax rates can range around 7.5% to 10%.
Payroll: Do you have employees? You will be matching your employee's payroll withholding taxes, as well as contributing to federal and state unemployment insurance premiums based on your employees' earned wages.
Franchise: The state of Illinois charges a Franchise tax of 1.5% for corporate business owners. This includes LLC, C-corporations and S-corporations, but not sole-proprietors or unincorporated partnerships.
Income: Similar to sole-propietorships, S-corporations and LLC's are considered "pass-through" entities. In other words the net profits of those businesses "pass-through" to their owners and are taxed at the business-owners' individual tax rates. The income tax returns for S-corps and LLC's generate a K-1 form for each shareholder or LLC member; these are the business owner's equivalents to an employee's W-2 form. However, different from a W-2 which typically already includes income tax withholding, a business owner with net-income from his/her business can either file and pay quarterly estimated taxes throughout the year or pay the lump-sum with the year-end income-tax return.