Minding the fiscal cliff

Warning: many readers may find the contents of the following infographic link graphic and deeply upsetting. Click at your own risk. The Wall Street Journal’s coverage of the Fiscal Cliff has been excellent. To give you an idea of exactly how terrifying the Fiscal Cliff is, check out this infographic.
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The Fiscal Cliff and AMT

Anyone who pays U.S. income taxes ought to be watching the fiscal cliff and AMT talks very carefully. Today’s Wall Street Journal summarizes what’s at stake: All the other tax increases that you hear so much about, such as the “expiring Bush tax cuts” apply to income earned in the future–in 2013. But the AMT is […]
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Hire independent contractors, not employees

 Hiring employees is, so (shall we say) 20th Century.  Employees need health care, social security taxes, state unemployment, sick days, pension plan, life insurance, disability, occupational safety, and more.  A well-trained and loyal workforce also creates huge fixed costs which you will have to meet every month before you can post a profit. Therefore, structure […]
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Assets vs. Expenses

People often confuse assets with expenses.  This is because both assets and expenses use up your funds – these are things you can spend money on. Assets provide a future benefit to your business.  They help bring in future revenues and profits.  Assets appear on the balance sheet. For example, inventory is an asset. Expenses […]
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