Business Information for Entrepreneurs by an Entrepreneur

Have you begun planning your tax strategies for 2009? Better yet, have you even begun thinking about them? If not, then perhaps you may want to put tax planning on the top of your to-do list - saving you from scrambling to implement your tax-saving strategies at the last minute.

Planning for Tax Savings in Advance

It is important to devote some time now to implementing your tax-saving strategies so that your tax liability will be reduced when it comes time to paying taxes. It is also important to remember that there are a number of tax provisions which are set to expire this year. Take advantage of them now to decrease your business' tax liability.

For many businesses, 2009 has proven to be quite challenging, to say the least. Therefore, for many companies, the standard race to accelerate deductions and defer income at the end of the year may not work so well this year.

Special 2009 Tax Strategies

For example, in a typical year, small businesses may choose to record income when it is received, not when an order is made, in an effort to defer income at the end of the year. However, those businesses that struggled to make a profit in 2009 may find that this is not the best course of action, as they are hoping that next year will be more profitable than this year.

• One of the tax benefits set to expire this year includes a research tax credit and a provision that allows for a 15-year amortization on any leasehold, retail or restaurant improvements.

• Another deduction involves the $250,000 Sect. 179 deduction, which gives businesses the opportunity to write off up to $250,000 worth of qualified machinery and equipment purchases; this deduction has a few provisions, however, including the fact that the equipment and machinery must be up and running before the end of the year. Both of the above deductions may be extended.

• Don't forget, of course, about making a charitable contribution before year's end. Corporations can claim a deduction of up to 10 percent of their taxable income for charitable contributions.

• Finally, get your employee bonuses in order before January 1, but pay them out in the early part of next year, before March 15. If you have a business trip scheduled for the early part of next year, consider rescheduling it to take full advantage of your business travel deductions.

As the end of the year approaches, make sure all your tax ducks are in order to enjoy the most benefits before April 2010 arrives.

California businesses are the latest group to be targeted by scammers. This latest scam certainly shows us that: (a) there is no one that scammers won't target, and (b) we must all be on high alert when it comes to giving or receiving any type of information or money.

$3 Million in Scams

The state of California is now in the process of suing six businesses and eight persons that are believed to have targeted and scammed business owners. The recently filed lawsuits, which were filed in the San Diego Superior Court, seek to recover more than $3 million dollars for the scammed businesses.

California Attorney General Edmund Brown Jr. explained that these scammers sent out official-looking documents to several California businesses that essentially convinced them to send money. Of course, these small businesses received nothing in return.

The Details of the California Scam

The lawsuits involve three separate cases, although all of the cases involved the same type of scam. The state of California accuses these six businesses and eight individuals of mailing solicitations to small business that appear to be government documents. The documents even included official-looking seals and citations to the Corporations Code. The letters stated that the businesses were in danger of losing their corporate or limited liability status unless they made a payment in a short period of time.

The first case against Anthony Williams and his fictitious company, the Compliance Annual Minutes Board, states that he sent out forms to businesses that demanded an annual fee of $150. The letters detailed that the businesses would risk losing their corporate status if they didn't immediately send the fee.

The other cases were also similar in nature, as they demanded money and used scare tactics to get it. Some of the scammers convinced businesses that were in danger of receiving fines, penalties and suspension if the fees were not paid.

The California Attorney General's Office is seeking civil penalties in all three cases, as well as injunction and other remedies and costs.

Since 2004, more than 5,000 complaints have been received the Attorney General's Office regarding these type of business scams.

Protecting Your Business

As a business owner, it is up to you to always confirm the validity of any solicitation, emails, bills or correspondence if you don't recognize it as a trusted source. If in doubt, contact your State Attorney General's Office to check the validity of the correspondence and of the company.

Technology has certainly changed the way we do business. From social networking sites to email and websites, the Internet has allowed us to market our businesses far beyond physical boundaries. The internet has opened so many doors for business owners who were once limited to their hometown.

How Small Businesses are Benefiting Online

The latest statistics on Internet use among small business, which was recently released by Citibank Small Business, shows just how much businesses have come to rely on the power of the Internet to market and sell their businesses.

For example, the survey - which was conducted over the phone with 500 small business executives (of less than 100 employees) across the country from August 20 through August 27 - showed that nearly 42 percent of small business have used their company's website as a way to generate business leads and sales.

In addition, the survey showed that 28 percent of small businesses were employing email marketing, and nearly 25 percent of the businesses were using online advertising as a way of increasing their business sales and leads.

Social Media Sites still not Taking off Among Small Businesses

However, what came as a bit of a surprise is that social media sites, such as Facebook, LinkedIn and Twitter, are not being used very often for business use. In fact, the survey by Citibank Small Business showed that just one quarter of businesses have used these social media sites to market their business.

Many small business executives saw these sites as not being very helpful when it comes to generating business leads or expanding business.

The number of social networking sites used by small businesses to seek business advice or information was also very small, as more than 86 percent of the small businesses surveyed said they have not used social networking sites for this purpose. Only ten percent of business owners surveyed actually sought out business advice on social sites and blogs.

With the popularity of social media sites taking off over this past year, it came as quite a bit of a surprise to learn that few small companies used them. However, when given the state of the economy and the difficulty that many businesses have faced over the last year, it becomes clear that many businesses were simply too focused on running their businesses and managing their cash flow to capitalize on social media sites.