Sign & Digital Graphics

June '18

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S I G N & D I G I T A L G R A P H I C S • June 2018 • 29 Depending on the nature of the claim and/or the casual involvement that your wife or husband may have in the business, a spouse's assets may also be targeted. Fortunately, most states have adopted legislation that guards some of your pos- sessions in an action against creditors, but to exercise that protection, you may have to declare bankruptcy. Sole proprietor- ships normally end upon death, disability, bankruptcy or retirement of the owner. The beauty of operating as a sole pro- prietor is the simplicity of administra- tion, and the wide latitude you are given in making business decisions. You're not bogged down with the detailed recordkeeping requirements, filing fees and other administrative costs that are required of corporations and partner- ships. And all revenue that flows into the business is treated as though it is individual earnings and is taxed at your individual rate. You are able to take business deduc- tions against not only your business income, but from any income, regardless of the source, because all your income and losses are lumped together. Expenses such as travel, meals, entertainment and automobile mileage all become deduct- ible, if they were incurred while conduct- ing business. A word of caution: Keep your personal and business expenses separate. Failing to do so is one of the most common mistakes made by small business owners. And even though your business may be small, you still should find yourself a good accountant and/or tax preparer in order that you may take full advantage of the tax credits from individual retirement accounts ( IRAs), self-employed pension plans (SEPs), Keogh plans, or putting other members of your family, such as children, on your payroll. Howdy, Pardner! When a business has more than one owner but still is unincorporated, its cor- porate structure is considered a partner- ship. There are two types of partnerships: general and limited. Partnerships have been around ever since the first lawyers and accountants popped up. Actually, about eight percent of all U.S. companies are organized as partnerships. This type of entity works best for service-oriented businesses, such as consultancies and law firms, to name a few. Management of and profits from the business are shared between the partners in accordance with the terms of a part- nership agreement, which can be written or oral. And here's where things can get tricky. Unless you want to invite trouble later, you should describe the partnership in terms of control, liability, tax burden and administration. Many partnership agreements are not written because peo- ple mistakenly think it has to be writ- ten in some specific format and has to be composed by a lawyer. Not so. You can write it yourself, but here are some questions that should be asked, consid- ered and answered as you craft your well- written partnership agreement: • How much will each partner con- tribute? • Who is going to perform the work? • How much will each partner be paid for his or her contribution? • How will profits be divided? • If a partner makes a loan to the business, will interest be paid? • Who owns the customer list and how will the assets be divided if the partnership dissolves? Sounds like a pre-nuptial agreement, doesn't it? And not by accident, either. If these questions can't be answered while Owning and running a business in today's litigious society makes it nearly imperative that a company incorporate. Register Now: THENBMSHOW.com or call 800.560.9941 Cleveland June 15-16, 2018 Education Begins June 14 Greater NYC/Meadowlands August 23-24, 2018 Education Begins August 22 Long Beach August 2-4, 2018 Education Begins August 1 TRAINING in the HALL MultiCraft Inc .............................. 531 TRW ........................................... 709 Wensco Sign Supply ................... 203 TRW ............................................ 711 3M Commercial Solutions ........... 549 ALLTAK ....................................... 359 CADlink Technology Corp ............ 225 Canon Solutions America ............ 133 DUB IR ........................................ 159 Equipment Zone ........................ 1027 General Formulations Inc ............ 311 Grimco Inc .................................. 339 HEXIS ......................................... 439 Hirsch Solutions Inc .................... 917 IEC-Interstate Electric Co ............ 317 JDS Industries Inc ....................... 303 Johnson Plastics Plus ......... 425, 525 KPMF USA Inc ............................. 151 Mimaki USA ................................ 403 Montroy Sign & Graphic Products .. 145 Mutoh America Inc ...................... 205 OKI Data Americas ...................... 217 ORAFOL Americas ....................... 247 Rayzist Photomask Inc ................ 511 Roland DGA Corp ........................ 139 SCG Digital America Inc .............. 639 TRW ........................................... 825 The Wrap Institute ....................... 459 Vastex Intl Inc .............................. 939 TRAINING STOP

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