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House cleaning business – the dirty little secret

House Cleaning Business – The Dirty Little Secret

Aren’t you weary of all the books being sold that tell you how easy it is to start your own house cleaning business? I’m not inferring that all their information is bad, but let’s be honest about how “easy” it really is.

There’s a dirty little secret hanging over the cleaning trade that nobody talks about, but every professional cleaner runs into. And unfortunately, if you buy one of the books on how to start your own cleaning business, they won’t tell you about this issue and probably don’t even know it exists. Why don’t they know it exists? Because the book, more than likely, was written by a business professional and not a cleaning professional.

To share the responsibility, I’ll be honest and reveal that even the professional cleaners don’t talk about this issue. And I can’t figure out why; are they in denial, do they decide to just ignore it or are they resolved to just selling more hype?

What’s the dirty little secret that nobody talks about? The issue is that most of the customers that pay people to clean their house think you are cleaning because you can’t do anything else and automatically think you will work for pennies.

OK – I said it. Now it’s out there because I think this is an important issue that people should know before they start a house cleaning business. And it’s also important for the people that are currently cleaning to acknowledge that it exists and know there is a way around the issue.

And once you know about it, you shouldn’t let it deter you from building your house cleaning business; just know how to handle the issue for success.

I know a lot about this issue because I started my own house cleaning business and grew it into a company with teams of employees. And I didn’t just start the business and immediately hire the employees to do the cleaning. I started the business and did the cleaning myself.

I had been self employed in the computer industry doing software design and development consulting for large corporations. This is a stress-filled career because you’re on-call 24/7, must fix software problems immediately, and you have project deadlines to meet. After doing this for 18 years, I was burned out and needed a change.

I started the house cleaning business because I always had my house cleaned by professionals. And I wasn’t happy with the quality of the work. I definitely knew what customers wanted and knew I could build my business based on that.

With my business and technical background, I had no problem preparing the advertising and bidding on jobs. In fact, I landed 98% of the job I estimated. When I showed up to do the cleaning, I got a whole different reaction from my new client than when we met for the estimate.

Suddenly, they thought I needed supervision while cleaning. They also thought they could ask and get more work done for the original quote I gave them. And imagine my surprise when they started telling me what I was going to clean on their next appointment!

I had always treated the people cleaning for me with professional respect. So it took me a while and a few customers to figure out what was going on and why. Obviously, other cleaners working alone would fall into this trap and the customer got their way.

I snapped out of my obvious surprised stupor, dug in my heels and ran my business as I had planned it. I learned that when I estimated a job, the customer had to decide if they wanted what my business offered and I also had to decide if I wanted to clean for this prospect.

I used professional, custom business forms that I designed and always required new customers to sign a Service Agreement. It was up to me to decide if I wanted to bend my rule, not up to the customer to demand that I bend it.

And you know what happened? My business kept growing, the referrals kept coming in and this dirty little secret no longer affected me.

I truly believe that every house cleaner can earn a full-time income and enjoy their house cleaning business by knowing what to expect before they get into a business they may not be fully prepared for.

Incorporate nevada – why you should incorporate your business

Incorporate Nevada – Why You Should Incorporate Your Business

One of the main reasons why numerous people choose to incorporate Nevada business is because of the benefits provided in the state law. If you take the time to study the law of the state, you will find out that incorporating in Nevada is certainly very beneficial to business owners. And if you consider how your business will be affected in a good way, you will find out the big difference of an incorporated business from one that isn’t.

There are people who are still trying to find reasons why they should bother incorporating their business and there are also people who don’t fully understand how to go through the process. It is important that you should know the following advantages that an incorporated Nevada business can enjoy:

-  Unlike in other states where you are required to pay tax when you incorporate your business, the state of Nevada frees you from such obligations. Just imagine how much you can save when you don’t have to pay any personal income tax, company income tax, franchise tax and corporate share tax.

- In Nevada, your privacy is priority. This especially advantageous for people such as celebrities and popular personalities and to people who want to avail of the same confidentiality of their profile. The state also provides laws that permit the discretion of public information that the company chooses to keep private.

- Incorporating your business in Nevada is a very affordable and hassle – free process. You and your business can avail all the benefits at a very minimal cost. Just try comparing the figures with the charges that you will have to pay when you incorporate in other states, and you will realize incorporation in Nevada is definitely a good choice. Not even to mention the number of benefits.

- The IRS information sharing agreement which a great number of states compel their business to abide to is an arrangement between stockholders and IRS which requires them to share with the latter information regarding the corporation. However in Nevada, this is not necessary for stockholders. They are not required to document or report lengthy information. Moreover, the people who are in charge of the company don’t even have to be citizens of the U.S.

-The incorporation of your business in Nevada gives automatic security to your asset in an assistance called asset protection planning. Whatever happens to your business, your personal assets will remain unaffected.

Incorporation is a very beneficial step. As you learn more about the subject, it will not be very hard to see how important it is to make your business successful. Now that you have been acquainted with few of the advantages you can get from the Nevada business law, you probably have enough reason to incorporate.

Is your california limited liability company in proper compliance

Is Your California Limited Liability Company In Proper Compliance?

Copyright (c) 2009 Jeffrey Matsen

Overview of an LLC

A limited liability company (“LLC”) is a business entity which has the legal liability protection of a corporation, but is normally taxed either as a disregarded entity, if there is only one member, or a partnership if there are two or more members (“Members”). The LLC can either be member managed which is a form of direct management where the members (partners) each take part in the management of the company or manager managed which means that there is a manager that acts like a general partner who operates and runs the company.

Formation of an LLC

There are a lot of issues of entity selection that are important to be reviewed before one forms a limited liability company. The equity and tax structure of the Members needs to be examined and a determination has to be made whether the LLC should be member managed or manager managed. It is important to review these matters with a knowledgeable attorney and your CPA before the entity is formed. Often times a draft of an operating agreement is prepared before the LLC is actually formed. The operating agreement sets forth the management structure of the entity, the financial and equity structure, the tax structure and covers many other very important and significant issues. The actual formation of the LLC is accomplished by filing the Articles of Organization (Form LLC-1) with the Secretary of State. Thereafter, usually obtains a Taxpayer Identification Number. For an Offshore LLC, there must be an entity classification election Form 8832 filed with the IRS.

An LLC can have only a single Member in which case normally the LLC is disregarded as an entity for tax reporting purposes. This means that the tax information relating to the company is actually set forth on the Member’s own personal tax return and no federal tax return is required for the LLC. If there are two or more members, the LLC is normally taxed as a partnership and K-1s are issued to the Members for their own tax reporting purposes.

Maintaining the LLC

California requires that an LLC must pay an annual Franchise Tax of $800.00. The $800.00 fee must be paid to the Franchise Tax Board on the 15th day of the 4th month after the beginning of the fiscal year. For the first year, it is the 15th day of the 4th month from the date the LLC was organized. This $800.00 fee is required for every taxable year of the existence of the LLC.

LLCs are subject to a Gross Receipts Tax imposed by the California Franchise Tax Board. For LLCs whose revenue is between $250,000 and $499,999, the additional fee is $900. The fee increases to $2,500 for revenues between $500,000 and $999,999; to $6,000 for revenues between $1,000,000 and $4,999,999, and to $11,790 for revenue of $5,000,000 or more. See California Corporations Code Section 17942(a)(1-3).

An LLC must also file a Statement of Information with the Secretary of State’s office within 90 calendar days of the LLC formation. The Statement of Information must be filed yearly commencing with the end of the formation month. A $25.00 filing fee accompanies the Statement.

The LLC is an entity entirely independent and autonomous from its members and management. No personal expenditure or private transactions should be made by the LLC. All loans and other transactions pertaining to the LLC and the members should be carefully documented and only entered into after consultation with an attorney and CPA.

If an LLC is required to do business outside of its domiciliary state, it must file an application to do business in the foreign state. Some states like Nevada, for instance, require that an LLC file an Initial List of Managers for the first year and an Annual List of Managers every year thereafter until the LLC no longer transacts business in Nevada.

Steps to Ensure Your LLC Is In Compliance

Keeping track of your annual filings, company records and tax documents can be time consuming and aggravating. If you have several LLCs or LLCs that are tied into your Estate Plan, our firm has a yearly maintenance program that can substantially alleviate the time and worry you expend with respect to your LLCs and Estate Plan. For a reasonable annual fee, we make sure that your Estate Plan is properly maintained and that your LLC/LLCs are kept in proper compliance. Should you desire to further discuss the formation or maintenance of an LLC, please contact Wealth Strategies Counsel. We are here to serve you and have considerable experience and skill in the area of business entity selection and LLC formation and maintenance. Our lead partner, Jeff Matsen, has taught Continuing Education courses for other lawyers and professionals for many years. When it comes to business entity selection and LLCs, Jeff is the lawyer’s lawyer.