The Employment Side of Starting a Business: Hiring Employees
17m
·
Get Going In Business
·
We are continuing our conversation on the ABCs of starting a business. We will follow the progress of a fictitious newly formed Yoga Studio. In episode 128 we looked at business structure and today we will focus on hiring employees. With us is Cory Johnson from Cory W. Johnson, CPA, LLC which is located in Silver Spring, Maryland. He has about 200 individual clients and about 30 business clients located all throughout the country. He provides accounting, payroll, CPA, incorporation, and tax services. Hiring Employees - Key Points When hiring employees, you can choose to hire either employees or contractors to work for your business. The front desk worker is probably an employee while the yoga instructor is most likely a contractor. Look for guidance to help you determine whether someone is your employee or a contractor. In addition to salaries, payroll-related expenses include social security, medicare, and unemployment tax payments. Use a payroll service provider to make mandated state and federal payments as well as monthly or quarterly filing of relevant taxes. Monthly, quarterly, and annual employer tax returns may need to be filed. A business owner can have a solo 401(k), but if you are employed and run a business, there are limits to what you can contribute to it. Putting money away in a retirement savings account reduces your tax obligation. Listen in and find out Cory's best tip on doing due diligence. Links and Contact Information Cory W. Johnson, CPA, LLC Email: [email protected] Here are some of our featured free resources. How Can I Organize My Financials? Should I Have A Business Plan? What Steps Should I Take Towards Branding? How Can Marketing Bring In More Clients? The Start-Up Checklist What Type Of Corporation Should I Be? Things To Consider When Scaling A Business
The episode The Employment Side of Starting a Business: Hiring Employees from the podcast Get Going In Business has a duration of
17:01. It was first published
More episodes from Get Going In Business
Making the Most of Bookkeeping Services
Do you conduct your own bookkeeping services? The tax season is upon us, a time when some business owners struggle doing their returns. On today's show, we have Kay Leland from The Bean Counters Bookkeeping LLC, located in Wilmington, North Carolina. She began her accounting career while still at school and has a master's in accounting from the University of North Carolina Wilmington. She worked for the US Army Audit Agency for some years before setting up her own business which provides bookkeeping services and accounting services to small businesses as well as teaching them how to be more efficient. Bookkeeping services - Key Points There are three different levels of accounting. CPAs will typically not get involved in regular bookkeeping. The number one tip is to outsource early and often. There are a lot of accounting certifications and many people who do bookkeeping, but you want to find someone with an accounting degree. Accounting and bookkeeping touch every part of your business. Despite its importance, it is probably one of the most ignored things because it's not fun to do. Every small business is different, therefore you want a bookkeeper to know your business and understand how it runs. How Kay helped an established restaurant business save money and become more efficient. An online business store resolved cash flow problems by learning about invoice terms. Don't let things snowball: many entrepreneurs discover issues during tax time. Be sure to establish an effective communication process with your bookkeeper. You need to have a bookkeeper who knows about your industry and thus can proactively give valuable insights for the company. Outsource everything you can, as often as possible. Tune in for practical tips to improve your business while protecting your purpose. Links and Contact Information The Bean Counters Bookkeeping, LLC Email: [email protected] Here are some of our featured free resources. How Can I Organize My Financials? Should I Have A Business Plan? What Steps Should I Take Towards Branding? How Can Marketing Bring In More Clients? The Start-Up Checklist What Type Of Corporation Should I Be? Things To Consider When Scaling A Business
When a Non-Compete Agreement Has Been Violated
Do you know what to do when a non-compete agreement has been violated? In Amit Bindra's last episode, we talked about protecting trade secrets and confidential information. We continue this conversation today by diving into what happens when you need to take an employee to court when a non-compete agreement has been violated in the workplace. We touch on what the process looks like and the impact of recent laws in Nevada, Utah, and Illinois. With us is Amit Bindra from The Prinz Law Firm located in Chicago Illinois. He uses his extensive experience in employment law to run a practice focused on non-compete agreements, non-solicitation agreements, and trade secrets. When a Non-Compete Agreement Has Been Violated - Key Points A non-compete agreement can remain valid whether an employee leaves voluntarily or is terminated. Legal redress for a violation often happens quickly. A preliminary injunction or a TRO decision (temporary restraining order) could be issued. Employees may try to file suit to declare an employer's action void or invalid. Illinois recently passed the Illinois Freedom to Work Act to protect low wage earners. Utah passed a law that a non-compete agreement that last more than one year is not enforceable. Nevada amended their non-compete law that limits enforcement if a client seeks out a former employee, rather than the employee soliciting the client. Congress recently passed the Defend Trade Secrets Act. Employers use the Computer Fraud and Abuse Act to prevent employees from accessing their computer system without permission. When drafting agreements, work with your attorney to protect the company's interests. Typically, employers include a clause in the agreements to ensure if they win, their attorney fees and expenses will be paid by the employee. We hope you enjoy listening; have a great day! Links and Contact Information The Prinz Law Firm Tales from around the Watercooler Bindra, Recent Trends in Noncompete Laws Across the United States, American Bar Association (February 21, 2018) Here are some of our featured free resources. How Can I Organize My Financials? Should I Have A Business Plan? What Steps Should I Take Towards Branding? How Can Marketing Bring In More Clients? The Start-Up Checklist What Type Of Corporation Should I Be? Things To Consider When Scaling A Business
The Employment Side of Starting a Business: Hiring Employees
We are continuing our conversation on the ABCs of starting a business. We will follow the progress of a fictitious newly formed Yoga Studio. In episode 128 we looked at business structure and today we will focus on hiring employees. With us is Cory Johnson from Cory W. Johnson, CPA, LLC which is located in Silver Spring, Maryland. He has about 200 individual clients and about 30 business clients located all throughout the country. He provides accounting, payroll, CPA, incorporation, and tax services. Hiring Employees - Key Points When hiring employees, you can choose to hire either employees or contractors to work for your business. The front desk worker is probably an employee while the yoga instructor is most likely a contractor. Look for guidance to help you determine whether someone is your employee or a contractor. In addition to salaries, payroll-related expenses include social security, medicare, and unemployment tax payments. Use a payroll service provider to make mandated state and federal payments as well as monthly or quarterly filing of relevant taxes. Monthly, quarterly, and annual employer tax returns may need to be filed. A business owner can have a solo 401(k), but if you are employed and run a business, there are limits to what you can contribute to it. Putting money away in a retirement savings account reduces your tax obligation. Listen in and find out Cory's best tip on doing due diligence. Links and Contact Information Cory W. Johnson, CPA, LLC Email: [email protected] Here are some of our featured free resources. How Can I Organize My Financials? Should I Have A Business Plan? What Steps Should I Take Towards Branding? How Can Marketing Bring In More Clients? The Start-Up Checklist What Type Of Corporation Should I Be? Things To Consider When Scaling A Business
The ABC’s of Starting a Business
When starting a business, there are steps to take in fulfilling legal, state and federal requirements. The business structure you choose determines whether you will incur double taxation or make savings by paying less in taxes. We're talking to Cory Johnson from Cory W. Johnson, CPA, LLC which is located in Silver Spring, Maryland. Originally from Baltimore, he graduated from Temple University in Philadelphia with a BBA in accounting and then worked as an accountant and auditor for Aramark, Grant Thornton LLP, and KPMG. He is currently an accountant with The Architect of the Capitol which is a federal government legislative branch agency. Starting a Business - Key Points Start with an operating agreement or bylaws. File your organizing documents in your state of residence or where you want your business to be incorporated. Before you launch your business, obtain a federal employer identification number from the IRS. Clients often don't have the tools to keep accurate financial records and are unaware of how their business will affect personal taxes. Sole proprietors end up being double-taxed on the same net profit: at the individual income tax rate as well as self-employment tax. Partnerships also incur double taxation. Most people prefer to get professional help to handle tax papers and IRS documents. The LLC is the most commonly used business structure because of the tax benefit. Cory and Hans go through an example of how you pay less tax with an LLC-S Corp compared to a sole proprietor or general partnership. Tune in for a high-level discussion on getting your business started. Cory W. Johnson, CPA, LLC Email: [email protected] Here are some of our featured free resources. How Can I Organize My Financials? Should I Have A Business Plan? What Steps Should I Take Towards Branding? How Can Marketing Bring In More Clients? The Start-Up Checklist What Type Of Corporation Should I Be? Things To Consider When Scaling A Business
Setting up a Commercial Real Estate Deal
We are continuing our conversation with Dennis Theodossis from Dixon Hughes Goodman LLP. In episode 126, we talked about the brewery industry, and today we’ll transition to commercial real estate with an emphasis on the commercial side. Find out more about starting your own business Apart from his work with breweries, Dennis works with clients in real estate and development. Dixon Hughes Goodman LLP is located in Asheville, North Carolina and has offices in 12 other states. Commercial Real Estate - Key Points Typically, in a real estate deal, one party with a great idea and concept will need to partner with investors to finance the business. The operating agreement or shareholder agreement outlines the rules of the game. Your lawyer must approve it, and you should fully understand the document. Getting things right ensures there are no unintended tax consequences. A lot of the commercial real estate and development deals taking place are transactional work. A 1031 exchange is a way to defer capital gains tax on investment property. All your hard work in planning and transactional work on a real estate deal will come to fruition on your tax return. Money received for a 1031 transaction has to be channeled through a qualified intermediary. When you’re entering into a complex transaction, you need a sizable professional team to do things correctly. If an operating agreement is not done right, it could lead to problems in future and a lot of extra costs. We hope you enjoy. Links and Contact Information Dixon Hughes Goodman LLP Dennis on LinkedIn Here are some of our featured free resources. How Can I Organize My Financials? Should I Have A Business Plan? What Steps Should I Take Towards Branding? How Can Marketing Bring In More Clients? The Start-Up Checklist What Type Of Corporation Should I Be? Things To Consider When Scaling A Business