There are several tax-saving options available to you now, even though 2011 is over.  A big one available to you right now is your retirement plan if you did not contribute in 2011.  A SEP/IRA is a great way to sock money away for 2011 in 2012.  You can have one of these even if you had no employees in 2011.  With a SEP/IRA you don't have to pay a third party administrator like you would a 401(k).

Determining the proper retirement plan for you and your business is crucial.  Don't place all of your trust in the financial retail houses or banks to do it for you.  Trust an independent firm with over 25 years of experience in areas of  tax-savings plans, tax planning, and guaranteed financial products.

Look in the "Testimonials" area of our website and see what we have done for other small business clients just like you.  Email us or give us a call today for a free, no-obligation review of your 2011 tax picture.

TO LLC OR NOT LLC, that is the question.  LLCs are becoming a more popular form of business structure (especially in Louisiana) for businesses.  But you have to be careful that you do more than just go to the attorney’s office to sign paperwork.

You have to make sure you understand the tax ramifications of forming an LLC.  If you are not careful you could pay more than 33% tax on any profits at the end of the year.

LLCs can be taxed a either a: (1) a super sole-proprietorship, (2) partnership, (3) CCorp, or (4) SCorp.  Which form you choose has a huge impact on your taxes at year-end. 

IRS gives you relief should you, for example, formed your LLC in 2011 as a pure LLC, but later you would like your tax treatment to be more favorable.  You guessed it.  You need to file another form. And IRS gives you up to 24 MONTHS to file provided the right language is used on the form.

Correctly set up, an LLC can have a great positive impact on you and your business.  Properly maintained an LLC can shelter your personal assets from lawsuits, and is exempt from paying Louisiana franchise tax.

This information is brought to you by Rabalais Business Consulting and Wayne Rabalais. This firm is a BBB accredited service provider. Wayne Rabalais has been in business over 25 years, and sits on the NFIB Louisiana Leader Council.  You can reach Wayne at 337-981-2577 or by email at wayne@rabbiz.com 

Here at Rabalais Business Consulting your small business is big business to us.  We specialize with working with the small business, the "mom and pop".  We can help you get your paperwork organized, make sure your taxes get filed correctly and on time, give you on-going tax savings advice during the year.   We also do small business loans and offer safe,secure retirement products.

Yes, we are in the thick of the 2011 tax season, but you still have time to greatly impact how your 2011 taxes will pan out.  How? 

Give us a call for a free, no-obligation tax review.  At the review, we look at your past 3 years' personal and business tax returns in strictest confidence. From our more than 25 years' in working with small businesses like yours, we can just about guarantee that you left money on the tax table; especially if you used one of the big box tax prep chains.

Contact us today to schedule your free tax review, and get your 2011 tax season started right!

So right now, while you're thinking about it, call Rabalais Businesss Consulting.  The small business specialists at Rabalais Business Consulting understand how planning during the year helps you sleep better at night.  They'll show you affordable and easy ways to organize your paperwork, send in the proper forms to the IRS and to Louisiana, on time, respond to "ugly mail" from government agencies, provide advice all year, and prepare your tax forms at the end of the year.

After all, you'll have better things to do in December than worry about what you should have done today. Call Rabalais Business Consulting at 337-981-2577 for a no-cost, no­ obligation review.  Or visit us on-line at www.rabbiz.com.  Rabalais Business Consulting, we are the small business specialists.

You don’t have to be on the edge about small business problems anymore.

“Safe Money”, especially when discussing IRAs, 401(k)s, 403(b)s, Pension Plans, etc, meansGUARANTEED PRINCIPAL; NO NEGATIVE RETURNS, and OPPORTUNITIES FOR SAFE GROWTH.   

In the past few years’, millions of investors have seen dramatic declines in their financial portfolios. These declines came about due to many factors in the stock market.  Many of those investors are still not back to their original investment level. 

What do you do?   Where do you turn for alternatives?  Who can you trust?  SECURE FINANCIAL ALTERNATIVES, INC. is managed by financial and tax professionals who each have over 25+ years in successfully helping people find safe solutions to their financial performance problems. 

The first step is contacting us by email: wayne@rabbiz.com or by phone at 337-266-5433 for a visit. There is no fee charged for this visit. 

“Safe Money” is not just a term with us, it’s what we do.

A loan default is the failure to meet the financial obligations indicated in the loan agreement that is signed by you and your lender. Often, a loan default translates into the business owner's inability to pay their debts on time. Due to the differences in each loan agreement, default penalties vary. However, the effects of defaulting on the loan fall into two general categories- immediate repercussions and future implications for both you and your business.
 
What are the immediate effects to my business if I default on a loan?

Drop in business and/or personal credit score. Missing your payments and defaulting on your loans negatively impacts your business credit score. Your personal credit score may be affected, depending on the type of business structure that you have in place.  Read on for more tips on how to protect your personal liability.

Increased interest rates. Your business interest rates (and possibly your personal interest rates) may increase if your credit score dips. Depending on your loan agreement, a higher interest rate could affect the loans that you currently have, as well as future loans you plan to seek.

Foreclosure or seizing of property and collateral. Foreclosure may be the most severe repercussion due to a loan default, allowing lenders to recuperate losses from loan defaults. In this situation, your lender will have the full right to take control and ownership of your property and collateral that you have included in your contract. They normally will sell your property privately or by a public auction, depending on the profit margin.

What steps should I take next?

Negotiate terms with your lender. If you default, you can try renegotiating the terms of your loan contract with your lender. While lenders may not always be willing to renegotiate, if you are successful you can minimize the damage to your business's financial health. Ways to reduce the negative impacts of the loan default include:

• Changing the terms of payment, e.g., paying less per installment but for a longer period of time
• Paying less over more time with a higher interest rate
• Asking your lender to forgive a portion of your late payment and agree to pay on time in the future

Consider government debt relief options. There are some government-backed options for managing debt that you can consider, such as the American Recovery and Reinvestment Act (ARRA), ARC Loan Program. and SBA Loan Program. Read more about Managing Small Business Debt through Government Loans and Refinancing Lifelines here.

Cut costs. Minimize your expenses. Though this may not be an ideal situation, you can consider laying off part of your staff and downsizing your business, among others.

Sell business assets. Liquidating business assets or converting your assets into cash may temporarily help you pay off your loans until you can afford to pay your bills on time again.

Consult a lawyer. Consulting a lawyer about your options may also help you through the process. Learn how to find legal representation for your small business here.

What does this mean for the future of my business?

Difficulty finding new loans. After you default on one loan, it will make it much more difficult to find a new loan. If loans are the chief means of financing your business, then you will be running into some difficult hurdles. You may want to start looking into other methods of funding your business. Read more about alternative financing solutions in I Need Money- Where Do I Get It?

Bankruptcy. If your business cannot repay its loans, you may need to file for bankruptcy. Read more about filing for bankruptcy on our blog Bankruptcy Options for Small Business Owners.
 
What Can I Do to Avoid a Loan Default?

Of course, the best way to avoid defaulting is to pinpoint the pitfalls of bad loans and avoid them at all costs. To avoid loan defaults, business owners should remember the following best practices:

• Have a concrete payment plan before you decide to borrow
• Do not offer collateral and property in your contract that you cannot afford to lose
• Read the fine print and thoroughly understand the terms of the contract

• Churches, synagogues, temples, mosques, and other religious organizations.
• Federal, state, and local governments, if your contribution is solely for public purposes. This generally includes local government, public schools, Indian tribal government, and governments of U.S. Possessions.
• Nonprofit schools and hospitals.
• Nonprofit volunteer fire companies, public parks and recreation facilities, and civil defense organizations.
• Organizations organized and operated for charitable purposes, such as the Salvation Army, Red Cross, Goodwill Industries, United Way, Boy Scouts, Girl Scouts, March of Dimes, etc.
• Certain organizations that foster national or international amateur sports competition.
• War veterans' organizations, including posts, auxiliaries, trusts, or foundations organized in the United States or any of its possessions.
• Domestic fraternal societies, orders, and associations operating under the lodge system.
• Certain Canadian and Mexican charities allowed by treaty - however, generally to deduct your contribution you must have income from sources within the country.

If you have questions regarding a specific charity or charitable contribution, please feel free to inquire with this office

However, cosmetic surgery or other similar procedures can be taken into account as a medical expense, if the surgery or procedure is necessary to ameliorate a deformity arising from or directly-related to a:

(1) Congenital abnormality, 
(2) Personal injury resulting from an accident or trauma, or 
(3) Disfiguring disease.

• The child is a dependent of the adopting parent when services are rendered or paid, and
• The expenses are paid by the parent, or agent, for the medical care of the child, and
• They are not reimbursement for expenses by the adoption agency prior to adoption negotiations, and
• The expenses are shown to be directly attributable to the medical care of the child.

Adoptive parents cannot deduct the natural mother's childbirth expenses.