The Big Secret to Making Money For Writing Is..

Author: Jared McAndrews

The Big Secret to Making Money For Writing Is...

If you have a flair for writing and if you have specialized knowledge that can potentially interest internet users, you will stand great chances of earning money for writing by publishing your own niche ebooks. Here's how:

1. Sell ad spaces. You can sell ad space to marketers who sell products that go along with you're ebook topic.
Depending on the size of the ad and the projected sales of your ebook, you can charge up to $500 per ad. You can also use some of your book space to promote your own products but services.

By doing so, you can increase your sales and revenue without hurting your pockets for your ad cost. You just have to make sure that your creations will not look like yellow pages so you can avoid annoying your readers.

2. Sell your niche ebooks. This is the quickest way to create revenue from your creations.

You can write about topics that are extremely interesting to your potential clients and promote your niche ebooks on the web utilizing the most effective ad tools that are available in the web today.

You need to make sure to properly build-up your offerings by highlighting their features and benefits so you can make them more valuable to the eyes of your potential clients.

3. Use them as your traffic-generating tool.If you happen to be a marketer you understand how important it is to drive quality traffic to your site.
You can attract interested people to give you a visit by using your niche ebooks. How? You can send your niche ebooks for free to your potential clients. Load them up with valuable information that these people will find interesting.

When you are able to impress your readers and make them see that you are really good at what you do, you can be sure that they will visit your site in no time. Make sure that you post your site's URL on every page of your creations to make it much easier for these people to give you a visit.

4. Use them on your list building campaigns. You'll stand great chances of growing your ebusiness if you can effectively capture the email addresses of your potential clients.

You can use free niche ebookas a reward and boost your sign-up rate.

Did you find this article helpful? For more insite on affiliate marketing click here http://www.effiliatecity.info/how-to-make-money-from-niche-ebooks.php

About the Author:

You can find more insight and groundbreaking research into how people all over the world are making money on the online. Visit our site @ http://www.effiliatecity.info/.

Article Source: ArticlesBase.com - The Big Secret to Making Money For Writing Is..

Color Brochures as a Proven Strategy for Small Business Success

Author: Kaye Z. Marks

Small businesses might seem to have little options in terms of promotions. Since most of them have small budgets for any kind of investment, they think that they can make do with a few posters, a small batch of flyers, and little else.

However, one great and proven strategy for small business success is brochure printing. Color brochures are a great, simple and quite affordable medium to introduce a business and its services to lots of people in a community. Brochure printing itself can be done on your own and you do not have to be a big company to create them.

In this guide, we will show you how to create color brochures on your own, and use them to achieve success with your small business.

• A good way to create your color brochures – To keep printing costs low and affordable for your business, you should create a simple one using templates. If you look at most desktop publishing software today such as Microsoft Office, they have brochure templates and brochure settings for their publishing documents. Use these templates to your advantage to write and design your own brochures.

You should not have trouble creating it since most of these applications are quite user friendly. Just remember to write quite concisely and add some color images to make the brochures look good. You do not even have to be a professional layout artist to do this.

• Using efficient methods of printing – To print, you can simply print them from home via your color printer. Using some simple white paper or colored paper, you can print your brochure designs quickly using available home equipment.

If you are printing on a massive scale though, the most efficient way is to hire a printing company with online services to produce and deliver your brochures to you. It might cost a little bit more, but you will save tons of time and effort by having your brochures printed online.

• Distribution with an eye to the local market – Now, for marketing using a colored advertising tool, your main focus should be effective distribution. Since your target should be your local market first, try to give your brochures away using good community techniques.

First, you can just distribute your brochures in people's mailboxes. Second, you can try giving them away by hand in front of your shop just like a flyer. Third, you can leave these advertising tools at community locations such as bus stops, school/hotel lobbies or even places like the library or capitol building. Doing all these distribution techniques should increase the awareness about your business quite effectively at a local level.

• Keeping your messages fresh and new – To maintain the effectiveness though of your brochure campaign, it might do you good to keep your messages fresh and new by printing new designs of your brochure for each season. This keeps people interested in your business and makes them aware of your new services and products as the times go on. Once you have a good rhythm going for your brochure promotions, it will only be a matter of time before its effects reach your business. You will have people buying or availing of your services at an increased number in no time at all. That is why your brochures are the proven way to succeed even if you are a small business.

Learn about the developments in color brochures or brochure printing industry.

About the Author:

Kaye Z. Marks is an avid writer and follower of the developments in online printing that help businesses in their marketing and advertising campaigns.

Article Source: ArticlesBase.com - Color Brochures as a Proven Strategy for Small Business Success

Profitable Home Business Ideas - Surest Way To Become Rich Online

Author: John Benjamin.O

This article is meant to help newbies start a profitable home business. Please pay attention if you have a dream of becoming financially independent working online.



The easiest means to become wealthy has always been by having your own business. The trouble was that in the "industrial age", you require huge capital and contacts to get started on a wet ground- you had to setup large factories and employ hundreds of people.



You needed a physical product to put in the market, which took money, resources and expertise to create and promote. And for those short of capital and contacts to get started, it was pretty tough to make that dream a reality.



Today, it's a different ball game. We live in information driven society, a world of endless possibilities. You can literally create or add value out of thin air, and launch your own business with nothing but your wits and an internet connection. The chances of starting a business have never been lower - millionaire status has never been more accessible.



I was born in the mid 70's and grew up just as the Internet was taking its hold on the universe, but it wasn't until my early 30's that I started looking at the Internet as a way to make a living. I darted from one home business opportunity to the other before finally settling on info product marketing as the way I was going to make my first thousands. I sold my initial info product at the tail-end of 2005, was generating $100 a day within a few months, and within a year I was earning in $1,000 a day.



Yes, none of this would have been a reality without the information age and Internet Business Opportunity - but more specifically, it wouldn't have been achievable without digital products and ClickBank either.



The beauty of digital products such as e-books and software - is that they are cost effective to set up, and almost nothing to imitate. A traditional industrial age business might require selling $20,000,000 worth of product to generate $1,000,000 profit. For an e-book vendor, it's almost all profit. If you were able to sell ten e-books a day at $47, all of it profit, that's $171,550 per year - more than most doctors or lawyers earn. Double that and you are earning as much as many CEO's - guys who have spent literally decades in high school and college combined and climbing the corporate ladder. With the appropriate guidance and a little dedication all of this is achievable.



Secondly, because we are promoting information, the value we are offering is extremely subjective. I've purchased info products for upwards of $2,000 - and been very con with my purchase. In what other industry can you spend $10 printing a few brochures, sell it for a 20,000% mark-up - and still have a very contented customer who will purchase from you again?



In short, the selling digital products via ClickBank enables you to side-step the expectations of the educational system, flaunt the rules of traditional, industrial-age capitalism, and become a millionaire in a matter of years - maybe even months.



I hope you find my profitable home business ideas very helpful.

About the Author:
John Benjamin is the webmaster of Profitable Home Business. To find out how i earn a monthly income that exceed five figures visit my blog at Internet Business Ideas where you can get your own money making website setup FREE within the next 24hrs.

Article Source: ArticlesBase.com - Profitable Home Business Ideas - Surest Way To Become Rich Online

What is Affiliate Marketing

Author: Debopam Banerjee

Many of you new beginners donot kno anything about affiliate marketing. So let me first discuss about few basic points on affiliate marketing.

Affiliate marketing is essentially 'pay for performance' marketing. Let me explain this step by step regarding getting started with affiliate marketing. Affiliate marketing simply consists of a merchant who wants to sell his products to people online. Then there is the customer who desires to buy these products or services online. The other entity involved is the affiliate, who either passes on leads to the merchant or sells these products for the merchant to the customer, by directing him or her to the merchant's website, for a commission. You supposed to fall in this category & may be a customer also. One report says that in 2006, affiliate marketing in the UK itself resulted in total sales of 2.16 billion pounds (Wikipedia). So, affiliate marketing is growing by leaps and bounds and there is every reason for you to join this business. But before proceeding you should keep in mind few necessary things.

Research Well

How do you get started with affiliate marketing? And why should you be in this business in the first place? This is because it is a low risk business with not much investment required from your side. However it does not mean that you do not have to put in hard work. Many affiliates drop the idea of continuing this business in the first few months itself. So if you know someone who has a success story, learn from the person and also do a lot of research on the net.

Some Valuable Tips on Getting Started

Here is some pertinent advice. Suppose you feel that you have a good idea. It may be related to something that you are interested in, that you have some know-how about and that adds worth to the information available on the internet. Then just transform this idea into a website. For example- let's say that you are interested in modern dance; you can have a website that has informative articles on Modern Dance, how to perform it, its types, the great performers, the history of Modern Dance and so on. The articles must be interesting and enlighten the reader and grab his attention. Now you need to get your site hosted and have a domain name for your website. This means having a space on the internet for your website, which you will have to rent. Rent is charged usually on a yearly basis and works out to be quite cheap. Then you have to have a domain name example moderndance.co.net. Keep the name of your website simple and short, instead of a lengthy and complicated name that people will find hard to remember. Now go on to the net and type in modern dance + affiliates. And you will see other people who are also interested in Modern Dance, other Modern Dance related products and affiliate programs that you can associate yourself with and become an affiliate for. Now you are on your way to getting started in affiliate marketing.

Just for your information- the current hot markets for affiliate marketing are travel, internet gaming, mobile phones, adult and retail sectors (Wikipedia).

I hope this information will be useful to all my readers & I wish you good luck in getting started with affiliate marketing.

For more information please visit my site http://debsaffiliatenews.blogspot.com

About the Author:

I am Debopam Banerjee. I am persuing PhD degree on Microbial Technology. I also do affiliate marketing business.

Article Source: ArticlesBase.com - What is Affiliate Marketing

Top 5: Innovative Brand Logo Designs

Author: Sparxoo

A brand’s logo is possibly the most defining aspect of the brand itself. We have come to equate a single logo with an entire brand’s mission and purpose. Graphic designers call making logos “visual identity” projects, because they are essentially creating the identity of the brand and the people behind it. There are some obvious examples that are always circulating—Nike’s “Swoosh” can also represent a check mark for “Just Do It”—there are many others that deserve recognition. Another example is Google, known for their clever logo illustrations on holidays and important events in history. In this week’s top five, we’re exploring some of our favorite innovative and creative logos.

1. Big 10 Conference

The Big 10 conference has some of the most recognizable team names in college sports. It is no wonder that their logo is recognizable as well. At first, it may seem like your typical block lettering. Upon closer look, you can see the number 11 in between the “T,” to represent that there are actually 11 teams in the conference, despite its name. This technique uses the negative space to provide a bigger meaning.

2. Pepsi

Pepsi’s recent rebranding efforts have brought about mixed feelings from the public. With a 27 page in-depth report about the thought process behind the new logo, it still isn’t getting much praise. Still, there is one aspect that shouldn’t be overlooked—the sphere. If you study it closely among all the different Pepsi beverages, the sphere is actually different on each one. The reason? They’re supposed to be subtle hints at emoticons. Smiling and laughing, the spheres represent emotions, perhaps emotions that are meant to be evoked while drinking a Pepsi product? We’re not sure, but they still deserve some credit for such an innovative idea.

3. Heart Beats

This logo for a small music store packs three messages into one, while still remaining simple and easy of the eyes. The heart in the middle is formed by two music notes, which are also made to look like headphones. It conveys the company’s love of music in a very user-friendly way, something that many companies strive for but can’t quite match sometimes. The colors also go well together, with the eye-catching headphone graphic pulling you in at first glance.

4. Madrid Olympics 2016

The Madrid Olympic committee opened up a contest for logo design in 2007 and had the public vote on the final designs. The winning logo incorporates the colors of the well-known Olympic rings, but in an interesting twist. The hand, bursting with color, waves “Hello” or “Welcome” to Olympic visitors. It even has a name—“Corle.” The white cut-away on the bottom...

To read more about innovative brand logo designs and see the logos, go to Sparxoo, a digital marketing, branding a business development blog.

About the Author:

Sparxoo is a business blog that inspires breakthrough by tomorrow’s leaders. We are a strategy consulting firm with a pulse on marketing, branding, and development.

Article Source: ArticlesBase.com - Top 5: Innovative Brand Logo Designs

How to Build Your Network as a Consultant

Author: Adam Mathew

Networking is the best way to turn strangers into contacts, referrals and clients. Networking takes time, but it is an investment that could pay dividends for the rest of your life. Building a great network will also save you time and money searching for clients.

To start building your network, join two or three organizations in your industry that are well known. This can usually be done online in only a few minutes. After joining these, begin by attending the meetings and events held by the small business consulting firms. In each meeting try to understand the type of peoples and businesses that attend them.

Attend at least 1 event every other week. If you're like most, you don't like approaching strangers in new social situations. That's OK, it's understandable. That's why it is important to get mentally prepared before you show up. Your attitude guides your behavior, so you must overcome any negative self-talk that could hinder you from meeting people.

Remember that people enjoy talking about themselves. Individuals also feel flattered when you show interest in them and their work. Because of this, ask them questions about their business and what they do. This will help break the ice while giving you an insight on how your consulting services may be of help to them.

At each event you attend do not leave without 5-10 business cards of people you just met. Yes, this means you have to step out of your shell a bit and mingle with strangers. You must do this if you want to build a network. Review these contacts you met and schedule coffee or lunch with 1-2 of them during the next week. If you follow this exercise each week, it won't be long before you know everyone in the room, and they will know who you are and what you do.

Don't forget to use online tools to grow your network. Tools like LinkedIn.com, Facebook.com, and Twitter.com can expand your network to sizes you never imagined. While personal meetings are valuable they are limited by opportunities dictated by time and place - you have to be at the right place at the right time to meet the right people. On the other hand, networking online virtually has no bounds. It saves you a lot of time and money and allows you to expand your network at an incredible rate.

About the Author:

To learn more about how to work from home or to learn how to start consulting with free tips from small business consulting firms.

Article Source: ArticlesBase.com - How to Build Your Network as a Consultant

Bingo websites: what makes them stand out from Offline Bingo?

Author: Rajni Khanna

Bingo is soon becoming a popular game among the masses. There are thousands
of bingo websites today so much so that it is difficult to select the best of
the lot. Bingo websites not only allow you to have fun but also help you to
earn loads of money.
Initially Bingo was only played in land based bingo halls. People had to move
to a nearby destination to play the game. Moreover in land based Bingo halls
talking to fellow players are strictly forbidden during a game. But the rules
are way different for playing bingo games online wherein you can actively get
involve in a discussion with your fellow players. Playing bingo online gives
players an opportunity to chat with other fellow players with whom they are
competing.
There is no doubt that bingo websites are one step further than a land based
bingo hall. A bingo website will not only assure you excitement, fast play,
great friends but also loads of games to choose from. Online bingo also gives
you an opportunity to try games for free, which is not possible if you opt for
an offline bingo.
Bingo websites offer many bonus packages, which differs from site to site.
There are many bingo websites that give you free money and a huge deposit bonus
for joining their online bingo venture. Some of the bonuses offered are match
up bonuses, signup bonuses and sweepstakes. Matches up bonuses are those bonuses
that are offered by bingo websites whenever you deposit some money with them.
The match up bonus percentage is advertised on every bingo site. Similarly signup
bonuses are those bonuses that are allotted by bingo websites once you signup
with them. Sweepstakes automatically enters real players into contests where
you can win competitions ranging from a television set to a cruise.
If you are looking for a reliable and safe bingo experience then what better
way would it be than trying our website. We at bestonlinebingogames.com are
one of the best bingo sites on the web. We make sure that the games we provide
are fair, the site is secured and that our customer service is just seconds
away. So what are you waiting for signup today and have a bingo experience like
never before.

About the Author:

Did you find this article useful? For more useful tips and hints, points to ponder and keep in mind, techniques, and insights pertaining to Internet Business, do please browse for more information at our websites.
http://www.adsence-dollar-factory.com
http://www.100earningtips.com

Article Source: ArticlesBase.com - Bingo websites: what makes them stand out from Offline Bingo?

The Others: Top Pay Per Click Choices Part Two

Author: PRIYANKA

In a late night business newscast I recently caught, one of the main topics talked about during the discussion part is the ever-growing pay per click marketing industry. The guest speaker was talking about the millions-worth industry of online advertising that is increasingly becoming a hot issue in the online business world. The guest said that the growth in the PPC marketing industry is so unexpected that a lot of PPC providers are actually being overwhelmed with their high revenues. Further, the guest also said that since the PPC marketing industry is such a big hit, more and more PPC providers are flooding the dynamic cyber market. He even raised concerns on the issue of click fraud and unfair gameplans being used by other PPC providers to outplay heir competitors. When the question on good and safe PPC choices was raised, I almost jumped off the couched and hurried to the news studio to share my little knowledge on making the right PPC choice.

In relation to a recent post about top PPC choices, I'd like to share again what information I have gathered recently to PPC interested parties. This time I will be sharing three more good PPC choices that online business owners can choose from. Aside from Yahoo! Search Marketing and MIVA, the services of Enhance Interactive and 7Search are also very reliable and safe.

Known before as ah-ha.com, Enhance Interactive started operations in 1999 as a search engine for general search queries. But now, Enhance Interactive offers more services such as paid listings, paid inclusion, banners, and contextual advertisements. Every month, Enhance Interactive receives almost two billion queries. This has made its list of advertisers to more than 20,000. Enhance interactive reaches a very wide audience, as evidenced by its placements in giant networks like NetZero, MSN, and Excite.

For Enhance Interactive's paid listings program, two types of services are available: professional full service and the self-service paid listings. The professional service paid listing service covers keywords, massive keyword updates, title, descriptions, personal accounts, and the improved version of the Account Management System (AMS). The service also comes with one-month free use of Logolinks. The Logolinks feature can boost the effectiveness of a PPC campaign by generating high-performance traffic and higher response ratings. This feature makes PPC campaigns more cost-efficient by making the keywords of the client available in the search results within just two days. The professional full service paid listing service costs only $99.

The self-service paid listing service, on the other hand, comes free. This service allows advertisers to do editorial changes on their keywords. It also regularly updates mass number of keywords and allows the use of the improved Account Management System. Like the professional full-service paid listings, self-service paid listing program also speeds up the inclusion of the client's keywords to the search results.

7Search is also a good choice for a PPC search tool. It prides itself of good traffic flow and its flexibility to accommodate requests from clients. 7Search traffic rate is now about 1 billion searches every month. 7Search views this good traffic flow as a chance for them to prove the goodness of their services. This PPC search tool is very client-friendly because it can easily accommodate changes in bid amounts and keywords. A client can change all bids with just one amount or put all bids at the highest rate. Keywords can also be changed with great ease. A client can set the number of keywords he or she wants to appear in every page, or even make changes to the whole page. Its makeup tool is fast in putting a listing at the top of the rankings. Another good feature is the keyword-generating tool. To make changes in keywords even easier, 7Search give campaign assistance to its clients free of charges. Other good features of 7Search are the quality reporting, outbid notification, mass uniform resource locator submission, and AccessoryAds Advertising. 7Search also holds a good reputation in terms of fraud protection in the PPC marketing and affiliate program industry. The services of 7Search can cost as low as $25 with no starting bid required.

Enhance Interactive and 7Search, along with Yahoo! Search Marketing and MIVA, are just some of the good choices available out there. I will try to be acquainted about other wise PPC search tool picks so I can share them in the future.

About the Author:

Did you find this article useful? For more useful tips and hints, points to ponder and keep in mind, techniques, and insights pertaining to Internet Business, do please browse for more information at our websites.
http://www.adsence-dollar-factory.com
http://www.100earningtips.com

Article Source: ArticlesBase.com - The Others: Top Pay Per Click Choices Part Two

Leadership Secrets for Great Meetings with just the right number

Author: sumit1

Ineffective and poorly- run meetings serve as one of the top talent and time wasters. Develop the skill to run a tight, highly focused meeting with just the right number and kind of people in attendance and your stature as a leader rises.

First, figure out what is the specific outcome of the meeting and start with that as the written objective. Give your meeting a name that even states the “objective”. Next, ask yourself who has the greatest information or talent and should be at the meeting. Figure the personnel cost for the meeting. For example, if an employee has an average annual salary of $50,000, the per hour cost for that one person is $96 per hour. (This includes salary plus benefits and general company overhead). You can extrapolate other salary costs from this base. Here are other tips to make this meeting move from average to great:

(1) Put a specific time frame on the meeting and start on time.
If people show up late, create some fun—but telling— response for tardiness. In one organization, the latecomer has to sing to everyone. In another, the latecomer buys cokes for everyone. In another, the latecomer is given a scarlet “L” on a tent card. In Saturn Automotive plant meetings, if the door is closed, you are late and an alarm rings if you try to enter.

(2) Develop good facilitation skills, making sure everyone participates and is heard from

(3) Summarize questions, outcomes, actions. Summarize frequently

(4) Have the names of who should attend on the agenda, which is sent out at least 48 hours in advance.

(5) Create a “parking lot” notebook. If an issue is brought up that is not on the agenda but might be addressed at another time, write it down so it can be tackled.

(6) Consider a stand-up meeting. To move people through quickly, have no chairs in the meeting room. It’s amazing how quickly people can get work done when there is no place to sit.

(7) At the end of the meeting, and as a way of staying focused and practicing continuous improvement of meeting management, tell the group the personnel cost of the meeting and if the money could have been spent more wisely in another format?

(8) Make sure a summary of the meeting is sent to the participants along with any action items or next steps, a due date, and the person or groups to which they are assigned.

(9) To break a meeting routine, you might consider beginning by asking people to come prepared to tell the group about some person whom they want to acknowledge for outstanding service. Starting off by highlighting positive performance—particularly of unsung employees—is a powerful gesture.

(10) Don’t forget to say thank you. Time is the only true non-renewable, irreplaceable resource. When people give you their time, they gave you a piece of their lives.

For more information on leadership ideas, communication skills, or work life balance practices, click on Leadership and read more by Eileen McDargh, an expert in work/life leadership issues.

About the Author:

Did you find this article useful? For more useful tips and hints, points to ponder and keep in mind, techniques, and insights pertaining to Internet Business, do please browse for more information at our websites.
http://www.adsence-dollar-factory.com
http://www.100earningtips.com

Article Source: ArticlesBase.com - Leadership Secrets for Great Meetings with just the right number

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How to Write a Business Report

Author: Jennifer Burns

It’s a material world. Here business letters and report writing becomes essential. To be successful, you also need to be acquainted with business case study analysis. If you are looking for an advice on writing a report, you don’t have to go too far. It’s all here in black and white.


Business Report Writing


Business report writing serves the purpose of exploring a problem. A common mistake in writing this kind of report is that a chosen topic is sometimes either too broad, or too narrow. In order to be successful, be specific. Good report writing also takes its audience into consideration. What do they want? What do they expect from you? What are their basic needs? When writing a business report, you will need to think about these questions. Now that you know your topic and audience, continue writing a business report by gathering the important information. Be selective. Make sure you check all your facts. While writing a business report, do thorough researches, compare the information, and look for a solution. One more thing you have to keep in mind when writing a business report is objectivity. Do not let your feeling get control over you. In report writing you must distinguish facts and opinions. This is the only way you can stay neutral. As to your style, there is an advice on writing a report: avoid emotional terms, and use impersonal style.


If you are to present you report writing, think about the idea of using visual effect: pictures, tables, graphics. This will make your report writing easier to comprehend. It also shows your respect to the audience. In your presentation make sure you presented both negative and positive sides of the question to your audience. This is what makes report writing effective. All these components build successful report writing.


Business Case Study Analysis


When writing a business case study analysis, you are looking at your company’s history. A case study analysis helps to look back, evaluate things that were done in the past, go over the achievements and mistakes. A study analysis paper starts from gathering historical information. How has your company been growing and developing? State it in your case study analysis. How has your company been choosing marketing strategies? State it in your case study analysis. What were the turning points in your company’s history? It has to be stated in the case study analysis, too. Some weaknesses or strengths have developed historically. In your study analysis paper you can mention about them. Also, speak about the present situation. A business case study analysis concentrates on latest achievements, too. Maybe there is a strategy that has to be developed to make a company more powerful. Make sure that in your study analysis paper you’ve checked all the possible threats, too. By doing so, you help developing a successful future for your company.


Business Letters


Another idea for improving your business status is business letters. A good business letter includes:


feelings (the writer does care about the reader)


persuasion (write with the "you" attitude- the state of mind where you always emphasize the benefits to the reader and subordinate your interests)


tone (avoid condescension and preaching your ideas)


service perspective (the company shows its concern extends beyond purely profit objectives).


In a world of constant business competition you are now ready for your big journey. Business report writing, business letters, and case study analysis – all these important parts of successful business life are like an opened book for you now.

About the Author:

Jennifer Burns is the head of customer care center at Custom-Writing.org, essays custom. Having completed a number of academic assignments himself, Jennifer uses her knowledge to provide individualized customer support to students, who order thesis writing and writing a critique

Article Source: ArticlesBase.com - How to Write a Business Report

A Private Limited Company Advantages

Author: Terry Cartwright

A private limited company advantages include:



1. Limitation of Liability



There is no distinction between business money and personal money for anyone self employed as all business debts are the personal responsibility of the sole trader. The private limited company advantages are that the company is a separate corporate body and liability for payment of debts stops with the pvt ltd company, the owners, shareholders are not personally liable. The directors are only liable if they continue to trade and incur liabilities after it becomes apparent the ltd company is insolvent.



2. Lower Taxes



Lower corporation tax offered a private limited company advantages over self employment in recent years. The £10,000 tax free limit was cancelled several years ago. Corporation tax rates have increased from 20 per cent to 22 per cent in recent years compared with the sole trader basic rate tax which was reduced from 22 per cent to 20 per cent in 2008. Incorporation still has tax saving advantages dependent upon the net taxable profit.



The private limited company advantages come from the flexibility of being able to determine the proportions of salary and dividends taken compared with a sole trader whose basic accounts are subject to tax at fixed tax rates and thresholds.



A sole trader receives a £6,035 personal allowance and pays basic rate tax of 20 per cent on the next £34,800 of earnings up to the higher threshold limit and 40 per cent tax thereafter. Class 4 national insurance is 8 per cent of earnings up to the upper primary threshold and 1 per cent thereafter.



Dividends are taxed at 10 per cent on total income up to the higher threshold and 32.5 per cent above. The dividend is a distribution of company profit after corporation tax has been deducted and so the shareholder also receives a dividend tax credit from the pvt ltd company of 10 per cent.



There are significant private limited company advantages regarding tax liability compared to a sole trader where net income is below the upper earnings threshold.



For example assuming the limited company net profit before salary is £35,000. A sole trader would pay income tax of £5,793 plus national insurance of £2,317.20, a total of £8,107.20. If a salary of £6.035 is taken and the rest is taken in dividends a private limited company would pay £6,372.30 corporation tax, after deducting the salary from net taxable profit and the sole trader now the shareholder would pay no income tax.



The advantages increase where net taxable profit is above the self employment upper earnings limit as money can be left in the business and therefore only subject to the 22 per cent corporation tax rate thereby avoiding the sole trader 40 per cent tax rate. Another possibility is to distribute the shares among family members to reduce the risk of 40 per cent tax.



3. Limited Company accounts and Sole Trader basic accounts



Sole trader basic accounts can be quite simple as a formal accounting system is not required and can be reduced to simple lists of income and expenditure supported by documentary evidence of sales and purchase invoices, effectively single entry bookkeeping. Producing a balance sheet is optional. Due to the simplicity then an accountant may not be required saving a significant cost.



Ltd company accounts have to use double entry bookkeeping to produce the year end accounts including a balance sheet with statutory notes and statements. Unless accounting software is employed to produce the company accounts in this format then accounting knowledge is required and an accountants fee may well be in the region of £500 to £1,000. An accountant is not essential for a small pvt ltd company but is the normal approach and offsets some of the tax advantages.



4. Additional financial considerations



Because a director is also officially an employee of the pvt ltd company this gives rise to a number of considerations in determining the extent of a private limited company advantages.



Pension contributions of a sole trader are personal and while may be deducted from the personal income liability do not form part of the basic accounts. The cost of a pension scheme including the company contribution is a deductible business expense as an employee cost.



Using a car for business purposes may have an impact. The sole trader basic accounts would include the business proportion of the vehicle running costs or the mileage allowance. If that vehicle is used by a director then that director is receiving a taxable benefit potentially resulting in a higher tax burden depending upon the type of vehicle as taxable benefits vary. An alternative may be to leave the company vehicle privately owned and the director claim mileage allowances rather than vehicle running costs.



Potentially small issues but there differences in the accounting treatment of deductible expenses such as charitable donations, entertaining expenses and use of home as office. A private limited company advantages consist of being able to claim such expenses as valid business expenses which would not be claimable in the sole trader basic accounts as treated as personal not business.



If the director and main shareholder have other associated companies then the corporation basic tax rate could be affected.



5. Administration, management and business standing



A sole trader basically pleases themselves with regard to the administration and management of the business. A company director is responsible for adhering to company administration according to statutory regulations in regard to both the limited company accounts, statutory books and management as stated in the articles of association. The duties of a director are more formal than a sole trader.



Forming a private limited company is an indication that a business is both serious, has a long term objective and is correctly managed. This psychological perception can increase the business standing of a business. Funding requirements are more likely to be met as the lender to a sole trader has to consider the absence of a balance sheet statement in the basic accounts and the financial influences personally affecting the sole trader. A private limited company advantages concern the published financial statements, protection of the financial position from personal influences and the option of increasing security by virtue of asking directors to provide additional personal guarantees.



A private limited company advantages over self employment also extends to long term finance. Companies retain more funds within the business to meet future financial commitments which promote business growth, a more sustainable business and medium term profits growth over a sole trader.

About the Author:

DIY Accounting information on a private limited company advantages is designed to assist the important decision. In addition to company formation service DIY Accounting design tax accounting software for sole trader basic accounts for all self employed business and limited company accounts that produce automated tax returns.

Article Source: ArticlesBase.com - A Private Limited Company Advantages