by Solange Lopes | Mar 13, 2018 | Make More Money
Congratulations! You’re ready to start your own business. Before you start planning for your upcoming millionaire status, you may want to consider the various tax implications of beginning your new journey as a business owner.
Understanding the basic tax consequences, as well as the benefits, that come with creating your own business can save you lots of money, and headaches, in the long run. From business deductions to startup costs, not to mention the effect on state and federal income taxes, here are some of the most important tax implications of becoming your own boss:
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Mind your deductions!
Good news! Most business expenses are tax-deductible, which also means that you can use them to reduce your gross and taxable income. Translation: less taxable income, less taxes to pay!
However, you may want to keep in mind that not all business expenses are deductible. Make sure whatever business expense you claim as deductible should be legitimate. Additionally, incurring an expense merely because of tax reasons isn’t always justified. Consider other factors before deciding to spend money in your business!
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Startup Costs
Got startup costs? Well, you may be pleased to hear that you can actually deduct up to $5,000 of start-ups and organizational expenses in your first year of business. The only caveat is that if your start-up and organizational costs exceed $50,000, any amount over $50K will reduce this deduction.
Now what are start-up costs and organizational costs? Start-up costs are costs you incur before you start operating the business. These include market analysis costs, training costs, as well as travel and ad costs related to new customers, suppliers and distributors.
As for organizational costs, they are made of accounting and legal fees, as well as licensing fees and any other fees involved in forming the entity.
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Depreciation
If your business has assets with a useful life of more than one year, these are considered capital assets which must be written off, i.e. depreciated over time. What’s important to remember as you start your business is that depreciable capital assets may allow your new business to take advantage of the Section 179 election.
This election means that you could expense up to $1,000,000 starting in January 2018 as a result of the Tax Cuts and Jobs Act of 2017 for qualifying purchases of capital, up to a limit of $2.5 million. After 2018, these limits will be indexed to inflation. It’s a particularly profitable election for new businesses, as the money can be re-invested in the business and used to avoid incurring additional income taxes.
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State Income Taxes
When it comes to state taxes, keep in mind that each state has its own tax rates and regulations. Make sure to check in with your local and state governments to ensure that you’re in line with the rules.
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Federal Income Taxes
As you create your own business, remember that a lot depends on the type of business you’re starting. Whether you elect to have a partnership, sole proprietorship, Limited Liability Company (LLC), S Corporation, or C Corporation, your choice will determine how your business is taxed.
For instance, if you elect to operate your business as a partnership or S Corporation, the business profit or loss will be passed through to you as an owner and included on your tax return. Be mindful of these distinctions when picking your business type.
Now your turn: Have you considered all the tax implications of starting your own business?
To Your Success,
The Corporate Sister.
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by Solange Lopes | Mar 12, 2018 | Career
Our Woman of Impact feature presents women who are breaking barriers in their careers, businesses and lives. These women are inspiring us to do our best work and live our best lives. Today’s feature focuses on HR Business Partner and Career Strategist Dorianne StFleur.
I’ve been inspired by Dorianne’s work and her contribution to women’s careers. Dorianne is a career coach & salary strategist for women in Corporate America. She helps women leverage their unique strengths to increase their income and climb the corporate ladder, without sacrificing their impact. Dorianne is a sought-after speaker, writer and HR expert and her work has been featured in many online publications, such as Black Enterprise, BuzzFeed, Forbes, Huffington Post and The Muse. To learn more about Dorianne, head over to yourcareergirl.com.
Hi Dorianne!Tell us a bit about yourself and what you do.
I’m an HR Business Partner, and I’ve been in HR since 2010, both in Finance and Technology. Currently, I’m in Advertising Technology. Basically, I do everything after someone is hired, from performance and talent management, to compensation, career development topics, or if you’re having an issue with your boss, or co-workers, etc. My role is to partner with the employee and manager as well.
I’m also a Career Strategist, and Executive Coach. I help women who are trying to tap into, and align their purpose with their career. I give them the tools and resources they need to have the career of their dreams. We spend so much time at work, and to the extent we can do something that is fulfilling during that time, that is my goal.
What inspired you to go into HR?
That is a funny story. I started my career in Operations, for about five years. I got to a point where I was doing well, yet wanted to do something different. I was a manager, I was sent to Salt Lake City, Utah with my team, and got to do so many amazing things. It was great, but it wasn’t something that was utilizing all my skills. I wanted to go to school for Psychology originally.
In talking to my manager, and being in tune with my strengths and purpose, I had taken some courses at New York University on “Intro to Management”. It just really piqued my interest. I knew nothing of HR before. After taking that course, I realized there’s a lot of strategy, relationships, coaching, etc involved in HR. Through internal mobility within the same company, I was able to transfer to a generalist position on the HR team. Once I got there, I realized this was what I wanted to be doing. I was doing a lot of things to help employees while developing and honing my own skills. Since then, I’ve been in HR. It’s a place I really enjoy and continue to grow in.
How about starting your own business? Did you always want to have your own business, or did your current career inspire you?
My career definitely inspired my business. I’d never thought of myself as being an entrepreneur. I was never one of those people who grew up knowing I was going to own my business. I was totally fine having a 9-to-5, as long as it was something I enjoyed doing.
Luckily for me, I’d mostly been in situations where I’d done well, been promoted and got all the recognition. Friends and family would ask me for advice. They would ask me to write their resumes, help them with mock interviews, etc. It just organically happened, and about a year and a half ago, I decided to make it official and turn it into a business where I’d be strategic about the people I’m helping and have a broader reach. That’s how Your Career Girl was born.
How do you find the time and energy to balance your career and business, as well as being a mom?
It’s very challenging. I have really long days. I wake up at 5 or 5:30am, my husband and I tag team to get my daughter ready in the morning. My husband’s schedule is flexible, so he can do pick-ups and drop-offs, as well as any emergency. I’m in the City at work, so we just make it work.
In the evenings, I spend time with my family, and then late nights, I’m working. I’ve gotten a lot better at prioritizing things. During the week, it’s basically work and business time, but on the weekends, it’s family time, and I’m always doing something with my family and spending one-on-one time with my daughter. I don’t have it down to a science, some things do fall through the cracks. Some weeks I do really well with self-care, other weeks I don’t. It’s a give and take, and I’m more about work-life integration anyways. It really just depends.
As a woman of color, what challenges would you say you face in your career and business?
In the technology space I’m in right now, the biggest obstacle I’m having is having that support network. Looking around to see people that look like you is challenging, especially in the tech industry. Being able to look at senior management and not seeing Black women or women of color who look like you can be really daunting.
Sometimes, it’s really discouraging, as you ask yourself if there’s really room for you to grow, and if you can go to the next level. This is why I share all these inspirational and motivational tools with my client base, because I know it can be difficult when you don’t see people who look like you, or when you don’t have that support system, or when there is not a group of women at your work that you can go have lunch with and bounce things off of.
In my business, I’m happy to say that there are so many other women of color who are entrepreneurs. There are so many women out there trying to empower others and use their gifts to build businesses. What I do find is that it’s definitely harder to get that traction. When I think of top career coaches and top career sites, they’re mostly run by white women. When I think about Black women who have just as great things to say if not better, they don’t have the visibility, the network, or funding.
Where do you see yourself in the next 5 to 10 years?
By then, hopefully I’ll have one or two more children (laughs). My goal is also to see Your Career Girl expand to such a level that it’s not feasible for me to have my 9-to-5. I greatly enjoy my job, but I also can see myself devoting my time to Your Career Girl, speaking on stage impacting thousands and thousands of women all over the world.
I have ideas for apps, and a lot of things that can bring about this idea of career development to optimal levels. I’m thinking of really scaling and growing my business in the next 5 to 10 years.
What resources or tools do you go to help you be your most productive?
For productivity and efficiency, I read a lot of articles. I also listen to a lot of podcasts, but they tend to pile up. I use Medium a lot, as well as Feedly. I’m on the Muse a lot as well, which provides lots of tips on career management.
I’m also a believer in “Less is More”. I try to pare things down and tend to edit my to-do list down, and find what I can focus on for better impact. I’m also flexible, and am fluid about the tools I use.
What is the biggest mistake you see women make in the workplace?
Women’s biggest mistake in the workplace, is not negotiating. Not just money, but not negotiating for work arrangements, for more vacation days, for transition when coming back from maternity leave. Of course, for salary as well. We tend to say ok to a lot, while men will ask why when they’re offered anything, and negotiate for themselves for just about everything.
Most of the time, women are not asking the right questions and negotiating for themselves. They end up leaving a lot of money and benefits on the table.
I remember after my maternity leave, I was determined to breast-feed for at least six months. I made sure I blocked off my schedule for that. I was not going to be one of these people who did not do that because of other pressures. It’s harder for us to set those boundaries, especially for women of color.
What advice would you give your 20 year-old self?
I’d definitely say to be confident. The worst they can say is no. There are so many things I could have done when I think about how many opportunities I missed out on, how many networking events I didn’t go to, how many things I didn’t raise my hand for. I was worried I didn’t look the part or didn’t’ have any experience, or other negative talk that would go on in my head. It still happens, but I’m now able to shoot down the negativity, and talk back to myself. I’d love to have told my 20-year old self: “You’ve got this! Go in there, own the room, fake it ‘til you make it!”
What would you recommend for something who would want to follow the same path as you?
You have to be really clear on your why. Why do you want to be in HR? Why do you want to start your business? I know my why, so I’m able to power through at work and in my business when it gets tough.
Whatever you want to do in your career, the first thing I recommend to my clients, is: “You need to know why this is something that’s important to you”. Not just a surface reason, but what’s really at the core. When you’re really clear about it, then you’ll know whether it’s something you really want to do, or if it’s something other people want for you. You’ll also be able to power through when times get tough.
What music do you have on repeat these days?
Right now, I’m listening to a lot of gospel. I also listen to a lot of Beyonce, R&B, and pop in general.
What services do you offer and where can we find you?
You can find me at yourcareergirl.com. I offer one-time strategy sessions, as well as ongoing private one-on-one coaching. I also offer online courses, and I also have a free Facebook accountability group, called the Career Success Circle, where we motivate each other and setting goals to take our careers to the next level.
Thank you Dorianne for all these precious gems! For more info on Dorianne, please head to yourcareergirl.com!
To Your Success,
The Corporate Sister
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by Solange Lopes | Mar 12, 2018 | Make More Money
One of the biggest obstacles women face at work and in life has everything to do with money. From not being paid on an equal scale with our male counterparts, to managing our own finances, dealing with money can present serious challenges for the modern woman. If you add to it the common stereotypes affecting women in all areas of work and life, establishing good financial habits can be quite the daunting prospect. Hence the need for some solid financial advice, as well as inspirational quotes about money from women who have mastered their own finances.
Here are 12 powerful quotes from famous women who have lived and shared some of the most inspirational money advice:
12 Quotes about Money From Famous Women that’ll Make You Financially Savvy
“Never work just for money or for power. They won’t help save your soul or help you sleep at night.” Marian Wright Edelman, Children’s Rights Activist
“I truly believe that women should be financially independent from their men. And let’s face it, money gives men the power to run the show. It gives men the power to run the show. It gives men the power to define value. They define what’s sexy. And men define what’s feminine. ” Beyonce, American singer and actress
“A woman’s best protection is a little money of her own.” – Clare Booth Luce, American Author and US Ambassador.
“Being rich is having money; being wealthy is having time.” – Margaret Bonnano, Author
“You can only become truly accomplished at something you love. Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you.” – Maya Angelou, Author, Poet, and Civil Rights Activist
“Money follows art. Money wants what it can’t buy. Class and talent. And remember while there’s a talent for making money, it takes real talent to know how to spend it.” – Candace Bushnell, Author and TV Producer.
“There are people who have money and people who are rich.” Coco Chanel, French Fashion Designer
“By definition, saving – for anything – requires us not to get things now so we can get bigger ones later on.” Jean Chatzky, Journalist, Author and Motivational Speaker
“I do not think I am successful just because I have money. I’m successful becauseI love who I am and I have no regrets“. Suze Orman, Author and Financial Advisor
“People say that money is not the key to happiness, but I always figured if you have enough money, you can have a key made.” Joan Rivers, American Talk Show Host
“Automating some of your finances can be incredibly convenient and is a great way to save time, but automating everything makes it too easy to go on autopilot and forget to pay attention to your personal finances.” – Alexa Von Tobel, Founder of LearnVest.com
“To attract money, you must focus on wealth. It is impossible to bring more money into your life when you are noticing you do not have enough, because that means you are thinking thoughts that you do not have enough. ” Rhonda Byrne, Author of “The Secret”
What other powerful quotes from women about money would you recommend?
To Your Success,
The Corporate Sister.
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by Solange Lopes | Mar 9, 2018 | Career
Welcome to our weekly career, entrepreneurship, lifestyle and fashion news roundup! Think of it as your online watercooler/work gossip station/coffee break spot for now…Want to add anything to our list? Email us at corporate@thecorporatesister.com!
- In honor of International Women’s Day, Forbes Woman shares actions you can take to be a champion for yourself and other women;
- Black Enterprise reveals why you should never lend out your credit card;
- Business Insider shares the best new boarding games for families;
- Want to get men to understand gender equality? Forbes suggests a way to use Facebook Live for it;
- The Corporate Sister confirms you can make more money without leaving your job;
- Here are 8 TED talks by exceptional Black women you didn’t know you needed;
- Recruiter shares the 5 best cities for finding a new job;
- Ellevate Network shares 5 networking tips for your next conference;
- HR Bartender shares how to create a vision board on Pinterest;
- The Personal Branding Blog shares the benefits of co-working spaces;
- Ellevate Network tips you off on listening to your intuition and creating your dream life;
- The Glassdoor Blog shares 13 exciting companies hiring now;
- Corporette shares where to find suits with dresses instead of skirts.
To Your Success,
The Corporate Sis.
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by Solange Lopes | Mar 9, 2018 | Make More Money
If you’ve ever considered paying off your debt, you may have balked at the thought of depriving yourself and living like a hermit for the rest of your life. Little luxuries like your Starbucks latte or your not-so-small shoe habit may seem like they would become distant memories on the horizon.
Yes, we could certainly start the business, pay the mortgage off, squash that credit card debt with a few financial sacrifices. Yet, for many, if not most of us, making a harsh and not necessarily realistic plan for our finances ends up having us hating life and splurging on the most expensive pair of Louboutins you can slide your feet in.
This is why it’s so important to tackle paying off debt in a realistic and sustainable way.
Here are 7 ways to get you on the path of debt repayment, minus the intense stress and social isolation:
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Start with a reality check
Ok, let’s begin at the beginning. It all starts with understanding and realizing where you stand financially. This means looking at your credit and debt history straight in the eye. While it can be easy to turn a blind eye to your debt situation, getting a reality check will get you started well on your debt repayment process.
Credit Karma provides you with a free credit report, in addition to detailing your credit history. It allows you to see your debt amount, as well as any debts in collection, and even your monthly payments and interest rates.
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Earn extra income
Here’s the thing: when you already are in debt and still have to pay for your normal expenses, saving money to pay off your debt can be challenging. This is where making extra income comes into play.
For many, if not most of us, one of the best ways to pay off debt is to have a profitable side hustle. Whether it’s selling Avon products, have a side blog, or being in network marketing, finding ways to create additional income can go a long way towards squashing your debt.
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Start with the highest interest rates
Once you have money available to pay off your debt, start looking at the interest rates on your credit cards and other debt instruments. You will notice that some of them have much higher interest rates than other, at times up in the 20% range. The cards or debt instruments with the highest interest rates will cost you more in the long run, as you will be stuck paying insane amounts of interest rather than directly paying off the principal or main balance you owe. This is also how credit card companies are making money, by having us pay loads of interest, which is basically free money for them.
My preferred approach is to tackle the cards or debt instruments with the highest interest rates first. For these cards, I plan to increase my monthly payments, and when I can, even double or triple them to pay them off faster. This allows me to limit how much interest I have to pay in the long run, and reduce my debt bill overall. The trick is to pay these off, and once you’re done, go on to the next credit card with the highest interest rate. And so on and so forth…
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Or pick the lowest debt amount
Another approach is to tackle the cards or debt instruments with the lowest amount to repay. This can be a gratifying process as it allows to eliminate small debt amounts first and faster. Many people are encouraged by this system, as it lets them see the result of their efforts earlier on.
Here too, the point is to reimburse your lowest debt amounts first, and move on to the next lowest amount.
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Put your savings on auto-pilot
Apart from earning extra income and choosing an approach for debt repayment, saving money also plays a role. However, when it comes to saving, automating the process can be more effective.
The Digit app monitors your spending habits, and easily withdraws money from your checking account into a rainy day savings account. The amount saved varies from person to person. The app takes into account your unique financial situation through your spending habits to do this. Another alternative is Stash.
Another tool that helps you save money is the Trim bot. It’s basically like a financial assistant in your phone. From canceling subscriptions you’re not using, to helping you negotiate your bills down, it just assists you in making better financial decisions and saving.
Another way to trick yourself to save on your credit card purchases is to use the Debitize app. Basically, you make purchases on your credit card, and the purchase amount is automatically deducted from your checking account in order to pay your credit card bill at the end of the month. This way, you reap the credit card rewards without the associated headaches.
Last but not least, earning cash back on your purchases and expenses is another way to save. Apps like RetailMeNot, Groupon, and Living Social, for instance, can help you score deals and save.
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Sell your extra stuff
Most of us have more stuff that we could possibly use. Sometimes, it takes a bit of humility and a lot of financial sense to use that extra stuff for the purpose of debt repayment. For bookworms like myself, Bookscouter lets you sell your old books.
Letgo is a great app to help you sell second-hand stuff on the go.
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Get it for free
Having fun while you’re trying to pay off your debt can be quite the challenge. For many of us, having fun is directly linked to spending money. Whether it’s a $5 latte or a $100+ night out with the girls, entertainment often comes with a bill.
However, there are many ways to enjoy life without getting off track when it comes to paying off your debt. You can enjoy public parks, public and free attractions at no cost. Instead of dropping your coins on books, how about going to your local library? Even better, you can become a mystery shopper and get paid to enjoy things you would normally have to pay for.
How do you manage to pay off your debt quickly and realistically?
To Your Success,
The Corporate Sister.
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