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Ask SCORE
Identify the pros and cons of incorporation
Special to The Monitor
CEDAR CREEK LAKE–Deciding whether to incorporate your
business is one of the first decisions a new business owner faces. It is
a complex decision with both significant benefits and significant
drawbacks.
One of the benefits of incorporation is that it limits the owner’s
financial liability, because the firm is responsible for its own taxes
and debts.
If the firm is sued, if debts are unpaid, or if financial difficulties
force bankruptcy, the owner’s liability is limited to the value of the
stock he or she holds in the corporation.
Personal assets are not at risk, with certain exceptions, of course.
The owner may be personally liable if negligence is at issue or if the
company is the subject of civil litigation. Additional personal
insurance can help protect the owner against civil penalties.
A corporation also makes it easy to transfer ownership in the company.
Stock shares may be distributed to family members or sold to investors.
A corporation may also encounter fewer difficulties in raising capital,
borrowing money and obtaining credit. And with multiple owners, a
corporation affords greater stability for the firm’s short- and
long-term prospects, especially in the event of a principal owner’s
untimely death.
The chief financial drawback of incorporating is double taxation. A
company structured as a corporation first pays taxes on profits.
Stockholders – who in the case of the typical small corporation are
likely to be the owner-operators – then pay income taxes on the
dividends they receive.
However, an S corporation (sometimes called a “subchapter S” or “small
business” corporation) is not taxed as a corporation unless its capital
gains exceed $25,000, while also providing limited personal liability
protection. Stockholders report their share of business profits or
losses on their individual tax returns.
This form of incorporation is common with small companies. In either
case, bookkeeping requirements are more extensive due to the higher
level of detail required in tax filings.
Corporations are subject to both state and federal regulations. If you
plan to expand your business to other states, you may have to pay
additional fees in each jurisdiction. In addition, the corporate charter
or articles of incorporation must specifically state the firm’s business
activities. If you want to expand the activities of the business, you
may need an amendment to the charter.
One final drawback of incorporating is the cost, which will be
substantial even for a simple incorporation. If the state in which the
incorporation takes place requires a permit before issuing stock or
securities, legal fees may increase substantially.
Lastly, you can expect recurring costs, such as annual franchise or
corporate income taxes as well as federal corporate income taxes.
Before you make a decision about incorporating your small business,
consult a tax attorney. Other sources of expert advice will help you
keep both your business and personal goals on the right track.
A great place to start is SCORE “Counselors to America’s Small
Business.” More than 10,500 volunteers provide free, confidential
counseling to aspiring entrepreneurs and business veterans alike.
There is a SCORE Chapter at The Greater Cedar Creek Lake Area Chamber of
Commerce. Call (903) 887-3152 for an appointment.
Program on federal loans and grants
to be presented
Special to The Monitor
CEDAR CREEK LAKE– Anyone wanting help from
their Uncle Sam to fund worthwhile community programs will want to
attend this very important presentation.
The Rural Development Center will walk you through the U.S. loan and
grant program process during a presentation 5-7 p.m. Tuesday, May 15 at
the Library at Cedar Creek Lake, 410 E. Cedar Creek Parkway in Seven
Points.
This is a unique opportunity for all private, public and non-profit
entities to learn about all the grant, loan and loan guarantee
opportunities available from the federal government.
The development center assists citizens, cooperatives, cities and
non-profits, including faith-based charities, in their search for funds.
It is an agency of the Federal Department of Agriculture (USDA).
The United States Department of Agriculture is responsible for
coordinating all federal assistance to rural areas of the nation.
It seeks to improve the quality of life for all rural Americans. USDA
seeks to “make sure that rural citizens can participate fully in the
global economy – with technical assistance and programs that help rural
Americans build strong economies to improve their quality of life. USDA
helps rural communities in many ways.
• Building water and waste water systems
• Financing decent, affordable housing
• Supporting electric power and rural businesses, including cooperatives
• Supporting community development with information and technical
assistance
• Providing loans and grants for working capital for: construction or
expansion, purchase equipment, stock acquisition for cooperatives,
business incubator facility, and economic development planning, etc.
Cooperative Development Programs provide technical assistance and grants
to:
• start or expand a cooperative
• write a community strategic plan, etc.
Rural Housing and Community facility programs provide for such things
as:
• municipal buildings
• health and safety buildings
• daycare, schools and libraries
• infrastructure, roads, bridges, storm sewers
• fire and rescue
Rural Housing Service Provides opportunities for many low-income people
to obtain desirable housing or repair their current home to make it
livable.
The agency also provides help for multi family housing programs.
Who should attend?
Private citizens, school, library, city, cooperative officials,
nonprofit agencies, churches and all who are interested in getting a
piece of the action from Uncle Sam should attend this meeting.
Admission is free and refreshments will be served.
KC clean-up locations listed
Special to The Monitor
KAUFMAN–Kaufman County Clean-up has been set for 8 a.m.-4:30 p.m. May
17, 18 and 19 at various locations around the county.
Items that will not be accepted are paint, pesticide containers, and
hazardous household waste.
The clean up is free to all Kaufman County residents. Proof of residency
will be required at all locations (drivers license or water bill).
No cattle trailers or closed top trailers allowed.
Below are clean-up locations, times and dates.
If you have any questions about what you can and cannot take to the
sites, please call your county precinct.
Kaufman, Precinct 1 – Kaufman Trash Disposal and Recycling Center, 701
Alton Street, (972) 932-2161 or (972) 932-2216.
Trash and four tires allowed (residential only) at this location.
Forney, Precinct 2 – Precinct 2 Maintenance Barn, Farm-to-Market 2932
and Farm to Market, 741 (972) 564-7282 or (972) 564-4054, Ext.3. Trash
and four tires allowed (residential only) at this location.
Poetry, Precinct 2, – Poetry Baptist Church, 19311 Farm-to-Market, 986
(972) 564-7282 or (972) 564-4054, Ext. 3. Trash only allowed at this
location.
Terrell, Precinct 3 – Citizen Convenience Station, CR 319 (N. on State
Highway 34) (972) 563-5362 or (972) 551-6628. Trash and four tires
allowed (residential only) at this location.
Elmo, Precinct 3 – Elmo Food Stop. (972) 563-5362 (7938 E. U.S. Highway
80). Trash only allowed at this location.
Kemp, Precinct 4 – Precinct 4 Maintenance Barn, 709 S. Dallas St. at
15th (Business U.S. 175) (903) 498-2121 or (903) 498-2013. Trash and
four tires allowed (residential only) at this location.
Mabank, Precinct 4 – Rodeo grounds. (903) 887-3241 or (903) 498-2121.
Trash only allowed at this location.
Combine, Precinct 4 –,
Fire station (Off Farm-to-Market 1389 on Davis Rd.) (903) 498-2121.
Trash and four tires allowed (residential only) at this location.
Scurry, Precinct 4, – Across from Sloan’s Grocery (on State Highway 34).
(903) 492121. Trash only allowed at this location.
Peeltown, Precinct 4 – Across from Peeltown store. (903) 498-2121. Trash
only allowed at this location.
Terrell Iron and Metal,
1031 S. Delphine, Terrell,
(972) 563-5386. Appliances, batteries, aluminum, steel cans, metals
including wire and wire fencing.
CMC Recycling, 11485 County Road 212
Forney. (972) 564-2744
Appliances, steel cans and all metals including wire and wire fencing.
Lake June Scrap Metals, 11511 Lake June Road
Balch Springs, (972) 288-0174.
Appliances, batteries, copper, aluminum, tin and iron, brass, metal
fencing and wire.
Please call about requirements on cars.
Old Bethel Cemetery
Association to hold meeting
Special to The Monitor
MABANK–The Old Bethel Cemetery Association
will meet at 10 a.m. Saturday, May 19.
The memorial service will be held at the Old Bethel Church, adjacent to
the cemetery.
Bro. Steve Glosup, pastor of Clearview Bible Church, will be the guest
speaker.
A business meeting will follow the message. A covered dish luncheon will
follow the memorial service.
The Daughters of the Republic will present a special program at the
cemetery the same day as the memorial.
Beginning at 9 a.m., a confederate marker will be placed on the
graveside of Elijah Binson.
Vida Durell Sloan will be the speaker at the dedication.
The ceremony will be patriotic with flags, rifles, Confederate era
costumes and a cannon.
If you are unable to attend the service, you may send a contribution for
the cemetery’s upkeep to Donna Wilkerson, 1310 Farm-to-Market 316,
Mabank, TX 75147.
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