Helping small businesses stay compliant

Many small business owners have compliance issues, even when it comes down to simpler items such as corporate minutes. But according to ITBusinessEdge's conversation with a legal expert, it may be a good idea for these companies to just hire a firm to take care of these requirements.

The news source noted that keeping corporate minutes is the most frequent compliance issue companies have. This can really do damage to businesses, leaving them open to being sanctioned. More than half of businesses are not incorporated, which also can cause problems, the news source reported. Lawyers could look over a businesses profile and create a plan to get them incorporated and compliant in all fields.

It may be a good idea for day trading companies to look out for such firms that deal with compliance issues, as it will give the businesses the time to concentrate on more pressing money-making matters. There are many types of firms to choose from, and the quicker a business owner contacts one, the better off their company will likely be.

Many options are affordable, and if a business owner does not want to pay up front, there are many who will consult for free before any payment needs to be made. This could help a business find out exactly what needs to be done, and save the owner a significant amount of headaches and paperwork later on.

Business owners are feeling burnt out

Many business owners are feeling increasingly overworked, and it may be difficult to alleviate the situation, according to Business Insider.

Fewer business owners are vacationing this year than they did in 2006, according to a recent poll by American Express. The OPEN Small Business Vacation Monitor found only 46 percent are going on vacation, almost 20 percent less than five years previous. The reasons are directly related to not having enough help.

Nearly 40 percent of those business owners who are not going blame it on their schedules being too hectic at work. Only 29 percent cited affordability.

Business Insider added that when a business owner loses interest in what they do, it may be time to take a break. Feeling overwhelmed, not being able to stay focused on a goal, and other health-related problems may be signs that it is time to slow down - at least temporarily.

Those who participate in day trading for a living may not want to go about it alone. It could be a good plan to further invest in outside resources, such as accountants or bookkeepers. This is because increasing amounts of work can become unbearable for day trading companies. Due to these organizations being so small, it may be a good idea to give some of the important financial-related duties to someone who is an expert. It could make the company run much more smoothly.

Capital gains tax break could end

A recent bipartisan proposal is picking up steam in the U.S. Senate, and it could increase capital gains taxes, according to Bloomberg.

The Gang of Six proposal does not have any mention of capital gains or dividends, but would likely require higher investment taxes, which could become a problem for companies. It would lower income taxes and widen the tax base as a whole, the news source reported. If the proposal follows other similar plans would be the first time in more than 20 years that capital gains would be considered typical income.

House Budget Committee chairman Paul Ryan recently authored a study commenting on the lack of clarity on the specifics of the tax cuts.

"It does not provide annual spending and revenue totals by category, relying instead on savings relative to three different baselines," the House Budget Committee's report said. "So, it is unclear what exactly the spending and tax proposals are."

Day trading companies may be wary of the new tax increases. More taxes could severely hurt day traders' bottom lines.

In order to alleviate some of the difficulty surrounding this situation, it may be a good idea to hire an accounting firm or a bookkeeper. Having an expert keep tabs on the ever-changing

Outsourcing could improve the flow of a small business

When it comes to running a small business, those who participate in day trading for a living may want to constantly search for ways to streamline their work. By outsourcing extra work to other people or organizations, small businesses may end up saving a significant amount of time, which could end up meaning more money in the bank, according to author and human resource manager Shantell Malachi.

Paperwork is a problem for every company, whether they want to admit it or not. These extra items that do not directly correlate to a business owner's goals can really slow down production, and take out a large amount of free time, as well, she said. Whether an administrative assistant or another bookkeeping entity is hired, this could give business owners much more of an ability to do what they do best - bring in cash.

Bookkeepers allow for a larger amount of wiggle room when it comes to not only time, but money as well, Malachi said. Hiring a person, or sending the work out to a firm is cheap, and it will allow a business owner the opportunity to make more money, which is central to making a business successful.

Many of those people or organizations who are able to aid in bookkeeping practices also have an ability to help improve a business owner's knowledge on certain topics, Malachi added. Learning more about certain aspects of the business world to improve the bottom line can only be positive.

Deciding how to incorporate a day trading business

Many day traders who are new to the industry may be unsure of how to go about creating a start-up company, but Jessica Holcombe, a corporate attorney, told CBS News there are a couple of solid options.

Two types of businesses work well with a day trading setup: C-Corps and LLCs. But there are many differences to these organizations that are important to keep in mind, Holcombe said..

C-Corps are important if the goal of the company is to attract investors such as venture capitalists and do not want to deal with pass-through tax entities. In addition, C-Corps may make sense if the tax rate for the company will be lower than what it would be for other income, Holcombe said.

One lingering issue with C-Corps is the issue of being double taxed. The profits of the organization itself are taxed, and then the shareholders of the company are taxed on the profits, Holcombe writes. Business losses also do not offset taxes owed on personal income, which can be another drawback.

LLCs can be a wise decision if the company is expected to sustain losses, and this could be offset by regular income, she said. LLCs also avoid many of the compliance requirements which are demanded of corporations.

Deciding which route to go down can be difficult, thus one should think the decision through and consult an expert, as it may be a hassle to switch later on.