Sushil Kumar - Success in Incorporating Small Businesses: (Twelve Cardinal Steps to Establish a Business in New York)

Sushil Kumars book is not only the Bible for small
business owners in New York, but also a roadmap to
minimize liabilities and maximize rewards. Professional
financial advice combined with thought provoking
motivational dialogue makes this book a go-to
resource for running your business with confidence and
pride. Thank you, Sushil, for righting my course!

Glenn Barton, President of Pinwheel
Studio Inc., Forest Hills, NY

Simple, concise, clear about corporation and accounting
book that I ever read! I suggest this book to everyone who
wants to open business or has a business already

Tassan Jatikusuma, CEO of Broadway Energy
Group & Texnetworks Inc., Queens, NY

As a fellow New York small business owner, I
can say from experience that Sushil Kumars
enlightening and motivational book offers all the
key elements to help ensure lasting success.

Lyonel Coriolan, Executive Director & CEO
of Emerging Technologies Institute,

Forest Hills, NY

Very informative yet a concise presentation of
topics important to any business owner. A must read
book for an entry level or a seasoned entrepreneur.
Kudos to Mr. Kumar for this excellent resource!

Robert Niyazov, President of R & J Capital
Group Mortgages, LLC, Forest Hills, NY

This book should be required reading for anyone thinking
about starting a business entity or recently started one.
It provides solid advice in simple language on how to
financially protect yourself, your business and how to
financially manage it for future success. It provides real
life business answers to real life business questions
and concerns of new entrepreneurs. From what type of
business entity to establish to how to protect oneself and
business financially, to business planning, to accounting
and tax compliance needs in one easy read book.

Henry T. Bak, Financial Professional Associate,
The Prudential Insurance Company of America

AuthorHouse LLC

1663 Liberty Drive

Bloomington, IN 47403

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Phone: 1-800-839-8640

2014 Sushil Kumar, CPA, MBA, CGMA. All rights reserved.

No part of this book may be reproduced, stored in a retrieval system, or
transmitted by any means without the written permission of the author.

Published by AuthorHouse 04/21/2014

ISBN: 978-1-4918-3573-9 (sc)

ISBN: 978-1-4918-3572-2 (e)

Any people depicted in stock imagery provided by Thinkstock are models,
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and the publisher hereby disclaims any responsibility for them.

Contents

Chapter 1
Selecting a Legal Entity

Chapter 2
Registering with the Tax Authorities

Chapter 3
Trademarks and Copyrights

Chapter 4
Banking

Chapter 5
Federal and State Payroll Taxes

Chapter 6
Income Taxes

Chapter 7
Accounting and Bookkeeping

Chapter 8
Cash Management

Chapter 9
Financing Your Business

Chapter 10
Insurance

Chapter 11
Selecting Professional Advisers

Chapter 12
Traits of a Successful Business Owner

Appendix 1
Checklist to Start a Successful Business

Appendix 2
Response to Self-Talk

This book is dedicated to my teachers, family,
clients, and staff, who have all been a blessing to
me and inspire me to reach greater heights.

Introduction

Congratulations on your new business.

I wish you every success!

I have written this Success in Incorporating Small Businesses to provide you with basic information about the financial, tax, and accounting considerations of starting a new business.

The purpose of this book is twofold. The first is to help you focus on the decision of whether to incorporate and the best way to accomplish it. I personally believe that in business today it is almost a necessity that you be incorporated. I would say this mainly based on the belief that our society has become overly litigious. Those who enter into business must face the fact that sooner or later someone will sue them or their business for something. If you do not have a corporate structure, you will expose yourself and possibly your entire familys assets to the plaintiff in the suit. The corporation is the single most important tool to protect from liability. Incorporation is a great tool from income tax perspective, audit exposure and succession planning.

The second objective of this book is to convey to you the legalities of creating an actual business operation. Operating a business is highly regulated proposition. You have to understand a little about business law to learn to spot potential problems. You may not actually handle the problem yourself, but by understanding some of the legal implications, you will be able to use your accountant and attorney better leverage in dealing with legal tax problems.

Each year hundreds of thousands of corporations are registered in this country, tens of thousands in New York alone.

Many new businesses fail in the early years from poor management and lack of attention to financial basics such as record keeping and reporting. Thats where we come inwe want to be part of your team to make sure you have in place the things that will allow you to enjoy ongoing success.

Having a team of outside advisors is importantincluding a CPA, lawyer, bank manager, and insurance agent. Make sure your advisers are willing to be engaged and proactive in helping you. You dont need spectatorsyou need coaches!

Trinity Tax & Financial Solutions Inc. CPAs has been active in the New York area since the 1990s. We specialize in four areas:

1.Helping individuals and families with tax compliance and tax planning.

2.Helping owner-managed businesses with their accounting, tax, and consulting needs so that they can focus on running their businesses.

3.Helping individuals and families with comprehensive , holistic wealth management so that they can achieve financial independence and meet their life objectives.

4.Helping expatriate individuals and families with their tax issues. This may involve Americans living abroad or, more often, citizens of other countries living in the United States, either permanently or temporarily on various types of visas. This is a complex area and requires careful planning and compliance.

I would appreciate the opportunity to meet with you either at our office or yourswe are pleased to offer a one-hour complimentary consultation meeting.

Sincerely,

Sushil Kumar

Sushil Kumar, CPA, MBA, CGMA

PS: Call us for a free one-hour initial consultation without obligation.

Please note: While every effort has been made to provide the most up-to-date information, legislation does change. Please contact Sushil Kumar for the latest rates and IRS legislative updates.

CHAPTER 1

SELECTING A LEGAL ENTITY

Triumph is just a lot of umph added to try.

Marvin Phillips

CHAPTER 1
Selecting a Legal Entity

Congratulations on being in business! One of the first things you will need to decide is what kind of legal entity you are going to use to conduct your activities. The decision depends on the following:

How you intend to finance your business

The amount of personal risk you are willing to bear

Taxation