Q. I'm renting a premises off someone for buisness use as a sports shop, what insurance do i need to take out?
A. First read the lease agreement, it may stipulate minimum limits of liability insurance, it may require you to name the landlord as an additional insured and it may require you to insure store front glass. Once you are familiar with the requirements of the lease ask your agent about a Business Owners Policy (BOP). A BOP policy is a comprehensive insurance contract specifically designed for small businesses, it van cover your business property, leasehold improvements (if any), business interruption, general liability and products liability. By use of optional endorsements it can be customized to fit your specific needs.
how to start online office tolet business?
Q. dear friends, i m looking to start business of commercial property rental services. give me knowledge how to start it, how to make it successful?
A. There are actually a number of properties that can be rented on for your rental business�and it begins with checking your financial capability to buy a rental property.
If you will not be able to shoulder the finances of the business, one of the ways that will help you is to acquire the right financing strategy suitable for your business. Determine all your possible financial sources and be sure to allocate it properly on the course of business operation.
Next is to determine what are to be rented from you. What will be your offering to your market?
When you do find your ideal rental property, keep your plans realistic and accordingly. Complete the purchase of your rental properties. You may choose to have an agent with expertise on the property you have chosen to lessen your risk and burden. As a beginner, experts are good source of advice on how should you run the business effectively.
Allotting investment on acquiring rental properties does not necessarily mean putting all your money resource on it. It is just to assure that you own the properties to be rented so that you have full control and authority over them.
If you are planning to manage the business yourself, be reminded not to have a store located far from where you live. Proximity is an issue; you can even put up a property rental business in your house, if at all possible. Be also reminded that you do not want transportation cost eats so much from your finances.
The store location should be strategically planned. If you are planning to have an apartment rental business, know the quality of its neighborhood for it will be of great influence in the type of clients you will probably get.
Next is to plan accordingly how much the rents would be. If you want to penetrate the market easily, use the market penetration technique, which suggests offering the lowest price in the market as compared to your competitors.
Your forecasted net income must cover the taxes while still having the profits intact and your profits must cover the overheads on operating your business.Advertising the business helps in reaching your prospective customers. Be sure to do something that is creative and effective.
Lastly, study the financials of the business well for much of your success depends on proper manipulation on your accounts. Check the rate of return of your investments. It should not be long enough that the business has been operating too long without any return on your capital.
If you will not be able to shoulder the finances of the business, one of the ways that will help you is to acquire the right financing strategy suitable for your business. Determine all your possible financial sources and be sure to allocate it properly on the course of business operation.
Next is to determine what are to be rented from you. What will be your offering to your market?
When you do find your ideal rental property, keep your plans realistic and accordingly. Complete the purchase of your rental properties. You may choose to have an agent with expertise on the property you have chosen to lessen your risk and burden. As a beginner, experts are good source of advice on how should you run the business effectively.
Allotting investment on acquiring rental properties does not necessarily mean putting all your money resource on it. It is just to assure that you own the properties to be rented so that you have full control and authority over them.
If you are planning to manage the business yourself, be reminded not to have a store located far from where you live. Proximity is an issue; you can even put up a property rental business in your house, if at all possible. Be also reminded that you do not want transportation cost eats so much from your finances.
The store location should be strategically planned. If you are planning to have an apartment rental business, know the quality of its neighborhood for it will be of great influence in the type of clients you will probably get.
Next is to plan accordingly how much the rents would be. If you want to penetrate the market easily, use the market penetration technique, which suggests offering the lowest price in the market as compared to your competitors.
Your forecasted net income must cover the taxes while still having the profits intact and your profits must cover the overheads on operating your business.Advertising the business helps in reaching your prospective customers. Be sure to do something that is creative and effective.
Lastly, study the financials of the business well for much of your success depends on proper manipulation on your accounts. Check the rate of return of your investments. It should not be long enough that the business has been operating too long without any return on your capital.
How to begin any medium sized business along with a partner? What are the pre-requirements?
Q. I wish to start a small to medium sized business. I want to know what are the pre-requirements? How should I go about? Which would be the best business in which our physical presence is not needed all the time and returns are high with less investments. My likings are some thing to start in fast food business. What cab be good business opportunities?
A. First of all, sit down and write out a business plan. State what your overall goals are, then break it down into mini goals. Have a date assigned to each mini goal; this si when you want that goal accomplished. Try and look beyond the first year of business. Also include in your business plan the startup costs (renting equipment, office space, etc), taking into account the fact that regardless of if you made money or not that week, you still have to pay your employees.
Now, figure out how this project will be funded. If it's a bank loan, what's the collateral? What're the monthly payments?
Apply for a tax ID from the state for the business. You must do this to avoid being charged for tax evasion. Also set up a bank account exclusively for the business; DO NOT have the business money deposited and withdrawn from your own personal account.
As for fast food ... it's not as easy as you think. If you start your own store, you have to have your own recipes, own prices, buy tons of equipment on your own, and advertise heavily. It can take several months for an unknown store or restaurant to gain enough popularity to start making a profit. If you choose to open a franchise, you have to apply for a license through that franchise. They expect so much money in a bank account and vested in property before they will approve you. You will have to pay some up front, and the amount paid may or may not help pay for equipment or rental locations. Some franchises are better than others. You really have to go to either the website or an existing store to ask. Also, fast food managers easily work 50, 60 hours a week. If everyone calls in sick, guess who has to work the cash register and ovens?
Now, figure out how this project will be funded. If it's a bank loan, what's the collateral? What're the monthly payments?
Apply for a tax ID from the state for the business. You must do this to avoid being charged for tax evasion. Also set up a bank account exclusively for the business; DO NOT have the business money deposited and withdrawn from your own personal account.
As for fast food ... it's not as easy as you think. If you start your own store, you have to have your own recipes, own prices, buy tons of equipment on your own, and advertise heavily. It can take several months for an unknown store or restaurant to gain enough popularity to start making a profit. If you choose to open a franchise, you have to apply for a license through that franchise. They expect so much money in a bank account and vested in property before they will approve you. You will have to pay some up front, and the amount paid may or may not help pay for equipment or rental locations. Some franchises are better than others. You really have to go to either the website or an existing store to ask. Also, fast food managers easily work 50, 60 hours a week. If everyone calls in sick, guess who has to work the cash register and ovens?
What are some things to think about before renting out your home?
Q. We are considering renting out our house but we have questions about what to do. What tax implications, if any? How to report rental income? What to do in preparation for renters?
A. First thing to consider is making room for the renters by moving out. :)
Preparation:
1) Set aside some money for maintenance. Since you've lived in the property, you probably have a pretty good idea of what annual maintenance costs have been. Add some to this amount, because renters just don't take care of the property the same as you.
2) Finish any projects on the property that you can before leaving. It just isn't as easy to work on it when there is somebody else there. The renters have rights, and you can't unduly inconvenience them. You'll also be working around all of their stuff, but you can give them instructions to clean areas and move furniture if you'll be doing work.
3) Once you are out, take some pictures of the property and rooms. These are just for liability sake in the case that you do need to prove the previous status of the building for any reason.
4) If you already are owner of a business. Quitclaim (ask your title company about the process) ownership of the property into the name of your business. If you don't have a business, ask your accountant what structure they recommend for your situation and your state.
5) If you don't already have an accountant, find one. They have a huge amount of information to provide, and many will speak to you without a fee in hopes that they will become your preparer. Think of a couple people you trust who are also involved in real estate investing. The are a lot of rosy talking accountants out there who just don't do a good job, and you can usually find a great person by a referral. Also accountants tend to differ in the way they approach taxes, and yet all can be doing a great job. If you interview more than one, don't be upset by differing opinions, just settle with the one that makes sense to you.
Tax Implications:
This is an interesting subject, and there is a lot of information to cover. You absolutely want to find an accountant who is familiar with investment properties. A few things to have on your mind:
1) Mortgage interest for an investment property is tax deductible. However, the income from the property is taxable. Typically your income is going to be higher than your mortgage expense.
2) Depreciation is an art. You can depreciate everything nearly everything in the rental: Structure, Lights, Curtains, Appliances, etc. However, there is a limit to the amount of depreciation you can show for a year unless the property is in the name of your business. This isn't usually an issue until you own a very large property or more than a few small properties. It also isn't an issue if you structure the ownership properly - A property owned by a business is under the same limitations.
As far as reporting the information goes, I would not tackle this problem yourself. As a real estate investor, you will find that you save far more money in taxes using an experienced accountant than you will by avoiding paying an accountant's fees.
Good luck!
Preparation:
1) Set aside some money for maintenance. Since you've lived in the property, you probably have a pretty good idea of what annual maintenance costs have been. Add some to this amount, because renters just don't take care of the property the same as you.
2) Finish any projects on the property that you can before leaving. It just isn't as easy to work on it when there is somebody else there. The renters have rights, and you can't unduly inconvenience them. You'll also be working around all of their stuff, but you can give them instructions to clean areas and move furniture if you'll be doing work.
3) Once you are out, take some pictures of the property and rooms. These are just for liability sake in the case that you do need to prove the previous status of the building for any reason.
4) If you already are owner of a business. Quitclaim (ask your title company about the process) ownership of the property into the name of your business. If you don't have a business, ask your accountant what structure they recommend for your situation and your state.
5) If you don't already have an accountant, find one. They have a huge amount of information to provide, and many will speak to you without a fee in hopes that they will become your preparer. Think of a couple people you trust who are also involved in real estate investing. The are a lot of rosy talking accountants out there who just don't do a good job, and you can usually find a great person by a referral. Also accountants tend to differ in the way they approach taxes, and yet all can be doing a great job. If you interview more than one, don't be upset by differing opinions, just settle with the one that makes sense to you.
Tax Implications:
This is an interesting subject, and there is a lot of information to cover. You absolutely want to find an accountant who is familiar with investment properties. A few things to have on your mind:
1) Mortgage interest for an investment property is tax deductible. However, the income from the property is taxable. Typically your income is going to be higher than your mortgage expense.
2) Depreciation is an art. You can depreciate everything nearly everything in the rental: Structure, Lights, Curtains, Appliances, etc. However, there is a limit to the amount of depreciation you can show for a year unless the property is in the name of your business. This isn't usually an issue until you own a very large property or more than a few small properties. It also isn't an issue if you structure the ownership properly - A property owned by a business is under the same limitations.
As far as reporting the information goes, I would not tackle this problem yourself. As a real estate investor, you will find that you save far more money in taxes using an experienced accountant than you will by avoiding paying an accountant's fees.
Good luck!
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