Credit Tips

Affordable Credit Repair Companies Guide: Why Consider Professional Repair Services?

When it comes to fixing your credit report, you have two options: the DIY approach and requesting assistance from the pros, who will perform the service for you and take care of all of the hard work. However, since there are obviously scams out there, you should be really careful about who you choose. You don’t have to spend a fortune, as there are some affordable credit repair companies. You just need to watch out for red flags. For instance, never trust a company that tries to charge you a fee upfront. Only consider organizations that offer free consultations.

Before contacting any credit repair company, you should first request copies of your credit reports and go over them yourself. If there are just a few minor issues, then the DIY approach might be ideal after all. You just need to check online for sample letters to send to the credit bureau(s) and the lenders. Some patience will be required as well, since it will take some time for them to make a decision and give you a response.

If you’re not entirely sure how credit reporting works, or feel confused by some of the negative items, then it will probably be better to let the professionals do it. As long as you choose a legit service, they will be able to get a response more quickly than you would if you were doing it on your own.

Some affordable credit repair companies offer multiple levels of service depending on how bad your credit scores are and how many items need to be removed. Some negotiation might be required as well, should the creditors dispute.

What Affordable Credit Repair Companies May Dispute

What kind of information can be disputed? Anything that is obviously erroneous such as your name misspelled or typos. If you’ve been a victim of fraud, then anything that the identity theft has done using your name and SS # could potentially be disputed, although you might need legal assistance to do so. There are also factual mistakes, unsubstantiated accounts, and outdated information that can be disputed.

If you are worried that some of the items might be difficult to be removed, then the best thing to do is go through a credit repair company that has a network of lawyers and paralegals. This company should provide you with a paralegal who will help you with your case personally.

Of all of the affordable credit repair companies, the one that is trusted by most people is Lexington Law. It offers services in most states and does assign each client with a paralegal. There are three levels of service to choose from. Check for Lexington Law discounts today to find out if there are any current deals or savings available. A personalized consultation is always for free.


Role of Budgeting in Planning, Control, and Resource Allocation Process in UAE Companies


Before understanding the key concepts of budgeting, it is important to understand the meaning of budget. A budget is used to make a documentation of the translation of plans into money. So, the amount of money that needs to be spent in the planned strategies of the company would lie under the budget of that company. These planned strategies include the expenditure that a company incurs and also the income that the company predicts to make. So, in other words, a budget helps one to make an estimation of the amount of money that would be required for the company to handle the projects undertaken by it. It must also be understood that a budget is not made permanently. There are conditions under which a company can make changes in the budget and go as per as the needs of the market. As for example, if a company sees that the use of computers is not as had been planned in the budgeting; it would either replace it with something or not make any investment at all in the field. This is where the utility of controlling comes into the picture. Other than this a budget is also significant from other perspectives. If one talks about the resource allocation, budget has an equally important role to play in it. The reason for the same is that let’s say that a company has budgeted that it can afford a certain amount of power supply for a certain project that is conducted in a village. Under the conditions, the amount of human resource that would be required to carry out the project can be determined from the budget itself. Normally a budget is of three types. They have been mentioned as follows:

Survival Budget: This form of budgeting is important in the boundary conditions. It estimates the minimum resources so as to complete a particular project. So, if a company has a look at the survival project, there is one obvious analysis that can be done. This is that under the most optimistic of the situations, the resources allocated would be sufficient. There would be very little margin of error under the conditions.

Guaranteed Budget: This budget is formulated when there is a guarantee of a particular amount of income at the time of formulation of budget. So, when a budget is made from this perspective, this income is taken into consideration. If somehow, the debtors are not able to provide the income that the company used as guarantee before making the budget, it would have to switch over to the survival budget formation.

Optimal Budget: The third form of budget is the optimal budget. This budget is used under the conditions when there is extra money in the company accounts or else the company feels that it could raise extra money from the market. So, if the position of the company is good then this form of budgeting can be applied. As for example if we consider a very famous company in the infrastructure sector, Emaar, we would find that the company has the ability to raise a lot of extra capital from the market. So, Emaar can hope to use it in utilizing the money to plan a few more interesting projects like it had made the longest mall in the world and the tallest tower in the world. Both these projects were outcomes of an optimal budget made by the company.

Budgeting Responsibilities

Owing to the circumstances under which a budget is fruitful, the organizations should be highly selective in handing over the responsibilities of making the budget. There are a few pre-requisites of making a budget. They are as follows:

The concerned employee should have a clear understanding of the company’s values, strategies, and plans that lie in the near future.

The employees must know the importance of cost-efficiency and cost-effectiveness.

Also, the concerned employee must have knowledge about the resources that would be used to generate and raise funds.

The above pre-requisites are essential for the company if they have the motive of using budgeting in the planning, controlling and resource allocation purposes.

So, it is generally recommended that a company has a budgeting team that has an optimal size so as to prevent any discrepancy with the formation of the budget. Under all situations where the concerned members of the finance department have difficulties in planning the budget, they would have to consult the board of members for the same. For a situation like this to arise, the planning in the company must certainly have been wrong. So, we can see that the new planning would depend solely on the fact that budget allows the same to happen. Under all other conditions, the estimated plan would have to change. (Budgeting, 2010)

Role of Budgeting in Planning

Here we are taking the telecommunication giant, DU into account to understand the role played by budgeting in the planning process. It was only about a couple of years ago that the company introduced its new plan. This new plan was about introducing the pay-by-the second plan amongst the services of the company. This was done as per as the optimal budget plan of the company. DU had formulated a budget where it got the option of introducing a new facility with the extra money that it hand in hand. As the company analysis shows that DU was climbing the ladders of success even then, so this was certainly a major step in the making. Moreover, the funds that had been allocated in the budget were enough for the fact that the company could start this service any time it wanted. So, it chose the time when the nearest rival company Etisalat had screwed up its plans after introducing the Blackberry services. As an optimal budget is that which allows the time for starting a new investment, this was just the time and DU made the most of the opportunity. Today this plan is among the most revenue-fetching plans that the company had ever introduced in its services. So, budget played an extremely important role in the planning of this success of the firm. Had the company planned to use the extra money as a surplus or retained or reserve, it would never have been able to introduce this service. So, one can see the importance of making the right budget at the right time can help in planning for great successes in a company. There are other examples also where one can see the planning being aided by preparation of budget. The tourism department of Abu Dhabi was guaranteed of the fact that it would have a considerable amount of income from the flourishing tourism in the country due to the onset of some of the most peculiar activities in the country. Under the situation, the department used the guaranteed budget to enhance the cultural activities of the country. A number of museums have been renovated because of a planned budgeting under the guaranteed budget plan. The department had planned that with the money they would have from the already existing resources in tourism, it would evoke a cultural feeling in the country and its natives, It has been able to do it successfully as per as the statistics of the museums of the region are concerned. So, once again we see that budgeting has helped in planning of such an important landmark in the country.

As in general one can say that budgeting is about aiding a company to make plans for the future. It is that process where a company can be assured of the fact that it would have enough money so as to carry out the requisite projects. We are all acquainted with the fact that the world is about competition as of today. Every company needs to plan new projects so as to show its core competency. Under the conditions, no company can automatically start investing on its research and development. It has to come through a substantial degree of planning which could only be possible after the budget of the company allows it to do so. In all other situations it would finally have to terminate the services with an excess of demand or supply.

There are also other instances where a company can use the principles of budgeting in order to carry out its planning. This can be seen in the case of training. Every planning of training has to be supported by budget. This is one of the foremost criteria of training. There are a number of instances in the country where the Government is implementing programs like Emiritzation. If the budget of the company does not support such plans they would certainly not be executed. The loss can be huge under the conditions. The first case would be a monetary loss as an incomplete training would actually be of no used as it would be insufficient to fulfill the company’s criteria. If some small companies do place employees with an incomplete bit of training, it would make the company even smaller!

So, we can see how budgeting governs this chain of planning which of not executed in a suitable manner could bring about adverse results. (The Importance of Budgeting, 2010)

Role of Budgeting in Controlling

As in the case of planning, budgeting also has a special role to play in controlling of an organization. We have seen that a plan would simply lay the conditions of taking on a particular activity. What follows is its controlling in the implementation phase. Let’s say that a company wishes to promote its products or services in the trade fare of Dubai. This is one of the places where controlling comes into play with respect to budgeting. Dubai Trade Fare is one of those occasions when a number of companies use the best of means to promote their products. With an adequate amount of control, the companies would never be able to compete in the pool of so many. So, a budgeting has to be done to choose the HR and marketing department which would be responsible to control the scenario.

Without a proper budgeting in this respect, the company would make inefficient decisions and after a while, there would be no control over the promotional measures of the company.

There are also a number of chances where a company goes with leisure expenses. It does increase the value of the company for a particular period of time but after a while there has to be an end to it. Now, with a planned budget under the conditions, the companies would be able to restrict themselves from over-spending as the budget would not suit their expenditure. This requires the company to make a survival budget. As we can see a survival budget would certainly take care of the budgeting requirements of the company. If the employees are aware of the fact that they would not be able to complete their respective projects with the type of expenditure they are doing, they would certainly shift to other economic reasons. This way a company can also control the activities of the employees. Once a planned budget is produced the whereabouts of the employees can also be checked as they would be on a hire. The amount of time given to them in the budget would be fixed. If they are unable to finish their respective works in this stipulated time they would see the effect on their salaries or wages. So, this way, the company’s activities, employees, time and money can all be under control with the introduction of budget in the company’s financial plan. The company would certainly become more efficient if it works in a controlled manner. So, this would be for the mutual benefit of both the employees and the company as well. (Controlling a Budget, 2010)

Role of Budgeting in Resource Allocation

A company’s success is highly dependent on the resource allocation. This has to be done optimally so as to complete a certain project. The law of economics suggests that a company has the least resources and has to make the most of it. So, only an appropriate resource allocation would help this happen. This would be in terms of human resource, raw materials, equipments, money, time and all other attributes that take for making a project successful. Here again, the budgeting of the company plays an important role to play. The reason for the same is that in all the sectors that have been talked about here, only a planned budget could decide the maximum a company can afford. Let’s say that ADNOC has the plan of staring a new subsidiary. Under the conditions, it would have to make a budget where the company could allocate the amount of human resources in order to make this happen. Not only this, there are a series of activities that would have to be done in the process. Much of the time, there would be two processes going on and at times even one. So, a planned budget would estimate the amount of money that the company can afford throughout the process. Based on this, the processes would have to be allocated in a manner where the company can make the best use of the human resource available. If ADNOC has 200,000 AED for the purpose, and there are 10 slots, rather than allocating 20,000 AED per slot, the company would have to see the priorities of each slot. If a particular slot requires double the number of processes than the others, the resources would have to be allocated accordingly for the same. Now this can only be possible with an appropriate amount of budgeting. If the budget of the company does not allow double resource allocation for a particular slot because of other activities, then the company would have to come up with other alternatives. Had there been an inability of a budget, the company would allocate double resources and finally land up with none available for a process that has little requirement. So, we can see that even the process of resource allocation requires budgeting to a large degree.

Talking about the company Emaar, as per as the organizational size of the company, there has to be a proper budgeting done. The reason for the same is that every department requires an adequate amount of human resource and funds. If the company’s budget for a particular project is 200 million AED, the company would also have this budget divided into different departments. Every department would have to use only the allocated funds to support its human resource and all other requisites prior to conducting the project. If the construction department spends so much that the company is not able to use any funds for its advertisement, in this world of competition, even a company like Emaar would have to bow down to others in the league. There are so many options that people have for residents that promotion under forced conditions could change every profitability ratio of Emaar. So, here again we see the hierarchy that could be affected because of the inappropriate use of resources that would result from the non-availability of a budget that could suit the purpose. (The Basic Budgeting Problem, 2010)


So, one can see that a budgeting process has a number of utilities in the projects of a company. This could be from the perspective of planning, controlling or resource allocation. Every company has the desire to be at the top. Finance has a special role to play in the same. Te steps of laying down an appropriate budget are as follows:

Firstly, the concerned person should lay down all the places of investment with respect to a particular project.

Next, make an estimation of the unit cost of every product that would be manufactured in the process.

Next, analyze the resources that would be sufficient to provide for the unit costs found.

Next make a proper budget format so that it is clear to all the departments and they the amount of allocation for them in all the respects.

It is also advisable to make notes so as to be able to explain the budget better.

Next, it is required to take a feedback on the budget so as to see whether it is applicable to all the departments or not. If not, then it would have to be re-planned.

Finally, make the final documentation so as to be able to help in planning, controlling and resource allocation as has been suggested earlier.

With all the above processes followed, a company can afford to perform all the financial activities in its respective projects. It must be remembered that only a systematic design of budget as has been concluded could be used for the mentioned cause.


What a Contractor Should Know About Umbrella Companies

Umbrella companies have grown over the past decade since it started in the middle of 2000. Using an umbrella company relieves contractors from working through their own limited company and offers a hassle free business structure. It is for this reason there are more than 200,000 people in the UK working through umbrella companies, and the figures are only rising with more and more people joining the self-employed industry. Also, after the IR35 legislation started umbrella companies have become more common in the UK.

How does this work?

Umbrella companies act as an employer to agency contractors who are placed on contract assignments usually through a recruitment employment agency in the UK.

Here is a step to step guide on how this work.

1.    You register with the umbrella company (you can do this online or over the phone)

2.    You sign a contract of employment with the umbrella company

3.    You submit timesheets showing how many hours you worked along with your expenses claim forms to the umbrella

4.    The umbrella company invoices the recruitment agency, which subsequently bills the end-client

5.    Once the umbrella company receives payment from the agency, they prepare your payroll

6.    Umbrella Company processes your payroll, and pays you a salary, following deductions for taxes (income tax + National Insurance), the pre-agreed umbrella fee, and any other deductions (for pension contributions, for example).

Are there significant tax advantages of using an umbrella company?

You will receive an overarching contract of employment and become an employee of the umbrella company undertaking a variety of roles as suits your abilities at various different locations, these workplaces will be classified as temporary workplaces. This can let you offset subsistence and travel expenses reducing the gross salary and subsequently the amount of tax paid. This model is suitable for those contractors who work at different locations.

What about IR35?

The IR35 legislation was introduced on 6th April 2000. It was first proposed by the Chancellor in the 1999 Budget. The aim of the legislation is to eliminate the avoidance of tax and National Insurance Contributions (NICs) through the use of intermediaries. On 27 October 2014, HMRC announced that the ‘Business Entity Tests’ (BETs) of IR35 will be withdrawn from 6 April 2015. However, the IR35 legislation would still apply.

Umbrella company employees fall outside the scope of IR35 and will not be affected by it.

Contracting and national minimum wage (NMW)

NMW applies to contractors who are employed by a compliant umbrella service provider as there is a contract of employment in place.

Some umbrella companies pay their employees a salary below minimum wage and then make up the difference by including various expenses such as meals or travel costs. HMRC has stated  they are aware of ‘schemes’ whereby umbrella companies are avoiding paying the National Minimum Wage and that they view them as unlawful and will take action accordingly. 

Tips to consider while choosing an umbrella company

How can you ensure you are choosing the right company? While many of them offer compliant and quality services there are a small number of companies that have put the image of the umbrella sector at risk.    

If you are just starting as a contractor and looking for an umbrella company, you will be swamped with hundreds of companies all making variety of claims and promises and when you hear one that sounds too good to be true, it probably is.

Here are our seven tips for contractors to consider when choosing an umbrella company.

Experience – look for an established company which has specialist knowledge and provides compliant service.

Higher net pay – if a company guarantees larger take home pay which sounds unrealistic, it is best to keep away from them.

Fee structure – before you choose an umbrella company it is of great importance to establish upfront that there will be no joining and exit fees.

Claim expenses without receipts – any company that allows claiming expenses with ‘No Receipts’ keep away from them. It is best practice to retain receipts even for allowable expenses.

Personal service – make sure you are appointed a dedicated client manager to manage your assignments. Assure it is not just an online system and that you can speak to a real person when required.

Employee benefits – ensure the company you choose gives you the option of employee benefits such as holiday pay, sick pay, maternity and paternity pay.

IR35 compliant – when a company claims that they are “IR35 compliant” it may sound impressive, but this does not apply to contractors that operate through an umbrella company because your payments are processed through PAYE.


Why We Hate Forming Companies In Cyprus

Especially if you travel to eastern Europe (places such as Latvia) you’ll hear a lot within the offshore company formation circles about Cyprus companies, they are fairly common there. (As you travel the world you’ll find there are popular spots or favored tax havens in many of the countries of the world Barbados for Canada (though this is an outdated view), Puerto Rico for the US, etc.) Frankly, I have no idea why it’s become popular for anyone as I loathe Cyprus when compared with the alternatives.

Let’s start with what’s supposedly good about Cyprus:

  1. It’s part of Europe
  2. Relatively low taxes – 12.5% sticker rate is one of the lowest in Europe
  3. A reasonable network of tax treaties
  4. Non-resident companies are available – opening up the possibility of 0% tax companies
  5. No dividend withholding taxes

So you might ask with all those advantages what’s not to love?

The reality is Cyprus is an option, it’s just a worse option than some of the available alternatives, most specifically Gibraltar. Let’s compare:

  • Both are part of Europe so neither scores any points over the other
  • Company formation in Cyprus is around 2250 EUR, while Gibraltar is around 850 GBP making Gibraltar cheaper
  • Both can have non-resident companies but Cyprus non-resident companies are still subject to annual audited financial statement requirements when even resident Gibraltar companies aren’t up to an annual income of 5 million GBP and non-resident companies don’t have to file a return at all making Gibraltar companies much less expensive to maintain
  • Cyprus definitely has an advantage when it comes to its network of tax treaties and I’ve heard it argued that “you should have your Cyprus company tax resident in Cyprus in order to tax advantage of the treaties” but in practice I rarely find there is any advantage in doing so, if you’re doing offshore tax structuring that would result in a Cyprus company you typically aren’t looking for the benefits of tax treaties anyway
  • Cyprus laws etc. are all in Greek making it much more of a hassle for those more familiar with English to obtain information and do business there
  • Cyprus isn’t a particularly confidential jurisdiction
  • While there is very accessible local banking available in Cyprus and not in Gibraltar, a Gibraltar company could easily open a Cyprus bank account but who would want to given their history of financial instability?
  • Gibraltar has a 10% tax rate on corporations while Cyprus has a 12.5% tax rate making Gibraltar more favorable in raw tax rate on resident companies
  • Cyprus taxes on worldwide income while Gibraltar has a quasi-territorial tax system making Gibraltar even more tax competitive for resident companies

If you’re going to have a resident local company then yes, Cyprus does have one of the lowest tax rates in Europe combined with a mediocre network of tax treaties. Whether there is any reason to go there rather than say Latvia or Estonia or Malta is a question of the individual circumstances of your business but as a general rule it is a rare day that forming a company in Cyprus makes sense for a non-resident.

Bottom line I almost never use nor recommend Cyprus as a jurisdiction to form an offshore company.


Tax Relief Companies – How To Choose The Best One

When it comes to debts, there are some people you can afford to owe, and some people you simply cannot afford to owe. Many people have compared having a IRS tax debt to owing the Mob, and given the way they hound, harass and badger you, it’s not a bad comparison at all. Luckily though there are a few good tax relief companies out there who can help you effectively deal with the IRS. This article will show you where to find them and what to look for when choosing one.

Where To Look For The Best Companies

Not too long ago, your only choice for finding the best tax relief companies was a flick through your local yellow pages. Today, thanks to the internet, all that has changed. In just a few mouse clicks, you can have before you hundreds of companies adequately equipped to help you deal with the IRS.

But there’s an even greater reason to look online for a company is the fact that online companies are cheaper than offline ones. Once you find a bunch of companies online, the next step is to filter out the ones that are just not good enough and I’ll cover that below.

How To Filter Out The Bad Companies

Choosing from among a group of tax relief companies will hinge heavily on 2 things:

  1. The first is the track record of the company. If a company has been operating as a tax specialist for less than 2 years then the advice is to avoid them.
  2. The second consideration is the fees policy of the company. Do they charge for initial consultations? Do they require an upfront commitment before they actually deliver any work? If you can answer yes to both these questions, then the company in question is a poor choice and should be avoided.

Provided you use both those filters when selecting from a batch of companies, you’ll stand a good chance of making a sound decision. And the sounder then decision, the faster you’ll be able to put your tax worries behind you.

As you can see from the outline above, getting help from the best tax relief companies is not hard. Use the information and put yourself on the road to being “tax debt free”.


Top 5 Sales Tax Nexus Issues for Technology Companies

Sales Tax Checklist for Technology Companies

  1. Do you make internet sales? (On all internet sales, sales tax is due … assuming the product / service is taxable. The issue is whether the seller has a duty to collect and remit or whether the buyer is required to self report.)
  2. Do you have affiliate relationships (for generating sales) with out-of-state companies?
  3. Do you have sales representatives travel outside of your home state?
  4. Do you engage in trade shows outside of your home state?
  5. Do you have employees or agents that perform services on your behalf outside of your home state?

If you answered "yes" to one or more of these questions, you could be creating a sales tax liability outside your home state. Also, remember income tax nexus is not equal to sales tax nexus. The rules apply differently.


Nexus is a "connection" or "link". Sales and use tax nexus refers to the connection between a person or entity and a taxing jurisdiction sufficient for that jurisdiction to require the person or entity to comply with its sales and use tax laws.

The current basis for determining when sales and use tax nexus exists is found in two Supreme Court cases; Quill Corp. vs. North Dakota [May 26, 1992], and National Bellas Hess, Inc. vs.Department of Revenue of the State of Illinois [May 8, 1967]. In both Quill Corp. and National Bellas Hess, Inc., the Supreme Court ruled in favor of the taxpayer, limiting the states' ability to impose its taxing authority over interstate commerce. The guidance derived from these two cases can be employed in today's markets to manage sales and use tax compliance responsibilities.

While most States continue to reference these cases when defining sales tax nexus thresholds, the States continue to pursue expansion of their sales and use tax authority. With nexus being the foundational element that requires a company to collect and remit sales tax, it's important to note some of the difficulties in determining whether a company has sales tax nexus or not.

As with most sales and use tax related matters, determining whether or not sales tax nexus exists requires some level of interpretation of a state's statute as it applies to the activities of the entity. With that backdrop, here are the most common issues that technology companies struggle with from a sales tax nexus perspective. Also, it should be noted that sellers do not actually "charge" sales tax. Rather, seller's "collect and remit" sales tax. This can be important. For example, as in the case of internet sales, sales tax is always "due". This issue becomes whether the seller has the obligation to collect and remit the tax or if the buyer is obligated to self report.

# 1. Affiliate Nexus, "Amazon Laws", and Click-Through Nexus

The internet has resulted in a shift in our buying patterns and a decline in sales tax revenues. With our current tax system and the nexus rules as outlined above, an out-of-state retailer (translation – a retailer without nexus in the state) selling goods to a consumer or business over the internet is not required to collect sales tax. It is the buyer's responsibility to self-assess the tax and voluntarily remit use tax to the state. Most businesses are aware of this nuance but many consumers are not.

States ensure compliance with these laws through business audits; however, the states don't have the bandwidth, nor is it practical, to audit every consumer. So instead of going after the consumer, states are looking to implement taxing rules that require the out-of state business to collect the tax.

This is why "affiliate nexus", and the "Amazon Law" or "click through nexus" have evolved. These are ways in which states have tried to use the existing nexus standards to require out-of state retailers to collect the tax that otherwise would not have been collected. The typical scenario occurs when an out-of-state business forms a relationship with an in-state business (often referred to as an affiliate) for the sole purpose of customer referrals via a connection to the out-of-state business's website. For this referral, the in-state business receives some type of commission or other consideration. The relationship established through the affiliate programs creates nexus for the out-of-state business, creating an obligation to collect and remit local sales tax. Multiple states including Illinois and California have introduced recent affiliated nexus legislation mainly targeting large internet retailers such as Amazon, hence the title "Amazon Law". In reaction to this legislation, Amazon has dropped their affiliate programs in most of these states. By dropping the affiliate programs, the company intends to terminate its nexus with the state and avoid prospective sales tax collection responsibility. However, this can be problematic as most states deem nexus to exist for a period of at least twelve months subsequent to the activity that created nexus.

The State of New York has passed legislation, called the "commission-agreement provision," that creates a rebuttable presumption that a person (seller) making sales of tangible personal property or services is soliciting business through an independent contractor or other representative if the seller enters into an agreement with a New York resident under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an internet website or otherwise, to the seller (click through nexus). The presumption applies if the cumulative gross receipts from sales by the seller to customers in the state who are referred to the seller by all residents with this type of agreement with the seller is in excess of $ 10,000 during the preceding four quarterly periods ending on the last day of February, May, August and November. The presumption may be rebutted by proof that the resident with whom the seller has an agreement did not engage in any solicitation in New York on behalf of the seller that satisfies the nexus requirement of the US Constitution during the four preceding quarterly periods. NY Tax Law 1101 (b) (8) (vi).

Technology companies should review their affiliate programs and understand which states, specifically, have "Amazon Laws", "affiliate nexus" rules, or "Click-Through Nexus" rules. This is a constantly changing area that requires close monitoring. At the time of publication, California passed a 1-year repeal of their "Amazon Law".

# 2. Traveling Sales Representatives

The idea of ​​a sales representative sitting in a home office in a state other than where corporate headquarters is located is a clear example of an activity which establishes sales tax nexus in the state where the sales representative is based. However, what happens when that sales representative travels into other states to meet with prospects or customers? This type of activity frequently occurs with technology businesses as the sales representative meets with the prospect to demonstrate their product. Whether or not this type of activity creates sales tax nexus will depend on the state and the frequency of the activity. Each state's rules are slightly different in terms of the threshold that needs to be met to create nexus. However, for some states, a sales representative traveling into the state for a single day will create sales tax nexus. While other states have more lenient thresholds, a general rule-of-thumb is that three days of activity of this type will create nexus for sales and use tax purposes.

Texas prescribes that out-of-state sellers engaged in selling, leasing, or renting taxable items for storage, use, or other consumption in Texas must collect use tax from the purchaser. "Retailer engaged in business in this state" can include, in addition to other activities, any retailer: Having any representative, agent, salesman, canvasser or solicitor operating in Texas under the authority of the retailer or its subsidiary to sell, deliver or take orders for any taxable items. Texas Tax Code Ann. 151.107 (a) (2); Texas Tax Publication 94-108, Engaged in Business (Sales and Use Tax), 11/01/2006.

Nexus Strategy: Instead of face to face customer presentations, technology businesses may consider conducting product demonstrations via the Internet through Webex, GoToMeeting, or another similar application.

# 3. Trade shows

Technology companies are frequent participants in trade shows. Typically, companies attend trade shows to promote their products and services. A company may promote its products and services via representative employees or agents and / or display its wares via a kiosk or booth. In either of these scenarios, the company is performing a type of solicitation.

It is the solicitation activity that determines whether or not nexus has been created. However, a number of states have established specific thresholds (number of days in attendance at a trade show) in order to establish when a company attending a trade show has created nexus in the state. For example, California has set a standard of more than fifteen (15) days – ie if you attend trade shows in California for fifteen days or less, you have not created nexus in the state of California (assuming this is your only activity within the state). Cal. Rev. & Tax. Cd. 6203 (d); Cal. Code Regs. 18 1684 (b).

Nexus with Michigan is not created if the only contacts a person has with Michigan consists of: (1) attending a trade show at which no orders for goods are taken and no sales are made or (2) participating in a trade show at which no orders for goods are taken and no sales are made for less than 10 days cumulatively on an annual basis. However, this rule does not apply if a person also conducts the following activities: soliciting sales; making repairs or providing maintenance or service to property sold or to be sold; collecting current or delinquent accounts, through assignment or otherwise, related to sales of tangible personal property or services; delivering property sold to customers; installing or supervising installation at or after shipment or delivery; conducting training for employees, agents, representatives, independent contractors, brokers or others acting on the out-of-state seller's behalf, or for customers or potential customers; providing customers any kind of technical assistance or service including, but not limited to, engineering assistance, design service, quality control, product inspections, or similar services; investigating, handling, or otherwise assisting in resolving customer complaints; providing consulting services; or soliciting, negotiating, or entering into franchising, licensing, or similar agreements. Michigan Revenue Administrative Bulletin 1999-1, 05/12/1999.

Technology businesses should carefully plan where they will attend trade shows and understand the sales tax nexus thresholds associated with each state for this type of activity.

# 4. Employees or Agents Performing Services

Technology businesses that send employees into a state to provide implementation, installation or repair services are creating nexus for sales and use tax purposes. The fact that this is a non-selling or non-solicitation activity does not mean this activity does not create sales tax nexus. On the contrary, these activities are more likely to create nexus for sales and use tax purposes.

The Washington State Supreme Court, in a recent ruling, asserted that a manufacturer whose employees traveled into the State with the sole purpose of meeting with customers simply to manage the relationship was sufficient to create nexus. This activity was seen as a mechanism that created a market in the State and as a result created nexus for the manufacturer. RWR MANAGEMENT, INC., Appellant, vs. STATE OF WASHINGTON DEPARTMENT OF REVENUE, Respondent, 10-332, 06/27/2011.

Using non-employees to support clients can have a similar effect. For example, a technology hardware business that uses a local resource to repair or perform other maintenance for its customer is providing the service via an affiliate and is deemed to have created nexus for sales and use tax purposes. Whether the person providing the service to the customer is an employee of the business or not is immaterial to the states. The fact that the person is present in their state and performing a service on behalf of the out-of-state business is sufficient to create nexus for the out-of-state business.

Technology businesses should evaluate non-selling related activities they perform in each state including installation and maintenance / support services as well as services provided via a third-party representative when assessing their sales and use tax nexus foot print.

# 5. Income tax nexus does not equal sales tax nexus

There's often an assumption that where a company has income tax nexus, they also have sales tax nexus. End of story. This is true, but only partially true. The second half is that a company can have sales tax nexus without having income tax nexus. The threshold for sales tax is much lower than that of income tax. For example, the solicitation of sales is generally considered a sales tax nexus creating activity whereas this same activity will not, by itself, create income tax nexus (See PL 86-272). The most well-intentioned CPA firms are prone to assuming that because nexus has not been created for income tax purposes, sales and use tax nexus doesn't exist. This is certainly not intended but is the result of limited knowledge of sales and use tax laws.

In Pennsylvania, out-of-state vendors / sellers who maintain a place of business in Pennsylvania and sell or lease taxable tangible personal property or taxable services must register and collect Pennsylvania sales and use taxes. Pa. Stat. Ann. 72 7202; Pa.Stat. Ann. 72 7237 (b); Pa. Code 61 56.1 (a) "Maintaining a place of business" in Pennsylvania includes, in addition to other activities: Regularly or substantially soliciting orders within Pennsylvania through a solicitor, salesman, agent or representative regardless of whether the orders are accepted in Pennsylvania; Pa. Stat. Ann. 72 7201 (b); Pa. Code 61 56.1 (b).

Technology companies should be aware of the specific expertise their CPA firms have in providing sales tax advice. Sales tax is a unique discipline with differing rules from state to state.


Establishing sales tax nexus is often the culmination of multiple nexus creating activities. For example, a technology business may spend three days in a state, soliciting orders, two days at a trade show, and a day or two implementing their products. Each of these activities can create sales tax nexus by itself but should also be viewed in relation to other nexus creating activities.

An important note is that once sales tax nexus has been created, the need to collect and remit sales tax is triggered (assuming what you are selling is taxable in the particular state). Sales tax nexus is associated with the legal entity and spans all sales channels. For example, if you have a direct sales channel and an internet sales channel, once nexus is established in a state both channels are subject to the sales and use tax laws of that state.


An Informative Review of RV Insurance Companies

There are a number of insurance companies that focus primarily on insuring recreational vehicles (RVs). These companies provide comprehensive policies that thoroughly protect RV owners. Some of the top RV insurance companies are Gilbert RV insurance, RV America Insurance, Progressive RV Insurance, and Good Sam RV insurance. Each of these companies has numerous options for RV coverage. RV owners will be able to find the coverage they need with one of these top companies for a reasonable price.

Gilbert RV Insurance offers several options for RV owners. Some of the best things about Gilbert are the replacement cost coverage, the purchase price coverage, and the full timer coverage. The replacement cost coverage guarantees that the client will receive a new RV of the same model, body and size if the original RV is totaled. The purchase price coverage is similar. It gives people the option of being paid the total price paid for the RV in the event that it is totaled. The full timer policy is perfect for people whose RV is their primary residence. This policy provides total coverage for the RV and has higher liability limits.

RV America Insurance provides a number of options for owners of all types of recreational vehicles. The most unique aspect of RV America Insurance is that it works with six different RV insurance companies. This insures that RV owners will get coverage that is specialized to meet their needs at a low cost. Some of the options available include flood, theft and fire coverage; full timer coverage; total loss replacement; and 24/7 roadside assistance.

Progressive RV Insurance is perfect for covering many types of recreational vehicles. Progressive is a top rated car insurance company. They apply their excellent vehicle coverage for RVs, but also understand that an RV is like a home on wheels. Progressive offers full RV coverage including personal effects coverage, campsite coverage, and emergency placement coverage in case RV owners need somewhere to stay while their RV is being repaired.

Good Sam RV Insurance is a part of the Good Sam Club for RV owners and campers. The Good Sam Club offers members emergency roadside service and extended warranties on RVs as well as comprehensive insurance. Some of the many features offered are full RV replacement, full timer coverage, permanently attached items coverage, and personal effects coverage. Good Sam saves RV owners on average of $ 312 a year on RV insurance and received an "A" rating from AM Best.

These top-rated RV insurance companies can provide RV owners with the coverage they need. From occasional RV users to full timers, everyone can find a policy to fit their needs.


How To Compare The Big Motorcycle Insurance Companies Out There

Some rules you encounter are Golden, for being kept in thoughts forever and not forgotten. These are definitely helpful and necessary trail markers to guide us and help us keep at all times on the right track.

The Golden Guidelines can be there to inform you, whatever your problem, whatever your goal. All you need to do is locate them and follow them..

Here are the five best Golden Guidelines you can use to perform a motorcycle insurance comparison.

Golden Rule 1, Evaluate The Firms Stability. The reason for doing that this way is simply because not all firms are very stable. This means just because they are doing nice one month they will also be doing nice another month. Keep in mind, If the company does not have a good previous reputation you in all probability should not go with them. That is also true with car insurance. When searching for low rate car insurance be sure you choose a company that is trusted.

Golden Rule 2, Look At The Deductibles. This is very important because if the corporate gives you a choice at choosing your deductible, you may actually lower your rates. Remember that in the event you select a high deductible, you’ll be paying less.

Golden Rule 3, Figure Out Which Premium is Best. This may be a good idea since you need to have a company who has an incredible premium to offer you. If they do not then they are not worth doing business with.

Golden Rule 4, Understand All Their Policies. To do this chances are you’ll wish to call a bunch of companies and find out what their insurance policies are. Every company has different and distinctive policies. It’s good to find one that fits you best.

Golden Rule 5, Get Quotes Online. Methods to accomplish this step include going online and searching around for free quotes. You’ll need to perform this carefully. It’ll enable you to determine which firms would be the most cost-effective for you..

Whenever you observe these golden guidelines to performing a motorcycle insurance comparison, you will discover life easier for you, your progress more fast plus your successes extra pronounced and frequent.


Why Auto Insurance Companies Charge More For Motorcycle Drivers

Just about every state has specific requirements for getting a motorcycle license and generally the requirements will include taking a motorcycle training class. Throughout the course you will take both written exams as well as hands on drives so that you can gain both experience and awareness when driving a motorcycle. Assuming you have already completed the requirements that exist in your state to get your motorcycle license, then you are probably ready to get on the road.

Before you can begin driving your motorcycle legally, you have to insure your new vehicle. The type of insurance you receive as well as the cost of that insurance is going to rely solely on a few factors that differ between every individual.

The bike that you drive The most common reason for increased prices with motorcycle insurance is the type of bike that you drive. Sometimes insurance companies will raise your price if you drive a faster back than others. Usually, the type of bike you drive says a lot about your character. If you buy a crotch rocket with a lot of horse power you can expect your insurance company to tack on some additional costs to your monthly payment. Secondly, your age as well as the location you live in will also affect the outcome of your auto insurance.

Your age and character traits If you are young and you live in a over populated area then these two factors combined together are going to mean trouble. Lots of traffic and an overly aggressive driver which is usually associated with young drivers are going to mean bad things to the insurance company and therefore they will be more hesitant to give you cheaper insurance.

Your driving history One of the more obvious reasons that insurance companies increase prices for a motorcycle driver is your driving history. If you have been in an accident or especially if you have gotten speeding tickets before then you can expect to pay a higher rate.

Shop around for better prices Before you conclude your research and just to go with any old insurance provider because maybe you can't improve on any of these areas, you should explore your options to find cheaper and better insurance. There are lots of auto insurance estimates that can provide you with a run down of prices that compare all of the top insurance companies. You should always shop around before you buy anything, that's the golden rule and it is exceptionally true for auto insurance.


Five Reasons To Invest In PPC Advertising Management Companies

The world of advertising is changing and you might up want to gear up your business with the range of digital marketing services. In this competitive age of marketing, SEO and PPC both are in competition with one another. As search engines change their algorithm time to time, the marketing companies find themselves competing against moving their related posts.

SEO is a slow process, and businesses in competitive industries never can wait to hold on to the number one rankings which they wish. That’s why they funnel more money in PPC advertising management companies.

PPC advertising has potentials to deliver the targeted traffic, but it takes technical knowledge, how to do it in the correct way. Even marketing veterans can make a mistake when they start selling a new product in the market with PPC. It takes an expert PPC analyst to improve on the copy and the landing page. If you’re new to PPC and thinking, you may be unaware that it will cost you less to hire a PPC expert than launching a campaign on your own. Here are some important reasons to explain why you should hire a PPC expert or one of the best PPC advertising companies for you.

1) Keyword selection: Selecting the right keyword is crucial to your success. PPC experts spend much amount of time throughout the process to pick the best of keyword for your business. If you choose the wrong keywords for your project, you can exhaust all your investment and your campaign will have poor returns.

2) Ad copy: One of the greatest strengths a PPC expert has is the ability to do competitive research and forming original ad copy for your business. This copy is not something that an incompetent can do in a night, especially when every word means something.

3) Tracking your sales: It is the foundation of any good PPC program. The PPC experts track not only your business but where those sales coming from. This analysis shows you which keywords are likely to bring more conversions.

4) Good landing pages: Relevance is not just a term in SEO, it has the same importance in PPC marketing, too. The less relevant page you are landing on, the more money you’re spending on conversions. PPC experts not only understand relevant landing pages but also know how to test those principles.

5) Campaign settings: There are various potential settings that you should adjust to get the highest exposure for your campaigns. Without a clear understanding of these settings, you might be paying several dollars and for the same traffic that a similar PPC expert pays pennies.

Moreover, all good online marketers stay updated with the latest PPC marketing trends by reading journals, regular updates, online news, and forums. If you don’t think you can handle all these tasks on your own, then it is the best option to hire a PPC advertising company or a PPC expert for your business.