When launching a new business in Illinois, entrepreneurs have several options to consider as means to fund their new enterprise. As with many things, there is no right or wrong way to obtain necessary funding as the decision can vary based on many criteria. Every business owner should evaluate the choices individually as making a fully informed decision is one of the most important parts of making the right decision. Understanding investor options There are three primary types of business … [Read more...]
Archives for October 2014
How do you register a business in Illinois?
Posted on October 27, 2014 //
Starting a new business can be a very exciting venture for those involved. The process of setting up a new business can, however, seem complicated to some businesspeople especially when legal filings are required. There are many choices to make and no shortage of specific processes to complete. Following is a guide to help people understand the basics of how to get a new company registered and operational in Illinois. As indicated by the United States Small Business Association, one of the … [Read more...]
Illinois property: What is the difference between private rights and public rights?
Posted on October 25, 2014 //
When a person in Illinois owns a piece of property, whether it be public or private, they are given specific rights. These may include some of the following: The right to use the property how they see fitThe right to earn income from the operations that occur on the propertyThe right to enforce the privileges they are entitled to for owning the propertyThe right to transfer ownership of the property to others However, these rights can vary drastically depending on where the real estate is … [Read more...]
How does a reverse mortgage affect your heirs?
Posted on October 24, 2014 //
A woman in Florida chose to sign over the rights to her home to her husband, which would enable him to qualify for a higher reverse mortgage loan amount. According to the Buffalo News, the 62-year-old man took died shortly after taking out the loan. As chief among the man’s heirs, the wife inherited the home but had trouble getting her name on the deed. The loan requirements mandated that she qualify for a refinance in order to pay back the reverse mortgage, which is something she struggled … [Read more...]
Calculating your future mortgage payment
Posted on October 19, 2014 //
Whether they are purchasing their first home or buying an investment property, those looking into buying property in Illinois should understand what their mortgage payment will be once they have made this purchase. Doing this prevents buyers from running into problems in the future with their finances. Factors that impact mortgage payments While the price of the property plays a large role in what a homeowner will pay every month on their mortgage, this amount also depends on several … [Read more...]
Buying property: Why pre-approval is a good idea
Posted on October 19, 2014 //
A mortgage pre-approval differs from a mortgage pre-qualification because during the pre-approval process, the lender checks a buyer’s credit and verifies their documentation to approve them for a specific loan amount. Although obtaining pre-approval for a loan may not be a priority for some buyers in Illinois, there are several reasons why going through this process is a good idea. Why is it important? The preapproval process takes the risk out of property buyers finding the home that … [Read more...]
Stretching your IRA
Posted on October 17, 2014 //
A father named his son the beneficiary on his IRA, which was worth roughly $100,000. According to the Huffington Post, the son, who was 53 at the time of his father’s death, chose to receive the minimum distributions out of the Roth every year instead of taking the lump sum. As a result, the policy continued to grow over the years. As an added bonus, the distributions were not subject to taxes because the account was a Roth IRA. The people who set up the IRA may not be able to control how … [Read more...]
Prepaid funerals and burial: Make sure your heirs know about it
Posted on October 16, 2014 //
More than 40 years ago, a woman purchased a policy from a funeral home that intended to cover the expenses of her burial. According to the American Association of Retired Persons, the woman died in 2008. Unaware of the prepaid policy, her children paid the same funeral home more than $8,000 for the costs associated with the service. Upon finding the policy later, the children asked the funeral director to refund the costs, which he initially denied. While the woman’s children initially … [Read more...]
Do non-profit companies pay taxes?
Posted on October 15, 2014 //
Illinois companies designated as non-profit organizations, or charitable organizations, have successfully applied for and obtained the federal 501(c)(3) status. This means that these companies are not legally obligated to pay certain federal, state or local taxes. For this reason, they are often referred to as tax-exempt organizations. However, this delineation does not exempt these companies from all tax requirements. Understanding what taxes must be paid, how and when is important for … [Read more...]
