A small business can adopt a number of business structures for tax and legal purposes. Each has its own advantages and disadvantages. Sole proprietorships, partnerships, and limited liability companies (LLCs) are fairly basic forms of ownership, whereas corporations are significantly more complex. There are two primary types of corporations in the United States. C […]

Small-business owners and independent contractors may be more likely than other taxpayers to benefit from the home-office tax deduction, which has an average value of more than $2,600.1 But some taxpayers may be hesitant to claim this potential tax benefit on their personal tax returns, fearing that it could trigger an IRS audit. Their worries are […]

  In a 2012 survey, 50% of current retirees said they retired earlier than they had planned, up from 45% in 2011.1 Many retirees reported reasons that were beyond their control, such as health problems or disability, company downsizing or closure, changes in the skills required for their jobs, or having to care for a […]

Nobel prize-winning economist Milton Friedman once said that “Inflation is taxation without legislation.”1 You’re probably aware of how taxes reduce your earnings, but have you thought about the effect of inflation? Over the last 50 years, U.S. inflation (as measured by changes in the consumer price index or CPI) has averaged a little more than 4% […]

Studies by the Investment Company Institute and the Federal Reserve Board indicate that investors’ willingness to assume risk tends to rise and fall with the stock market.1 Of course, it’s not surprising that people are more likely to pour money into stocks when the market is trending upward and to retreat when the market trends downward. […]

In a recent study, 40% of consumers responded that they don’t have enough life insurance to meet their families’ long-term needs.1 This concern raises an obvious question: How much life insurance is enough? What might be appropriate for a family with two young children and a stay-at-home spouse could be significantly different from the needs of […]

  Growing demand from developing economies caused global oil prices to rise 265% in the last 10 years. A decade of rising fuel prices often made life more difficult for many U.S. consumers and businesses, and occasionally put unwelcomed strain on the nation’s economy.1 High prices and profits, however, helped make it feasible for energy […]