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| New Jersey Business
Lawyer | Business Formation
| LLC Limited Liability Company | IRS Tax | Business
Purchase | LLC Lawyer |
Some
People Overpay the
Government...But Certainly Not our clients!
|
Ronald
J. Cappuccio, J.D., LL.M. (Tax)
Counsellor at Law
1800 Chapel Avenue West, Suite 128
Cherry Hill, New Jersey 08002 US
(856) 665-2121 Fax (856) 665-9005
Email: Ron@TaxEsq.Com |
|
If
there is any principle of the Constitution that more imperatively calls
for attachment than any other, it is the principle of free
thought—not free thought for those who agree with us, but
freedom for the thought that we hate. . . . We should be eternally
vigilant against attempts to check the expressions of opinions that we
loathe. Supreme
Court Justice Oliver Wendell Holmes
|
| Helping
Small and Emerging Businesses become more profitable! |
|
Singapore, New Zealand and
the U.S. Retain Top Three Spots |
If
your company is considering exporting, or setting up operations abroad,
this may be a good time because it's getting easier to do business
internationally -- at least according to the findings of the Doing
Business 2008 study done by the World Bank and International
Finance Corporation.
According to the recently published report, taxes and reform are two of
the biggest issues that affect entrepreneurial activity worldwide.
Lower tax rates, simpler systems, and fewer regulations invite
development and the World Bank rankings are designed to be an objective
way of looking at them.
So where does the United States rank in terms of the taxes that a
medium-sized company must pay or withhold annually? Seventy-sixth out
of 178 countries surveyed in the fifth annual Doing Business
report.
Despite the taxation score, the report puts the U.S. at Number 3 in
terms of the overall ease of doing business.
The report, covering 2006 to 2007, surveyed more than 5,000
professionals and business owners in 178 countries. It tracks important
business issues such as hiring workers, paying taxes, and enforcing
contracts, as well as the time and costs involved in meeting government
regulations for start-ups, trade, taxation, and business closures.
The rankings do not account for other factors such as the quality of
infrastructure services, macroeconomic policy, proximity to large
markets, crime, currency volatility, investor perceptions, and the
underlying strength of institutions. (At the bottom of this article is
a chart listing the top 10 countries and their rankings in the
various categories.)
This year's report focuses on reforms, with the World Bank noting that
countries with the most regulatory reform show greater returns on stock
investments and have lower unemployment. According to the report,
reformers in the past year generally eased requirements for starting a
business, strengthened property rights, increased access to credit and
eased tax burdens.
The report does not
include social issues or variables such as macroeconomic policy,
quality of infrastructure, currency volatility, investor perceptions,
crime rates and the underlying strength of institutions.
The top ten reforming countries were: Egypt, Croatia, Ghana, FYR
Macedonia, Georgia, Colombia, Saudi Arabia, Kenya, China, and Bulgaria.
Egypt
grabbed the top reform spot by:
-
Cutting the minimum capital
required to start a business, from 50,000 Egyptian pounds to just 1,000
and halved the time and cost of start-up.
-
Reducing fees for registering
property from three per cent of the property value to a low, fixed
amount.
-
Easing the process for obtaining
construction permits.
-
Launching one-stop shops for
traders at ports, cutting the time to import and export.
-
Establishing a new private bureau
to make it easier to get credit.
Below is an overview of the
rankings in four of the report's categories. The top five listings go
from first to fifth and the bottom five go from worst to better. (Click
here for the report, as well as access
to the World Bank's extensive free on line collection of business laws
and regulations.)
PAYING TAXES
Taxes
are never popular but the report notes, there are good and bad ways to
collect taxes.
The
tax category examines the effective tax a company must pay and the
administrative costs of doing so. Researchers asked accountants in the
178 countries in the report to review the financial statements and a
list of transactions of a hypothetical standardized business that
started with the same financial position in every country. The survey
asked for the total tax the business had to pay and the processes
involved.
|
Top 5
|
Bottom 5
|
|
Maldives
|
Belarus
|
|
Singapore
|
Ukraine
|
|
Hong Kong
|
Republic of Congo
|
|
United Arab Emirates
|
Central African Republic
|
|
Oman
|
Venezuela
|
Taxes
and contributions were measured at all levels of government and include
corporate income tax, turnover tax, all labor contributions --
including mandatory contributions paid to private pension or insurance
funds -- property and property transfer taxes, dividend tax, capital
gains tax, financial transactions tax, vehicle tax and such small
levies as fuel tax, stamp duty and local taxes. A range of deductions
and exemptions were also taken into account.
The
report used three indicators:
1. The number of tax
payments,
which takes into account the method of payment or withholding, the
frequency of payment or withholding, and the number of
agencies involved.
2. Time, which measures the annual hours
required to prepare, file and pay corporate income tax, value added or
sales tax and labor taxes.
3. The
total tax rate, which measures the amount of taxes
payable during the second year of operation expressed as a percentage
of commercial profit.
STARTING A BUSINESS
This
category is based on the procedures a small to medium-sized company
must complete to start operating legally. This includes obtaining
necessary permits and licenses and completing required inscriptions,
verifications and notifications with authorities. The time and cost
required
|
Top 5
|
Bottom 5
|
|
Australia
|
Guinea-Bissau
|
|
Canada
|
Chad
|
|
New Zealand
|
Tonga
|
|
United States
|
Yemen
|
|
Ireland
|
Eritrea
|
to
complete procedures under normal circumstances are calculated, as well
as the minimum capital needed.
To
make the data comparable across economies, researchers assumed that the
company:
- Was
a limited liability company (LLC) conducting general
commercial activities in the largest business city.
- Was 100 percent domestically owned,
with start-up capital of 10 times income per capita, turnover of at
least 100 times income per capita and between 10 and 50 employees.
- Did not qualify for any special
benefits or own real estate.
- Had
founders complete all procedures themselves unless the country's laws
required using professionals.
DEALING WITH LICENSES
This
category researched the regulations to obtain licenses required to
operate a business. The study focused on the construction sector, where
pressures from government and customers usually result in a trade off
between protecting people (workers, tenants, passersby) and keeping the
building cost affordable.
|
Top 5
|
Bottom 5
|
|
St. Vincent/
Grenadines
|
Eritrea
|
|
New
Zealand
|
Russia
|
|
Belize
|
Liberia
|
|
Marshall
Islands
|
China
|
|
Singapore
|
Ukraine
|
Researchers
examined the required procedures to build a warehouse, including
submitting project documents, obtaining licenses and permits,
completing notifications; undergoing inspections, and obtaining utility
connections such as electricity, telephone, water and sewerage.
The time and cost to complete procedures under normal circumstances
were calculated and the survey included official fees associated.
To
make the data comparable across economies, researchers assumed that the
business was a small to medium-size LLC, located in the most populous
city, domestically owned and operated, in the construction industry,
with 20 qualified employees. The warehouse to be built:
- Was
new construction on vacant land.
- Had complete architectural and
technical plans prepared by a licensed architect.
- Would be connected to electricity,
water, sewerage and one land phone line.
- Would be used for general storage
and not for goods requiring special conditions, such as food, chemicals
or pharmaceuticals.
- Would take 30 weeks to construct
(excluding administrative and regulatory delays).
OBTAINING CREDIT
The
survey measured two sets of issues -- credit information registries and
the effectiveness of collateral and bankruptcy laws in lending. Here
are the main indicators:
|
Top 5
|
Bottom 5
|
|
U.K.
|
Afghanistan
|
|
Hong Kong
|
Cambodia
|
|
New Zealand
|
Madagascar
|
|
Australia
|
Burundi
|
|
Germany
|
Timor-Leste
|
- A Legal Rights Index, which measures the degree to which
collateral and bankruptcy laws facilitate lending, measuring 10 aspects of the rights
of borrowers and creditors in collateral and bankruptcy laws.
- A
Depth of Credit Information Index, which measures the
extent to which the rules of a credit information system facilitate
lending based on the scope of information distributed, the ease of
access to information and the quality of information.
- Credit coverage, which reports the number of
individuals and firms covered by a public credit registry and a private
credit bureau as a percentage of the adult population.
| |
Singapore
|
New Zealand
|
U.S.
|
Hong Kong
|
Denmark
|
|
Ease of Doing Business
|
1
|
2
|
3
|
4
|
5
|
|
Starting a Business
|
9
|
3
|
4
|
13
|
18
|
|
Dealing with Licenses
|
5
|
2
|
24
|
60
|
6
|
|
Employing Workers
|
1
|
13
|
1
|
23
|
10
|
|
Registering Property
|
13
|
1
|
10
|
58
|
58
|
|
Getting Credit
|
7
|
3
|
7
|
2
|
2
|
|
Protecting Investors
|
2
|
1
|
5
|
3
|
19
|
|
Paying Taxes
|
2
|
9
|
76
|
3
|
13
|
|
Trading Across Borders
|
1
|
16
|
15
|
3
|
2
|
|
Enforcing Contracts
|
4
|
13
|
8
|
1
|
30
|
|
Closing a Business
|
2
|
16
|
18
|
15
|
7
|
|
U.K.
|
Canada
|
Ireland
|
Australia
|
Iceland
|
| Ease of Doing Business |
6
|
7
|
8
|
9
|
10
|
| Starting a Business |
6
|
2
|
5
|
1
|
14
|
| Dealing with Licenses |
54
|
26
|
20
|
52
|
23
|
| Employing Workers |
21
|
19
|
37
|
8
|
42
|
| Registering Property |
19
|
28
|
79
|
27
|
8
|
| Getting Credit |
1
|
7
|
7
|
3
|
13
|
| Protecting Investors |
9
|
5
|
5
|
51
|
64
|
| Paying Taxes |
12
|
25
|
6
|
41
|
27
|
| Trading Across Borders |
27
|
39
|
20
|
34
|
11
|
| Enforcing Contracts |
24
|
43
|
39
|
11
|
4
|
| Closing a Business |
10
|
4
|
6
|
14
|
12
|
|
If you want to establish a new business in the U.S., call Ronald J.
Cappuccio, J.D., LL.M.(Tax) at (856) 665-2121 or Email: Ron@TaxEsq.com
Ronald
J. Cappuccio, J.D., LL.M.(Tax), a LLC Lawyer and Business
and Tax
Attorney.
We can help you start a Limited Liability Company ( LLC )
which can be the best form of business organization, as well
as establish Corporations, S Corporations, Partnerships, Limited
Partnerships and Non-Profit organizations. We also can
represent you in Buying and Selling a business. helping
emphasizing Personal and Business IRS Tax Negotiation,
Offers In Compromise, and Installment Agreements. Zealous
representation in Tax Audits, Delinquent Tax, and Tax Collections
Issues. Experience fighting Employee and Independent Contractor issues,
Payroll Taxes, Tax Liens,and Tax and Labor Audits. Successfully handle
Wage Levy Release, Bank Levies and Seizures. NJ Tax Court, US
Tax and US Court of Federal Claims representation.
We also can
represent you in Buying and Selling a business. |
|
|
