The U.S. continues to be one of the most pro-business environments in the world. If you’re a Canadian or citizen of another foreign nation, there are clear benefits to launching or expanding your firm in the states.

But before doing so, you’ll need to understand a little more about the various structures and legal guises that are available in this business environment.

Four Types of Business Structures

A business structure may seem like it involves nothing more than a piece of paperwork or administrative box to be checked off. But it’s actually a significant facet of how one establishes a company’s financial and legal foundation.

In the U.S., there are five common structures. Here they are and what each one entails:

1. Sole Proprietorship

This is the simplest set-up. Technically, you don’t have to do anything to form one, but there’s no liability protection or separate tax status. The owner simply files revenue on his or her personal income tax return as a Schedule C.

Perhaps the biggest perk in a sole proprietorship is the fact that your business earnings are taxed only once — unlike most other structures. You simply pay estimated taxes in four equal amounts throughout the year.

A disadvantage is that you’re personally responsible for any debts the business incurs. If your firm is unable to pay off its debt, creditors can come after your personal assets (such as your house).

2. LLC

Although limited liability companies (LLCs) have been around since the 1970s, they’ve grown substantially in popularity over the past two or three decades. Apart from sole proprietorships, the LLC is the most popular business entity.

LLCs are essentially a hybrid that combines some of the most attractive benefits of both partnerships and corporations. They’re extremely easy to establish — even for foreign citizens.

You don’t have to be a US citizen or company to create one. The barriers to entry are low and the ongoing upkeep minimal.

3. Partnership

If you’re going into business with other people, a partnership may be the best option. There are two common types: limited partnerships and limited liability partnerships.

In a limited partnership, one general partner has unlimited liability, and the others have only limited liability. The general partner gets more control over the company, but all the players have some leadership and management capabilities. 

In a limited liability partnership, all partners incur limited liability. This offers protection of personal assets and ensures one partner cannot be held responsible for the actions of the others.

4. Corporation

A corporation — also commonly referred to as a C corp — is a legal entity that’s distinct and separate from its owners. Corporations are taxed on profits and can be held legally liable.

A corporation is the strongest protection against liability (from an owner’s perspective), but it’s also the costliest. Owners get taxed twice: first when the company makes a profit and second when the owner is paid.

Choosing the Right Business Structure

As we’ve explained, every business structure offers a unique set of benefits. But there are also risks and negatives that come with each option.

As you consider which one might be the best for you and your operation, you’ll want to think about the following five factors:

• Control. How much control do you want and need over the company? Are you planning to do it alone, or have partners? The type of entity you select will determine how the business operates.
• Liability. This is obviously a huge element in the equation. Most people prefer to limit the amount of personal liability they have in the business. The more complex the structure, the more you can keep your personal assets out of harm’s way.
• Taxes. The business structure you select has a significant impact on the amount of taxes you and your business will be expected to pay. Do you want to keep things simple, and file your taxes as part of your personal return? Or are you interested in separating everything for other potential tax advantages? 
• Cost. Every legal structure involves different costs. Some are cheap to set up, others require a hefty initial investment. Some can be done on a DIY basis, while others will call for assistance from lawyers and accountants. 
• Administration. The ongoing administration of a legal entity can also vary dramatically. If you want something that requires little to no maintenance, you can find it. But if you want a more complex structure, it may require precise record-keeping and filing. 

If you’re thorough and accurate in your evaluation of each of these elements, you’ll find it easier to narrow down the options and select the right business structure. It should be noted that there is no perfect legal entity, though.

Any time you choose one option over another, you’ll have to make sacrifices. The essential thing is to arrive at an educated decision that puts your best interests first.

When it comes to contributing to traffic on the roads, it goes without saying that individuals today are more and more dedicated to contributing more consciously and sustainably. Rather than simply driving or getting on any old mode of transportation to get from point A to point B, people are becoming more invested in ensuring that they contribute in more sustainable ways. Whether it is driving one’s own vehicle, or taking a coach bus to get where you are going, the point remains the same. Considering group transportation, there are many options available. And up to 72% of travellers agree that individuals today should be making more sustainable travel choices – even if they are counting on group transport. Every vehicle counts, after all.

Hiring a coach bus is without a doubt one of the most sustainable group transportation options available, no matter where in the world you live. On the scale of transportation methods (from walking to riding a dump truck, specifically) travelling by charter bus comes third only after walking cycling. It might come as something of a surprise to some people, but when you consider the number of individuals that can board a single bus, the fact becomes almost obvious. Why? Well, there are several reasons why, but here are the three most important reasons why charter buses are one of the most sustainable group transportation options available.

Charter buses can transport more people at once

Up to fifty-five people on average can fit in a single charter bus, while the average vehicle has one to four people maximum in it at any given time. This means that you are actively becoming part of the solution instead of a contributor to the problem on a personal level. The more individuals that partake in charter bus travel, the more impact a single charter bus journey has on the emissions level around Earth. But it does not end there.

Charter buses eliminate the necessity for constant personal vehicle use

Taking a bus to an event or when you commute to your job every day means that you are taking active and consistent actions to become a part of the solution. When you take a charter bus to get you to point B, you are sharing the load with up to fifty-four other individuals as well as making the decision to leave your own vehicle at home. This means that rather than contributing harmful emissions into the air for the use of one individual (you), you are boarding a charter bus and sharing the emissions of a single vehicle with upwards of fifty other individuals at any given time.

Charter buses continue to become more eco-friendly

More and more often, the charter buses that are on the roads today are becoming more and more eco-friendly. In fact, electronically-powered charter buses have been in the works for a while now, and we are beginning to see the first models roll out onto roads around the world. EVs are always positive vehicles, and when it takes the form of a charter bus – a vehicle that has the power and the overall capacity to transport fifty-five people or so at once – the potential for positive sustainable impact becomes even more pronounced.

The American economy is booming at the moment – but booms only last for so long. If history tells us anything, it’s that we’re likely to experience a recession within the next five to seven years. And when this recession comes, financially savvy Americans will have a plan for how they can protect their portfolios with wise investments.

What is a Financial Recession?

If we want to have a discussion about recessions and the smart steps wealthy people take to successfully counteract the negatives that come with them, it’s important that we begin with a clear understanding of exactly what a recession is.

Technically speaking, a recession is a period between a peak and a trough. By contrast, the period between a trough and a peak is known as expansion. The period from late 2007 to early 2009 was a recession. The period from early 2009 to today has been a period of expansion.

During a recession, there’s a significant decline in activity across the entire economy. This period generally lasts anywhere from a few months to a couple of years. (Economists generally wait until there’s two consecutive quarters of declining GDP to use the “R” word.)

6 Investments Built to Withstand a Recession

During a recession, investors aren’t necessarily looking for massive returns. Most will actually settle with breaking even or making some small percentage gains. What you don’t want to do is absorb the brunt of the decline – which is easier said than done.

Every situation is unique, but you’ll find that most successful investors turn to investments like these during down markets:

1. Cash

It might not be an investment in the normal sense of the word, but cash can be a smart method of storing money during a recession.

Think of it this way: What’s the difference between someone who has $1,000 sitting in cash making no money and someone who has $1,000 plugged into an investment that loses 20 percent? At the end of the day, the person with the cash is up $200. Sometimes not losing money is valuable place to be.

2. Treasury Bonds

High-quality bonds – such as U.S. Treasury Bonds – are great for recessionary periods. They’re slightly more risky than holding money in cash, but they also provide greater returns. During negative economic environments, look for bonds that last around five or six years, as this will get you the best ROI.

3. Municipal Bond Funds

While they carry a bit more risk than treasury bonds, municipal bond funds – those issued by state and local governments – are still pretty safe. You may be able to squeak out a couple of percentage points in interest, which is better than nothing.

4. Dividend Aristocrats

Dividend stocks are great. The only problem is that many of them decline in value during recessions – leaving you with negative returns, instead of positive cash flow. But there are still some dividend stocks that are valuable.

Your best bet is to go with “dividend aristocrats.” This is the title given to dividends that are in the S&P 500 and have 25+ consecutive years of dividend increases. In other words, they’ve continued to increase dividend payments every year for the last quarter century (even during the 2007-2009 recession). In a stock market where nothing is certain, that’s pretty good!

5. Rental Real Estate

It’s always a great idea to purchase real estate when the market bottoms out. The problem is that you don’t know when the market is reaching its low point. So instead of trying to perfectly time the market, you should instead try to invest in the right type of real estate.

A recession is a great time to begin buying apartment complexes. While the number of people buying homes declines in a recession, the number of people renting goes up. This makes it a strong investment opportunity.

6. Yourself

Quite honestly, the smartest investment you can make is in yourself. The more money you put into improving your talents, acquiring new skills, and networking with other professionals, the greater your chances are of increasing your income (both now and in the future). Don’t miss this!

Stay Plugged In

We’re at a very interesting point in time. We’ve experienced nearly a decade of unprecedented growth, which was preceded by one of the largest recessions in American history, and storm clouds are brewing. Most experts agree that a recession of some sort is on its way within the next two or three years – though it’s hard to say exactly when.

When it comes to making investment decisions, it’s important that you don’t just hand everything off to someone else. Even if you have the best financial advisors and experts in your corner, it’s wise to stay abreast of what’s happening at all times. You’ll discover that gut instinct and intuition can be as important as technical analysis.

Let’s face it, school prepares us for everything but the real world which is bogged down with taxes, repayments, loans and other financial baggage. College gives us a taste of it by forcing us to pay bills, rent and fees. However, unless you are a student in finance, financial management might not come easily to you. Some people run themselves into debt the moment they leave college because they simply do not understand the concept of money and how to make it work for you. 

Turn debts into profits

It might sound like a bit of a stretch, but if one lady can manage to dig her way out of debt after being laid off, it goes to show that everyone can. Whether through the help of online loans with no credit check and instant approval to set up a new business or to help you out of a bit of a tight financial spot or simply by offering your skills up for hire, there are definitely ways that one can find a way out of debt and begin creating revenue.

How a financial coach can help 

Some might wonder how is it practical to hire someone to help them out of a financial crisis, while they are in a financial crisis – wouldn’t it be much wiser to use whatever money one has to pay off their debts rather than to run up a bill with a financial coach? The matter of perspective is important here: a financial coach will be able to teach you how to avoid such circumstances in the future and how to get out of the current situation. It is a worthy investment, especially if one is completely clueless in terms of financial management. 

One financial coach defined what she does as, “changing behaviors around money and helping a client see where they can reduce spending to create more savings, or helping them get out of debt or understanding their emotions around money, which may have created obstacles to good financial management.”

What is emotional spending

Everyone has heard the concept of how shopping makes one feel better – when you’re having a bad day or just feeling down in the dumps, retail therapy has been proven to lift spirits and boost one’s mood. Apparently, it ties in with wishful thinking: people purchase items that they foresee they will use in their future. As PsycologyToday puts it, “As people shop, they’re naturally visualizing how they’ll use the products they’re considering, and in doing so, they’re also visualizing their new life.” What this does is it motivates the individual into chasing their new life instead of allowing their current circumstances to stand in the way. However, this behavior can also be damaging when the shopper spends more than they can afford and purchase things which will only bring them deeper debt. 

Therefore, it is crucial to be responsible with one’s finances and if you are finding it hard to control your shopping urges or do not know how to manage your salary, it is definitely helpful to turn to someone who is successful in your life – a brother, aunt or parent – to help you better manage your finances or if you are unable to find such a person, it is time to turn to a financial coach. 

The finance industry is one that is paved with good intentions and some little tricks under the surface. This is one of the most intricate and deep-rooted industries in the world, and so it should come as little surprise that many people struggle to understand the depths of it. Consider the understanding of credit scores and all they encompass, for example. Credit sores are so important, if for no other reason than because they determine how you can (and if you can) get assistance for contracts, bills, and loans (among other financial backings and innovators).

Perhaps surprisingly, most people do not know much about credit scores, other than knowing what credit score range means (if that). In fact, throughout the United States, there is a surprisingly high percentage of the population that know the bare minimum (if that) about the depths of credit scores. So, what are those depths? What are the important fundamentals of managing and preserving your credit score?

Always pay your bills on time

A monumental 35% of your credit score hinges on your payment history. Late payments stay on your credit report for up to seven years, and the impact of that negative mark against your name can be devastating. It should not even be a consideration to pay your bills late if you can avoid it, but it is still one of the most disarming errors that people continue to make. Even a seemingly small bill, like your mobile phone plan, puts a dint in your credit score if it goes unpaid. So, always pay your bills on time. Stay on top of your finances. Your credit score will thank you, and so will the future you.

Stay on top of your credit utilization

This is the most important core aspect of maintaining and preserving your credit score, after your payment history. Credit reporting agencies do not store your income information; instead, they use something called ‘credit utilisation’ in place of a typical debt-to-income ratio. Your credit utilisation represents 30% of your overall credit score, and is the amount of debt outstanding on your revolving credit sources (think credit cards, home equity lines). Your utilisation means more than you think it does, so pay close attention to it.

Check your credit reports frequently

This might seem obvious, but it might surprise you how often people do not prioritise keeping on top of their credit reports. Making sure that your credit reports are accurate is an important defining factor of your credit score, because if there is even the slightest of errors, leaving it unchecked can prove to have dire consequences. Sometimes data is entered incorrectly, or someone takes hold of your credit card by stealing it (or any other manner of errors, for that matter), and the result can be that your credit score suffers. So, check your reports frequently and always bring inaccuracies to the attention of the appropriate parties. Your credit score should not suffer because of something that is not your fault, but unless you actively and consistently check your credit reports, you unfortunately cannot always prevent it from happening. 

Seniors looking to obtain a reverse mortgage have a few different products available to help them withdraw equity from their home.

The Federal Housing Administration (FHA) offers the Home Equity Conversion Mortgage (HECM) Standard and the HECM Saver.

Both products require borrowers to be at least 62 years old to qualify and provide consumers access to their home equity in the form of a lump sum, term or tenure payments, a line of credit, or a combination of the options.

While they’re very similar, there are some important differences potential borrowers need to consider.

HECM

The HECM was released in 1989 and comprises most reverse mortgages, according to data from HUD, the Department of Housing and Urban Development.

The product sets itself apart by allowing borrowers to withdraw a significant amount of equity from their homes. To access such a large amount of equity, borrowers are required to pay higher insurance premiums to the government, which insures the loan.

To obtain a HECM Standard, borrowers must pay an initial 2% insurance premium of the maximum claim amount and an annual insurance premium of .50%.

HECM Saver

The HECM Saver was released in 2010 by the FHA to provide seniors a low-cost way of accessing the equity in their home.

While the product is still relatively new, the number of consumers choosing the HECM Saver is increasing.

Borrowers who take out a HECM Saver are required to pay an upfront mortgage insurance premium of .01% of the maximum claim amount and an annual insurance premium of 1.25%. As a result of paying less in fees, borrowers also receive less money than they would from the HECM Standard.

Earlier this year, the HECM Saver received praise from the financial planning community as a great tool to help seniors be more prepared for retirement.

“[Taking out a reverse mortgage] is going to result in a better scenario,” said John Salter, Texas Tech professor and wealth manager for Evensky & Katz Wealth Management when discussing older Americans’ retirement. “This shouldn’t be a surprise to anybody. If you can tap into the value of a home, you’re going to be better off.”

HECM Standard vs. HECM Standard

Both reverse mortgage products provide seniors a safe and secure way of accessing their home equity, but one might make more sense than the other.

The table below compares the products, fees and proceeds and how they differ. The information is based on a 72-year-old borrower who has no mortgage balance on a home valued at $300,000.

Product	Rate	Initial Insurance Fee	Net Principal Limit
HECM Fixed Standard	4.00%	$6,000	$195,817
HECM Fixed Saver	4.50%	$30	$150,300
HEMC Standard Adjustable	2.74%	$6,000	$192,817
HECM Saver Adjustable	2.99%	$30	$159,587

Principle Limited Calculated using ARLO™ calculator

While the HECM Saver might have a higher rate, the amount of fees is significantly lower than for the HECM Standard. Since borrowers are paying less in fees, the product also provides less in proceeds than the regular HECM.

But if you’re using a reverse mortgage to eliminate monthly payments, a HECM Standard might be a great choice.

Fixed Rate Options

The Adjustable Rate Standard Program will also still be available for borrowers who need the full draw, as well as the Saver Program for the adjustable rate loans. Borrowers who are purchasing using a reverse mortgage can still do so with the Adjustable Rate program and the full draw on the Standard Program but those who want only a fixed rate after March 29th will have to bring in the extra cash to close and use the Fixed Rate Saver Program. This may affect how much house some borrowers can afford if their down payment funds are limited so the adjustable rate loan may be their best option.

At any rate, the Fixed Rate program is a relatively new loan as it was not even available for more than just the last few years. Borrowers have been closing adjustable rate reverse mortgage loans for over 25 years. Those borrowers who really want the Fixed Rate Standard Program need to know the deadline as there is no way to know if HUD will ever bring the program back or not (and what the rates would be at that time if they did). But those who are not able to close on this program should know that borrowers have been successfully closing on the adjustable rate product for some time now and while the fixed rate may have been their first choice, they do have other viable options.