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Thursday, May 19, 2011

LinkedIn IPO - Bubble 2.0?

LinkedIn (NYSE:LNKD) is the first US Social Media company to go public (following Chinese social network site RenRen a few weeks ago). Incorporated in 2002, LinkedIn boasts over 100 million members. As stated by its CEO, Jeff Weiner, it is growing faster than one member every second. Original IPO was to be priced between $32 and $35 on Tuesday, shares went public at $45. Propelled by high expectations and possibly speculation, shares doubled in a matter of minutes. At the time of writing, shares were soaring 96% above IPO levels.

Are we experiencing the next bubble? Some experts don't seem to think so. Not yet. Revenues come from advertising, recruiter subscriptions and premium memberships. Last year the company generated over $250 million and is poised to do more than $400 million this year. So let's not talk about a bubble just yet, just a risky stock. It will be interesting to see what companies like Facebook, Twitter and Groupon decide to do after the reaction of the markets for LinkedIn stock.

LinkedIn operates the world’s largest professional network on the Internet, with its headquarters located in office space in California in Mountain View and offices in Manhattan, Chicago, San Francisco and other main cities throughout the US. Their network covers over 200 countries and territories.

Thursday, May 5, 2011

All About Leasing And Its Benefits

When it comes to leasing something or buying something, many people automatically opt for buying, as they think leasing is more of a hassle. However, leasing something like office space has its perks and can, many a time, be more beneficial to you and your company than buying, especially if you change locations often. Leasing is a process in which a business can acquire the use of fixed assets. There are two main people involved when it comes to leasing something – the lessee and the lessor. The lessee is the person who is receiving the assets while the lessor is the person who owns those assets.

The landlord of the property being leased and the tenant have a relationship known as a tendency. This relationship can be for a fixed time or an indefinite period of time, and is determined at the beginning of the leasing stage. Rent is then paid; however, signing up for a gross lease is when the tenant pays the flat rent amount while the landlord pays all of the property charges such as lawn duties and washing machine services.

When renting out shared office space, leasing is one of the best ways, if not the best way to go. You have much flexibility and free range to do what you please with your space, without being tied down to it. However, every landlord is different so make sure, when leasing, that you know what you can and cannot do with your space, what is included, and what you have to provide for yourself. Find out what leasing can do for you and compare to see what option would be best for your company.

Monday, May 2, 2011

Tax Breaks For Small Businesses

There have been a handful of changes made to the recent tax codes that could provide you with a fatter refund check than ever before. The Small Business Jobs Act, passed last September, passed credits and deductions for capital investments and employee health insurance costs. Now, six new credits and deductions will most likely affect these small business owners. When it comes to the health care tax credit, small businesses that pay at least half of their employees' health coverage will be able to get a significant tax return.

From 2010 to 2013, the tax credit covers up to 35% of the money that a business spends on its health insurance premiums. In 2014, the top tax credit bumps up to 50%. However, what if you are self-employed? Usually, you can deduct your insurance costs from the profits you make, but you cannot deduct those same costs from your self-employment taxes. Although, in 2010, people who were self-employed could deduct their health insurance costs from their company profits, for both taxes.

The Bonus Depreciation Extension covers new equipment only and for 2010, there was an accelerated depreciation schedule. The point is to get cash into the hands of small businesses quickly. You can depreciate property like buildings, machinery, vehicles, furniture, and equipment, as well as patents, copyrights and computer software.

For more information, research the rest of the tax breaks and see how you can significantly reduce the amount of money you are spending and not getting back for your small business.