The limited liability company is one of the most popular forms of business organizations for small businesses when they start up. Why? One reason is because you can establish your small business as a sole proprietorship while limiting your liability just like a corporation.

As you think about what type of small business you want to start up, consider the limited liability company and read about the advantages and disadvantages.

Most Popular Topics |Latest Articles | Newsletter | Discuss in my Forum | Add to RSS feed |Follow me on Twitter!

The U.S. unemployment rate climbed to 10.2%, a 26-year high, in October 2009. The last time the unemployment rate was this high was in April, 1983. Economists expected a rise in the unemployment rate, but expected it to be to 10%, so this news came as an unpleasant surprise. A total of 7.3 million jobs have now been lost in the recession.

The major sectors losing jobs were retail, manufacturing and construction. Health care and education added jobs. Temporary employment agencies also added jobs, which is an excellent leading economic indicator. If firms are hiring temps, then their next step may be to hire permanent workers.

The underemployment rate, which includes discouraged workers and those working part-time and at jobs outside of their training, rose to almost 18%.

There is some good news. First, the unemployment rate is a lagging economic indicator. It was expected to go higher, even during the beginnings of economic recovery, during late 2009 and 2010.

Second, there is a bill on the President's desk extending unemployment benefits for those who have exhausted their benefits for three and one half more months. There is some confusion about who is eligible for extended benefits. A report today explains the bill saying that, in 26 states where the unemployment rate exceeds 8.5 percent, an additional six weeks of benefits will be tacked on to the three and a half months.

The extended benefits are aimed at those who have been out of work the longest and whose unemployment benefits will run out by the end of the year.

Most Popular Topics |Latest Articles | Newsletter | Discuss in my Forum | Follow me on Twitter!

I'm introducing a new feature into my blog and website for all of you interested in small business finance. Each Friday, I will feature a finance word or term in a Friday blog post that you need to know. It's a way for you to build up your finance vocabulary to impress your banker, your investors, and others in the business world around you, not to mention increase your own understanding.

This week, the term is accounting records. Accounting records are defined as records of a firm's financial position that reflect any changes in that position. An example would be the accounting journals. For more on this term, click on the link.

If you have a finance term you would like to see discussed in more detail than you can find in reference books or on the Internet, drop me a comment and I'll be glad to feature it in a Friday Finance Term of the Week segment. I hope you enjoy this new feature!

Most Popular Topics |Latest Articles | Newsletter | Discuss in my Forum | Follow me on Twitter!

The new unemployment bill that is on its way to the President's desk will help small business by giving you cold, hard cash. In the past, companies have been able to "carryback" their losses in a tax year for two past years. In other words, companies have been able to write off losses for the current year in two previously profitable years and get a refund.

The bill currently on the President's desk will allow businesses to write off losses in 2008 and 2009 for five years previous to 2008. That should be a boon to small businesses and put cash in their pockets when they file their business taxes at the end of 2009.

Talk to your tax accountant to see how much this new provision will help your business!

Most Popular Topics |Latest Articles | Newsletter | Discuss in my Forum | Follow me on Twitter!