MLM online business is a tricky subject for a ton of prospective entrepreneurs. On one hand you must find a business that suites you, and on the other hand you must find a business that allows you to make a worthwhile income. This can be one of the more daunting tasks in the world of online business because, as we all know, the things you love to do are not necessarily the things that will make you the most money. In order to be successful in your MLM online business ventures you must remember that the key to flourishing financially is making intelligent decisions about the company you decide to work with. You simply must work with a product that is non-perishable, preferably one that will increase in value over time. The last thing you need is to devote thousands of hours to a business that is in direct competition with other similar type of business, only to see your company lose the battle because of poor management, a weak team, or an inferior product. The point I’m making: Choose your product very, very wisely, and listen to people who know the industry and have made money themselves.MLM online businesses are growing. like every other business worldwide. When you are considering joining an online business you must carefully analyze the team you will be working with. There are well-organized teams and there are not-so-well-organized teams, and discerning between the two is not as easy as you would think. Often times a company will put up a good front, showing pictures of high-power execs who have “made the transition” between working for a corporate giant and owning their own business online. These sorts of high-power faces can inspire confidence in the organization, but be sure to do your research! There are cases where these executives have been let go or laid off and have begun working in an online business as a means of scraping by or saving face. My point: Find a business with a good, reliable, self-sufficient team who is promoting a product that is in an upward trending market.MLM online business owners know that times are hard. Everyone in the business world, regardless of field, has felt the ripple effects of our World Economic Crisis. From San Diego to Beijing, from New York to Berlin, the story is one of dire conditions that require the utmost of intelligent investments and extremely cohesive teamwork in order to generate success. Your team should be tangible; it should be composed of people you can shake hands with or call for coffee; it should be a real, grounded, local, person-to-person network of like-minded individuals. Above all, it should have a leader who has been in the industry long enough to understand the various ways of generating success from a MLM online business. Fortunately, I know of a business that fits this bill.MLM online business owners, or folks in specific areas such as San Diego who are interested in owning a business online in MLM, your search is over. We have assembled a team of intelligent and driven locals who are expanding a gigantic business opportunity in this very city and around the world. The growth potential for this MLM online business is enormous, and the value of the product is substantial. You will become a part of a business that is self-sustaining, and which generates enough money to eventually become your sole source of income. Above all else, you will have the confidence of shaking hands with people who share the same dream, who are working towards the same ends, and who have done the research for themselves and come to the same conclusion: This is hands-down the best online business opportunity in the city of San Diego, California.
Why can volunteer fire departments borrow on low, tax-exempt interest rates? The IRS laws provide a nice benefit for volunteer fire departments. It provides the ability to borrow money at low, tax-exempt interest rates just like your local government. But the IRS has some rules to follow in exchange for providing this benefit and these rules must be followed so that you “qualify” as a tax-exempt borrower.What are the rules that volunteer fire departments have to follow to meet the IRS rules?
You must provide fire fighting service to a political subdivision that is not protected by another fire department.
You must provide this service under a written agreement.
You must use the borrowed money for a fire truck or fire station.
You must have a public hearing that you are issuing tax-exempt debt (which includes placing legal ads in your local newspaper to announce the public meeting date, time, and place to the public).
The political subdivision must sign a document that they are aware that you are borrowing tax-exempt money and that they approve its use for providing fire fighting services under the written agreement.
If you place the funds in escrow pending construction of the fire truck (which is very common), you must follow the rules governing the use and return on those funds.
You must file an appropriate form (for example, IRS form 8038G or 8038GC) with the IRS to notify the IRS that the transaction is tax-exempt.
There are a number of other rules and regulations to follow such as you must use the fire truck for a public benefit or purpose among others.
What bad things can happen if the IRS rules are not followed?Failure to follow these rules may result in the IRS “disallowing” your tax-exempt financing. If this happens, you may be forced to pay large penalties and taxes to the IRS. Also, your financing will probably revert to a taxable interest rate (usually about 3% higher) and you’ll be forced to pay for the back taxable interest. These can cost tens of thousands of dollars for the average fire truck.Here’s why.First, the IRS will penalize you for not following rules. The rules are set up to ensure that only volunteer fire departments who are legally entitled to borrow on these special, low, tax-exempt interest rates receive this benefit. The rules are set to provide a check and balance system that you are the community’s fire department, that you provide an essential government function for the community, and that the local political subdivision and the community are aware of what you are doing.Second, the bank’s contract will usually require you to certify that you will follow the IRS rules and, if the IRS declares you as non-qualified, the interest rate will revert to the taxable interest rate. This means that you will pay a higher taxable interest rate going forward but you will also be liable for the extra taxable interest payments in the past – from the beginning of the loan.Here’s why:The bank can offer you a low, tax-exempt interest rate because the bank does not have to pay income taxes on the interest you pay to them. Since this large cost (the taxes) don’t have to be paid, the bank can accept a much lower interest rate from a qualified volunteer fire department. So, if your financing is dis-allowed, the interest then becomes taxable for the bank and they will pay about 33% of the interest income to the IRS for taxes on the now taxable interest. The bank can not eat this large cost so its contracts include provisions to compensate the bank if the loan is found to be taxable. These provisions include being able to charge you for the extra interest to cover the income taxes they now owe.So, how can a volunteer fire department ensure that it will meet all the IRS rules?First, it is important to understand that the rules if you want the low, tax-exempt interest rate benefit available to you. Enlist help from your legal or accounting professional to guide you through this complex and exact process if you don’t feel you have a firm grasp on all the requirements.Second, ensure that the bank you choose has the experience to help you with this type of transaction. Remember, even if the bank makes an error, the IRS will contact and impose penalties upon you as the borrower. The IRS views you as the the beneficiary of the the rules and therefore you will be penalized if the rules are not followed.The good news is that there are several firms across the USA that specialize in financing for volunteer fire departments. Ask the questions so that you feel comfortable that they can help ensure you are fully complying with the IRS rules.A disclaimer:This article is intended to provide general knowledge about the IRS rules and help you formulate the questions you feel you need answered to help qualify for this benefit. This article is NOT intended as specific legal or accounting advice and it not a substitute for actual legal and/or accounting advice about your specific situation. Please seek the help of professionals for the help you need in this specific type of transaction for your specific situation.