Avoiding Common Sales and Use Tax Problems State Board Of Equalization
Roseville Small Business Seminar of October 30, 2014 Seminar Presentations State Board Of Equalization Avoiding Common Sales and Use Tax Problems About This Presentation The contents of these slides do not constitute written advice from the Board of Equalization under Revenue and Taxation Code, Section 6596. The following presentation is to be used only as an aid to illustrate general tax concepts, but it does not address every situation. The Revenue and Taxation Code, regulations, court decisions and other applicable laws generally control the decision making process. Throughout this presentation, you’ll find reference cites in the bottom right hand corner of the screen. They are found in the Board of Equalization’s Business Taxes Law Guide, Volume I, which is available on our website at www.boe.ca.gov. Please contact Board of Equalization staff for a comprehensive response to your specific questions. Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Presumptions of the Tax Code • All sales are taxable unless otherwise specifically exempted • Claimed exemptions must be supported by documentation • Taxpayer is responsible for maintaining and providing documentation for potential examination Common Types of Noncompliance • Untaxed Purchases from Out-of-State Vendors • Withdrawal from Resale Inventory for Own Use • Unsupported Sales for Resale • Difference Between Recorded and Reported Taxable Sales • Reported Sales Lower than Expected Sales Based Upon a Markup on Purchases • Errors in Compiling Return • Difference Between Tax Accrued and Tax Paid • • Inadequate Records Resulted in Unreported Sales Unsupported Sales in Interstate Commerce Delivered to Instate Customer Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Untaxed Purchases From Out-of-State Vendors Items purchased without payment of California tax: • Purchase for own use (not resale inventory) and • From out-of-state businesses (including online purchases) Withdrawal from Resale Inventory for Own Use Inventory items purchased with a resale certificate without payment of tax Resale Inventory Items withdrawn Use Tax from inventory for = Due on use other than Cost resale (including use as gifts and free samples or for personal use) Gift = Use Tax Due on Cost Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Use Tax for Individuals • Can be reported on California Income Tax Return • Can be reported on Sales & Use Tax Return • Can be reported on BOE individual Use Tax Return Sales For Resale Common ways to document sales for resale (examples to follow): • A Resale Certificate • A Purchase Order containing all the essential elements of a resale certificate Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Basic Elements of a Resale Certificate • • • • • • • • • • Purchaser’s name Purchaser’s address Purchaser’s valid seller’s permit number Item(s) being purchased Statement that purchase is “for resale” Authorized purchaser’s signature Date resale certificate is signed Purchaser’s title Purchaser’s type of business activity Seller’s name Resale Certificate Verification To verify Seller’s Permit number(s) submitted on resale certificates, retailers may call 888-225-5263 or access our website at www.boe.ca.gov (Click Verify Permit) Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Resale Certificate Verification Resale Certificates • Available at some stationery stores, form BOE-230, in Regulation 1668, and in Publication 73 • Must be filled out completely • Must be taken timely and in good faith Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Purchase Order Used as a Resale Certificate Must specifically state “For Resale.” Statements of “Nontaxable,” “Exempt,” or “Taxable - No” do not fulfill this requirement Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Purchase Order and a Resale Certificate • Purchase Orders that state “For Resale” must contain the same information as required for a resale certificate • The resale certificate will often say “see purchase order” About a Seller’s Permit • Allows sales to be made in California • Provides a seller’s permit number used to issue a resale certificate for purchases of inventory items without paying tax • Does not allow buying items for personal or business use without paying tax • Permit must be issued in the owner’s name for each business address Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Penalties for Improper Use of Resale Certificates • Misuse of resale certificate is a misdemeanor • The penalty is $500 or 10% of the amount of tax per transaction, whichever is greater Recorded vs. Reported Taxable Sales Comparison between taxable sales per your books and records and taxable sales reported to the BOE Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Verifying Your Sales Using Mark-up Analysis Verifying Your Sales Using Mark-up Analysis Generally for businesses such as Grocery Stores, Liquor Stores, Restaurants, etc. Involves total sales, cost of goods sold, and gross profit amount Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Verifying Your Sales Using Mark-up Analysis $ 100,000 Sales - 75,000 Cost of Goods Sold $25,000 Gross Profit $25,000 ÷ $75,000 = 33.33% Markup Verifying Your Sales Using Mark-up Analysis Gross Profit ÷ Cost of Goods Sold = Mark-up Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Verifying Your Sales Using Mark-up Analysis Verifying Your Sales Using Mark-up Analysis Taxable + Nontaxable Sales = Total Sales $100,000 Total Sales - 75,000 Cost of Goods Sold = $25,000 Gross Profit Gross Profit divided by Cost of Goods Sold = Mark-up Percentage $25,000 ÷ $75,000 = 33.33% Markup Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Using Taxable Markup Analysis to Verify Taxable Sales In a business with both taxable and exempt sales (i.e. grocery store), the markup for both taxable and exempt products must be examined separately. Reported Taxable Sales Lower than Expected Sales Based Upon a Markup on Taxable Purchases Taxable + Nontaxable Sales = Total Sales Joe Reported: TaxableSales Exempt Sales = Total Sales $33,000 $67,000 + = $100,000 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Reported Taxable Sales Lower than Expected Sales Based Upon a Markup on Taxable Purchases Taxable $33,000 Sales -$30,000 Cost of Goods Sold $ 3,000 Gross Profit $3,000 ÷ $30,000 = 10% Markup Mark-up Analysis on Non-taxable Food Sales Non-taxable Food $67,000 Sales - $45,000 Cost of Goods Sold $22,000 Gross Profit $22,000 ÷ $45,000 = 49% Markup Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Reported Taxable Sales Lower than Expected Sales Based Upon a Markup on Taxable Purchases Corrected Taxable Sales = Cost of Taxable Goods Sold x Mark-up Factor (from shelf test) Joe’s Corrected Taxable Sales = $30,000 Cost of Goods Sold x (100% + 30%) = $39,000 Application of Mark-up to Taxable Purchases Calculated (Audited) Taxable Sales Taxable Sales Reported Difference $39,000 -$33,000 $6,000 Amount assessed in the audit by Al = $6,000 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Tax Accrued Tax accrued, which is the amount of tax collected from customers or recorded as amounts due to the state, is compared to tax paid. Required Records Records must be maintained for at least four (4) years. Examples of Records: • • • • • • Sales Invoices Cash Register Tapes Sales Journals Purchase Invoices Cancelled Checks Purchase Journals • • • • • • Resale Certificates Exemption Certificates Purchase Orders Shipping Documents Schedules Working Papers used in preparing tax returns. Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Sales in Interstate Commerce Common ways to document sales in interstate commerce: • • • • Bills of Lading Freight Invoices Delivery Receipts Correspondence Unsupported Sales in Interstate Commerce Delivered to Instate Customers • Delivery to a purchaser in California for subsequent shipment to another state is taxable. • When the goods are diverted by the purchaser in transit to a California location, the exemption is lost. • Drop shipments. Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Taxpayer Information Section • 800-400-7115 711 (TTY) • Mon. - Fri. 8am to 5pm • 1-1 Assistance • 24 hr. fax-back service • Recorded Information Taxpayers’ Rights Advocate 888-324-2798 If you have been unable to resolve a disagreement with the BOE and you would like to know more about your rights under the law. www.boe.ca.gov/tra/tra.htm Roseville Small Business Seminar of October 30, 2014 Seminar Presentations BOE Offers Free 1 - 1 Assistance • A staff consultant will review your business operation and record keeping system. • Call your local BOE office today to make an appointment. Get it in Writing Requests for written advice can be emailed to the Board of Equalization at: www.boe.ca.gov/info/email.html or mailed directly to the BOE field office nearest you. Roseville Small Business Seminar of October 30, 2014 Seminar Presentations We wish you success in your business venture. We welcome your comments and suggestions. 2013 Forms of Ownership Presented by Small Business Education and Outreach Section Roseville Small Business Seminar of October 30, 2014 Seminar Presentations 2013 Sole Proprietorships Sole Proprietorship Characteristics Business’ No formal taxable year is The simplest transfer of the same as form of doing assets to start business. the owner’s business. taxable year. Sole Proprietorship Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Sole Proprietorship Characteristics •Sole proprietors use Schedule C to report the business’ profit or loss on their Form 540 income tax returns whether distributed or not. •Losses generally offset other income. •Sole proprietor is not considered to be an employee of the business. Sole Proprietorship 2013 General Partnerships Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Partnership Characteristics Two or more persons carrying on a business for profit. Flexible form of business and relatively easy to set up. Partners decide thewritten agreement is A formal organization'sadvisable. structure and A formal written agreement distribution of profits and is advisable. losses. Partnerships Partnership Characteristics •Not a separate taxable entity. •Partnership files informational return using Form 565. •Partners report profit or loss on their individual Form 540 income tax returns whether distributed or not. •Losses may be limited. Partnerships Roseville Small Business Seminar of October 30, 2014 Seminar Presentations California Legal Entities Limited Partnerships Limited Liability Partnerships Corporations Limited Liability Companies These legal entities are taxed. Legal Entities California Legal Entities Formed by filing the appropriate document or form with the Secretary of State (SOS). Limited Partnership • Certificate of Limited Partnership • Form LP-1 Limited Liability Partnership • Begin as General Partnership • Application to Register a Limited Liability Partnership • Form LLP-1 Taxed annually until formally closed. Legal Entities Roseville Small Business Seminar of October 30, 2014 Seminar Presentations California Legal Entities Formed by filing the appropriate document or form with the SOS. Limited Liability Company Corporation • Articles of Incorporation • Various Forms • Minimum Tax • Articles of Organization • Form LLC-1 • Annual Tax and Fee Taxed annually until formally dissolved or cancelled. Legal Entities 2013 Limited Partnerships Partnerships & Limited Liability Partnerships Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Limited Partnership General Partner Limited Partner • Manages business affairs. • Personally assumes all partnership debts. • Only provides capital. • May not participate in management. • Liability limited to the amount of investment. Taxed annually until formally closed. Partnerships Limited Liability Partnership Only used by persons licensed to practice: Public Accountancy Law Architecture Engineering Land Surveying Partnerships Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Limited Partnership and Limited Liability Partnership Characteristics •Not a separate taxable entity. •Subject to $800 annual tax. •Partnership files informational return using Form 565. •Partners report profit or loss on their individual Form 540 income tax returns whether distributed or not. •Losses may be limited. Partnerships 2013 C Corporations Roseville Small Business Seminar of October 30, 2014 Seminar Presentations C Corporation Characteristics A separate legal entity owned by shareholders. Must register with SOS before conducting business. Can be costly to set up and maintain. Can be costly to set up Option of choosing an Option of choosing an income year other and maintain. income year other than than the calendar year. the calendar year. C Corporations C Corporation Characteristics •Files using Form 100. •Taxed annually on its earnings at a rate of 8.84% on net income. •Subject to $800 minimum tax. •Shareholders taxed on distributed dividends. C Corporations Roseville Small Business Seminar of October 30, 2014 Seminar Presentations 2013 S Corporations S Corporations S Corporation Characteristics A separate legal entity owned by shareholders. Must register with SOS before conducting business. Election is made for S corporation status. S Corporations Roseville Small Business Seminar of October 30, 2014 Seminar Presentations S Corporation Characteristics No more than 100 shareholders. Only one class of stock. Shareholder can only be individuals, estates, or certain trusts. S Corporations S Corporation Characteristics •A hybrid business entity. •Files using Form 100S. •State tax rate of 1.5% of net income. Not subject to federal tax. •Subject to $800 minimum tax. •Shareholders report profit or loss on their individual Form 540 income tax returns whether distributed or not. S Corporations Roseville Small Business Seminar of October 30, 2014 Seminar Presentations 2013 LLC Limited Liability Companies (LLC) LLC Characteristics A separate legal entity owned by members. Must register with SOS before conducting business. A hybrid business entity. Restriction may apply to professional services that require license, certification or registration. Roseville Small Business Seminar of October 30, 2014 Seminar Presentations LLC Characteristics IRS corporation classification: follow corporation rules. IRS partnership classification: follow partnership rules. For California only. A single member classification: follow sole proprietor rules. LLC LLC Characteristics Single Member and Partnership •Single or partnership classified LLCs file using Form 568. •Subject to $800 annual tax. •Maybe subject to an LLC fee based on total income (gross income plus cost of goods). •Members report their share of profit or loss on Form 540 income tax returns whether distributed or not. LLC Roseville Small Business Seminar of October 30, 2014 Seminar Presentations LLC Characteristics C Corporation Classification •C Corporation classified LLCs file using Form 100. •Taxed annually on its earnings at a rate of 8.84% on net income. •Subject to $800 minimum tax. •Members receive profits and losses like C corporation shareholder. LLC LLC Characteristics S Corporation Election •S Corporation classified LLCs file using Form 100S. •State tax rate of 1.5% on net income. Not subject to federal tax. •Subject to $800 minimum tax. •Members report their share of profit or loss on Form 540 income tax returns whether distributed or not. LLC Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Forms of Ownership Information FTB Publication 1123, Franchise Tax Board’s Guide to Forms of Ownership Forms of Ownership Susan Maples FTB Small Business Liaison Telephone •916.845.6724 Email •Susan.Maples@ ftb.ca.gov Contact Information Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Lila Fedler Technical Advisor to the Taxpayers Advocate Telephone •916.845.7474 Email •[email protected] Contact Information Brenda Voet Technical Advisor to the Taxpayers Advocate Telephone •916.845.5613 Email •[email protected] Contact Information Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Recordkeeping for Small Business/Self Employed Individuals Date Necessity of Books and Records • Monitor the business’s progress • Prepare financial statements • Keep track of deductible expenses 72 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Necessity of Books and Records • Prepare tax returns • Prepare for examination • Business –Verify expenses –Proof of payment not enough 73 Books and Records • • • • • • Records Tax purpose of a record Accounting entry Accounting book Income statement Balance sheet 74 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations UETA Definition of Electronic Books and Records Uniform Electronic Transaction Act defines electronic records that, by electronic means, are: •Created •Generated •Sent •Communicated •Received, or •Stored 75 Recordkeeping Requirements • Internal Revenue Code §6001 and related Income Tax Regulations under §1.6001-1; generally provides that everyone must keep adequate records. Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Record Types Needed Gross Receipts • • • • • • Cash register tapes Receipt book Sales Invoices Credit charge slips Forms 1099 77 Record Types Needed Purchases and Expenses • Amount paid • Amount was for business purchases 78 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Record Types Needed (Cont’d) Charitable Contributions, Travel, Transportation, Entertainment, Gifts • • • • Amount Each date Description Explanation of business benefit gained 79 Record Types Required Employment Taxes • Names •Addresses and •Taxpayer identification numbers for individuals • who work for you or • performs services and receives payment 80 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Record Types Needed - Assets •Property used in business must be substantiated •Maintaining records that show •When and how property acquired •Purchase price, and •Use of property 81 Maintenance of Books and Records • Use the method that works best • Records should say: –what was received –from whom –for what reason • Keep records timely 82 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Responsibility of Books and Records • • Taxpayer/business owner responsible for maintaining adequate books and records If paid preparer used, preparer’s records needed also 83 How Long to Keep Records • • • • Generally, three years from filing date to examine tax return Tax records must be kept at least until statute of limitations expires Certain tax returns much longer Keep source records (checks, receipts, and proof of business purpose) at least three years 84 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations How Long to Keep Records (Cont’d) •Until deduction no longer claimed •Employment tax records, four years •Assets, until sold or removed •IRA contributions, permanently •Broker statements, expiration of limitation period •Improvements to residence, until sold •Net operating losses, until statute of limitations expired on last tax return claiming a loss •Follow state recordkeeping laws also 85 IRS Resources • • • • • • Publication 15, Circular E - Employers Tax Guide Publication 463, Travel, Entertainment, Gift, and Car Expenses Publication 535, Business Expenses Publication 536, Net Operating Losses Publication 547, Casualties, Disasters and Thefts Publication 556, Examination of Returns, Appeal Rights & Claims 86 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations IRS Resources • • • • • Publication 594, The IRS Collection Process Publication 3498, The Examination Process Publication 5, Appeal Rights and Preparation of Protests for Unagreed Cases Circular 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, enrolled Agents, Enrolled Actuaries, and Appraisers before the Internal Revenue Service Publication 583, Starting a Business and Keeping Records 87 IRS Resources (Cont’d.) • • • • • • • Publication 225, Farmers Tax Guide Publication 1066-C, A Virtual Small Business Workshop CD Publication 2194, Disaster Losses Kit for Individuals Publication 2194B, Disaster Losses Kit for Businesses Publication 4758, Reconstructing Your Records Publication 4796, IRS Records at Your Fingertips Visit IRS.gov 88 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Employee or Independent Contractor Introductions Ling Wu Employment Tax Consultant www.edd.ca.gov Taxpayer Assistance Center: 1-888-745-3886 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Objectives • Discuss importance of proper worker classification. • Explain the differences between employees and independent contractors. • Define common law, statutory and exempt employment. • Identify resources to help properly classify workers. Reasons to Properly Classify Workers • Avoid reclassification audits and investigations by the EDD, Internal Revenue Service, and/or Department of Industrial Relations due to: Worker claims – unemployment/injury. Worker informants. Competitor informants • Prevent additional taxes, penalties, and interest. • Avert possible revocation of state or local licenses. Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Misclassification Example One worker, earning $20,000 for one year (tax year 2013) Employer A (Correctly classifies worker as employee) Employer B (Misclassifies worker as independent contractor) UI (3.4 percent)* $238 $238 $7 $7 *New employer rate ETT (0.1 percent) SDI (1.0 percent) $200 PIT (6.0 percent) $1,200 Total due for one year $245 $1,645** ** Plus penalty and interest Types of Workers Independent Contractors Employees Common Law Statutory Exempt Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Employee and Independent Contractor Common Law Employee: An individual who performs services for you and is subject to your control regarding what will be done AND how it will be done. Independent Contractor: An individual who performs services for you BUT you control only the result of the work. Common-Law Factors EDD’s Primary Factor Right of Direction and Control EDD’s Secondary Factors: Distinct trade or occupation Supervision Skill level Tools and place of work Length of time Method of payment Regular part of business Belief of the parties Extent of actual control Services benefit the principal Profit/loss Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Secondary Factors FACTORS EMPLOYEE INDEPENDENT CONTRACTOR Distinct trade or occupation No separately established business Separately established business Supervision Follows procedures Own methods Skill level Training Own expertise Tools and place of work Business provides Worker provides Length of time Continuous Isolated event Method of payment Guaranteed payment Sets rate and pay date Regular part of business Vital to business Incidental to business Belief of parties Employee Independent contractor Extent of actual control Owner sets work schedule Worker sets schedule Services benefit principal Benefits owner's business Benefits owner as individual Profit or loss No investment or financial risk Investment and financial risk Statutory Employees Employee by law under a specific statute. Examples include, but not limited to: Corporate officers Unlicensed contractors Certain Limited Liability Company (LLC) members Resources: DE 231SE, Statutory Employees DE 231PC, Payments to Corporate Officers DE 231LLC, Limited Liability Entities Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Exempt Employees Certain employees are not subject to specific taxes or withholding provisions. Examples include: Domestic workers Direct sellers Family members Real estate agents Resource: DE 231EE, Exempt Employment Additional Resources DE 44, California Employer’s Guide DE 231, Employment DE 38, Employment Determination Guide DE 1870, Determination of Employment Work Work Status Employee or Independent Contractor Course at: website: www.edd.ca.gov/Payroll_Taxes/Web_Based_Seminars.htm Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Independent Contractor Reporting DE 542, Report of Independent Contractor(s) File timely to avoid penalty and interest. Report within 20 days if you are making payments totaling more than $600 or entering into a contract of $600 or more, whichever occurs earlier. When Hiring New Employees • Submit DE 34, Report of New Employee(s). Roseville Small Business Seminar of October 30, 2014 Seminar Presentations New Employee Reporting • Locate parents who are delinquent in their child support obligations. • Report new hires or rehires within 20 days. • File timely to avoid penalty and interest. e-Services for Business • Fast, easy, and secure way to manage your payroll taxes online. • View and edit returns or reports prior to submission. • Available 24 hours a day, 7 days a week. https://eddservices.edd.ca.gov/index.html Roseville Small Business Seminar of October 30, 2014 Seminar Presentations e-Services for Business Features • • • • • • • • Register for employer account File returns and reports online Make payments by EFT or credit card Review account balance View payroll tax rates Make account updates View previous returns and payments Close account Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Business Loan Readiness Anthony Rucker Senior Loan Officer California Capital FDC (916) 442-1729 “C”s of Lending • • • • • • • Cash Flow Credit Collateral Capital Capacity Character Clarity (Presentation) Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Cash Flow • money in and money out Credit • the performance of past debt obligations Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Collateral • the liquidation value of assets pledged to secure the loan Capital • amount of one’s own money contributed to the business, or equity injection Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Capacity • one’s experience, training, and education to run a business Character • combined with credit and capacity, the subjective influence in a loan decision Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Clarity (Presentation) • the presentation of your business plan or business loan proposal to a lender Types of Loans • • • Term Loan Lines of Credit Hybrids Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Monthly Payment • • • Loan Amount Interest Rate Length of Repayment Period Contact Information Anthony Rucker California Capital FDC 2000 “O” Street, Suite 250 Sacramento, CA 95811 Office Number: (916) 442-1729 [email protected] Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Marketing YOUR Business on the ‘Net Michael Saccomano, Capital Region SBDC 10/30/2014 119 What We’ll Touch on Today FREE Local & Regional Promotion Google, Yahoo, Bing, YP … they all do it Making Social Networks work for you FaceBook, Twitter, Pinterest, LinkedIn … Other Free / Low-cost promotional ideas Blogs, eMail Marketing … Domain Names, Websites, Hosting, … Q&A 10/30/2014 120 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations FREE Local & Regional Promotion No Website Required 10/30/2014 121 Local / Regional Promotion (no website required) Google, Bing, Yahoo, YP, … they all do it – for FREE Displays on Maps searches AND many regular searches near the Top of page 1 Tell Visitors all about your business (description, hours, pictures, keyword searches, …) A local example Try “Honda auto repair, Roseville” 10/30/2014 122 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Local & Regional Promotion: - Ex: Google Plus (aka Maps) Requires a free Google Plus Account Log in to yours, or create one Will ask you to locate your business listing, Or click on Google Maps, “put your business .. “ Fill in the blanks – be thorough You will be able to edit/enhance immediately Don’t want to give your address? There may be a way to hide it later on You MUST verify before listing is active! 10/30/2014 123 Local & Regional Promotion: - Bing, Yahoo, YP.com … Bing Places for Business Log-in to your Microsoft account (or sign up) Locate your business, or www.BingPlaces.com Yahoo Local Log-in to your Yahoo account (or sign up) Locate your business or SmallBusiness.Yahoo.com YP.com (AT&T Yellow Pages) Locate your business, or www.MyFreeYP.com You’ll be asked to sign in or create an account All ask for about same info as Google asked 10/30/2014 124 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Should Social Networks be part of your Marketing? You do NOT have to do them all – or maybe none fit your needs! 10/30/2014 125 Are Social Networks for You? FaceBook Many businesses consider this a ‘must have’ site YouTube YouTube gets more searches than Google Twitter If following your every move is what you need ... LinkedIn “The” site for building business relationships Pinterest FaceBook done with pictures 10/30/2014 126 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations More Social Networks ?? More alphabet soup Tumblr StumbleUpon RSS and a few dozen more??? Start with the “names” and then look at specialized networks that might fit your business? Don’t get carried away – A few managed well are better than a bunch poorly maintained! 10/30/2014 127 YouTube Do it yourself video sharing, with VERY High visibility Can be created by almost anything (phone, camera, etc) and uploaded from almost any platform YouTube reports more searches than Google Get creative – going viral can get you visibility in the millions Making it fun vastly increases your traffic 10/30/2014 128 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Twitter Create a following for your business or service in short bursts Not for every business, but maybe … Notable successes include personalities, politicians, etc Also very popular: food carts, others that move around and need to be found 10/30/2014 129 Other FREE /Low Cost Promotional Opportunities And still No Website Required 10/30/2014 130 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Blogs Blog - “ a discussion or informational site published on the World Wide Web and consisting of discrete entries ("posts") typically displayed in reverse chronological order “ Become the ‘expert’ in your field Great visibility builder IF you able to make frequent and consistent postings WordPress.com – Free (basic), highly visible, fairly easy to learn. (WordPress.org for themes, add-ins) Blogger.com – Googles version, also free You may want (need) to host somewhere else for all the add-ins to work 10/30/2014 131 Other Promotional Opportunities eMail Marketing For periodic contact w customers and prospects Allows self-subscription and self un-subscription Be professional Spell and syntax check; no animations Get important info in the body (attachments may not be opened) - if attachments PDF them Commercial programs make it easy, and ‘spam free’ Mail Chimp – free for first 2000 names Constant Contact – widely used @ $15/mo + Microsoft Office 365 @ $3.99/mo + 10/30/2014 132 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations What Kind of Website Do You REALLY Need? You can spend $0 to $1,000’s 10/30/2014 133 What are Your Website Requirements ? Basic info? Static, single visit, basically an online yellow page ad Google Places, FaceBook et al may suffice for some businesses Expanded information? More info, may change periodically, repeat visitors? May need a more sophisticated software program On-line sales? Shopping cart? Merchant Account? … 10/30/2014 134 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Free Websites Google Sites (sites.google.com) Originally very basic, but they have been upgrading Limited starter templates, but you build on others Example: www.AutoServiceOutlet.com WordPress (can be more than just a blog) Hosting at WordPress allows basic website, other hosting services allow expanded features Extensive templates, and lots more for sale at low $ Example: www.sbdc.net Bing & Yahoo - basic sites are Free 10/30/2014 135 Where do you go from here? Work that local promotion Complete Google, Bing, YP & Yahoo Maps, .. Schedule time weekly to edit, monitor results, … Implement any of the other promo’s that fit your goals If you create a blog you should spend time regularly If you create social networking, keep it current If you setup eMail Marketing, put the links on your website, blog, etc, etc 10/30/2014 136 Roseville Small Business Seminar of October 30, 2014 Seminar Presentations Where do you go from here? (Sales Pitch) Capital Region SBDC offers Free counseling Schedule help, and/or a website audit If a group of you want to work on something in more depth together ask office to schedule a small group counseling session? And remember, we also can help you with Business plans, loans, QuickBooks, print marketing, social media, etc, etc, (916) 563-3210 or visit www.SBDC.net for more info 10/30/2014 137
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