Individuals:
There are two ways to pay your income taxes- through withholding, like on wages, or by making estimated tax payments. Estimated tax payments for individuals are due kind of quarterly on April 15th, June 15th, September 15th and January 15th of the following year.
If Your Income Is Less Than Last Year
The amount of estimated tax you are supposed to pay is 90 % of what you “estimate” you will owe for that year, say 2009. You compute how much you think you will owe, then divide by four and pay that amount. Just use your tax return software for last year and put in your numbers for this year. This is a good method to use if your income in 2009 is a lot less than that of 2008.
If Your Income Is the Same or Higher Than Last Year
But if your income is about the same or higher than last year you should use one of the “exceptions” to penalty for underpayment of estimated tax. That is, pay an amount equal to 100 % of prior year’s tax. (You can pay less but I don’t recommend it- it’s temporary and you never know what they’re going to do with the tax code.) Take the tax on your 2008 1040 line 61, divide by four and pay that each quarter. Then you’re covered- even if you owe $ 1 million on April 15, 2010 you won’t get a penalty. If your prior year’s tax was zero, then that’s all you have to pay for estimated- zero. But be careful, you’ll have to include form 2210 with your return to prove it.
Corporations:
The rules for estimated tax payments for corporations are a little bit different from those for individuals. For a calendar year corporation (one whose tax reporting year ends on December 31) the estimated tax payments are due on April 15th, June 15th, September 15th and December 15th of the current year.
So, use the same rules as above for individuals, i.e., estimate the corporation’s actual tax if income is less than prior year or pay an amount equal to 100 % of prior year’s tax if income is equal to or greater than the prior year.
Unfortunately the “exception” to penalty for underpayment of estimated tax that allows you to pay zero if prior year’s tax was zero is not available to corporations. Attach completed form 2220 to the corporate return to prove your exception.
Tuesday, September 1, 2009
Monday, August 24, 2009
Safeway vs. Walmart or Union vs. Non-union
I recently had a conversation with a cashier at our local Walmart. Ah yes, the store owned by the evil corporation where idealogues used to refuse to shop on principal but flock to now that their stock portfolios have been deflated by 50 %. Yes, that's the one.
Anyway, when I commented how much cheaper certain food items were at Walmart than at Safeway, the cashier scowled at me and told me how much more than Walmart Safeway paid their cashiers and other employees. I replied yes, that's because Safeway's workers were unionized (at least in California they are) and that if Walmart had to pay their employees union scale wages Walmart would go out of business because they would have to raise their prices and no one would shop there. We had a few more comments back and forth, then she said if any union organizers came on to Walmart property Walmart would have them arrested. Instead of saying "Good for Walmart! Aren't they smart!" I left the store.
This is typical employee mentality with a tablespoon of "poor me" and a cup of heartless management thrown in. Why can't people understand that's one reason why companies like GM are filing for bankruptcy? Because of the excessive union wage and benefits packages to which they were forced to commit.
In the San Francisco Bay Area one of the cities has sought to file for bankruptcy due to excessive wage and benefits contracts forced upon them by unionized firefighters. Why can't these employees have a minimal amount of foresight to realize obtaining high wages, pensions and, yes, health care, (oooh, there I've said the "H" word!) through collective bargaining does them no good if the organization for which they work can't make enough profit to support such amenities.
Americans are constantly complaining that jobs are being outsourced to other countries, but we've brought that on ourselves. Because we are a nation of consumers, we want what we want, we want it now, and we want it for the least amount of money possible. Granted it's only human nature to want to earn more money and spend the least amount possible on food, clothing and shelter. I get that, the basic human needs. But come on people! We're taking about iPhones, Wiis and Baby Phat here!
We don't need all this stuff! But we have Madison Avenue telling us we need it to be happy in a constant barrage from the media. So if we want it cheap, we're going to have to go to Walmart to get it. I just wish the boxes had some English on them so I could tell what was inside. But that's another story for another day.
I recently had a conversation with a cashier at our local Walmart. Ah yes, the store owned by the evil corporation where idealogues used to refuse to shop on principal but flock to now that their stock portfolios have been deflated by 50 %. Yes, that's the one.
Anyway, when I commented how much cheaper certain food items were at Walmart than at Safeway, the cashier scowled at me and told me how much more than Walmart Safeway paid their cashiers and other employees. I replied yes, that's because Safeway's workers were unionized (at least in California they are) and that if Walmart had to pay their employees union scale wages Walmart would go out of business because they would have to raise their prices and no one would shop there. We had a few more comments back and forth, then she said if any union organizers came on to Walmart property Walmart would have them arrested. Instead of saying "Good for Walmart! Aren't they smart!" I left the store.
This is typical employee mentality with a tablespoon of "poor me" and a cup of heartless management thrown in. Why can't people understand that's one reason why companies like GM are filing for bankruptcy? Because of the excessive union wage and benefits packages to which they were forced to commit.
In the San Francisco Bay Area one of the cities has sought to file for bankruptcy due to excessive wage and benefits contracts forced upon them by unionized firefighters. Why can't these employees have a minimal amount of foresight to realize obtaining high wages, pensions and, yes, health care, (oooh, there I've said the "H" word!) through collective bargaining does them no good if the organization for which they work can't make enough profit to support such amenities.
Americans are constantly complaining that jobs are being outsourced to other countries, but we've brought that on ourselves. Because we are a nation of consumers, we want what we want, we want it now, and we want it for the least amount of money possible. Granted it's only human nature to want to earn more money and spend the least amount possible on food, clothing and shelter. I get that, the basic human needs. But come on people! We're taking about iPhones, Wiis and Baby Phat here!
We don't need all this stuff! But we have Madison Avenue telling us we need it to be happy in a constant barrage from the media. So if we want it cheap, we're going to have to go to Walmart to get it. I just wish the boxes had some English on them so I could tell what was inside. But that's another story for another day.
Friday, August 21, 2009
Interesting Items of the Day
Cartoon: Blue Dog Fight http://bit.ly/DiHrD via @AddToAny- Way coooool!4 minutes ago from AddToAny
As Dennis Miller says re alleged "climate change" We're comparing temperatures now with those taken at time when people were using outhouses
AGW Stupidity: Vilsack Blames Trees Dying On Climate Change at http://bit.ly/3qTaEA16 minutes ago from web
Independents realize error of their ways in electng Obama-http://bit.ly/1iMU9about 2 hours ago from web
David Axlerod's former corp to gain millions from Obamacare- http://michellemalkin.com/
Not Just Another Town
Fred Everhart read the mail and felt sick. What would the kids do? Fred, head of the recreation commission, experienced what many American towns and committees felt - loss of funds.
Greenfield, Ohio, population 5000, just another town reliant on the auto industry. Five hundred jobs (70% of the town's industrial employment) would be gone by October 2009. In Willington, the nearest town, DHL Express announced it was pulling out, leaving another 8,000 employees without work. Due to the economic downturn, Greenfield lost fifty percent of the money budgeted to run the city.
The economy didn't factor in people like Fred Everhart. In January, 2009, Fred called a meeting. Twenty-five to thirty angry parents showed up. The anger and frustration prevented productivity. The parents understood their own hardship, but how could a city face the same?Fred, not to be beaten, called a second meeting. Nine people attended - The Gang of Nine. Together, they convinced the town to give them $5,000.00 of the $20,000.00 budgeted for little league baseball.
Greenfield had only one ballpark, which it could no longer afford to maintain. The "Gang of Nine" convinced the city to give the park to them. Fred posted an advertisement in the local paper a few weeks before opening day - Memorial Day - volunteers needed.
On that Saturday morning, Fred arrived at 9 A.M. Only two others waited. They looked out over the field. A small breeze picked up a piece of paper and sent it tumbling over the barren field. The grass was uncut. Holes surrounded the bases, dug into the dirt by last season's players. Water rimmed home plate. Fred looked at his two companions, "Looks like it's just us." He surveyed the field. "Where's the flag?" He frowned, "For that matter, where's the flag pole?""It blew down five years ago." One of his companions said. "They couldn't afford to replace it.""No matter," Fred said, "Let's get to work."
They pulled! their m owers, shovels, and rakes from their trucks and began to work. At 9:30 A.M. another truck pulled into the parking lot. Behind it, trailing dust, were more cars and trucks. They soon had fifty to sixty men, women and children working. The small army mowed the grass, painted dugouts, patched the fields and mended fences.
A local newspaper picked up their efforts and printed a story. The "Gang of Nine's" efforts symbolized the strength of community and was picked up by national media. Fred was overwhelmed with emails, letters, and donations from around the country. They came from Hawaii to Vermont. One lady called from Illinois. She'd lived through the depression and knew what it was like to go without. She didn't want the kids to do the same. A few days later, Fred received a check for $500.00 from her.
Baseballs arrived. Twenty-four dozen came in one delivery from New Orleans. Donations of equipment arrived from individuals and little leagues in Pennsylvania and Illinois. The league was featured on "Good Morning America". They received more equipment from the major baseball leagues, and the Cincinnati Reds invited the entire Greenfield league to see a game at "Great American Ballpark" in Cincinnati. Fred wasn't done. He spoke to members of the "Concerned Veterans of Greenfield". Their bylaws prohibited them donating money, but they donated a flagpole and a flag. Fred spoke to a stone mason, Jay Hardy, owner of Hardy Memorials. Fred wanted to do something in return to the veterans. Jay agreed to donate his work to those who fought then and now. Fred expected a small plaque, but one morning, Jay pulled into the parking lot with a section of marble three feet, by two feet, by two inches. The flagpole and monument where mounted in cement.
The league made concessions: only one new baseball per game; the scoreboard and lights remained dark; and restrooms were locked, replaced with portable toilets. Four hundred and fifty children, ages five through sixteen, ! signed u p to complete forty-seven teams. On opening day, Fred and his gang surveyed the field once again. Fred remembers one thing - sounds. He listened to the laughter of children, the crack of bats against balls, and above it all, the snapping of the flag blowing in the wind.
A call for silence - the national anthem played and the plaque was dedicated to the veterans. "Play ball!" The umpire yelled.
The season was on.On July 3, 2009, the last game was played. The last ball was struck. The last game of the season came to an end. The players, parents, coaches, and umpires left the field. The last breath of wind rolled a hotdog wrapper over the infield. The sun dropped below the horizon. The light of day faded. The stars and stripes gave a final wave in the dying wind. It hung limp against the pole - vigilant - waiting for another season. One could imagine the sound of a bugler playing, signaling the end of the day, the end of a season.
The economy caused problems around the globe, but in Greenfield, it was beaten - Greenfield, not just another town. Michael T. Smith
Fred Everhart read the mail and felt sick. What would the kids do? Fred, head of the recreation commission, experienced what many American towns and committees felt - loss of funds.
Greenfield, Ohio, population 5000, just another town reliant on the auto industry. Five hundred jobs (70% of the town's industrial employment) would be gone by October 2009. In Willington, the nearest town, DHL Express announced it was pulling out, leaving another 8,000 employees without work. Due to the economic downturn, Greenfield lost fifty percent of the money budgeted to run the city.
The economy didn't factor in people like Fred Everhart. In January, 2009, Fred called a meeting. Twenty-five to thirty angry parents showed up. The anger and frustration prevented productivity. The parents understood their own hardship, but how could a city face the same?Fred, not to be beaten, called a second meeting. Nine people attended - The Gang of Nine. Together, they convinced the town to give them $5,000.00 of the $20,000.00 budgeted for little league baseball.
Greenfield had only one ballpark, which it could no longer afford to maintain. The "Gang of Nine" convinced the city to give the park to them. Fred posted an advertisement in the local paper a few weeks before opening day - Memorial Day - volunteers needed.
On that Saturday morning, Fred arrived at 9 A.M. Only two others waited. They looked out over the field. A small breeze picked up a piece of paper and sent it tumbling over the barren field. The grass was uncut. Holes surrounded the bases, dug into the dirt by last season's players. Water rimmed home plate. Fred looked at his two companions, "Looks like it's just us." He surveyed the field. "Where's the flag?" He frowned, "For that matter, where's the flag pole?""It blew down five years ago." One of his companions said. "They couldn't afford to replace it.""No matter," Fred said, "Let's get to work."
They pulled! their m owers, shovels, and rakes from their trucks and began to work. At 9:30 A.M. another truck pulled into the parking lot. Behind it, trailing dust, were more cars and trucks. They soon had fifty to sixty men, women and children working. The small army mowed the grass, painted dugouts, patched the fields and mended fences.
A local newspaper picked up their efforts and printed a story. The "Gang of Nine's" efforts symbolized the strength of community and was picked up by national media. Fred was overwhelmed with emails, letters, and donations from around the country. They came from Hawaii to Vermont. One lady called from Illinois. She'd lived through the depression and knew what it was like to go without. She didn't want the kids to do the same. A few days later, Fred received a check for $500.00 from her.
Baseballs arrived. Twenty-four dozen came in one delivery from New Orleans. Donations of equipment arrived from individuals and little leagues in Pennsylvania and Illinois. The league was featured on "Good Morning America". They received more equipment from the major baseball leagues, and the Cincinnati Reds invited the entire Greenfield league to see a game at "Great American Ballpark" in Cincinnati. Fred wasn't done. He spoke to members of the "Concerned Veterans of Greenfield". Their bylaws prohibited them donating money, but they donated a flagpole and a flag. Fred spoke to a stone mason, Jay Hardy, owner of Hardy Memorials. Fred wanted to do something in return to the veterans. Jay agreed to donate his work to those who fought then and now. Fred expected a small plaque, but one morning, Jay pulled into the parking lot with a section of marble three feet, by two feet, by two inches. The flagpole and monument where mounted in cement.
The league made concessions: only one new baseball per game; the scoreboard and lights remained dark; and restrooms were locked, replaced with portable toilets. Four hundred and fifty children, ages five through sixteen, ! signed u p to complete forty-seven teams. On opening day, Fred and his gang surveyed the field once again. Fred remembers one thing - sounds. He listened to the laughter of children, the crack of bats against balls, and above it all, the snapping of the flag blowing in the wind.
A call for silence - the national anthem played and the plaque was dedicated to the veterans. "Play ball!" The umpire yelled.
The season was on.On July 3, 2009, the last game was played. The last ball was struck. The last game of the season came to an end. The players, parents, coaches, and umpires left the field. The last breath of wind rolled a hotdog wrapper over the infield. The sun dropped below the horizon. The light of day faded. The stars and stripes gave a final wave in the dying wind. It hung limp against the pole - vigilant - waiting for another season. One could imagine the sound of a bugler playing, signaling the end of the day, the end of a season.
The economy caused problems around the globe, but in Greenfield, it was beaten - Greenfield, not just another town. Michael T. Smith
Monday, August 17, 2009
White House Email on Health Care Reform
Today I received the White House email forwarded to me by my Uncle George. Yes, the one the Whiter House is sending out to convince people that we want Obama’s health care reforms. I don't believe alot of this propaganda that the White House is sending out about the health care reforms. These things they are discussing in their email may be in the bill - however- they don't discuss the other things that are in there, such as the public option- that include fines for employers who don't provide health care insurance for their employees.
Employers don't provide it because they can't afford it! I know as a small business woman. So if you are forced to provide it or pay extra taxes, employers will of course choose the cheaper public option to provide the government plan to their employees. That's how they intend to get us all eventually onto the government plan so we can have Socialized Medicine.
You must realize that this will lead to a huge government bureaucracy that will develop to implement and grow the government plan. Let's all think about a government agency like the DMV running our medical care system. That's appealing.
Just look at Medicare. The bureaucracy that runs the Medicare system is fraught with fraud they cannot control, whereby the government pays out millions in false claims. The people who really need it are so overwhelmed with paperwork I have personally met people who have had to hire an outside company just to process their claims & do their paperwork. There are also many situations where coverage is denied and patients have to hire an attorney to force Medicare to pay for their treatment.
Why on earth would anyone want to create a bigger more inefficient government agency to run a health care system that would be a bigger more complicated version of Medicare? Another mismanaged federal government agency that is also running out of money?
And that doesn't address the lies the White House & Obama are telling about this plan not costing the government any more money & not increasing the deficit. That's an out and out lie. His own Government Accounting Office has said so. There's no way he can pay for this without raising taxes. Oh yes, I forgot, the employers are going to pay for it. Is that before or after they go out of business? You can't get blood from a turnip.
There are other reforms that could be done, such as, allowing insurance companies to sell insurance across state lines. That would engender competition and by the workings of a free market would lower prices. That's what this country is based on- free enterprise. That's why this country is the greatest country on earth and why we have become so prosperous.
Obama is a Socialist who believes in a redistribution of the wealth. He has said so many times. This is an obvious first step to making our country into a Socialist society like those in Europe. That's why people are so outraged about this health care plan. Perhaps alot of people who elected Obama want that. But many people don't.
You know this is Obama’s first step towards that goal of redistributing the wealth. That’s another goal of his he has stated many times. We all know “redistributing the wealth” means some people work hard and make money, then the government takes it and gives it to people who don’t work.
All you have to do is look at California to see what will happen to the country if these health care reforms are forced on us. It will go bankrupt in the face of the Democrats' feeble thinly veiled attempt to get the poor to reelect them. But there just aren't enough taxpayers to support all those people who are using our government resources such as, free health care. Again, just look at California. That’s what will happen to our country if this government health care system is put in place.
How can you think that Obama & the Democrats don't intend to make this into government run health care system? That's what he said he wanted to do in his campaign! That's what many in Congress have said they wanted for years. So to say that's not their intention is just another lie.
Employers don't provide it because they can't afford it! I know as a small business woman. So if you are forced to provide it or pay extra taxes, employers will of course choose the cheaper public option to provide the government plan to their employees. That's how they intend to get us all eventually onto the government plan so we can have Socialized Medicine.
You must realize that this will lead to a huge government bureaucracy that will develop to implement and grow the government plan. Let's all think about a government agency like the DMV running our medical care system. That's appealing.
Just look at Medicare. The bureaucracy that runs the Medicare system is fraught with fraud they cannot control, whereby the government pays out millions in false claims. The people who really need it are so overwhelmed with paperwork I have personally met people who have had to hire an outside company just to process their claims & do their paperwork. There are also many situations where coverage is denied and patients have to hire an attorney to force Medicare to pay for their treatment.
Why on earth would anyone want to create a bigger more inefficient government agency to run a health care system that would be a bigger more complicated version of Medicare? Another mismanaged federal government agency that is also running out of money?
And that doesn't address the lies the White House & Obama are telling about this plan not costing the government any more money & not increasing the deficit. That's an out and out lie. His own Government Accounting Office has said so. There's no way he can pay for this without raising taxes. Oh yes, I forgot, the employers are going to pay for it. Is that before or after they go out of business? You can't get blood from a turnip.
There are other reforms that could be done, such as, allowing insurance companies to sell insurance across state lines. That would engender competition and by the workings of a free market would lower prices. That's what this country is based on- free enterprise. That's why this country is the greatest country on earth and why we have become so prosperous.
Obama is a Socialist who believes in a redistribution of the wealth. He has said so many times. This is an obvious first step to making our country into a Socialist society like those in Europe. That's why people are so outraged about this health care plan. Perhaps alot of people who elected Obama want that. But many people don't.
You know this is Obama’s first step towards that goal of redistributing the wealth. That’s another goal of his he has stated many times. We all know “redistributing the wealth” means some people work hard and make money, then the government takes it and gives it to people who don’t work.
All you have to do is look at California to see what will happen to the country if these health care reforms are forced on us. It will go bankrupt in the face of the Democrats' feeble thinly veiled attempt to get the poor to reelect them. But there just aren't enough taxpayers to support all those people who are using our government resources such as, free health care. Again, just look at California. That’s what will happen to our country if this government health care system is put in place.
How can you think that Obama & the Democrats don't intend to make this into government run health care system? That's what he said he wanted to do in his campaign! That's what many in Congress have said they wanted for years. So to say that's not their intention is just another lie.
Friday, July 31, 2009
How To Get Started On Bookkeeping For Your Small Business
OK, you’ve started your business. You will have cash receipts, otherwise known as income (someday), and you already have cash disbursements or expenses. You need a system to keep track of all of your transactions- it’s called an accounting system.
Now we all know that it would be much better if you could just hire a bookkeeper to do all this accounting, but you’re just starting out and don’t feel you can afford to hire one. Besides, it’s hard to find a good bookkeeper. They are notorious for saying they can do more than they are capable of, then proceeding to make a mess of the books of the unsuspecting small business owner. So we’re going to have to struggle along without one for now.
Although it would be better if you could spend all of your time doing whatever it is you do best, you’re going to be doing the accounting until you can afford to hire a bookkeeper. Besides, you never want to put yourself or your business in the position that you are so dependent on another person to do your accounting, that you have no idea what they are doing. By taking responsibility from the start for your own accounting you will be in a better position in the future to review the work of others in a short period of time each week (or day) and know whether or not it was done properly.
Things to Buy:
There are a few things that you’ll have to buy to accomplish the setting up of your accounting system. You’ll need the most recent QuickBooks accounting program. Of course, you’ll need a computer to go with that. You must check the QuickBooks specification requirements for the computer system and make sure that your computer will meet the minimum specification requirements, such as, have enough ram memory, for example.
Yes, there are many other accounting programs out there. But QuickBooks is the easiest, most user friendly accounting software in existence today. QuickBooks also generates many different types of reports, which is the whole purpose of doing your bookkeeping- so you can generate accurate reports showing your financial situation and the history of your transactions. QuickBooks does have its problems- for example, it does not provide a good audit trail, that is, after you have recorded transactions, reconciled the bank account and even closed the books, you can always go back and change things. This is not good, because then you may not be able to trace the transaction (hence the lack of audit trail.) However, if you follow the procedures set out in this book and discipline yourself not to stray, you will not get in trouble. And don’t be cheap and try to save money by buying Quicken. Quicken is useless for businesses because it does not generate many of the reports you will need, like a balance sheet.
Now we all know that it would be much better if you could just hire a bookkeeper to do all this accounting, but you’re just starting out and don’t feel you can afford to hire one. Besides, it’s hard to find a good bookkeeper. They are notorious for saying they can do more than they are capable of, then proceeding to make a mess of the books of the unsuspecting small business owner. So we’re going to have to struggle along without one for now.
Although it would be better if you could spend all of your time doing whatever it is you do best, you’re going to be doing the accounting until you can afford to hire a bookkeeper. Besides, you never want to put yourself or your business in the position that you are so dependent on another person to do your accounting, that you have no idea what they are doing. By taking responsibility from the start for your own accounting you will be in a better position in the future to review the work of others in a short period of time each week (or day) and know whether or not it was done properly.
Things to Buy:
There are a few things that you’ll have to buy to accomplish the setting up of your accounting system. You’ll need the most recent QuickBooks accounting program. Of course, you’ll need a computer to go with that. You must check the QuickBooks specification requirements for the computer system and make sure that your computer will meet the minimum specification requirements, such as, have enough ram memory, for example.
Yes, there are many other accounting programs out there. But QuickBooks is the easiest, most user friendly accounting software in existence today. QuickBooks also generates many different types of reports, which is the whole purpose of doing your bookkeeping- so you can generate accurate reports showing your financial situation and the history of your transactions. QuickBooks does have its problems- for example, it does not provide a good audit trail, that is, after you have recorded transactions, reconciled the bank account and even closed the books, you can always go back and change things. This is not good, because then you may not be able to trace the transaction (hence the lack of audit trail.) However, if you follow the procedures set out in this book and discipline yourself not to stray, you will not get in trouble. And don’t be cheap and try to save money by buying Quicken. Quicken is useless for businesses because it does not generate many of the reports you will need, like a balance sheet.
Sunday, July 26, 2009
How To Save Money When Hiring a Lawyer
Alot of people are afraid to even call an attorney because they think it will cost too much money. I'm an attorney and I'm afraid to hire an attorney. But there are some things you can do to make sure you don't get ripped off or over-charged.
1. Get a Referral- Ask someone you trust if they can refer you to the type of attorney you need. Either a friend or someone who works with attorneys on a regular basis, like a financial advisor, certified public accountant or banker.
2. Interview at Least Two Attorneys- Find at least two attorneys who will tell you about themselves, their practice and the type of work they do. Make it clear when you call that you are interviewing to choose an attorney, that you are not asking for information about your case or legal issues, and confirm that there will be no charge for the call.
3. Ask If They Give A Free Initial Consultation- Many attorneys give a free half-hour initial consultation. Ask for it. Sometimes the attorney will talk about your legal issue for one half hour or an hour and will credit it towards your job if you hire them. Example: talk for 30 to 45 minutes about your estate planning, then just pay the flat fee for the estate plan if you hire them. If you don't hire them you pay for the 30 to 45 minutes at the attorney's hourly rate.
4. Ask For A Flat Fee- Many kinds of legal jobs can be done for a flat fee, that is, not at an hourly rate. Things like incorporating your business, creating estate planning documents, or writing a buy-sell agreement can be done for a pre-arranged amount. Even jobs that are normally billed based on a percentage of assets, like probate, can be done for an agreed upon amount.
5. Set A Time Limit- Even if the job is the type that is normally charged at an hourly rate you can limit the amount of time to be spent on your job. Just ask!
Alot of people are afraid to even call an attorney because they think it will cost too much money. I'm an attorney and I'm afraid to hire an attorney. But there are some things you can do to make sure you don't get ripped off or over-charged.
1. Get a Referral- Ask someone you trust if they can refer you to the type of attorney you need. Either a friend or someone who works with attorneys on a regular basis, like a financial advisor, certified public accountant or banker.
2. Interview at Least Two Attorneys- Find at least two attorneys who will tell you about themselves, their practice and the type of work they do. Make it clear when you call that you are interviewing to choose an attorney, that you are not asking for information about your case or legal issues, and confirm that there will be no charge for the call.
3. Ask If They Give A Free Initial Consultation- Many attorneys give a free half-hour initial consultation. Ask for it. Sometimes the attorney will talk about your legal issue for one half hour or an hour and will credit it towards your job if you hire them. Example: talk for 30 to 45 minutes about your estate planning, then just pay the flat fee for the estate plan if you hire them. If you don't hire them you pay for the 30 to 45 minutes at the attorney's hourly rate.
4. Ask For A Flat Fee- Many kinds of legal jobs can be done for a flat fee, that is, not at an hourly rate. Things like incorporating your business, creating estate planning documents, or writing a buy-sell agreement can be done for a pre-arranged amount. Even jobs that are normally billed based on a percentage of assets, like probate, can be done for an agreed upon amount.
5. Set A Time Limit- Even if the job is the type that is normally charged at an hourly rate you can limit the amount of time to be spent on your job. Just ask!
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