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Home Dictionary I Independent Contractor Independent contractors are not employees and are not eligible for employee benefits. No taxes are withheld from their salary, but instead they must pay estimated income tax in advance through quarterly payments. Freelancers can reduce their gross income by using allowed business deductions, thus lowering their tax bills. Independent contractors must arrange their own insurance and retirement. The category of independent contractors is very wide. 8(a) Firm
September 25, 2022 8(a) firms are small businesses that are owned and controlled by socially and economically disadvantaged individuals. 83(b) Election
September 25, 2022 Choice 83(b) is an Internal Revenue Code (IRC) provision that gives an employee or startup founder the ability to pay taxes on the total fair market value of the restricted shares at the time of grant. Articles of Incorporation
September 25, 2022 The memorandum of association is the documents filed with a government body (usually the state), which means the creation of a corporation. Bootstrap
September 25, 2022 Bootstrapping is the creation and management of a company using only personal finance or operating income. Business Process Outsourcing
September 25, 2022 Business Process Outsourcing (BPO) uses third party vendors or subcontractors to perform certain parts of their business operations. Catalog of Federal Domestic Assistance (CFDA)
September 25, 2022 The Federal Home Care Directory (CFDA) was a comprehensive listing of federal assistance programs. Cost, Insurance and Freight (CIF)
September 25, 2022 “Cost, insurance and freight” (CIF) is an international trade term that applies only to goods shipped by water or ocean. Cottage Industry
September 25, 2022 Home-based production is a small-scale production, often performed outside a person’s home. Crowdfunding
September 25, 2022 Restrictions apply to who is allowed to fund a new business and how much they are allowed to contribute. Customer to Customer (C2C)
September 25, 2022 Client to Client (C2C) is a business model that allows clients to trade with each other, often in an online environment. Deliverables
September 25, 2022 The word “results” is a project management term describing the quantifiable goods or services to be delivered after the completion of the project. Employers' Liability Insurance
September 25, 2022 Employers’ liability insurance covers companies against expenses and claims from employees that are not covered by workers’ compensation. Engagement Letter
September 25, 2022 A letter of engagement defines a business relationship between two parties. External Economies of Scale
September 25, 2022 External economies of scale - these are factors that contribute to the development of business, which are manifested outside the company, but within the same industry. Family Limited Partnership (FLP)
September 25, 2022 A family limited partnership (FLP) is a business or holding company owned by two or more family members. Federal Unemployment Tax Act (FUTA)
September 25, 2022 The Federal Unemployment Tax Act (FUTA) is a law that imposes a payroll tax on any business with employees; the income generated is used to fund unemployment benefits. Form 2106 Employee Business Expenses
September 25, 2022 Form 2106 is used by employees to deduct ordinary and necessary expenses related to their work. Franchise Tax
September 25, 2022 A franchise tax is a fee paid by certain businesses that want to do business in certain states. Contrary to what the name implies, a franchise tax is not a franchise tax. Gig Economy
September 25, 2022 The gig economy is based on flexible, part-time or freelance work, often involving communication with clients or customers through an online platform. Grandfather Clause
September 25, 2022 A legacy clause is a provision that allows people or organizations to follow the old rules that once governed them instead of the new ones, often for a limited time. Hold Harmless Claus
September 25, 2022 An indemnity clause is used to protect a party to a contract from liability for damage or loss. Inside Sales
September 25, 2022 Inside selling is the sale of products or services by personnel who contact customers by phone or the Internet. Investment Club
September 25, 2022 An investment club refers to a group of individuals who each contribute money to a pool, which is then invested for the common benefit of the group members. Invoice Financing
September 25, 2022 Invoice financing allows a business to use its unpaid invoices as collateral for financing. Key Person Insurance
September 25, 2022 Key person insurance is a life insurance policy that a company buys for the life of a top manager or other important person.