Many businesses need a license or permit from a government agency to perform certain operations, such as construction or road work. Before it can apply for a license or permit, a business may need to purchase a license or permit bond. Definition and Examples of License and Permit Bonds A license or permit bond is a type of surety bond, which is essentially a guarantee to a customer that work will be completed....
Capital gains can occur if the fund manager decides to sell stock due to the changing outlook, or even if the fund must simply raise cash for shareholder redemptions. The fund must distribute at least 95% of its gains and resulting taxes to shareholders if the stock is trading higher than when the fund manager initially purchased it. These distributions are paid to you or credited to your mutual fund account, so they are considered your income....
In order to do so, in most states, you will need proof of car insurance, the car’s title, and your driver’s license or other form of ID. You will also need to pay a fee and put a license plate on your car to show that it has been registered. The requirements may vary, depending on whether you are registering a car for the first time or renewing. You can look for the specific requirements of your state’s MVA on its website....
A DMP is administered by a nonprofit credit counseling agency to help consumers pay off their debt, in full, under reduced interest rates and a simplified payment schedule. Not everyone qualifies (income and budget need to support a large monthly payment), and only about half of those who do qualify successfully complete the repayment plan. DMPs aren’t generally free, either. You’ll usually pay a set-up fee (typically ranging from $10 to $50), plus an ongoing monthly fee (typically $20 to $75) based on the counseling agency you’re working with, the state you live in, and your debt balance....
Fixing credit report errors is best addressed with a credit bureau dispute. If you’ve never been through the process before, here’s an overview of what happens when you dispute something on your credit report. How Credit Reporting Works Your credit report is a compilation of information about how you keep up with your credit obligations. Many of the businesses that you have a financial relationship with send your account information to the three major credit bureaus—Equifax, Experian, and TransUnion—who then put the information together in your credit report....
Some business changes are small, like a location change, and some are large, like bankruptcy or a name change or one of the parties to the contract being bought by another business. You might work for a business as an independent contractor and you have a contract with that. Or your business might have a license agreement to sell the licensed products of another business. Or your company may be leasing commercial space from someone....
General Liability A restaurant needs general liability insurance to cover bodily injury or property damage claims that result from accidents, like slips and falls. The policy also covers product liability, which protects your restaurant from claims arising from food-borne illnesses. Food that customers consume on your premises may not qualify as a ‘product’ under your policy unless an endorsement called Product/Completed Operations Hazard Redefined is attached. This endorsement ensures that claims arising out of the food you sell will be covered under products/completed operations coverage, whether it is eaten on or off your premises....
Jessie Casson / Getty Images In an interest-only balloon mortgage, your payments are applied solely toward interest until it’s time to make the final balloon payment. With other types of balloon mortgages, the payments may be applied to both interest and principal. Balloon mortgages typically come with lower interest rates than conventional mortgages. The repayment term is also much shorter, often just five years. How a Balloon Mortgage Works Lenders often use the same amortization table for shorter-term balloon mortgages as they would use for a longer-term mortgage....
Bank rates are called different names in different countries. For example, in the United States, the central bank is the Federal Reserve and its bank rate is called the discount rate. For countries that use the euro and borrow from the European Central Bank, the bank rate is called the marginal lending facility rate. Alternate names: discount rate, marginal lending facility rate How a Bank Rate Works Central banks set their own bank rates....
Currency pairs are used because you are always selling one currency and buying the other. You sell the counter currency and buy the base currency. In a currency trade—assuming it is an investment or speculation and not being done for a simple transaction—when you take a long position, you are betting that the base currency will go up in terms of the counter currency. The currency pair is spelled out as the three-letter abbreviation for the base currency, then the abbreviation for the counter currency....
Alternate name: Card verification number, card security code, card verification valueAcronym: CVV, CVV2, CVC, CVC2, CID, CSC A good example of how a verification code works is when you’re asked to enter the code when you’re making a purchase online. How Validation Codes Work Credit card validation codes act as a security measure to help protect your card information and are generally used for transactions when the physical card is not present....
If you’re interested in cryptocurrency, then you may want to know more about cryptocurrency airdrops. Keep reading to understand what a cryptocurrency airdrop is, how airdrops work, and how to participate in a cryptocurrency airdrop. Definition and Example of a Cryptocurrency Airdrop A cryptocurrency airdrop is the mass distribution of a virtual currency. Airdrops are usually free to receive, especially if they are designed to promote a new cryptocurrency. A cryptocurrency airdrop may also occur if an existing cryptocurrency is split into two separate versions....
Knowing what to expect can help you get the best possible outcome when buying a home and help you avoid problems with homeownership down the road. Here’s what you need to know. What Is a First-Time Homebuyer Class? A first-time homebuyer class is a comprehensive course that teaches you everything (or nearly everything) you need to know about the homebuying process. It’s geared towards people buying their first home, but you can take one even if you’ve purchased a home before and want to brush up on your skills....
Even if you plan to pay your statement balance in full every month and avoid interest charges, knowing what’s considered a good APR for a credit card can be helpful. That way, you understand whether you’re getting a good deal or whether you need to switch to a new credit card to save money on the purchases you charge. Types of Credit Card APRs Credit cards may have several different APRs, each applied to a different type of balance....
Not even the best money managers in the world can consistently identify good stock choices in advance. Some stocks that look quite promising will sink like a tank - and others that don’t look so great may surprise everyone and take off. This notion has been proven in contests like the Wall Street Journal’s 14-year dartboard contest where they pitted investment pros against random stock picks chosen by throwing darts....
Gross receipts taxes might look like sales taxes at first glance, but they tax the sellers, not the retail buyers, at least directly. They’re imposed at several levels and even between businesses in the purchase of raw materials, supplies, and transportation. The Tax Foundation has said that these taxes “create an extra layer of taxation at each stage of production that sales and other taxes do not—something economists call ’tax pyramiding’....
Morsa Images / Getty Images A Medicaid annuity is structured as a single premium immediate annuity (SPIA). For an SPIA, you pay a single lump sum upfront (the premium, in bulk). In return, your insurer promises to give you monthly payouts of a certain amount for the rest of your life. Alternate name: Single premium immediate annuityAcronym: SPIA Medicaid’s use of the SPIA is a way to help people preserve their financial assets for the future, while they qualify for the program....
Alternate name: Jumbo loans How Non-Conforming Loans Work The loan amounts are higher with a non-conforming loan, and the documentation required is more extensive. There can be some other differences as well: The down payment may be larger.The credit score threshold may be higher.The debt-to-income ratio is firm.Major cash reserves may have to be on hand.Interest rates may be higher.Closing costs and fees may be higher. Loan Amounts Non-conforming mortgage amounts vary by year and by locale....
For example, suppose you’re short on funds one month and can’t pay your rent, so you go to a payday lender and apply for enough to help you make the payment. The lender approves your loan and charges you $15 for every $100 it gives you. You get $400 to help you pay your rent, so you owe the lender $460. How Does a Payday Loan Work? Payday loans have a simple application process and very few requirements....
The structure and effects of a phaseout will depend on whether it’s reducing a credit or a deduction. When a phaseout is applied to a credit, it has the same impact on all affected taxpayers. When it is applied to a deduction, the dollar impact will depend on the taxpayer’s marginal tax rate. Let’s look at an example. You might have paid $3,000 toward an expense that qualifies for an itemized deduction....
