Business

license

jurisdictional requirement, which is used to regulate the practice of massage therapy. Licensing boards set rules and laws that a person is required to follow if they wish to be a licensed massage therapist. In most jurisdictions, a license allows a massage therapist to practice massage therapy and receive money as compensation.

Reciprocity

refers to the ability for a massage license in one jurisdiction to be recognized as valid in another jurisdiction.

Some jurisdictions may require a new license to be obtained, but no more schooling required. Others may require more schooling in addition to paying for a new license.

Business Plan

A business plan is a document prepared to state the objectives of a future business, and its means of achieving them. Business plans are often utilized to obtain a business loan as a way to show a bank how the business will operate, turn a profit, and how the loan will be repaid. Business plans often include a business objective and summary, marketing strategies and planning, financial information and planning, and a prediction of company growth over an extended period of time, often five to ten years.

Mission Statement

mission statement may be included in a business plan. A mission statement is a statement that defines the overall objective and values of the business.

The mission statement often consists of the product being offered, with an over-arching vision

of the business, such as the quality of service provided, who the clientele is, and what the clientele can expect to receive from the business.

Financial Planning

used to state long-term objectives in regards to money. These objectives can include the amount of money expended, the amount of money saved, repayment of loans, etc. Financial planning is useful in helping to guide a for proper budgeting for products, employees, utilities, and rent.

business towards achieving monetary goals that they have set, without straying from the plan they have laid out. This allows

Market Analysis

Market analysis is utilized to assess a market, helping determine things such as customer volume, money spent in specific locations, money spent on specific products, the competition, and more. Market analysis can help determine the kind of business to launch, where to launch it, when to launch it, who to market it to, how much to price the product or service, and how to properly advertise the product or service.

Accounts Receivable

When money is owed to a business, such as credit or debt from a vendor, it is known as accounts receivable. This money is charged to another company for services or products the charging company has performed, and the other company is responsible for paying these charges, An example of accounts receivable is a massage business shipping a crate of body scrubs to a store, who will then sell them. The store will then owe the massage business payment for the body scrubs, and is usually given a time frame in which to deliver payment. Once payment is received, accounts receivable for that transaction returns to a zero balance.

Accounts Payable

When the business owes money to another company, however, it is known as accounts payable. An example of accounts payable is a business accruing credit card debt. The money owed by the business to the credit card company is accounts payable

Taxpayer Identification Numbers

or TINs, are used to identify a taxpayer to the IRS and courts in legal proceedings, When bmitting documentation to the IRS or courts, the TIN required must be completely furnished to allow proper identification

to occur.

Social security numbers

are issued by the Social Security Administration, and are used to record wages and self-employed earnings for collecting Social Security benefits.

Employer Identification Number,

EIN, is used to identify a business entity in tax related documents, such as a W-2.

Individual Taxpayer Identity Numbers,

ITINs, are numbers given to people who otherwise cannot obtain a social security number, such as nonresidents and resident aliens, spouses, and dependents.

Liability Insurance

When operating a business at a physical location where there is customer exposure, liability insurance is often required. There are two types of liability insurance: General liability insurance, and Professional liability insurance.

General liability insurance

protects the massage therapist in cases such as accidental falls by the client that result in bodily injury.

Professional liability insurance

similar, but instead of protecting the therapist from workplace accidents, it protects the therapist from lawsuits regarding

independent contractor

a massage therapist that works independently, for themselves,

but contracts with another

person or company to perform work. Independent contractors are not beholden to the same limitations as employees, how-ever. Independent contractors may work whatever schedule they want, charge their own prices, and wear their own uniform.

Independent contractors do not receive benefits from an employer.

Sole proprietors

often categorized similarly to independent contractors. Sole proprietorships are businesses owned by one person. Sole proprietors may differ from independent contractors in licensing requirements.

partnership

business owned by two or more people. Ownership may be split differently depending on variables such as money entering into a business relationship, assets, etc,

S Corporations

are corporations that pass income and taxes onto the shareholders. This requires the shareholders to shoulder the responsibility of reporting income and taxes to the IRS.

1040

1040 is a tax form used to submit tax return documentation to the IRS. Information provided on a 1040 includes gross income, taxes withheld, and deductions. Attachments can be included on form 1040 for specific tax situations, such as schedule C, schedule SE, and schedule K-L.

W-2

filed by employees, detailing earnings and money withheld for social security taxes, medicaid, state and federal income taxes. Gratuity may also be reported on the W-2, if the gratuity is added to the employee's paycheck.

1099

issued to an independent contractor by the company they contract with. This statement details the amount of income accrued by the independent contractor through the year. There are many different types of 1099's. A 1099-MISC is used when a person has earned at least $600 in things such as rents, prizes and awards, and other income. 1099-INT details interest earned during the year. 1099-G covers monies received from the government, such as taxable grants. 1099-R is used when a person receives a disbursement on retirement funds from an IRA or 401 (k).

Schedule C

attachment to form 1040, is filed to the IRS by sole proprietors, detailing the amount of money the business made during the previous year. Barter is also reported on a Schedule C, and the amount reported is 100% of the cost of service provided by the massage therapist, usually a massage session.

Schedule SE

is an attachment to form 1040 that details Social Security tax information for self employed individuals.

Schedule K-1

is a form filed by individual partnership members. It is similar to a W-2, detailing the amount of money each partnership member made during the previous year.

Profit and Loss

(income and expense) statements are forms filed by businesses that show how much money was made(profit) and how much money was expended(loss) during the year.

Gift taxes

may be used as deductions on taxes. If a business buys a gift for a customer, no more than $25 may be claimed as a deduction for that specific client. Other gifts for different clients may also be reported, but each gift reported cannot exceed $25.

Subpoena

When a court requires a person to attend a hearing or trial and testify in some way, the person is issued a writ by the court known as a subpoena. Subpoena literally translates to "under penalty", and if the person does not appear, they will be in violation of law. There are two separate types of subpoenae. A subpoena duces tecum is a court summons in which the person being summoned is required to appear in court with documentation or other evidence used in a trial or hearing. A subpoena ad testificandum is a court summons in which the person being summoned is required to appear in court and testify.

Plaintiff and Defendant

In cases of trials, there are two sides: plaintiffs and defen-dants. A plaintiff is a person or company that brings a lawsuit against another person or company. The defendant is the person or company whom the lawsuit is brought against. It is the responsibility of the plaintiff to prove their case against the defendant.

Respondeat Superior

Respondeat superior refers to an employer being held legally responsible for the actions of an employee. Plaintiffs who bring lawsuits will commonly try to hold both the employer and employee responsible for any damages the plaintiff has suffered. Independent contractors and federal employees are not included.

Res Ipsa Loquitur

When a plaintiff sets out to prove that harm that has been done would not have occurred without negligence, it is known as res ipsa loquitur, which translates to "the thing speaks for itself". The plaintiff will set out to show that harm was the direct result of the defendant's actions and whatever instrument the defendant used was under their complete con-trol, and nothing else could have caused the harm.

Pro Bono

Shortening of the term "pro bono publico" or "for the public good", refers to a lawyer performing work for a client or entity without being compensated. Commonly, pro bono work is given to non-profit organizations or low-income citizens who cannot otherwise afford an attorney.

Deposition

A deposition is a statement given under oath and outside of court, generally only in civil cases. Depositions are used to determine what the person specifically knows about the case, and to document testimony for trial. Depositions are commonly used when there is a chance the witness will not appear in court. These cases are typically approved by a judge beforehand.

Arbitration

In some cases, two parties in a court dispute may not wish to go to trial, and instead begin alternative dispute resolution(ADR).

Arbitration is a form of ADR in which an intermediary is used. An intermediary is an impartial party who will hear both sides of the argument, and then make a binding decision on the outcome. This decision is typically not able to be appealed.

Mediation

Mediation is another form of ADR, in which both sides agree to come together and negotiate a form of settlement. It differs from arbitration in that there is no third party that makes a final decision. A mediator is a third party, and used to interpret and define information, and try to help both sides develop a resolution to the conflict.

Good Samaritan Laws

Good Samaritan Laws were developed in order to protect anyone who is helping a person they believe is in immediate danger or peril, is ill, or is possibly incapacitated. These laws prevent the good samaritan from being sued for alleged wrongdoing.