Setting up your own business is not that difficult and it is really not necessary to pay someone to do it for you if you are relatively computer literate and savvy. However, before proceeding, there is something you should know about incorporating; the most significant reason to incorporate is liability. If you own a store on a strip mall and a customer could walk in the front door, slip and fall, injure themselves and wind up with mountainous medical bills then yes, you have a liability issue and you need to be incorporated. But what if you are just inputting medical records on your home computer? Where is your liability? If you wanted to, you could get errors and omissions insurance for any inputting mistakes you might make. In that situation there really is no liability issue. With that said, there are other reasons you may want to incorporate. Many businesses do not want to enter into contracts for services or material with an individual, rather they want to deal with other businesses. You may be in a situation where the company you work for will not deal directly with you but they will sign a contract with your business. Then you need to be incorporated. You may have financial backing lined up for a venture but the backers will not fund a person, only a business. Then you need to be incorporated. There are other reasons to incorporate, but the fundamental issue you face is the fact that your tax situation becomes much more complicated and expensive after you have incorporated. And that complication and expense can be justified only if you do it correctly: if you incorporate correctly and conduct your business in the “proper fashion.” The problem you face is summed up in the term “pierce the corporate veil.” Here is what happens; you incorporate, you conduct your business in the “proper fashion,” you do everything correctly, as far as you can tell, and then the unthinkable happens and a liability event occurs. The liability event is significant enough that lawyers become involved and the whole thing winds up in the courts. During the proceedings, the defense attorneys will try to “pierce the corporate veil.” They will force you to prove that you conducted your business affairs in the proper, legal fashion by demanding to see 1) your Employer Identification Number (EIN) assignment letter from the IRS, 2) your Articles of Incorporation (or Articles of Organization if you are a Limited Liability Company – LLC), 3) your Form 2553 election to be considered a small business corporation by the IRS, 4) the IRS’ letter approving that election, 5) all of your business tax returns, for each year the business existed, showing compensation of officers, 6) your personal tax returns for those same years showing inclusion of that business income, 7) all of your filed, state-required, yearly annual reports, your county and municipal tax receipt numbers or tax registration numbers or certificates proving that you are legally registered to conduct your business at your location and 9) last but not least, your business checking account showing that all of the income from the business was deposited in to that account and all of the business expenses were withdrawn from that account.

If you fail any one of these tests, or cannot provide one or more of these documents, the defense lawyers will have done their job; they can then declare that your business is not legitimate, you did not conduct your business in the “proper fashion,” the “veil” of business liability protection has been “pierced” and you are now personally liable for all of those mountainous medical expenses. That is what you face. So you have to make a decision; since you are going to go down the incorporation path, do you want to do it correctly or not? After spending all of that extra money and suffering all of that extra complication in order to be incorporated, do you want to do the job correctly or not? Sure, you will probably never need to prove it, but you have to spend the money anyway so why not do it as best as you can? If nothing else, just to know that you could prove yourself to a higher authority like a court of law.

Let’s rank business categories from a tax point of view. The easiest is a Schedule C for Self-Employment Income, included right along with your tax return when you have a business. When your self-employment income is high enough, a Schedule SE is generated automatically to pay your Social Security and Medicare taxes. You do not even need an EIN. By far it is the easiest and least complicated. And a note about tax years; it is best to have a calendar year tax year. Fiscal tax years should be used only if there is an over-riding business reason. The vast majority of the tax preparation profession is geared up for calendar year tax payers and businesses, so staying in that cycle is beneficial from a business-support point of view. Second, you could just get a fictitious name from your State’s Division or Department of Corporations website. You cannot protect a fictitious name, someone could come along and incorporate using that name, and force you to stop using it, but you could still conduct a fictitious name business on a Schedule C. Fictitious names usually expire and have to be renewed in three to four years.

Then we get to true incorporation with Articles of Organization for an LLC. You can file your Articles with the state but if you do not limit your liability at the federal level, you did only half the job. The IRS considers an LLC to be a “disregarded entity.” An LLC is not one of the recognized business entities in the eyes of the IRS. But the IRS does recognize an S-Corporation or “Small Corporation” (although the “S” does not stand for “Small”). And liability is limited (provided you do everything correctly) at the federal level when you are an S-Corp. The way to do this is to file a Form 2553 “Election by a Small Business Corporation,” see more at the step below.

Then there are Articles of Incorporation for a corporation. A not-for-profit corporation and partnerships are not considered here. This set of instructions is written for the single individual who has a need or desire to form a business entity, typically single-owner. A Form 2553 is again required for a state-registered corporation to protect from liability at the federal level.

Above that is a C-Corporation, which requires further classification at the federal level. All the big businesses are C-Corporations and incorporating to that level is well beyond the scope of what is written here.

The assumption here is that you are forming an LLC or small corporation and you do not know what to do first. The following list should NOT be considered complete, but it is a good way to start. No warranty is stated or implied, use this list and set of instructions at your own risk and remember, the list of how to do things in the “proper business manner” is endless.

Step #1: Establish a separate business checking account with a debit card. It is preferable to get a personal checking account in your name and use it strictly for the business. Later, if the balance in the account ever gets large enough to exceed the required minimum balance, you can convert it into a business account. Seed the checking account with $500. Avoid your normal financial institution, go somewhere else: a bank with a good website. More about the business checking account later.

Step #2: Pick a name for your business; consider being an LLC and if you do, be sure to add LLC at the end of your business name. Be mindful of your punctuation – use a comma before the LLC or not, but once you do, be consistent. The way to start the process to make your business name official is to visit your state’s Division or Department of Corporations website. In Florida it is www dot sunbiz dot org; each state will have a different Universal Resource Locator (URL) but each state website will have a way to look up or search by business name. Look up your candidate business name and see if it is taken or not. If it is, keep trying variations of the business name that you like until you find one that is not taken. Then, DO NOT do anything else in that website. Record the business name (like in a small text file), bail out of that website and then go to the IRS’ website, www dot irs dot gov and get your EIN for your chosen, unused business name.

Step #3: At the IRS website, type “apply for EIN” in the top search window and click on SEARCH. Click on the top choice; “Employer ID Numbers (EINs)” and then on “Apply for an EIN Online.” Follow the instructions and apply for an EIN using the business name you recorded in Step #2. It is free to acquire an EIN. IMPORTANT – at the end of the process there will be a letter generated by the IRS computer that lists your business name and its assigned EIN. BE SURE TO SAVE THE PDF FILE OF THAT LETTER. You can also record the EIN but the letter is important because it links the EIN with the business name as filed with the federal government.

Step #4: Go back to your state’s Division or Department of Corporations website and follow the instructions to create a new LLC or corporation. Timing – do it all in one evening. Use the business name from Step #2. IMPORTANT – USE THE EIN FROM STEP #3 FOR ALL ID NUMBERS – NEVER USE YOUR SOCIAL SECURITY NUMBER – SSN. The business records on a state’s Division of Corporations website are public knowledge, discoverable on the web, so your SSN should NEVER appear there. ALWAYS use your EIN. And use your business checking account from Step #1 to pay the fee to register your business name.

Step #5: Acquire a county tax registration or tax receipt number (otherwise known as a business license or an occupational license or a business occupational license). Businesses are categorized and there may be different requirements per category. Investigate your county website. Google the full name of your county appended with the words “tax collector,” “occupational license application,” “business license,” “business tax” and “businesses.” Click on the hyperlinks provided by Google and take some time drilling around each website to see what is offered. You may be able to find and download the business application, print it, fill it out and mail it in. Do not expect an online application process; the signed application may require notarizing and being mailed in, but the yearly renewals can usually be done online. And acquiring a tax receipt / registration number from the county you live in is only half the battle; you may also need a tax receipt / registration number from your municipality (city, town, village) where you live, check your municipality’s website. More on counties and municipalities below.

Step #6: Go back to the IRS website, download the PDF version of Form 2553, fill it in, save it, print it, sign it and mail it in. Use the date of your Articles of Organization / Incorporation as the date you started doing business. Form 2553 should be filled out, signed and mailed within two months and fifteen days from the date you started doing business.

Step #7: Enroll in EFTPS – Electronic Federal Tax Payment System. You can pay all of your federal taxes online nowadays. The EFTPS website does not receive the same support as the IRS’ website and it shows because enrollment using Internet Explorer (IE) 9 does not work; after inputting my information on the Step 2 “Enroll” screen, a blank “Review” screen always came up. Re-entering the information produced the same error. Phone tech support verified that they had a problem with IE 9. They suggested using Mozilla Firefox. On the EFTPS home page, it says that they support IE for Windows and Mozilla Firefox. I dislike having two different browsers installed on my computer. Many people do not mind at all, even prefer having more than one available to them. It is a matter of personal preference. But I can move around in IE just a little bit faster than I can in other browsers and that is enough for me. I even like IE 9 because it has more streamlined download functionality and more multi-webpage versatility per window. So it is distressing that the government cannot handle the latest Microsoft product and with reluctance I went to www dot cnet dot com and downloaded and installed Mozilla Firefox. Sure enough, EFTPS enrollment completed without a problem using Mozilla Firefox. IMPORTANT – at the Step 4 “Complete” screen there is a large “Download PDF” button directly below a “Print” button. BE SURE TO DOWNLOAD AND SAVE THE PDF FILE. It contains your eighteen-digit long enrollment number. Within seven days you will receive in the mail your Personal Identification Number (PIN) and instructions on how to obtain a password to use EFTPS dot gov. Before you ask why please know that you have not “paid yourself a paycheck” until you have paid ALL of your required income taxes.

You are probably asking why? What good does enrolling with EFTPS do me? Here is what happens. At tax time, the “books” of the business have to be balanced. If there is net business income after expenses and that income is not reflected as cash in the business checking account, then typically, one or more distributions were taken. Money was taken out of the business. Happens all the time. As part of balancing the books for tax purposes, the final distribution amount can be accounted for and that final distribution amount does wind up on the Schedule K-1′s flowing out to the business officers. And I am here to tell you that if that distribution does show up on the Schedule K-1 and the Schedule K-1 is included as income on each officer’s personal tax return, then you bet by golly that those officers will pay federal income taxes on it. But who did they not pay? They did NOT pay their Social Security and Medicare taxes. This problem is pervasive and endemic. At last year’s IRS Nationwide Tax Forum in July in Orlando, at the “Pitfalls of Subchapter S-Corps” seminar, the speaker said that for the last year they had data (probably 2009), 35,000 single-owner S-Corps filed business tax returns with income over $100,000 and did not pay themselves any compensation. At that forum it was also mentioned that just two weeks previous, the wording in a bill before Congress to empower the IRS to go after those S-Corps who are not paying officer compensation was gutted. So those S-Corps escaped for another year. But do not think that will last for long. Congress will eventually plug that loophole. In order to be completely legal, you have to “pay yourself a paycheck” each pay period by deciding how much you can take from the business, go to the EFTPS website, login and pay your Federal Insurance Corporation of America – FICA – taxes – Social Security and Medicare. You can also ‘withhold’ your federal estimated tax payments each pay period or wait and pay them at the required due dates of the 15th of April, June, September and January of the following year.

Timing the creation of your business is important. Most first-time business owners have no clue about Step #6 above. It is not until tax time that the issue comes up. For that reason and to establish the business as soon as possible by filing both a federal and state business tax return, it is best to create your business late in the year; a good starting date is 01 DEC. You can get your checking account setup ahead of that date, and even check the availability of your candidate business name on your state, county and municipal websites, but do not pull the trigger until 01 DEC. Be mindful of your time constraint – as soon as you have found the business name you want, acquire the EIN and then file your state Articles of Incorporation / Organization, preferably all within the same evening from your home computer; and remember, you have to pay for it online that evening so your checking account has to have already been setup. Granted, it is unlikely that someone will also find your preferred business name and incorporate under it before you do, but why take the chance? Minimize the amount of time between filing for your EIN and filing your Articles with the state. Also, if you can do it, if you can arrange it, try to setup some serious income-producing activities for December; try to maximize your potential for profit in December. The flip side of that is to minimize your business expenses for December; you have no choice but to spend the fees listed here in order to establish your business, but try to make those fees your only expenses for the month, if you can. Schedule other required business expense activities before 01 DEC, if you can. If you do this, then you stand a much better chance of showing a net profit for the year (by taking advantage of the “short” first tax year of business). And the reason why has everything to do with showing a profit in your first year of business and the tax benefits available to you in subsequent, net-loss years, if they happen. The IRS will not let you continue to conduct a failing business venture that incurs significant losses every single year. Having an initial, non-loss year of business may help dissuade them from pulling the plug during your lean years and disallowing all of those prior year business loss deductions. When that happens, the tax bill is so large that you will be forced to mortgage your home or declare bankruptcy. As bad as all that is, the primal reason to show a profit is to exercise your ability to pay your FICA taxes. This sounds bizarre because no one else recognizes it, but it all has to do with Social Security, see below. And you will be able to show a net profit only if you have set it all up correctly at the end of the year. It is unlikely or unheard of that someone starts a business correctly, please remember that; if you failed at one or more of these steps, you are one of many who have done so. It is an extraordinary event, to create a business from a position of strength, by showing a profit in its first year.

Before starting this process, it is wise to investigate the county and municipal websites. If the websites do not provide answers to the following questions, pay a visit to the county courthouse and to the town hall or municipal office complex during business hours, wait in line if you have to, and then specifically ask what the fee is to apply for and also renew a business tax receipt / registration number, but most importantly, ask if they have a category for your home-based business. I am assuming that you will be able to conduct your business out of your home and you have to be sure that the county and municipality permit your type of business. A good example of this problem is the Handyman. He knows a lot of clients; they call him to fix windows, doors, plumbing, roof leaks, etc. But in many counties, you have to be a General Contractor to conduct that type of business without oversight. The costs to apply for, study and take the exam, and then renew the license year after year for a General Contractor are prohibitive for the typical, single-owner-operator Handyman business. There are other business types that the county or municipality will not allow to be home-based. There may be zoning issues. Condominiums have their own sets of rules. Checking out the possibility of establishing your business from the ground up (municipality, then county, then state and finally, then the government) is a prudent step before you outlay any money.

Try to do everything you can online to minimize expenses (like fuel costs). Whenever you are acquiring business information online or any online information you want to save, be sure to capture an electronic version of it. There is PDF printer software like PDF995 that loads itself onto your computer just like another printer. Anything you can print to paper you can print to a PDF file, the software just asks you where you want to store the file and what name you want to give it. “Printing to PDF” is bundled with other big-name software you may have on your computer and as a last resort, you can start a blank document file and with your cursor sitting on whatever active window you want to save, you can press ALT-CTRL-PRT SCR to capture that window and then paste it into your document file. Collect the “window capture images” on successive pages of that document file to constitute a record of your activities.

In addition to the above information, please note the following. In Florida, there is a requirement to file a $150 Annual Report by May 1st of each year or else there is an additional $400 penalty. It is likely that many (if not all) other states have similar requirements. And are you ready for this? The Annual Report contains only the name and address of the business, the business agent and the business officers. That is all. Do not think that any kind of financial data is required, because it is not. The best part about registering your email address in your state’s Division of Corporations website is that they will send you automatic reminder emails that your Annual Report is coming due.

You are preparing yourself for an unlikely possibility, but one that you must protect yourself from: the liability event. In its extremely remote occurrence, as part of Legal Proceedings, you will be forced to reveal everything about your business, if you want any hope of defending yourself at all. So when your lawyer asks you to provide all of the documents described here, you will have no choice but to do so, and heaven help you if you do not have them.

It is likely that the first piece of evidence that any defense attorney will ask for is the business checking account. Besides the check register and bank statements, you will have to provide the business accounting summaries or books. There should be a listing showing all of the income and expenses. Far too many business owners are not religious enough about keeping their business finances separate. Far too many treat their business like a personal piggy bank, make indiscriminate withdrawals, and reconciliation at tax time is nearly impossible. An attorney who can put together the fact that the business net profit per the books does not match the income reported on the business tax return will be able to pin more offenses on you, tax offenses, like lodestones around your neck.

Also, about filing Form 2553 after the two month and fifteen day post-starting business filing due date; as long as you successfully transmit a timely filed tax return, by the due date, without extensions, in the year following the year you started business, then, (again,…ahem) as long as you file Form 2553 within six months of the due date of that initial year tax return, then you can seek relief from the due date requirement for a Form 2553 filed late “Pursuant to Revenue Procedure 2004-48″ (which should appear above the title of the form). That is a bunch of legalese that means even if you forget to file Form 2553 when you started your business, as long as you file a tax return for that business by the initial due date, then you can file Form 2553 after-the-fact (per Rev Proc 2004-48) within six months of that due date for that initial tax return and the IRS will accept your election to be an S-Corp.

Remember that every year you have to file your business tax return first, and it is due by 15 MAR, not 15 APR. The output of the business tax return (Form 1120S for S-Corp’s) is a Schedule K-1 which has to be included as income or loss on your personal income tax return; that is why the business tax return is due before your personal tax return.

Every year you will be required to have a stockholder meeting (even if you are the only stockholder) and record the meeting minutes. Everything has to be in the minutes: Articles of Incorporation, Form 2553, IRS letter approving it, minutes from all previous meetings, all distributions, all loans, compensation of officers, authorized signers, statement of accounts and everything else business related. A December meeting with your tax professional, included as part of your business / personal / state tax return preparation fee, would be prudent if you can negotiate the extra cost of conducting the meeting and recording the minutes. Put a copy of the minutes with your yearly business tax return client copy.

Be mindful of how your Social Security Retirement Benefits (SSRB) are calculated. Your benefits are calculated using something called the “rule of 40 quarters” or ten years. And those are consecutive quarters we are talking about. Your SSRB are based upon your highest earning forty consecutive quarters. If you are young, having a hole in your rule of 40 quarters is not that big of a deal because you have many more income-producing years left in you. But if you are older, putting that donut in your long string of consecutive working years can seriously reduce the amount you receive in benefits. And do not go off saying that Social Security will not be around when you retire. Of course it will. Congress will make sure of that. It may not have the same benefits as we have today and the retirement ages may not be the same, but it will still be around. If you incorporate and neglect to pay any of your FICA (specifically Social Security) taxes during a specific year, you put that donut in your rule of forty quarters without ever realizing it. When you finally do realize it, it is too late. If you are an employee during the year you start your business on 01 DEC, then you should have withholding for most of the year already and you are not at risk of the donut in your rule of forty quarters. Not even much of a reduction in benefits, since you did not quit your job and start your business until late in the year. But watch out your second year. If there is no officer compensation on your business tax return and a net loss in the second, full-year worth of business, and you have no other income, then you get the donut in your rule of forty quarters, nothing you can do about it. But if you have net business income that second year, and you do not pay your FICA taxes, then you take the donut when you could have avoided it.

This whole story has come full circle back to the beginning for one more piece of advice. Way back at the start you filled out that Form 2553 to elect to be a small corporation. In Part I of that form you have to list the name and address of each business shareholder and in column L their number of shares or percentage of ownership. I strongly recommend that you make yourself the sole owner with 100% of ownership. You may be tempted to enlist others into your enterprise, you may think others bring more to the table, make your business entity more viable, better chance to succeed. Do NOT succumb to that notion. This is a binding, legal document that you are signing and sending to the U.S. Government. There is nothing trivial about it. In the world of business, there needs to be one person in charge, where the final answers and final decisions come from. It is true in politics, it is true in business and it is true in life. You cannot predict with 100% accuracy how your business venture may pan out. It may fail, true, but it may also take off and be one of those countless American business success stories we all hear about. If that happens, one person needs to be empowered to make each of those final decisions and that person is you since it was your idea and you did all the work. Do not dilute your power over your own business by adding someone else’s name to that Form 2553. You do not want to have to worry about getting someone else’s approval to do something you think is necessary for the business.

Enough said, I will get off my soapbox and end with my website: www.your-tax-professional.com.

Eric

My name is Eric Jahnsen and I am an Enrolled Agent which means I am enrolled to practice before the IRS. For your tax preparation needs, acquiring your prior year reported tax information or just tax related help and suggestions, see our website at http://Your-Tax-Professional.com.

If you are not a college football fan and could care less if you never see a bowl game in your life, you might wonder what all of the fuss is about. If you have a red-blooded male in your life, just ask him.

There will be 34 NCAA bowl games this year and the fuss in each one will be about prestige and money, big money, as in more than a collective $139 million for the participating teams and their respective conferences.

The actual bowl payouts reflected below add up to $127+ million, but the actual $139+ million figure arises because of some additional payouts for participating teams beyond the automatic qualifiers from the 6 major BCS conferences-the Atlantic Coast, Big East, Big Ten, Big 12, Pacific-10 and Southeastern.

A team must win 6 games to be bowl-eligible, according to NCAA standards. Some of the qualifying teams automatically receive bowl bids, and others are asked to participate in the less significant bowl games.

Just about every news organization that publishes the bowl-game lineups does so by the date of the contest, the first (on December 19th) to the last (the Bowl Championship Series title game on January 7th).

I choose to do it this year by the importance of the bowl based on its payout first, and then the prominence of the game based on its participants. The first 5 bowl games listed comprise the prestigious BCS super-contests with the biggest payouts.

Here is the complete lineup for the 2009 season (which stretches into 2010).

1) $17 million – The BCS National Championship Game between Alabama (13-0) and Texas (13-0) on Jan. 7.

2) $17 million – Sugar Bowl with Florida (12-1) and Cincinnati (12-0) on Jan. 1.

3) $17 million – Fiesta Bowl with Texas Christian (12-0) and Boise State (13-0) on Jan. 4.

4) $17 million – Rose Bowl with Oregon (10-2) and Ohio State (10-2) on Jan. 1.

5) $17 million – Orange Bowl with Georgia Tech (11-2) and Iowa (10-2) on Jan. 5.

6) $4.25 million – Capital One Bowl with Penn State (10-2) and Louisiana State (9-3) on Jan. 1.

7) $3.3 million – Outback Bowl with Northwestern (8-4) and Auburn (7-5) on Jan. 1.

$3.005 million – Chick-fil-A Bowl with Virginia Tech (9-3) and Tennessee (7-5) on Dec. 31.

9) $3 million – Cotton Bowl with Oklahoma State (9-3) and Mississippi (8-4) on Jan. 2.

10) $2.5 million – Gator Bowl with West Virginia (9-3) and Florida State (6-6) on Jan. 1.

11) $2.35 million – Holiday Bowl with Nebraska (9-4) and Arizona (8-4) on Dec. 30.

12) $2.25 million – Champs Sports Bowl with Miami, FL (9-3) and Wisconsin (9-3) on Dec. 29.

13) $2.25 million – Alamo Bowl with Texas Tech (8-4) and Michigan State (6-6) on Jan. 2.

14) $1.9 million – Sun Bowl with Stanford (8-4) and Oklahoma (7-5) on Dec. 31.

15) $1.7 million – Liberty Bowl with East Carolina (9-4) and Arkansas (7-5) on Jan. 2.

16) $1.6 million – Music City Bowl with Clemson (8-5) and Kentucky (7-5) on Dec. 27.

17) $1.35 million – Insight Bowl with Iowa State (6-6) and Minnesota (6-6) on Dec.31.

18) $1.1 million – Independence Bowl with Georgia (7-5) and Texas A&M (6-6) on Dec. 28.

19) $1 million – Las Vegas Bowl with Brigham Young (10-2) and Oregon State (8-4) on Dec. 22.

20) $1 million – Meineke Car Care Bowl with Pittsburgh (9-3) and North Carolina (8-4) on Dec. 26.

21) $1 million – St. Petersburg Bowl with Rutgers (8-4) and Central Florida (8-4) on Dec. 19.

22) $1 million – EagleBank Bowl with Temple (9-3) and UCLA (6-6) on Dec. 29.

23) $850,000 – Emerald Bowl with Southern California (8-4) and Boston College (8-4) on Dec. 26.

24) $750,000 – GMAC Bowl with Central Michigan (11-2) and Troy (9-3) on Jan. 6.

25) $750,000 – Poinsettia Bowl with Utah (9-3) and California (8-4) on Dec. 23.

26) $750,000 – Little Caesars Pizza Bowl with Ohio (9-4) and Marshall (6-6) on Dec. 26.

27) $750,000 – New Mexico Bowl with Fresno State (8-4) and Wyoming (6-6) on Dec. 19.

28) $750,000 – Humanitarian Bowl with Idaho (7-5) and Bowling Green (7-5) on Dec. 30.

29) $750,000 – International Bowl with South Florida (7-5) and Northern Illinois (7-5) on Jan. 2.

30) $700,000 – Texas Bowl with Missouri (8-4) and Navy (8-4) on Dec. 31.

31) $600,000 – Armed Forces Bowl with Houston (10-3) and Air Force (7-5) on Dec. 31.

32) $398,000 – Hawaii Bowl with Nevada (8-4) and Southern Methodist (7-5) on Dec. 24.

33) $325,000 – New Orleans Bowl with Middle Tennessee (9-3) an Southern Mississippi (7-5) on Dec. 20.

34) $300,000 – Papjohns.com Bowl with South Carolina (7-5) and Connecticut (7-5) on Jan. 2.

Copyright © 2009 Ed Bagley

Read more of my football coverage, including:

“Ed Bagley’s Top 25 Poll” for Week 14-you get rankings plus humor. Would you believe that Florida is ranked 6th and Southern California 23rd? Don’t laugh, find out why.

“Why Bowl Games Are Such a Big Deal: They Bring Prestige and $139+ Million”

http://www.edbagleyblog.com

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Education:

“The act or process of educating or being educated; the knowledge or skill obtained or developed by a learning process!”

Inquiries into furthering my educational aspirations were made to various colleges within my immediate environmental area. Several of the schools contacted required placement exams that I did not challenge, as I am adept and very capable of dealing with college examinations. The thing that got to me was the disparaging remarks from some college recruiters regarding their standards for education as opposed to another college. One of the schools that I’ve attended is a two-year degree school while the other is as well. They hold real estate in the same zip code and competed for students in the same local. They both educated local students as well as out of state and students from other countries and nations.

One school considered itself superior to the other by reason of accreditation. The school that was described as inferior did not have middle states accreditation. The school was described as below standard by the other. The so-called superior school is lead and operated by a non-HBCU affiliation while the other happened to be lead and operated by an African American staff. The self-described superior school has made plans, designs, and did bid for the take-over of the African American school. Albeit, the self-described superior school admits that it does not and will not accept credentials from the so-called inferior school. I have attended both of these institutions and received very good instruction from its teachers as well. While the lessons learned were an invaluable source of information, the education that I received from personal academic research (self-taught) has enhanced my knowledge base. Money was not a factor in my personal research, study, and/or practicum. I would add, the knowledge and information that was derived from the HBCU School proved to be equally rewarding as the other if not better!

Personally, I would say that I received more educational value at the HBCU (Historical Black Colleges and Universities) as opposed to the other collegiate institution. Albeit, they both required money.

When students visit college campuses they are encouraged to become a student at that particular school. The tour guides’ show all of the amenities and accolades that are offered in order to get you enrolled…and to gain your tuition monies. But what about the quality of education offered by the particular schools? The majority of the colleges will often quote their accreditation as compared to another school of choice. What has accreditation to do with a good and valuable quality education? Money! And the ability to make money! Education does not and should not require money! 

In 1899 Dr. Matthew Anderson, an outstanding community leader, and his wife Caroline Still Anderson founded Berean Manual and Industrial School. Dr. Anderson was a pivotal influence in the religious, business, and educational history of Philadelphia. Dr. Anderson also founded the Berean Presbyterian Church and the Berean Savings Fund Society.

Caroline Still is the daughter of the great William Still, a Philadelphia Abolitionist and member of the Underground Railroad.

Mr. William Still (a self-educated man), one of seventeen children, was born in Burlington County in 1821. His father escaped slavery from Maryland to New Jersey and later was followed by his wife and children. William Still left New Jersey for Philadelphia in 1844. Three years later he was appointed secretary of the Pennsylvania Abolition Society.

“When Brother William Still was 23, he left the family farm in New Jersey for Philadelphia, to seek his fortune. He arrived, friendless with only five dollars in his possession. Mr. Still taught himself to read and write. In fact, so well, that in three years he was able to gain and hold the position of secretary in the Pennsylvania Abolition Society. Brother Still provided the all-white society with his views on how to aid fugitive slaves. After all, he had been one himself. He was such an asset to the group, that he was elected chairman in 1851. Still held the position for the next ten years. He also became chairman of the Vigilance Committee in 1852. Still was the first black man to join the society and was able to provide first-hand experience of what it was like to be a slave.”

“Mr. Still established a profitable coal business in Philadelphia. His house was used as one of the stations on the Underground Railroad. Brother Still interviewed escaped fugitives and kept careful records of each so that their family and friends might locate them. According to his records, Still helped 649 slaves receive their freedom. The number is compounded with the number of slaves saved by Sister Harriet Tubman and the Underground Railroad.”

“William Still, a self-educated man, began his campaign to end racial discrimination on Philadelphia streetcars. He wrote an account of this campaign in Struggle for the Civil Rights of the Coloured People of Philadelphia in the City Railway Cars (1867). He followed this with The Underground Railroad (1872) and Voting and Laboring (1874).”

“William Still, a self-educated man, established an orphanage for the children of African-American soldiers and sailors. Other charitable work included the founding of a Mission Sabbath School and working with the Young Men’s Christian Association. William Still died in Philadelphia on 14th July, 1902.”

The Concise History of Berean Institute:

“In 1904 Berean Institute of Philadelphia Pennsylvania qualified for state aid and received a grant of $10,000. Over the years, state aid has enabled the school to expand its services and diversify its programs of study. Funds from the Commonwealth of Pennsylvania now provide a significant portion of the total operating budget. Berean Institute embarked on a program of expansion under the dynamic leadership of the late Dr. William H. Gray, Jr., who utilized the support of many influential citizens of Pennsylvania including the former Governor Milton J. Shapp. Dr. Gray served as Chairman of the Berean Board of Trustees. Under Dr. Gray’s leadership Berean Manual and Industrial School began operating as Berean Institute. He also had Berean Institute’s current building constructed in 1973.”

“Mrs. Lucille P. Blondin, who served the school for forty-five years, became Berean Institute’s first President. Mrs. Blondin retired in June 1993. Dr. Norman K. Spencer was appointed to serve as the second President and Chief Executive Officer. Under Dr. Spencer’s leadership, contracted programs funded by the City and Commonwealth agencies as well as community outreach projects have been added. Hon. John Braxton, former Judge, Court of Common Pleas heads a list of distinguished Board of Trustees members.”

“Berean Institute enrolled students in full and part-time programs. Most of the students are residents of the Commonwealth and live in Philadelphia. Other students have come from Central and South America, China, India, Puerto Rico, Tonga, Liberia, Sierra Leone, Nigeria, Tanzania, the Dominican Republic, England, Cambodia, Viet Nam and states along the eastern seaboard of the United States.”

“A number of students come to learn a marketable skill and their Berean training fulfills their current educational aspirations. Many others regard the school as a stepping-stone to further education. Berean has many graduates who have gone on to earn four-year college degrees and others who have completed graduate studies at some of the area’s outstanding institutions of higher learning.”

The Commonwealth of Pennsylvania’s Department of Education granted Berean Institute approval to award the Associate in Specialized Technology Degree on September 15, 1976, and the Associate in Specialized Business Degree on December 27, 1976.

Again, education is:

“The act or process of imparting or acquiring general knowledge, developing the powers of reasoning and judgment, and generally of preparing oneself or others intellectually for mature life; the act or process of imparting or acquiring particular knowledge or skills, as for a profession; a degree, level, or kind of schooling: a university education; .the result produced by instruction, training, or study: to show one’s education; the science or art of teaching; pedagogics.”

A definition of education: ‘The act or process of educating or being educated; the knowledge or skill obtained or developed by a learning process; a program of instruction of a specified kind or level: driver education; a college education; the field of study that is concerned with the pedagogy of teaching and learning; an instructive or enlightening experience:

Dictionary.com Unabridged

Based on the Random House Dictionary, © Random House, Inc. 2009

So why does another school rate it’s accreditation over and above that of another? Money! Many colleges and universities rate its’ educational values based on the amount of money in its’ coffers as well as the amount of money that they can amass!  Another tool to increase superiority in the education business is to attain and maintain accreditation and as many acquisitions as possible.

Several opinions suggest education achieved through these venues is designed to prepare people/students for the job market as opposed to being prepared for life skills. The skills required to carry ones posterity and their descendants that follow into prosperous futures.

Is it fair to assess the stature of a collegiate institution above any other based on the amount of money that is needed to be spent or the amount of education that is achieved? Ivy league institutions turn out many students who are not prepared for the challenges of life…but many of them are rich and have spent thousands of dollars to attend those schools as well as graduating from them. On the other hand, many poor people that are lucky enough to qualify for grants, loans, scholarships, etc., are better prepared to face the challenges set before them (so it seems).

Many poor and working poor students seem to value the collegiate level education as if their life depended upon it, so they tend to work a bit harder to achieve the degree status. The document can be deemed worthless when the graduate cannot find the desired job for which he/she has studied. It is even worse when the graduated student finds that they are worse off than when they started college. They are now burdened with school loan debt plus the debts that they have had to meet before attending college. Working at McDonalds and the like, seem to be the only job that is attainable for many of them. The competition is fierce. These students are for the most part, grouped in with many applicants that are not college educated and many do not have high school diplomas as well! The knowledge attained is not considered or tested by many of these employers. Kiosk type pictures on a cash-register computer is what they have to work with. Is this not insulting to a student who has studied computer science, read and write computer programs and its languages, as well as other academics of study? 

Why is it that many non-ivy league students find themselves out of work? Why is it that many of them find that they are the first to lose their employment positions compared to their ivy-league colleagues? Why is it that many inner-city college educated graduates find themselves less likely to be selected as team-leaders than their counter part ivy-leaguers? Many employers advertise their openings with statements that don’t require a college level education. They ask that candidates simply have a high school level education. College educated candidates apply to those openings and find themselves scrutinized out of the running, i.e., background checks, credit checks, criminal histories, schooling activities, etc. Why is it college educated candidates find that not only do they have to compete with ivy-leaguers, they have to compete with high school educated folks as well. What is the sense in enduring hours, years, and other sacrifices to attain the coveted two and/or four-year college level degree when you’re not going to qualify for the job anyway? 

The notion of accreditation, money, and notable stature should not be the basis of choosing the collegiate route to education. Education should be based on ones ability to achieve, retain, and utilize education. The achievement of education begins in the home (as well as anyone who desires it). It begins with the Childs’ upbringing and the stressed importance placed by the parent and/or guardian. Should the child be highly scholastic in abilities that enable him/her to be described as intellectually talented above average, that student deserves free college education. While the rest of us who are collegiate material may well have to pay for our higher education. Mind you, my argument is based on the ability to access education without having to spend money…teachers need to earn a living, schools need to pay the costs of operating and maintaining buildings and staff. So the money has to come from somewhere. Albeit, the aforementioned disparages between different colleges should cease the practice of who’s a better institution of higher learning. Is it the responsibility of educated people to enlighten people who are not?

While many may not be aware, education is achievable without attending so-called accredited and/or less accredited schools, of higher learning…start with the libraries in your homes as well as the public facilities, news papers, magazines, shared information, and articles. Why is the education attained by others kept to a level of secrecy that one should have to pay for it?

Attained and acquired education is the responsibility of the educational pursuer…the burden is placed solely on the student not the educational pursued. I’m not advocating that one can become a doctor, architect, or a lawyer by simply reading text…there is a difference between education and training.

Education is yours to achieve and it can be free.

Acknowledgements:

Dictionary.com

Biography of William Still

Biography of the Berean Institute