My WordShop, LLC takes responsibility for the contents of this announcement pertaining to its accuracy or completeness, and expressly claims liability for any gain or loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
My WordShop, LLC
(Incorporated in the United States of America with limited liability)(Business ID: 676532)
ANNOUNCEMENT OF ANNUAL RESULTS
FOR THE PERIOD ENDED 31 DECEMBER 2013
The board (the “Board”) of directors of My WordShop, LLC (the “Company”) is pleased to announce the results of the Company for the year ended 31 December 2013. This announcement, containing the main text of the 2013 annual report of the Company, complies with the relevant rules and regulations of the State of New Hampshire and the Department of Revenue Administration of the United States of America in relation to information provided herein. The 2013 annual report of the Company and its printed version will be published and delivered to the members of the Company and are available to view on the websites of the Company at http://www.mywordshop.com and of its affiliated WordPress site at https://mywordshop.wordpress.com on or before 1 April 2013. For purposes of this annual report, the Company uses figures to visually diagram its progress.
For the 2013 tax year, the Company is not required to file a Business Profits Tax (BPT) return, which requires businesses with more than US$50,000 in New Hampshire gross receipts to pay a flat 8.5% tax. In addition, the Company is not required to file the Business Enterprise Tax (BET), which requires businesses with an enterprise value tax base of more than US$100,000 or gross business receipts of US$200,000 to pay a 0.75% tax.
Work volume peaked during the month of August at 65,791 words, averaging at a rate of 26,215 words/month for a total of 314,580 words for the entire year (see figure 1).
Fig. 1. Work Volume for 2013
This represents a 43% increase of words/month and a 24% increase during the entire year.
The Company continues to utilize various media outlets, such as Twitter, Facebook, and LinkedIn to market its service to its customers. The Company is in the process of implementing overseas social platforms, such as Sina Weibo for Enterprises, to target international customers. In order to operate on this platform, either a third-party Chinese company must override the system to provide special access for the foreign company or the Company must provide its Chinese business license. Thus, the Company has decided to wait until it has established its wholly foreign owned subsidiary before proceeding onto this platform. With regards to Alexa, the Company has unfortunately fallen off its scale.
Fig. 2. Alexa Traffic Ranking
The following figure highlights the struggles the Company has faced in attracting new visitors to its website. By releasing more blog articles and implementing better search engine optimization techniques, the Company expects to increase its competitive edge by the end of the next tax year.
Fig. 3. Google Site Analytics
The main expenses incurred during the period ended 31 December 2013 include advertising (domain registration fees through the Go Daddy Group Inc.), Paypal Transaction Fees, Elance Project Fees, Annual Report Filing Fee (for the State of New Hampshire), software (such as HyperDock to allow fast viewing of files on OSX), and banking transaction fees. The Company was able to eliminate its Ucoz host fee by presenting its own website designs and layouts as it stated it would in its previous tax report.
Plans for 2014
Under section 1362 of the Internal Revenue Code, for 2014, the Company has elected to become an S corporation. This election means that the Company will be required to file Form 1120S with its tax return. The income of an S corporation is not subject to self-employment tax, which has steadily been increasing since its introduction as shown in the figure below (Note: 2014, 2015, and 2016 are projected amounts by the Social Security Administration).
Fig. 4. Total Tax for Self-Employment
However, as the case Watson v. Commissioner, 668 F.3d 1008 (8th Cir., 2012) has shown, when allocating funds under the S-corp classification, salaries should be “reasonable”. When determining what is considered reasonable, the Company should note that zero salaries are red flags for the IRS; a useful and safe way to abide by is the 60/40-rule; distributions must be pro-rata; and distributions cannot exceed the amount of profits for that year.
1. General information
- My WordShop, LLC was incorporated in the United States on 17 August 2012 as a company with limited liability under the Limited Liability Company Laws of the State of New Hampshire. The address of its registered office may be found on either its Certificate of Formation of Form SRA (an addendum to the business organization and registration forms statement of compliance with New Hampshire securities laws).
- The Company is not an investment holding company.
2. Basis of preparation
- All announcements, financial data, and relevant documentation have been prepared in accordance with the laws and regulations of the United States at the local, state, and federal level.
On behalf of the Board
My WordShop, LLC
United States, 31 December 2013
As at the date of this announcement, the board of directors comprises a group that is less than ten individuals.