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A reader writes: As part of a leadership development opportunity offered by my organization, I’ve been given the chance to participate in a 360 review process. For context, I report to a member of the C-suite and have been angling for a promotion (which would entail a new role basically being created for me), and the 360 was brought up by my supervisor and our CEO as a growth investment. I consider myself to be very self aware, so most of the things that came up in the process are not surprising to me, but I’m also very sensitive to criticism, especially from higher-ups. I am very professional and am able to calmly hear the feedback when it’s given, but with this 360, I’m finding myself spiraling. I received the written summary and skimmed the positive, but have read and reread the criticisms. I’m devastated to see the critical feedback from C-suite members in particular, and now have a twofold challenge: one, how do I become better at hearing critical feedback without taking it so personally? And two, how do I get the most out of what is being billed as a leadership/growth opportunity and transform the critical elements of the 360 into something constructive? Years ago, I was coaching a manager with a similar sensitivity to criticism, who was similarly upset about the feedback in a 360. Interestingly, when I read it through, the majority of what was in there was positive, but she couldn’t stop focusing on the (relatively small amount of) things people thought she could do to improve, and she felt like a failure. I asked her to take a yellow highlighter and highlight everything positive — which left her with a document that was about 90% yellow, which made it visually impossible for her to ignore the actual balance of the input her colleagues had offered, despite what her brain had been trying to do. She has told me in recent years that she still keeps that highlighted document as a reminder for herself. Can you try something similar and see if that changes the way it’s landing with you? I’m sure you don’t think that you’re flawless or have no areas where you can grow, and if you can correctly place those areas within the broader context of all the things people say you do well, it generally gets a lot easier to feel comfortable with this type of document as a whole, and to see it realistically. The other thing is: we all have areas where we can do better, and it’s actually a favor for people to be willing to tell you what those are! I know the whole “feedback is a gift” framing feels cheesy … but feedback really is a gift if you’re someone who wants to get better and better at what you do. I was going to add “as long as they offer it reasonably politely,” but I actually think even feedback that’s not diplomatically stated can be a gift, if you choose to see the value in hearing unvarnished input. That’s true even when you disagree with the feedback — because, if nothing else, it gives you useful info about how you’re coming across to someone else. You might ultimately consider that info and decide it doesn’t matter, but it’s still valuable to have it. The post I’m terrible at receiving negative feedback — and am spiraling from my 360 review appeared first on Ask a Manager. View the full article

Forget AI replacing human artists—The Devil Wears Prada 2 just proved that human artists can replace AI. The new movie, a long-awaited sequel to 2006’s The Devil Wears Prada, sees the return of star Meryl Streep as iconic fashion editor Miranda Priestly. It begins with Priestly in a PR crisis, sparking a slew of online hate. That includes memes like an image of Priestly dressed as a fast food worker captioned, “Would you like lies with that?” The image is only briefly on screen, and at first glance, many moviegoers assumed it was AI-generated. After all, on the internet of 2026, it most likely would be—an internet troll likely isn’t going out of their way to craft the image by hand. But after The Devil Wears Prada 2 hit theaters on May 1, digital artist Alexis Franklin took to social media to set the record straight: She’s the one who created the artwork, not AI, at the request of director David Frankel. On Instagram, Franklin posted the artwork along with a timelapse of her digital painting process. “Absolutely no disrespect to Queen Meryl, but this is something I would’ve painted in my free time, so when they asked me to do this it was nothing but fun,” she wrote in the caption. Franklin also shared her art on X, writing that her Instagram post had been “flooded with comments of relief that this gag in The Devil Wears Prada 2 was created by an actual human (me), so I figured I’d also post it here because I think these companies should get their flowers when they hire an artist.” ‘People do crave real art’: Social media celebrates human artists The story behind Franklin’s artwork quickly went viral, with her X post amassing 3.7 million views. Many users praised the Devil Wears Prada 2 team for staying true to the pro-artistry message of their film and hiring a human artist, even when using an AI-generated image would have made sense for the plot. “This is genuinely one of the coolest things I’ve seen a movie do,” reads one viral response. “Would’ve been so easy to AI generate something for the movie but they held themselves to a higher standard which I really really respect.” “People do crave real art and not AI slop and this is a proof,” wrote another user. A third user said they hope other films will follow in The Devil Wears Prada 2’s footsteps when it comes to telling stories about AI. “There’s a reason that it always disappoints me to no end when people assume that the only way to portray AI in a movie is by actually using AI,” they wrote. “Clearly alternatives always exist.” An accidental statement against AI Though social media largely assumed Franklin’s art was intentionally replicating AI’s signature art style, she’s since clarified that any similarities to AI were totally coincidental. In a series of follow-up posts on X, Franklin emphasized that she “was not told to mimic AI” and the aspects of her drawing people assumed were nods to AI, including the blurred lettering and font inconsistencies in the background, were just meant to be impressionistic. “I was just hired to create a cheap meme and the context of the movie has everyone, understandably, thinking I was emulating AI,” Franklin wrote. In an email to NBC News, Franklin said she understands where people’s suspicions come from, but that assuming human-made art is AI can have real, negative consequences for artists. “This mass hypervigilance prevails because people don’t want to be fooled, leading them to see signs on the walls that aren’t really there or that have very simple, reasonable explanations,” she wrote. “And it’s hard to know what the solution is.” “AI is so prevalent now, it feels like people have forgotten how it got that good—it studied us,” Franklin added. “The techniques it uses are ours!” View the full article

On a March afternoon, artificial intelligence detected something resembling smoke on a camera feed from Arizona’s Coconino National Forest. Human analysts verified it wasn’t a cloud or dust, then alerted the state’s forest service and largest electric utility. One of dozens of AI cameras installed for the utility Arizona Public Service had spotted early signs of what came to be known as the Diamond Fire. Firefighters raced to the scene and contained the blaze before it grew past 7 acres (2.8 hectares). As record-breaking heat and an abysmal snowpack raise concerns about severe wildfires, states across the fire-prone West are adding AI to their wildfire detection toolbox, banking on the technology to help save lives and property. Arizona Public Service has nearly 40 active AI smoke-detection cameras and plans to have 71 by summer’s end, and the state’s fire agency has deployed seven of its own. Another utility, Xcel Energy in Colorado, has installed 126 and aims to have cameras in seven of the eight states it serves by year’s end. “Earlier detection means we can launch aircraft and personnel to it and keep those fires as small as we can,” said John Truett, fire management officer for the Arizona Department of Forestry and Fire Management. Where there are fewer eyes, AI looks for fires ALERTCalifornia is a network of some 1,240 AI-enabled cameras across the Golden State that work similar to the system in Arizona. Human intervention keeps the risk of false positives low and trains the technology to become more accurate, said Neal Driscoll, geology and geophysics professor at the University of California, San Diego, and founder of ALERTCalifornia. “The AI that’s being run on the cameras is actually beating 911 calls,” he said. In Arizona, California, and beyond, the technology is mostly used in high-risk areas that are sparsely populated, rural or remote, where a blaze might not be quickly spotted by human eyes. “It’s just the ones where we won’t get a 911 call for a long time, it is extremely helpful to have that AI always monitoring that camera,” said Brent Pascua, battalion chief for the California Department of Forestry and Fire Protection, or Cal Fire. “In many cases, we’ve started a response before 911 was even called, and in a few cases, we’ve actually started a response, went there, put the fire out, and never received a 911 call.” A technology driven by worsening blazes Pano AI, whose technology combines high-definition camera feeds, satellite data, and AI monitoring, has seen a growing interest in its cameras since launching in 2020. They’ve been deployed in Australia, Canada and 17 U.S. states, including Oregon, Washington and Texas. Its customers include forestry operations, government agencies and utilities, including Arizona Public Service. Last year, its technology detected 725 wildfires in the U.S., the company said. “In many of these situations, we hear from stakeholders that the visual intelligence, the time, really, really gives them a head start and some of these could have taken off into hundreds if not thousands of acres,” said Arvind Satyam, the company’s co-founder and chief commercial officer. Cindy Kobold, an Arizona Public Service meteorologist, said the technology notifies them about 45 minutes faster on average than the first 911 call. Satyam said development of the technology was driven by the lack of hardened solutions to combat worsening wildfires. Climate change — caused by burning oil, gas, and coal — is warming the planet and fueling dry conditions that supercharge infernos, making them burn hotter, faster, and more frequently. The technology helps firefighters to safely and effectively respond while protecting communities and infrastructure, he said. Challenges and limitations One of the biggest obstacles to implementation is the price tag; Pano AI, for instance, charges around $50,000 annually per camera. The cost also includes fire risk analysis and 24/7 intelligence center. False alarms present a challenge, which can be costly in terms of time and attention, said Patrick Roberts, a senior researcher with the nonprofit research group RAND who recently finished a project on accelerating innovation in wildfire management. And when the AI accurately detects a fire, it doesn’t tell stakeholders the best course of action. “Do you send help right away? Do you monitor? Should you worry about it? Where do you send help? Do you think about evacuation? All this still requires people and decision support systems,” said Roberts. In highly populated areas, people tend to spot and call in fires pretty quickly, and the tech is not so useful when extreme weather events, such as hurricane-force winds, intensify and rapidly shift the flames, as happened in Los Angeles last year. Pascua says the technology complements Cal Fire’s work. “As the fire moves and shifts around, that’s where the human factor comes in and decides which tactics are best in fighting the fire. AI can only do so much,” he said. “It just provides that real time information where we can make better decisions on the fire ground.” AI firefighting assistance is not limited to detection AI can also be employed to identify the best places to thin vegetation and burn cool fires, and even to monitor air quality for signs of smoke, just like your home’s carbon monoxide sensor, said Roberts, but “1,000 times more sensitive.” At George Mason University in Virginia, professor Chaowei “Phil” Yang is working with researchers from California State University of Los Angeles, the city of LA and NASA Jet Propulsion Laboratory to create a system that forecasts where a fire will burn and which communities will be hardest hit by smoke pollution. The idea is to give agencies real-time maps so they can make quick, life-saving decisions about evacuations, school and road closures, and send out early air quality warnings. Yang said they hope the technology will be operational in three years. “AI in wildfires, it’s no longer just speculative. It’s really being used,” said Roberts, and it’s use will only continue to grow. “The future is AI everywhere,” he said, “and the lines will blur between AI wildfire detection and just wildfire detection as the lines will blur in other areas of our life.” ___ The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment —Dorany Pineda and Brittany Peterson, Associated Press View the full article

Comprehending the definition of a Limited Liability Company, or LLC, is essential for anyone pondering starting a business. An LLC offers personal liability protection for its members, meaning your personal assets are typically safe from business debts. It additionally allows profits to pass through to your personal tax return, avoiding double taxation. Nevertheless, there are benefits and drawbacks to evaluate. To make an informed decision, it’s important to explore how an LLC compares to other business structures. Key Takeaways An LLC, or Limited Liability Company, combines features of corporations and partnerships for operational flexibility and liability protection. Owners, known as members, enjoy personal liability protection against business debts, safeguarding their personal assets. LLCs benefit from pass-through taxation, meaning profits are taxed only on members’ personal tax returns, avoiding double taxation. Management can be either member-managed or manager-managed, offering flexibility in operational structure. Establishing an LLC requires filing Articles of Organization and creating an Operating Agreement to define roles and profit distribution. What Is a Limited Liability Company (LLC)? A Limited Liability Company (LLC) is a unique business structure that merges features of both corporations and partnerships, providing a blend of operational flexibility and personal liability protection for its owners, who are referred to as members. So, what’s meant by LLC? It’s a hybrid entity that allows profits to pass through to members’ personal tax returns, effectively avoiding the double taxation that corporations often face. An LLC can be owned by individuals, corporations, or even foreign entities, with no cap on the number of members involved. You have the option to manage an LLC either through its members or by appointed managers, offering significant operational flexibility. To form an LLC, you must file articles of organization with your state and might need to obtain an Employer Identification Number (EIN) for tax purposes. This structure effectively balances liability protection with operational ease. Benefits of an LLC Numerous advantages make forming a Limited Liability Company (LLC) an appealing choice for many entrepreneurs and small business owners. First and foremost, LLCs provide personal liability protection, ensuring your personal assets aren’t at risk for any business debts or legal obligations. You as well benefit from a flexible management structure, allowing for either member-managed or manager-managed operations, depending on your preferences. In addition, LLCs enjoy pass-through taxation, meaning profits are taxed only at the individual level, which helps you avoid the double taxation often faced by corporations. With fewer formalities and reporting requirements than corporations, maintaining your LLC is simpler, making it a practical option for busy entrepreneurs. Moreover, LLCs offer customizable profit distribution arrangements, enabling you to allocate earnings flexibly among members. If you’re interested, you can start your LLC in Texas by completing the LLC in Texas application online, making the process even more convenient. Drawbacks of an LLC Though Limited Liability Companies (LLCs) offer various benefits, there are also notable drawbacks that potential owners should reflect upon. One major issue is that LLCs may dissolve upon a member’s death or bankruptcy, complicating business continuity compared to corporations, which can exist indefinitely. Furthermore, you might face self-employment taxes on your earnings, increasing your tax burden relative to corporate structures. Without a well-defined operating agreement, roles can become unclear, leading to potential disputes among members. In addition, LLCs often have state-specific regulations and compliance requirements, including annual fees and reports, which add to the ongoing costs of maintaining your business. Finally, transferring membership typically requires approval from existing members, making ownership changes less flexible than in a corporation. When weighing the ltd vs llc choice, it’s crucial to reflect upon these drawbacks to make an informed decision. How to Start an LLC Starting an LLC involves several significant steps that lay the foundation for your business. First, choose a unique name that meets your state’s regulations and includes “LLC” or “Limited Liability Company.” Next, file the Articles of Organization with your state’s Secretary of State, including crucial details like your LLC’s name, address, and registered agent. After that, draft an Operating Agreement to clarify member roles and profit distribution. Don’t forget to obtain an Employer Identification Number (EIN) from the IRS for tax purposes and to open a business bank account. Finally, guarantee compliance with state regulations by acquiring any necessary licenses or permits and maintaining ongoing obligations. Here’s a quick overview of the steps: Step Description Choose a Business Name Verify it complies with state naming rules. File Articles of Organization Submit necessary documents to your state. Create an Operating Agreement Outline management and profit distribution. Obtain an EIN Required for taxes and banking. Guarantee Compliance Acquire licenses and maintain obligations. LLC vs. Corporation: Key Differences When comparing LLCs and corporations, grasping their key differences is vital for making informed business decisions. Here are some fundamental distinctions to reflect on: Ownership Structure: LLCs have members, whereas corporations have shareholders, affecting management and profit distribution. Management Flexibility: LLCs allow for member-managed or manager-managed options, whereas corporations require a board of directors and a structured hierarchy. Taxation: LLCs typically benefit from pass-through taxation, meaning profits are taxed only at the individual level, whereas corporations may face double taxation on profits. Ownership Transfer: LLCs offer more flexible ownership transfer governed by the operating agreement, whereas corporations have stricter regulations for transferring shares. Both LLCs and corporations provide limited liability protection, but corporations usually have more established legal precedents supporting this. Recognizing these differences can help you choose the right structure for your business. Frequently Asked Questions What Is an LLC Explained for Dummies? An LLC, or Limited Liability Company, combines benefits from corporations and partnerships. It protects your personal assets from business debts, meaning you’re not personally liable for losses. You can choose how it’s taxed, often avoiding double taxation. Forming an LLC involves selecting a unique name, filing Articles of Organization, and possibly creating an operating agreement. They’re flexible and require fewer formalities, making them ideal for small businesses and entrepreneurs. What Is a Simple Definition of LLC? An LLC, or Limited Liability Company, is a flexible business structure that combines personal liability protection with tax benefits. As a member, you enjoy limited liability, meaning your personal assets are typically safe from business debts. LLCs can be formed by one or more individuals or entities, and profits pass through to your personal tax return, avoiding double taxation. To establish an LLC, you file articles of organization and designate a registered agent for legal matters. What Is the Biggest Disadvantage of an LLC? The biggest disadvantage of an LLC is often the self-employment tax liability. If you actively participate in the business, your profits are subject to this tax, which can be significant. Moreover, LLCs can incur higher startup and maintenance costs compared to other business structures. Limited ownership transferability complicates succession planning, and raising capital may prove challenging since investors frequently prefer more established entities like corporations. Proper maintenance is vital to protect personal assets from business liabilities. What Are Three Things That LLCS Are Not Required to Do? LLCs aren’t required to hold annual meetings, which simplifies their management. You likewise don’t need to maintain extensive corporate records, unlike corporations. Furthermore, LLCs don’t have to file separate federal tax returns; profits are typically reported on your personal tax return, allowing for pass-through taxation. Although it’s advisable to have an operating agreement for clarity, it’s not mandatory, providing you with flexibility in managing your business structure. Conclusion In conclusion, a Limited Liability Company (LLC) offers a blend of liability protection and tax advantages, making it an attractive option for many business owners. As it provides benefits like flexible management and pass-through taxation, it is crucial to evaluate potential drawbacks, such as varying regulations and self-employment taxes. Starting an LLC involves specific steps, and grasping the differences between an LLC and a corporation can further guide your decision. With the right information, you can make an informed choice for your business structure. Image via Google Gemini This article, "Understanding the Company LLC Definition: A Simple Guide" was first published on Small Business Trends View the full article

In a stark reminder of the vigilance required in managing federal relief programs, Marcus Eichelberger, a former pastor from Jacksonville, Florida, faces serious legal consequences for alleged wire fraud tied to the Paycheck Protection Program (PPP). The case highlights ongoing challenges for small business owners navigating relief programs designed to support them amid financial uncertainty. Eichelberger was indicted on four counts of wire fraud, which carries a potential sentence of up to 20 years in federal prison for each count. The indictment alleges that between March 2021 and February 2022, he and an associate submitted false applications for PPP loans. They purportedly claimed the funds would be used to maintain payroll and operational expenses for an unqualified business. Instead, the funds were allegedly diverted for personal use. U.S. Attorney Gregory W. Kehoe commented on the case, emphasizing the government’s commitment to safeguarding taxpayer-funded programs. “The U.S. Attorney’s Office is committed to prosecuting those who use fraud and deception to exploit our nation’s federal benefits programs,” he said. Such statements reinforce the growing scrutiny on loan applications, especially in the wake of widespread fraud in relief programs during the pandemic. The alleged activities surrounding Eichelberger’s case serve as a crucial alert for small business owners. The PPP was designed to offer financial relief during the COVID-19 pandemic, but the influx of funds also opened avenues for fraudulent claims. For entrepreneurs, this means that they must be particularly diligent in documenting and using funds according to the requirements set by the SBA. Moreover, the case is part of a larger investigative effort spearheaded by the Department of Justice’s National Fraud Enforcement Division, which aims to combat misuse of taxpayer dollars. “This case demonstrates the VA OIG’s unwavering commitment to detecting and preventing fraud,” remarked Special Agent in Charge David Spilker of the VA Office of Inspector General’s Southeast Field Office. This pronouncement not only underlines the seriousness of the allegations but also highlights the collaborative approach government agencies are taking to address fraud. While the PPP provided financial lifelines to many businesses, small business owners must consider the implications of this surveillance. Compliance with federal guidelines is paramount; failing to do so can lead to severe penalties, including prosecution. Misunderstanding the eligibility criteria or misusing the funds can result in not just repayment demands but significant criminal charges. Further complicating matters for small businesses, the landscape of federal aid continues to evolve. With new rounds of funding being introduced, being informed about the rules is essential. Keeping abreast of updates from the SBA and other relevant agencies can provide clarity, though navigating the details remains an ongoing challenge. Additionally, courts have reaffirmed the presumption of innocence until proven guilty, which is vital in cases like that of Eichelberger. Nevertheless, this underscores the fact that the burden of proof lies with individuals seeking federal funds. Detailed documentation and transparency are non-negotiable. For small business owners looking to secure funds through federal programs, diligence is key. It is not just essential to fill out the application properly; careful attention must be paid to how those funds are spent. Failure to comply could open a floodgate of issues, potentially endangering the very existence of a business that relies on such financial assistance. As the Department of Justice continues its crackdown on fraud, the consequences will likely resonate beyond those accused. Small business owners must remain aware of their responsibilities, the evolving regulatory environment, and the importance of ethical practices in securing federal funding. For more information on this case and ongoing fraud prevention efforts, you can visit the original U.S. Department of Justice press release here. Additionally, updates on SBA guidelines and related news can be found by signing up for the SBA OIG email updates here. Image via Google Gemini This article, "Former Jacksonville Pastor Indicted for Fraud in PPP Loan Scheme" was first published on Small Business Trends View the full article

Google Ads CTR is rising, but conversions remain flat. New Optmyzr data explains why performance is shifting and what it means for advertisers. The post Optmyzr Report Finds Google Ads Engagement Rising While Efficiency Holds appeared first on Search Engine Journal. View the full article

What Is Job Scheduling? Job scheduling is the process of planning, assigning and timing tasks so they are completed using available resources. It is commonly used in construction, manufacturing, maintenance and IT operations to organize work, coordinate labor and meet deadlines. Clear sequencing and resource allocation allow teams to execute work without delays or conflicts. What Is a Job Schedule? A job schedule is a structured plan that shows tasks, timelines and assigned resources for completing work. It is used to track when each task should start and finish, who is responsible and how activities are sequenced. By laying out dependencies and deadlines, it helps teams across industries coordinate execution and keep work moving without conflicts or delays. ProjectManager is an award-winning project management software that helps teams across industries plan, schedule and track work from start to finish. Create detailed job schedules, manage resources, monitor costs and compare planned versus actual performance with a full suite of powerful tools including Gantt charts, kanban boards, real-time dashboards and much more. Get started for free today. /wp-content/uploads/2024/03/Manufacturing-gantt-chart-light-mode-costs-exposed-cta-e1712005286389-1600x659.jpgLearn more What Industries Use Job Scheduling? Job scheduling is used anywhere work needs to be planned, sequenced and executed using limited resources. While the core principles remain the same, how schedules are built and managed varies depending on the type of work, the level of complexity and how resources are deployed. Construction On construction projects, job scheduling coordinates crews, equipment and subcontractors across multiple phases of work. Tasks must follow a strict sequence, as many activities depend on others being completed first. Delays in one area can impact the entire project, so schedules are continuously updated to reflect progress and keep work aligned with deadlines. Manufacturing Within manufacturing operations management, job scheduling organizes production tasks across machines, workstations and operators. Each job may follow a different process, requiring careful sequencing to avoid bottlenecks. Schedules must account for setup times, material availability and production capacity to ensure consistent output and prevent disruptions on the production line. IT and Software Development In IT projects, job scheduling is used to manage automated tasks, system processes and development workflows. Tasks such as data processing, system updates and deployments must run in a specific order to avoid conflicts. Schedules help teams coordinate dependencies, manage system loads and ensure that critical operations run at the right time. Maintenance and Field Service Maintenance planning teams rely on job scheduling to plan inspections, repairs and preventive work across multiple assets and locations. Schedules must balance urgent requests with routine service tasks while ensuring technicians and equipment are available. Effective scheduling reduces downtime, improves response times and helps maintain consistent asset performance. /wp-content/uploads/2026/01/Printable-Gantt-chart-template.jpg Get your free Gantt Chart Template Use this free Gantt Chart Template for Excel to manage your projects better. Download Excel File Why Job Scheduling Matters Across construction sites, production floors and service operations, job scheduling determines how work actually gets done day to day. Poor coordination leads to idle crews, missed deadlines and wasted materials, while structured scheduling aligns resources with demand. Teams that actively manage schedules can respond faster to changes and maintain steady progress without constant disruption. Efficient job scheduling ensures that labor, equipment and materials are allocated at the right time, preventing costly downtime and improving overall productivity across projects. Clear scheduling structures help teams avoid task conflicts and overlapping responsibilities, reducing confusion and ensuring that work progresses in a logical and controlled sequence. Accurate job schedules make it easier to meet deadlines by aligning task durations with realistic timelines, helping teams avoid delays that can impact project budgets and client expectations. Well-managed schedules improve resource utilization by balancing workloads across teams, preventing overloading some workers while others remain underutilized or idle. Structured job scheduling provides better visibility into ongoing work, allowing managers to track progress, identify bottlenecks early and make adjustments before issues escalate. Consistent scheduling practices support better cost control by reducing inefficiencies, minimizing rework and ensuring that resources are used effectively throughout the project lifecycle. Reliable job schedules create a foundation for better decision-making by providing real-time insight into project status, enabling teams to adapt quickly to changes in scope or priorities. What Should Be Included in a Job Schedule? Before work begins, a job schedule needs to clearly show what will be done, when it will happen and who is responsible. A complete structure removes guesswork during execution and gives teams a reliable reference point to track progress, adjust priorities and keep work aligned with deadlines. Job or Task Name: Each activity must be clearly labeled so teams can quickly identify what work needs to be performed without confusion. Task Description: A short explanation provides context on what the task involves, helping ensure consistency in how the work is executed. Start Date and Time: Defines exactly when a task is scheduled to begin, allowing teams to plan resource availability and sequencing. End Date and Time: Establishes when the task should be completed, creating clear expectations for delivery and progress tracking. Task Duration: The estimated time required to complete the task, which supports realistic scheduling and workload balancing. Assigned Resources: Identifies the workers, teams or equipment responsible for completing the task, ensuring accountability and coordination. Task Dependencies: Shows relationships between tasks, indicating which activities must be completed before others can start. Priority Level: Highlights the importance or urgency of each task so teams can focus on critical work first when conflicts arise. Status: Tracks whether tasks are not started, in progress or completed, giving real-time visibility into execution. Work Hours or Effort: Captures the amount of labor required, helping managers distribute workloads and avoid overallocating resources. Location or Work Area: Specifies where the task takes place, which is essential for coordinating teams across multiple sites or departments. Materials and Equipment Needed: Lists required inputs so teams can prepare in advance and avoid delays caused by missing resources. Constraints or Restrictions: Identifies limitations such as deadlines, regulations or resource availability that may impact how the task is performed. Notes or Instructions: Provides additional guidance or special considerations that help teams execute the work correctly and consistently. Job Schedule Example Consider a small construction project involving site preparation, foundation work and structural framing. The team needs to coordinate labor, materials and equipment across sequential tasks. A clear job schedule ensures each activity is properly timed, resources are available when needed and work progresses without delays or conflicts. Job or Task Name Task Description Start Date and Time End Date and Time Task Duration Assigned Resources Task Dependencies Priority Level Work Hours or Effort Materials and Equipment Needed Site Clearing Remove debris and prepare the site for construction activities 06/01/26 07:00 06/01/26 12:00 5 hours Ground crew, bulldozer None High 10 labor hours Bulldozer, safety gear Excavation Dig foundation trenches according to site plans 06/01/26 13:00 06/02/26 12:00 1 day Excavation crew, excavator Site Clearing High 16 labor hours Excavator, measuring tools Foundation Pouring Pour concrete into prepared trenches 06/02/26 13:00 06/02/26 18:00 5 hours Concrete crew, mixer Excavation High 12 labor hours Concrete, mixer, rebar Curing Time Allow concrete to set and reach required strength 06/02/26 18:00 06/05/26 18:00 3 days No active crew Foundation Pouring Medium 0 labor hours Curing blankets Framing Build structural framework of the building 06/06/26 07:00 06/10/26 17:00 5 days Carpenters, tools Curing Time High 80 labor hours Lumber, nails, power tools Job Scheduling Process Getting from a vague scope of work to a clear, executable plan requires a structured approach. A well-defined job scheduling process helps teams organize tasks, sequence activities and align resources so work progresses in a controlled and predictable way. 1. Define the Job to Be Performed Before anything is scheduled, the team must fully understand the job that will be performed. That means clarifying what work will be done, what goals and objectives need to be achieved and who the stakeholders are. Without this clarity, schedules become disconnected from reality and fail to support execution effectively. 2. Break Down the Job Into Individual Tasks Once the job is clearly defined and understood by both leadership and the team responsible for execution, the next step is to divide the work into manageable tasks. Breaking down the scope of work allows each activity to be assigned, tracked and completed with clarity, reducing confusion and making the schedule easier to follow. 3. Identify Task Dependencies Task dependencies determine the sequence in which work must be performed, giving the job schedule its logical structure. Some tasks cannot begin until others are completed, and recognizing these relationships is essential. There are four main types of task dependencies, and understanding them helps create a realistic and executable schedule. 4. Estimate the Duration of Tasks Estimating task durations allows schedulers to build a realistic project timeline and understand how long the job will take overall. Methods such as expert judgment, historical data, CPM and PERT can be used. Since estimates rarely match actual results, comparing planned durations against real performance is critical during execution. 5. Create a Timeline for the Execution of the Job With task durations defined, the next step is to assign start and end dates to each activity so the full timeline becomes visible. This timeline represents the job schedule that stakeholders will review and rely on. It also establishes a schedule baseline that allows teams to track progress and measure performance throughout execution. 6. Assign Resources for the Completion of Tasks After the timeline is established, resources must be assigned to ensure each task can be completed as planned. This includes human resources such as workers and supervisors, as well as non-human resources like materials, equipment and components. Aligning these inputs with the schedule ensures that work can proceed without interruptions. 7. Estimate Resource Costs Once resources are allocated, the next step is to estimate the costs associated with labor, materials and equipment. These projections provide a financial view of the job schedule and help guide decision-making. Because actual costs often vary from estimates, tracking real expenses is essential to maintain control over the budget. 8. Monitor Progress, Costs and Timelines As work moves forward, performance must be tracked against the original plan to keep the job on course. Reviewing progress, timelines and costs together allows teams to identify deviations early and take corrective action. Continuous monitoring ensures that adjustments are based on real data rather than assumptions, keeping execution aligned with expectations. What Tools Can Be Used for Making a Job Schedule? Different tools can be used to build and manage a job schedule depending on the complexity of the work and the level of control required. The right tool helps teams visualize tasks, organize timelines and coordinate resources without losing track of dependencies or deadlines. Gantt Charts Gantt charts are one of the most effective tools for building a job schedule because they visually map tasks across a timeline. Teams can see start and end dates, task durations and dependencies in one place. This makes it easier to sequence work, adjust schedules and quickly understand how delays in one task affect the overall timeline. /wp-content/uploads/2023/01/Gantt-Manufacturing-Light-2554x1372-1-1600x860.png Kanban Boards Kanban boards help teams manage a job schedule by organizing tasks into visual columns that represent different stages of work. As tasks move from one stage to another, teams can track progress in real time. This approach is especially useful for managing workflows that require flexibility and continuous updates rather than rigid timelines. /wp-content/uploads/2023/01/Kanban-Manufacturing-Light-2554x1372-1-1600x860.png Task Lists Task lists provide a simple way to create and manage a job schedule by outlining tasks, deadlines and assigned resources in a structured format. They are easy to update and ideal for smaller jobs or teams that do not need complex scheduling tools. With clear priorities and deadlines, task lists help keep work organized and on track. /wp-content/uploads/2024/05/Sheet-light-mode-punch-list-construction-custom-columns-costs-hours--1600x875.png Types of Job Scheduling Different scheduling approaches are used depending on deadlines, resource availability and how work flows through an operation. Choosing the right method helps teams structure timelines, prioritize tasks and adapt to constraints without disrupting execution. Forward Job Scheduling Forward job scheduling is a scheduling method used to plan tasks from the present time into the future based on available resources. It is commonly used when work can begin immediately and the goal is to complete jobs as early as possible. Tasks are scheduled in sequence as resources become available, often resulting in earlier completion but potential idle time between activities. Backward Job Scheduling Backward job scheduling is a scheduling method used to plan tasks by starting from a fixed deadline and working backward. It is commonly used when delivery dates are predetermined and meeting them is the priority. Tasks are scheduled as late as possible without delaying completion, reducing idle time but requiring accurate duration estimates. Job Shop Scheduling Job shop scheduling is a scheduling method used to organize tasks across multiple jobs that follow different workflows and sequences. It is commonly used in environments where each job has unique requirements and must pass through shared resources. This approach requires careful coordination to manage resource conflicts and maintain efficient task sequencing. Batch Job Scheduling Batch job scheduling is a scheduling method used to group similar tasks and process them together within a defined time period. It is commonly used when tasks share the same requirements or resources and can be executed in cycles. Grouping work into batches improves efficiency by reducing setup time and optimizing resource usage. Free Job Scheduling Templates We’ve created over 100 free project management templates for Excel, Word and Google Sheets. Here are some that can help with job scheduling. Gantt Chart Template This Gantt chart template helps plan and visualize job schedules by mapping tasks, timelines and dependencies, making it easier to track progress, coordinate resources and keep work aligned with deadlines. Critical Path Template This critical path template identifies the sequence of tasks that directly impact completion time, helping teams prioritize critical activities, reduce delays and maintain control over project timelines and execution. PERT Chart Template This PERT chart template helps estimate task durations and visualize dependencies, allowing teams to analyze uncertainty, plan realistic schedules and improve decision-making when managing complex job scheduling scenarios. ProjectManager Is a Robust Job Scheduling Software ProjectManager is an online project management solution that provides a complete set of work planning, scheduling and tracking tools, including Gantt charts, kanban boards, task lists and real-time dashboards and reports. With these features, teams across industries can build detailed job schedules, assign resources and monitor progress, costs and timelines. ProjectManager also delivers AI-powered project insights to support better decision-making and connects with over 100 tools like Microsoft Project, Acumatica and Power BI. With its open API and wide range of integrations, organizations can seamlessly link ProjectManager to their existing systems. Watch the video below to learn more! Related Job Management Content How to Make a Job Cost Report for Construction Job Card Template What Is Job Costing? How to Make a Job Cost Sheet (Example Included) 10 Best Job Tracking Software of 2026 (Free & Paid) If you need a tool to help you manage projects, then signup for our software now at ProjectManager. Our online software helps teams across industries plan, track and oversee projects as they unfold. Sign up for a free 30-day trial today! The post Job Scheduling 101: Making a Job Schedule appeared first on ProjectManager. View the full article

Term financing is a structured funding option that gives businesses a lump sum of capital to invest in growth or significant projects. You’ll repay this amount over a set period, often through fixed or variable payments that include interest. This type of financing can be advantageous for long-term financial planning, but it’s crucial to understand its various types and features. What should you consider before applying for this form of financing? Key Takeaways Term financing provides a lump sum of cash that is repaid over a set period through regular payments, often requiring collateral. It includes various loan types: short-term, medium-term, long-term, and specialized loans like balloon or step-up repayment loans. The approval process assesses creditworthiness, requiring strong financial statements and an evaluation of collateral. Repayment structures are fixed, with payments typically made monthly or quarterly, depending on the loan duration. Term financing is suitable for significant investments, predictable revenue streams, and consolidating high-interest debts. What Is Term Financing? Term financing is an essential funding option that provides businesses with a lump sum of cash, which they repay over a set period through regular payments. This financing can be categorized into different types, such as term loan A versus term loan B, depending on the structure and terms. Term loans typically require collateral, which may include business assets or personal guarantees, and the approval process is rigorous to evaluate creditworthiness. The duration of term financing varies; short-term loans last less than a year, whereas intermediate-term loans span one to three years, and long-term loans can extend from three to 25 years. Interest rates can be fixed or variable, and costs are reflected in the annual percentage rate (APR), including any fees. Businesses often use term financing for significant investments in fixed assets, like equipment purchases and operational expansions, making it a critical option for growth. Key Features of Term Financing When considering financing options, comprehension of the key features of term financing can greatly improve your decision-making process. Term financing offers distinct characteristics that can help you manage your business’s financial needs effectively: Provides a lump sum of capital upfront, which you repay over a set period, usually with fixed or variable interest rates. Features structured repayment schedules, typically with monthly or quarterly payments that include both principal and interest. Offers a range of loan durations: short-term (less than a year), intermediate-term (one to three years), and long-term (three to 25 years). Often requires collateral, like business or personal assets, which can lower interest rates and reduce lender risk. Understanding these key features allows you to make informed choices and better plan your finances, ensuring that your business remains on a stable path throughout the loan period. Types of Term Financing Several types of term financing are available, each designed to meet specific business needs and timelines. Comprehending these options can help you make informed decisions for your business. Type of Loan Duration Purpose Short-Term Loans A few months to 2 years Immediate needs like inventory purchases Medium-Term Loans 2 to 5 years Equipment purchases or modest expansions Long-Term Loans Over 5 years (up to 25) Significant investments such as real estate Balloon Loans Varies Smaller payments with a large final payment Step-Up Repayment Loans Varies Lower initial payments that increase over time Short-Term Financing Explained Short-term financing is a valuable option for businesses needing quick access to capital to address immediate financial challenges. Typically lasting less than one year, this type of financing is perfect for situations like: Seasonal inventory purchases Urgent operational expenses Managing cash flow fluctuations Covering unexpected costs While short-term loans provide rapid approval with less documentation, they often come with higher monthly payments and steeper interest rates. This makes them more suitable for businesses that can rely on consistent near-term revenue, ensuring that repayments won’t strain cash flow. Nevertheless, it’s vital to manage these loans carefully, as accumulating high-interest costs can pose risks if not handled properly. Overall, short-term financing can deliver quick relief, but comprehending its implications is key for maintaining financial health. Intermediate-Term Financing Explained Intermediate-term financing serves as a practical solution for businesses seeking to fund specific projects or acquisitions over a period of one to three years. This type of financing is commonly used for purchasing equipment or modest expansions. Repayment typically occurs through manageable monthly payments based on your business’s cash flow, making it easier to budget. Interest rates for intermediate-term loans are typically lower than those for short-term loans, providing a cost-effective financing option. Nevertheless, many lenders require collateral, which might include business assets or personal guarantees to reduce risk. The structured repayment schedule aids in effective cash flow management throughout the loan duration. Here’s a quick overview of intermediate-term financing: Feature Description Loan Duration 1 to 3 years Repayment Frequency Monthly payments Interest Rates Typically lower than short-term loans Collateral Requirements Business assets or personal guarantees Typical Uses Equipment purchase, modest expansions Long-Term Financing Explained Long-term financing is a crucial option for businesses aiming to invest considerably in their future without the immediate pressure of repayment. Typically, these loans have repayment periods ranging from three to 25 years, allowing for significant investments in fixed assets. Here are some key points to reflect on: Loans often require collateral, such as business assets or personal guarantees, to secure the lender’s investment. Interest rates can be fixed or variable, providing predictability in monthly payments. Maximum loan terms vary; real estate loans may extend up to 25 years, whereas other types may be shorter, around 10 years. Long-term financing is ideal for substantial expenditures like purchasing commercial real estate, equipping facilities, or funding major business expansions. Benefits of Term Financing Term financing offers numerous advantages that can greatly benefit businesses looking to invest in their growth. It provides access to substantial capital, enabling you to make significant investments in equipment, real estate, or expansion projects that mightn’t be feasible with smaller funding options. With predictable repayment schedules, term financing aids your budgeting and cash flow management, allowing you to plan for fixed monthly or quarterly payments. Typically, it offers lower interest rates compared to other financing methods, such as credit cards, which can help reduce your overall borrowing costs. By securing larger amounts of capital through term financing, you can facilitate growth initiatives, like entering new markets or upgrading technology, enhancing your competitiveness. Finally, successfully repaying term loans can positively impact your credit score, creating opportunities for future financing at more favorable terms. Drawbacks of Term Financing When considering term financing, you should be aware of several drawbacks that could impact your business. First, the need for collateral means you might risk valuable assets if you can’t make payments. Furthermore, rigid repayment structures and qualification challenges can add stress to your financial planning, especially during tough economic times. Collateral Risks Involved Collateral risks are a significant concern for businesses evaluating term financing, as they often require assets or personal guarantees to secure the loan. If you default, the lender can seize these assets, which might jeopardize your operations. Here are some key risks to bear in mind: You could lose vital business assets or even personal property. Your access to financing may be limited if you lack sufficient collateral. Defaulting on a loan could lead to severe personal financial repercussions. Strained cash flow from rigid repayment terms can increase the risk of default during tough times. Understanding these risks is important before committing to term financing to guarantee that you’re making informed decisions for your business’s future. Rigid Repayment Structures Despite having a structured repayment plan may seem beneficial, the rigidity of these schedules in term financing can pose significant challenges for your business. Fixed repayment schedules require consistent monthly or quarterly payments, which might strain your cash flow during slower periods. This lack of flexibility makes it tough to adjust payments based on fluctuating revenues or unexpected expenses. If you encounter financial difficulties, the obligation to make regular payments can increase stress and lead to default risks. Furthermore, prepayment penalties could limit your ability to adjust your repayment strategy. Strict repayment terms can likewise hinder your chances of securing additional financing, as lenders may view existing debt as a risk factor. Challenge Impact on Business Fixed Repayment Schedules Strained cash flow Lack of Flexibility Difficulty adjusting payments Default Risks Increased financial stress Qualification Challenges for Borrowers Securing term financing often involves maneuvering through a complex terrain of qualification challenges that can be overwhelming for many borrowers. You may encounter several hurdles, including: Stringent qualification requirements, demanding a strong credit history and solid financial statements. Collateral demands, which could put your business assets or personal guarantees at risk if you default. Difficulties for startups and newer businesses, often struggling because of a lack of established creditworthiness. Lengthy approval processes that can deter you, especially if you need quick access to capital. These challenges can make obtaining term financing an intimidating experience, as you navigate strict criteria and potential risks that may affect your financial stability. How Term Financing Works When you pursue term financing, the process begins with an application and approval phase, where lenders assess your financial health and creditworthiness. Once approved, you’ll receive a lump sum that you’ll repay through a structured schedule of fixed or variable payments over a set period, which can range from a few months to several years. Moreover, comprehending interest rates and any associated fees will help you grasp the total cost of your loan, ensuring you’re fully aware of your financial obligations. Application and Approval Process To obtain term financing, you’ll need to navigate a structured application and approval process designed to assess your creditworthiness and the financial health of your business. Typically, you’ll need to gather and submit: Financial statements Business plans Personal guarantees Tax returns and cash flow projections The lender reviews your application, focusing on these documents to determine your business’s viability. If approved, they’ll present you with terms that outline the loan amount, interest rate, repayment schedule, and any associated fees. Once you accept these terms, the lender disburses the agreed lump sum into your bank account, allowing you to utilize the funds for your planned business activities. This process is essential for ensuring both parties understand their commitments. Repayment Structure Explained Comprehending the repayment structure of term financing is crucial for managing your business’s financial obligations effectively. Typically, you’ll face fixed monthly or quarterly payments that include both principal and interest over a set period. The repayment schedule is established at the loan’s inception, varying by loan type—short-term loans usually require payments in less than a year, whereas long-term loans can extend up to 25 years. Here’s a quick overview of common repayment structures: Loan Term Payment Frequency Duration Short-term Monthly Medium-term Quarterly 1-5 years Long-term Monthly 5-25 years Flexible option Varies Depends on agreement Understanding this structure helps you plan your cash flow effectively. Interest Rates Overview Interest rates play a pivotal role in how term financing works, impacting the overall cost of borrowing. When you consider a term loan, you’ll typically encounter fixed or variable interest rates, which depend on your creditworthiness and market conditions at the time of your loan agreement. Here are some key points to remember: Interest rates for term loans are typically lower than those for credit cards. Monthly or quarterly payments include both principal and interest, with interest decreasing over time. Prepayment penalties may apply if you pay off the loan early, particularly for longer maturities. The Annual Percentage Rate (APR) provides a thorough view of the loan’s overall cost, combining interest and additional fees. Understanding these factors helps you make informed borrowing decisions. When to Consider Term Financing When should you evaluate term financing for your business? If you need significant capital for long-term investments, like purchasing equipment or broadening operations, term financing may be a good fit. It allows predictable repayment over time. Furthermore, if your business has a stable revenue stream, you can support consistent monthly or quarterly payments without straining cash flow. Term financing is also helpful for consolidating high-interest debts into a single payment, potentially lowering interest rates. In addition, if you have a solid business plan and strong financial statements, term loans can provide access to larger sums of capital. Finally, businesses financing real estate purchases or major renovations should contemplate long-term term loans, which can extend repayment periods up to 25 years. When to Evaluate Term Financing Benefits Significant long-term investments Predictable repayment Stable revenue stream Support for consistent payments Debt consolidation Lower overall interest rates Real estate financing Extended repayment terms Tips for Applying for Term Financing When applying for term financing, it’s vital to prepare fundamental financial documentation, like tax returns and bank statements, to showcase your business’s creditworthiness. Furthermore, consider applying with multiple lenders so you can compare interest rates, terms, and fees, which may lead to better financing options. Prepare Financial Documentation Applying for term financing requires careful preparation of financial documentation that showcases your business’s financial health and stability. To improve your chances of approval, gather the following crucial documents: Recent tax returns, profit and loss statements, and balance sheets to demonstrate financial health. A detailed business plan outlining how you’ll use the loan, projected cash flow, and anticipated growth. Personal financial documentation, including tax returns and credit history, as many lenders require personal guarantees. Existing loan documentation to illustrate current debt obligations, helping lenders assess overall financial stability and repayment capacity. Compare Multiple Lenders Securing the right term financing requires a careful evaluation of various lenders to identify the best fit for your business. Gather quotes from at least three lenders to compare interest rates, repayment terms, and fees. Remember, it’s not just about the interest rate; consider the total loan cost, including origination fees and any prepayment penalties. Each lender has different qualification requirements, which can affect your approval chances based on your financial health. Review the fine print in loan agreements for covenants that may impact your operations. Fortifying your application with financial documents like tax returns and cash flow statements can greatly improve your credibility. Lender Interest Rate Fees Repayment Terms Lender A 5.5% $500 5 years Lender B 6.0% $300 7 years Lender C 5.8% $400 6 years Frequently Asked Questions What Is Term Financing? Term financing is a borrowing method where you receive a lump sum from a lender, which you repay over a set period. This type of financing is ideal for large purchases, like equipment or real estate. The repayment includes both principal and interest, making it easier for you to plan your finances. Typically, you’ll need to provide collateral and undergo a credit assessment to secure the loan, which helps mitigate lender risk. Is a Term Loan Good or Bad? A term loan can be both good and bad, depending on your business’s financial situation. It offers predictable monthly payments and often lower interest rates, which can be appealing for long-term investments. Nevertheless, it may require collateral, risking your assets if you fail to repay. Furthermore, the fixed repayment schedule can strain cash flow during slow periods, making it less suitable for short-term needs. Assess your stability and purpose before deciding. What Is Better, a Term Loan or a Line of Credit? Choosing between a term loan and a line of credit depends on your needs. If you’re making a large, one-time investment, a term loan may be better because of its lower interest rates and structured repayment schedule. On the other hand, if you need flexible access to funds for ongoing expenses or cash flow management, a line of credit provides that adaptability. Assess your financial goals and choose the option that aligns best with your situation. Can Term Loans Be Paid off Early? Yes, you can often pay off term loans early, but it depends on your specific loan agreement. Many loans allow for early repayment without penalties, which can help reduce overall interest costs. Nonetheless, some long-term loans may impose prepayment fees if paid off too soon, especially those with maturities of 15 years or more. Always review your loan terms carefully to understand any potential fees or restrictions regarding early payoff options. Conclusion In conclusion, term financing is a structured funding option that provides businesses with the capital needed for significant investments. By comprehending its key features, types, and potential drawbacks, you can make informed decisions about whether it’s right for your financial needs. When applying, guarantee you present a strong financial profile and a clear repayment plan. Finally, term financing can support your business growth when used strategically and responsibly. Image via Google Gemini and ArtSmart This article, "What Is Term Financing and How Does It Work?" was first published on Small Business Trends View the full article

Term financing is a structured funding option that gives businesses a lump sum of capital to invest in growth or significant projects. You’ll repay this amount over a set period, often through fixed or variable payments that include interest. This type of financing can be advantageous for long-term financial planning, but it’s crucial to understand its various types and features. What should you consider before applying for this form of financing? Key Takeaways Term financing provides a lump sum of cash that is repaid over a set period through regular payments, often requiring collateral. It includes various loan types: short-term, medium-term, long-term, and specialized loans like balloon or step-up repayment loans. The approval process assesses creditworthiness, requiring strong financial statements and an evaluation of collateral. Repayment structures are fixed, with payments typically made monthly or quarterly, depending on the loan duration. Term financing is suitable for significant investments, predictable revenue streams, and consolidating high-interest debts. What Is Term Financing? Term financing is an essential funding option that provides businesses with a lump sum of cash, which they repay over a set period through regular payments. This financing can be categorized into different types, such as term loan A versus term loan B, depending on the structure and terms. Term loans typically require collateral, which may include business assets or personal guarantees, and the approval process is rigorous to evaluate creditworthiness. The duration of term financing varies; short-term loans last less than a year, whereas intermediate-term loans span one to three years, and long-term loans can extend from three to 25 years. Interest rates can be fixed or variable, and costs are reflected in the annual percentage rate (APR), including any fees. Businesses often use term financing for significant investments in fixed assets, like equipment purchases and operational expansions, making it a critical option for growth. Key Features of Term Financing When considering financing options, comprehension of the key features of term financing can greatly improve your decision-making process. Term financing offers distinct characteristics that can help you manage your business’s financial needs effectively: Provides a lump sum of capital upfront, which you repay over a set period, usually with fixed or variable interest rates. Features structured repayment schedules, typically with monthly or quarterly payments that include both principal and interest. Offers a range of loan durations: short-term (less than a year), intermediate-term (one to three years), and long-term (three to 25 years). Often requires collateral, like business or personal assets, which can lower interest rates and reduce lender risk. Understanding these key features allows you to make informed choices and better plan your finances, ensuring that your business remains on a stable path throughout the loan period. Types of Term Financing Several types of term financing are available, each designed to meet specific business needs and timelines. Comprehending these options can help you make informed decisions for your business. Type of Loan Duration Purpose Short-Term Loans A few months to 2 years Immediate needs like inventory purchases Medium-Term Loans 2 to 5 years Equipment purchases or modest expansions Long-Term Loans Over 5 years (up to 25) Significant investments such as real estate Balloon Loans Varies Smaller payments with a large final payment Step-Up Repayment Loans Varies Lower initial payments that increase over time Short-Term Financing Explained Short-term financing is a valuable option for businesses needing quick access to capital to address immediate financial challenges. Typically lasting less than one year, this type of financing is perfect for situations like: Seasonal inventory purchases Urgent operational expenses Managing cash flow fluctuations Covering unexpected costs While short-term loans provide rapid approval with less documentation, they often come with higher monthly payments and steeper interest rates. This makes them more suitable for businesses that can rely on consistent near-term revenue, ensuring that repayments won’t strain cash flow. Nevertheless, it’s vital to manage these loans carefully, as accumulating high-interest costs can pose risks if not handled properly. Overall, short-term financing can deliver quick relief, but comprehending its implications is key for maintaining financial health. Intermediate-Term Financing Explained Intermediate-term financing serves as a practical solution for businesses seeking to fund specific projects or acquisitions over a period of one to three years. This type of financing is commonly used for purchasing equipment or modest expansions. Repayment typically occurs through manageable monthly payments based on your business’s cash flow, making it easier to budget. Interest rates for intermediate-term loans are typically lower than those for short-term loans, providing a cost-effective financing option. Nevertheless, many lenders require collateral, which might include business assets or personal guarantees to reduce risk. The structured repayment schedule aids in effective cash flow management throughout the loan duration. Here’s a quick overview of intermediate-term financing: Feature Description Loan Duration 1 to 3 years Repayment Frequency Monthly payments Interest Rates Typically lower than short-term loans Collateral Requirements Business assets or personal guarantees Typical Uses Equipment purchase, modest expansions Long-Term Financing Explained Long-term financing is a crucial option for businesses aiming to invest considerably in their future without the immediate pressure of repayment. Typically, these loans have repayment periods ranging from three to 25 years, allowing for significant investments in fixed assets. Here are some key points to reflect on: Loans often require collateral, such as business assets or personal guarantees, to secure the lender’s investment. Interest rates can be fixed or variable, providing predictability in monthly payments. Maximum loan terms vary; real estate loans may extend up to 25 years, whereas other types may be shorter, around 10 years. Long-term financing is ideal for substantial expenditures like purchasing commercial real estate, equipping facilities, or funding major business expansions. Benefits of Term Financing Term financing offers numerous advantages that can greatly benefit businesses looking to invest in their growth. It provides access to substantial capital, enabling you to make significant investments in equipment, real estate, or expansion projects that mightn’t be feasible with smaller funding options. With predictable repayment schedules, term financing aids your budgeting and cash flow management, allowing you to plan for fixed monthly or quarterly payments. Typically, it offers lower interest rates compared to other financing methods, such as credit cards, which can help reduce your overall borrowing costs. By securing larger amounts of capital through term financing, you can facilitate growth initiatives, like entering new markets or upgrading technology, enhancing your competitiveness. Finally, successfully repaying term loans can positively impact your credit score, creating opportunities for future financing at more favorable terms. Drawbacks of Term Financing When considering term financing, you should be aware of several drawbacks that could impact your business. First, the need for collateral means you might risk valuable assets if you can’t make payments. Furthermore, rigid repayment structures and qualification challenges can add stress to your financial planning, especially during tough economic times. Collateral Risks Involved Collateral risks are a significant concern for businesses evaluating term financing, as they often require assets or personal guarantees to secure the loan. If you default, the lender can seize these assets, which might jeopardize your operations. Here are some key risks to bear in mind: You could lose vital business assets or even personal property. Your access to financing may be limited if you lack sufficient collateral. Defaulting on a loan could lead to severe personal financial repercussions. Strained cash flow from rigid repayment terms can increase the risk of default during tough times. Understanding these risks is important before committing to term financing to guarantee that you’re making informed decisions for your business’s future. Rigid Repayment Structures Despite having a structured repayment plan may seem beneficial, the rigidity of these schedules in term financing can pose significant challenges for your business. Fixed repayment schedules require consistent monthly or quarterly payments, which might strain your cash flow during slower periods. This lack of flexibility makes it tough to adjust payments based on fluctuating revenues or unexpected expenses. If you encounter financial difficulties, the obligation to make regular payments can increase stress and lead to default risks. Furthermore, prepayment penalties could limit your ability to adjust your repayment strategy. Strict repayment terms can likewise hinder your chances of securing additional financing, as lenders may view existing debt as a risk factor. Challenge Impact on Business Fixed Repayment Schedules Strained cash flow Lack of Flexibility Difficulty adjusting payments Default Risks Increased financial stress Qualification Challenges for Borrowers Securing term financing often involves maneuvering through a complex terrain of qualification challenges that can be overwhelming for many borrowers. You may encounter several hurdles, including: Stringent qualification requirements, demanding a strong credit history and solid financial statements. Collateral demands, which could put your business assets or personal guarantees at risk if you default. Difficulties for startups and newer businesses, often struggling because of a lack of established creditworthiness. Lengthy approval processes that can deter you, especially if you need quick access to capital. These challenges can make obtaining term financing an intimidating experience, as you navigate strict criteria and potential risks that may affect your financial stability. How Term Financing Works When you pursue term financing, the process begins with an application and approval phase, where lenders assess your financial health and creditworthiness. Once approved, you’ll receive a lump sum that you’ll repay through a structured schedule of fixed or variable payments over a set period, which can range from a few months to several years. Moreover, comprehending interest rates and any associated fees will help you grasp the total cost of your loan, ensuring you’re fully aware of your financial obligations. Application and Approval Process To obtain term financing, you’ll need to navigate a structured application and approval process designed to assess your creditworthiness and the financial health of your business. Typically, you’ll need to gather and submit: Financial statements Business plans Personal guarantees Tax returns and cash flow projections The lender reviews your application, focusing on these documents to determine your business’s viability. If approved, they’ll present you with terms that outline the loan amount, interest rate, repayment schedule, and any associated fees. Once you accept these terms, the lender disburses the agreed lump sum into your bank account, allowing you to utilize the funds for your planned business activities. This process is essential for ensuring both parties understand their commitments. Repayment Structure Explained Comprehending the repayment structure of term financing is crucial for managing your business’s financial obligations effectively. Typically, you’ll face fixed monthly or quarterly payments that include both principal and interest over a set period. The repayment schedule is established at the loan’s inception, varying by loan type—short-term loans usually require payments in less than a year, whereas long-term loans can extend up to 25 years. Here’s a quick overview of common repayment structures: Loan Term Payment Frequency Duration Short-term Monthly Medium-term Quarterly 1-5 years Long-term Monthly 5-25 years Flexible option Varies Depends on agreement Understanding this structure helps you plan your cash flow effectively. Interest Rates Overview Interest rates play a pivotal role in how term financing works, impacting the overall cost of borrowing. When you consider a term loan, you’ll typically encounter fixed or variable interest rates, which depend on your creditworthiness and market conditions at the time of your loan agreement. Here are some key points to remember: Interest rates for term loans are typically lower than those for credit cards. Monthly or quarterly payments include both principal and interest, with interest decreasing over time. Prepayment penalties may apply if you pay off the loan early, particularly for longer maturities. The Annual Percentage Rate (APR) provides a thorough view of the loan’s overall cost, combining interest and additional fees. Understanding these factors helps you make informed borrowing decisions. When to Consider Term Financing When should you evaluate term financing for your business? If you need significant capital for long-term investments, like purchasing equipment or broadening operations, term financing may be a good fit. It allows predictable repayment over time. Furthermore, if your business has a stable revenue stream, you can support consistent monthly or quarterly payments without straining cash flow. Term financing is also helpful for consolidating high-interest debts into a single payment, potentially lowering interest rates. In addition, if you have a solid business plan and strong financial statements, term loans can provide access to larger sums of capital. Finally, businesses financing real estate purchases or major renovations should contemplate long-term term loans, which can extend repayment periods up to 25 years. When to Evaluate Term Financing Benefits Significant long-term investments Predictable repayment Stable revenue stream Support for consistent payments Debt consolidation Lower overall interest rates Real estate financing Extended repayment terms Tips for Applying for Term Financing When applying for term financing, it’s vital to prepare fundamental financial documentation, like tax returns and bank statements, to showcase your business’s creditworthiness. Furthermore, consider applying with multiple lenders so you can compare interest rates, terms, and fees, which may lead to better financing options. Prepare Financial Documentation Applying for term financing requires careful preparation of financial documentation that showcases your business’s financial health and stability. To improve your chances of approval, gather the following crucial documents: Recent tax returns, profit and loss statements, and balance sheets to demonstrate financial health. A detailed business plan outlining how you’ll use the loan, projected cash flow, and anticipated growth. Personal financial documentation, including tax returns and credit history, as many lenders require personal guarantees. Existing loan documentation to illustrate current debt obligations, helping lenders assess overall financial stability and repayment capacity. Compare Multiple Lenders Securing the right term financing requires a careful evaluation of various lenders to identify the best fit for your business. Gather quotes from at least three lenders to compare interest rates, repayment terms, and fees. Remember, it’s not just about the interest rate; consider the total loan cost, including origination fees and any prepayment penalties. Each lender has different qualification requirements, which can affect your approval chances based on your financial health. Review the fine print in loan agreements for covenants that may impact your operations. Fortifying your application with financial documents like tax returns and cash flow statements can greatly improve your credibility. Lender Interest Rate Fees Repayment Terms Lender A 5.5% $500 5 years Lender B 6.0% $300 7 years Lender C 5.8% $400 6 years Frequently Asked Questions What Is Term Financing? Term financing is a borrowing method where you receive a lump sum from a lender, which you repay over a set period. This type of financing is ideal for large purchases, like equipment or real estate. The repayment includes both principal and interest, making it easier for you to plan your finances. Typically, you’ll need to provide collateral and undergo a credit assessment to secure the loan, which helps mitigate lender risk. Is a Term Loan Good or Bad? A term loan can be both good and bad, depending on your business’s financial situation. It offers predictable monthly payments and often lower interest rates, which can be appealing for long-term investments. Nevertheless, it may require collateral, risking your assets if you fail to repay. Furthermore, the fixed repayment schedule can strain cash flow during slow periods, making it less suitable for short-term needs. Assess your stability and purpose before deciding. What Is Better, a Term Loan or a Line of Credit? Choosing between a term loan and a line of credit depends on your needs. If you’re making a large, one-time investment, a term loan may be better because of its lower interest rates and structured repayment schedule. On the other hand, if you need flexible access to funds for ongoing expenses or cash flow management, a line of credit provides that adaptability. Assess your financial goals and choose the option that aligns best with your situation. Can Term Loans Be Paid off Early? Yes, you can often pay off term loans early, but it depends on your specific loan agreement. Many loans allow for early repayment without penalties, which can help reduce overall interest costs. Nonetheless, some long-term loans may impose prepayment fees if paid off too soon, especially those with maturities of 15 years or more. Always review your loan terms carefully to understand any potential fees or restrictions regarding early payoff options. Conclusion In conclusion, term financing is a structured funding option that provides businesses with the capital needed for significant investments. By comprehending its key features, types, and potential drawbacks, you can make informed decisions about whether it’s right for your financial needs. When applying, guarantee you present a strong financial profile and a clear repayment plan. Finally, term financing can support your business growth when used strategically and responsibly. Image via Google Gemini and ArtSmart This article, "What Is Term Financing and How Does It Work?" was first published on Small Business Trends View the full article

If you're a long-time Samsung Galaxy user, your messaging app of choice might be Samsung Messages. Despite the company removing the app as a default several years ago, many still rely on it—though not for long. Samsung is shuttering the app in July, marking the end of an era for the Galaxy ecosystem. The app won't be completely useless after this date, as Samsung says that you'll still be able to contact both emergency services and emergency contacts. But aside from these limited scenarios, Samsung Messages will essentially be defunct. As such, all Samsung Messages users need to plan for how they want to continue messaging on their Galaxy. While Samsung hasn't told us which day the app will shut down, we do know it will happen sometime in July. That gives Samsung Messages users just over two months to find other arrangements—including how to move existing texts from Samsung Messages over to a new home. Samsung recommends moving to Google MessagesIn the company's original announcement, Samsung strongly suggested that Samsung Messages users move to Google Messages instead. The company even took the opportunity to tout the advantages of Google Messages over Samsung Messages, including RCS support, AI features, cross-device functionality, and enhanced security features. It is a bit odd to see Samsung pushing a different company's product like this, but it makes sense: For one, Google develops Android, but Samsung has already distanced itself from its messaging app. If it had to plug one app, it might as well be Google's default. Perhaps the biggest perk of choosing Google Messages, however, is that your existing Samsung Messages chats come along with the move. If you care about preserving your message history, this might be the simplest path forward—though it means going all-in on yet another Google product. If you tend to avoid Google apps and services, you have other options, but they might not be as convenient—especially if you're looking to move your messages. How to move from Samsung Messages to Google MessagesAccording to Samsung, the move is relatively straightforward. First, make sure you have Google Messages installed on your Galaxy. When you open it, the app will ask you to make it your default messaging app. To do so, hit "Set default SMS app," choose "Google Messages," then tap "Set as default." Now that the app is your default choice, your Galaxy should automatically begin moving texts from Samsung Messages to Google Messages. Samsung warns that this process can take some time, especially if you have a long message history saved on your device, so don't be alarmed if your messages don't transfer all at once. Google Messages alternatives exist, but may not be as convenientGoogle Messages is far from the only messaging app on Android. You can find any number of simple or feature-filled options on the Play Store, including, of course, Signal, Telegram, and WhatsApp. For basic SMS messaging, however, a few names frequently pop up: Textra, Chomp SMS, and Handcent SMS. These apps should offer a similar basic messaging experience to Samsung Messages, without having to jump to another Google app. Setting any of these as your default messaging app is as simple as the steps for Google Messages above. However, it's not clear if doing so will transfer your message history in the same way. While Google Messages supports an easy transfer, you might not have the same experience setting Textra or Handcent as your default app. As such, you may need to look into third-party backup and transfer services if you want your message history to move apps for certain. By far, SMS Backup & Restore is the app I see most recommended amongst Android users here. While Phone Arena's Aman Kumar found it helped when transferring messages on his Android device, the focus was on a scenario where Google Messages didn't migrate the messages on its own. It should be possible to back up your Samsung Messages with this app and import them to another messaging app, but it isn't as obvious as it should be. View the full article

A reader writes: At my company, we have an instant messaging system. A lot of people will send an initial message that says nothing but “you free?” or “hi.” In addition to making me irrationally annoyed (just tell me what you want already!), I have no idea what the appropriate response is. Is it “yes,” “hello Bob,” “what’s up”? All of these seem terrible. What is appropriate IM protocol? I like to start with, “Do you have time for a question about X?” Or just the question if it’s short because that’s what I’d prefer to receive, but maybe people find this rude? I am aware that I am overthinking this but I also can’t stop overthinking it. I answer this question over at Inc. today, where I’m revisiting letters that have been buried in the archives here from years ago (and sometimes updating/expanding my answers to them). You can read it here. The post is it rude to instant-message someone “hi” with no further context? appeared first on Ask a Manager. View the full article

An incident that starts in ServiceNow is escalated to Jira, so software developers using that tool can start working on a solution. You’ve set up an automation from ServiceNow to Jira that automatically turns the incident into a Jira work item. The developers start working on it. And then? Nothing. None of the work happening in Jira gets sent back to ServiceNow. Frontline agents looking for updates need to ping developers in alternate channels (e.g., chat apps, email). Developers needing additional content send messages to support agents through these same channels, waiting for a reply before any more work gets done. Automations can bridge the gap between tools, but it’s a temporary bridge. It stops as soon as a work item goes through or a single update is pushed over. The problem isn’t that you chose the wrong tool. It’s that the approach you use — trigger-based, one-way automation — is fundamentally incapable of keeping two systems in sync. Here’s why. The trigger-action model was built for notifications (not sync) Popular automation tools like Zapier and Make use the same basic technology. A user chooses a trigger in one tool (e.g., a new ticket being created) and an action in another (e.g., creating a work item in Jira). The tool then repeats that action automatically every time the trigger happens. But as soon as the action is performed, that’s it. Every automation only pairs a single trigger with a single action. That’s why most teams using these tools have multiple automations running between tool pairings. Here’s why that matters in incident response: No relationship: Automations can push an escalated incident from ServiceNow to Jira and create a work item there, but they don’t form any relationships between the two. They’re two copies of the same information, but only the information that was there when the first item was initially created. Priority inconsistency: If the priority of an incident in ServiceNow changes, nothing changes in Jira, and vice-versa. That means as soon as the automation runs its course, context stops flowing between developers and support agents. Automation risks: You can use automation tools to achieve something approximating two-way updates, but that requires multiple automations. At least one to push data from tool A to tool B and at least one more to move data from tool B to tool A. Using multiple automations creates potential risks like infinite loops and silent failures. API update issues: AI updates in either tool you’re automating can break an automation chain. That’s why many of these platforms automatically disable your automations when a long sequence of errors occur, usually due to API changes. Why custom integrations don’t scale either When one-way automation fails, many teams choose to build their own integrations. They’ll either dedicate internal technical resources to do this or work with third-party experts. It’s more expensive than relying on one-way automation tools but, in theory, can lead to a solution that’s a better fit for your workflow. But custom integrations have their own pitfalls. The tools you integrate are constantly changing. API updates don’t affect your custom integrations any less than automation tools. The difference? You’re now responsible for updating your integrations accordingly. The sequence quickly becomes: An integration breaks. You investigate and find out about an API update. You dedicate technical resources to updating your integrations accordingly. You might get more functionality, but there’s a greater total cost of ownership (i.e., the costs you pay for an integration beyond a subscription or contract). And that’s only for API updates. You’ll deal with other ongoing maintenance costs to keep your integrations running smoothly as your workflows evolve. Maintenance is far from the only problem with custom integrations, however. If you’re using custom scripts to bridge the gap, you won’t have the same built-in logic that dedicated two-way sync platforms have. That means you’ll deal with overwritten or duplicated data any time both systems are updated simultaneously. Similarly, your custom scripts don’t have the same security that third-party integration tools do, like access controls, audit trails, and two-factor authentication. That makes them a potential weak point in your security chain. What a stateful bidirectional sync can achieve Stateful synchronization goes beyond automation tools. When an automation tool automatically creates a new work item, it just creates a copy of the original. There’s no link between the two items. Stateful synchronization, on the other hand, builds relationships between work items, continually updating them as you work. A bidirectional stateful sync ensures that happens in both tools. Here’s a breakdown of the differences between automations and two-way, stateful sync. Trigger-based (Zapier, Make)Stateful sync (Unito)Connection typeStateless (fires once per event)Persistent (maintains live link between work items)DirectionOne-way (Tool A → Tool B)Bidirectional (Tool A Tool B)Sync on updateRequires additional automationsAutomaticConflict handlingNone (Risk of infinite loops or overwrites)Rules-based resolutionHistorical dataNew items onlyFull historical data supportField depthLimited (usually one field per automation)Custom field mappingSub-item supportLimitedMaintenanceCan break with API changesNo user-side maintenance A two-way, stateful sync gives support agents and developers complete context when they collaborate, ensuring nothing gets left behind. What this looks like for incident response Let’s use an example of a common incident response workflow to see how a two-way, stateful sync powered by Unito impacts the way your teams work. In this example, ServiceNow is the frontline system, while Jira is where developers work on escalated issues. A priority one incident is logged in ServiceNow. A Unito rule spots the criteria that qualify the incident for escalation (e.g., a specific caller, a certain level of urgency). Unito creates a Jira issue with full context: priority, description, affected customers, SLA timers, and relevant comments. An engineer updates the status in that Jira issue to “In Progress.” Unito syncs that change to ServiceNow automatically, so support agents know the incident is being worked on. After an initial investigation, the engineer adds a comment in Jira describing the cause of the incident. That comment appears in ServiceNow. An agent, after receiving a call from an impacted customer, adds further details in ServiceNow. Unito syncs them to Jira. When developers finish their work, they close the relevant Jira issue. Unito automatically moves matching ServiceNow records to “Resolved.” The SLA timer stops. No manual handoffs required. A one-way automation tool stops at step one. It pushes a ServiceNow record to Jira and that’s it. Any updates or additional context that happens after that needs to be sent through another channel, like email, or copied and pasted manually between tools. Getting started Switching away from a familiar tool can feel risky. You’re not sure what you’re getting into and you don’t want to risk any downtime for essential workflows. But a two-way sync can completely transform the way your teams work, making the leap more than worth it. Ready to optimize your incident response? Meet with our team to see what Unito can do for your workflows. Talk with sales FAQ: One-way automation in incident response Can Zapier do two-way sync? No. Zapier is an automation tool that uses trigger-action logic to push data in one direction. You can build something approximating a two-way sync with Zapier by chaining multiple automations together, so data gets pushed in both directions. But this creates risks like infinite loops, where Zapier automations trigger each other until you stop them manually. It also increases the maintenance required to manage your automations. A true two-way sync platform like Unito handles this natively with conflict resolution and persistent record syncing. How long does it take to replace a Zapier integration with Unito? Unito users set up their first integration in around 12 minutes. Because you can replace several Zaps with a single Unito flow, you can save a ton of time when you make the switch. Additionally, Unito flows don’t require the same kind of ongoing maintenance that Zaps do. What happens to existing data when I switch from Zapier to a sync platform? Unlike most automation solutions, a sync platform can easily detect and sync historical data. That means all the work items and data Zapier moved between tools can be synced with your new sync platform. A single flow between two tools can replace multiple automations, making the transition even smoother. Is stateful sync overkill for simple integrations? A stateful sync maintains a persistent relationship between work items in multiple tools. For workflows like incident response, that ongoing relationship is essential to maintain full context for all teams involved. But for truly simple, one-way transfers (e.g., sending notifications to Slack when a ticket is submitted) than trigger-based automations are perfectly fine. Does bidirectional sync work with ServiceNow and Jira? Yes, Unito offers connectors for both ServiceNow and Jira, allowing you to build integrations between them. You can sync most fields, including priority, status, comments, and custom fields. Unito also supports other popular connectors for incident response, including Azure DevOps, Asana, Zendesk, and HubSpot. View the full article

Oil jumps to $114 as tensions flare up in Middle EastView the full article

...And firms are feeling the strain... By CPA Trendlines Research Staff Go PRO for members-only access to more CPA Trendlines Research. View the full article

...And firms are feeling the strain... By CPA Trendlines Research Staff Go PRO for members-only access to more CPA Trendlines Research. View the full article

In December 2025, the biggest battery maker in the world, CATL, started what it calls the world’s first large-scale deployment of robots in its Luoyang, China factory. Last week, the State Grid Corporation of China began its $1 billion 2026 plan to deploy a humanoid army to maintain its grid autonomously. And just a few days ago, at the other side of the East China Sea, Japan Airlines announced the beginning of a test program of humanoids to carry luggage at airports. While we listen to Elon Musk tell us how magical and civilization-changing Tesla’s Optimus robots are, Asian countries are light-years ahead of us, deploying humanoids to do their bidding in real-life scenarios. There are two main reasons humanoids are happening much faster in Asia than in the U.S. or Europe. One of the reasons is purely economic: China is always looking at cost optimization. For years, industrial robotics has been a main driver in the country’s quest to reduce manufacturing prices and times. China’s dark factories, where fully automated robots churn out devices with the lights off because they don’t need them, are famous. “China is by far the world’s largest robotics market in 2024. It represents 54% of global deployments. The latest figures show that 295,000 industrial robots have been installed in the country, the highest annual total on record,” says the International Federation of Robotics in its World Robotics 2025 Report. So humanoids—bipeds or wheeled—are the logical next step. This is especially true as AI models begin to understand the world, and companies realize that a huge market awaits for general and specialized tasks that only human-like robots can properly do. The other reason is demographic: Japan’s population is quickly getting older, while in China, fewer people want to do hard and dangerous work like maintaining power grids. Japan became the world’s first “super-aged” society back in 2006, and as of 2026, over 30% of its population is aged 65 or older. The country’s total population is currently shrinking by nearly one million people per year. The sheer lack of young, able-bodied workers makes manual labor roles in logistics and aviation impossible to fill, forcing the country into reliance on machines. In China, the issue is slightly different, but equally pressing. While China has a massive population, its traditional blue-collar workforce is aging out. An estimated 300 million migrant workers—the people who physically built the country’s modern infrastructure and power grids over the last four decades—are now approaching retirement age. Younger generations are simply not stepping in to replace them in highly dangerous roles, like maintaining live 10,000-volt power lines. Facing a critical workforce shortage in the trades, China has chosen to deploy robotic electricians that operate 50% faster than human crews with a 98% success rate. Business and political drive At the same time, China and Japan have the means and the willpower to make this happen. The former controls the majority of the global supply chain to make humanoids—and robots of any kind—in huge quantities. Meanwhile, the U.S. can’t even produce magnets—a key component to robotics—without reliance on its rival. Japan, with its aging population in mind, has been working on robotics for years and now is making the jump from small deployments in hospital facilities to large-scale industrial deployment of humanoids. The country’s move into aviation logistics is born of sheer demographic desperation. According to The Guardian, the country will require more than 6.5 million foreign workers by 2040 just to hit its economic growth targets, but it faces intense political pressure to limit immigration. The solution is mechanical. Starting this May, a 130-centimeter-tall humanoid manufactured by the Chinese company Unitree will begin hauling passenger luggage and cargo on the tarmac of Haneda airport, a massive hub that handles over 60 million passengers annually. These units can operate continuously for two to three hours. Tomohiro Uchida, President of GMO AI and Robotics—which is collaborating on the pilot alongside JAL Ground Service—says that while airports look highly automated, “their back-end operations still rely heavily on human labor and face serious labor shortages.” While Japan is testing the waters to plug a gaping demographic hole, China is diving headfirst into mass industrialization. The State Grid Corporation of China has allocated 6.8 billion yuan (roughly $1 billion) to purchase approximately 8,500 robots this year alone. While that order includes 5,000 quadruped robot dogs to examine power lines in mountainous terrain, they are actively introducing humanoid and dual-arm models to execute dangerous maintenance duties on the ultra-high-voltage grid. Across all Chinese utility companies, spending on AI robotics is projected to exceed 10 billion yuan in 2026. The growth of embodied AI is about to explode in the Asian country—with total output in China reaching 2.1 million units by 2030—says Zheshang Securities. It’s only the beginning of the future, as the financial firm describes: “We believe 2026 will be the year humanoid robots achieve mass production. The future has arrived.” A robotic army marches towards automation That future is already clocking in at CATL’s Zhongzhou facility. Operating via a Vision-Language-Action AI model, robotics company Spirit AI’s Xiaomo humanoids visually identify shifted plug positions and instantaneously correct their grip to connect high-voltage battery components with a 99% success rate. Not only is this a dangerous task for human operators—who obviously don’t want to get electrocuted—but, because they don’t take breaks, a single humanoid handles a daily workload three times larger than a human employee. CATL is not alone in this industrial shift. A massive ecosystem of highly funded, specialized manufacturers is fueling these deployments. Unitree Robotics—the Hangzhou-based firm supplying Japan Airlines—recently completed its Series C funding, pushing its valuation past $1.6 billion. The company recorded over 5,500 shipments in 2025 and recently filed for a $610 million IPO on the Shanghai Stock Exchange to aggressively scale manufacturing. AgiBot is another purely-robotic play in China. Founded in 2023, the Shanghai-based company shipped over 5,100 humanoid robots in 2025 alone, securing the number one spot globally in both humanoid shipment volume and market share. By early April 2026, AgiBot officially rolled its 10,000th unit off the production line, cementing its position as the undisputed global leader in commercial humanoid manufacturing. For context, American counterparts like Figure AI, Agility Robotics, and Tesla shipped a fraction of the Chinese humanoid industry numbers. Same with Ubtech Robotics, which has introduced its Walker S2 industrial humanoid. It features an autonomous battery swapping system that allows it to operate continuously. Ubtech reported a staggering 2,200 percent surge in full-size humanoid robot revenue in 2025, successfully hitting its target of delivering 500 units by year’s end, and actively placing hundreds on the factory floors of BYD, Geely, and Foxconn. Ubtech has amassed cumulative orders exceeding 1.4 billion yuan and is currently scaling its manufacturing capacity with a target of 10,000 units annually. But the humanoid push doesn’t stop at these specialized robotic startups. Other tech and car brands are quickly pivoting to embodied AI as well. Xpeng just broke ground in the first quarter of 2026 on a 1.2 million-square-foot production facility in Guangzhou that will build its viral Iron humanoid robots by year’s end. Xiaomi is embracing robotics, too. Its CEO Lei Jun recently announced that the company’s humanoids have successfully completed autonomous trial operations on their EV assembly lines, maintaining a 90% success rate when installing self-tapping nuts on car floors within a 76-second window. Xiaomi plans to deploy these machines in large numbers across its production facilities by 2030. Supply chain and more China is clearly ahead and that’s because, in addition to having the political and economic will, they have the manufacturing power to make it happen. The same reason why American giants like Tesla will struggle to compete with this robotic army that Beijing is pushing full steam ahead: China fully dominates the supply chain. The center of which is in Shenzhen, a hyper-concentrated manufacturing hub that acts as the world’s primary robotics forge. By the end of 2025, Shenzhen manufactured nearly 8 million service robots—a broad category that includes logistics bots, cleaners, and the foundation for more complex humanoids. This staggering volume accounted for 43% of China’s total national output, pushing the city’s robotics industry value past $35.4 billion. Yang Qian, the chief operating officer of X Square Robot, says that this local supply chain advantage means “custom parts can be delivered in days, compared with months overseas.” He adds that iteration costs in Shenzhen are “only a tenth of those abroad.” American manufacturers are currently choking on their lack of a domestic supply chain. It’s not only that the Chinese have more experience and manufacturing power. You only have to focus on one of many critical bottlenecks: rare-earth magnets. A single Tesla Optimus humanoid requires up to eight pounds of Neodymium-Iron-Boron magnets to power its 40-plus servo motors. When Beijing halted exports of these materials on April 4, 2025—after The President started his tariff war against China—Optimus production hit a brick wall. Anonymous sources within the Optimus supply chain confirmed to AInvest that Tesla capped its inventory at roughly 1,000 units, stating that with the procurement freeze, Musk’s goal of producing 5,000 units this year is “now largely unattainable.” In a recent podcast recorded at Nvidia’s GTC event in San Jose, CEO Jensen Huang warned that the U.S. robotics industry will be forced to rely on China. “I think China is formidable,” Huang said. “The reason for that is because their microelectronics, motors, rare earth and magnets—which are foundational to robotics—are the world’s best. So in a lot of ways, our robotics industry relies deeply on their ecosystem and their supply chain.” Huang added that, while the U.S. practically invented robotics, then the country got “tired and exhausted” waiting for the necessary AI “brain” technology to emerge, allowing China to seize the manufacturing advantage. The problem is that, while the U.S. government is frantically trying to prop up a domestic magnet supply chain through companies like MP Materials, China is also advancing in the AI models that humanoid robots use, matching and even surpassing its American counterparts. If Washington and Silicon Valley don’t spend more money in becoming independent from China as fast as possible, America will be stuck watching Elon Musk’s home videos while China actually builds the robotic workforce of the future to solve real problems, today. View the full article

Does your firm have the right mix? By Domenick J. Esposito 8 Steps to Great Go PRO for members-only access to more Dom Esposito. View the full article

Does your firm have the right mix? By Domenick J. Esposito 8 Steps to Great Go PRO for members-only access to more Dom Esposito. View the full article

Willie Simon stood outside the Memphis motel where Rev. Martin Luther King, Jr. was assassinated in 1968, now a museum dedicated to the Civil Rights Movement. Days after the U.S. Supreme Court gutted a key provision of the Voting Rights Act, Simon feared what the decision would mean not just for Black Americans like himself but an entire country where the political guardrails seem to be coming apart. Simon, who leads the Shelby County Democratic Party in Tennessee, said the court’s conservative majority set a precedent that if you’re “not in the in-crowd group, they can just erase us.” By weakening a requirement that states draw congressional districts in a way that gives minorities an opportunity to control their own fate, the court escalated the nationwide redistricting war that has seen Democrats and Republicans casting aside decades of tradition in hopes of gaining an edge over the competition. New sessions are scheduled to begin this week in two Republican-controlled states to eliminate U.S. House districts represented by Democrats, and there’s more on the horizon. It’s the latest example of how the American democratic experiment has been pushed to the breaking point in the decade since Donald The President rose to power. Extreme rhetoric has become commonplace. There’s been a spike in political violence and a rash of assassinations. Five years after the Jan. 6 attack on the U.S. Capitol, The President’s allies are trying to harness the same falsehoods about voter fraud to reshape elections. The rules and norms that once helped smooth over an unruly country’s vast differences have given way to a race for power at all costs. “I’ve never subscribed to the idea we’re in a civil war, but the gerrymandering wars and the recent decision from the Supreme Court do not make the United States more united,” said Matt Dallek, a political scientist at George Washington University. “It speeds up the hyperpartisan force and atmosphere that people feel on both sides.” ‘No more rule of law’ The President ignited the conflict over redistricting last year by urging Republicans to redraw congressional maps to reduce the likelihood that his party loses the U.S. House in the November midterm elections. It was an unusual step, since redistricting normally only takes place after the once-a-decade census to accommodate population shifts. But in 2019 the Supreme Court ruled federal courts cannot prevent partisan gerrymandering, and The President saw a chance to push the limits. Once Republican-led states like Texas started shifting district lines, Democratic-led states like California countered. The fight was heading for a draw until the Supreme Court’s conservative majority issued its long-awaited decision in Louisiana v. Callais. The court weakened the last remaining national impediment to gerrymandering — the Voting Rights Act’s requirement that, in places where white people and outnumbered racial minorities vote differently, districts be drawn to give those minorities a chance to elect representatives they prefer. The ruling opened a new set of political floodgates. Republicans in Tennessee plan to erase the only Democratic congressional district, which is majority Black and centered in Memphis, by splitting it up among more conservative suburban and rural white communities. More than a dozen other majority-minority districts, mainly in the South, could face the same fate. Louisiana moved to postpone its congressional primaries, set for May 16, to have a chance to redraw two majority-Black Democratic seats it was required to maintain before the recent ruling. Alabama is trying to get the Supreme Court to let it redraw its two majority-Black seats. “We should demand that State Legislatures do what the Supreme Court says must be done,” The President wrote on social media on Sunday. “That is more important than administrative convenience.” He said Republicans could gain 20 seats through redistricting. Democrats have threatened to retaliate by splitting up conservative bastions in states like New York and Illinois, which would reallocate Republican voters to more liberal, urban districts. With fewer limits — either legal or self-imposed — people expect the issue to become a perpetual race to squeeze every possible advantage out of legislative maps. “It’s hard to know where it ends,” said Rick Hasen, a law professor at UCLA. Partisans gleefully shared color-coded maps of California with all 54 House seats drawn for Democrats, or southern states with only a couple of blue districts. Most agreed that eventually it will be very hard for Democrats to get elected to the House in any Republican-run state, even if there are large swaths of blue-leaning terrain, and vice versa for Republicans in Democratic-run states. That seems un-American, said Jonathan Cervas, a political scientist at Carnegie Mellon who’s redrawn maps on behalf of judges reviewing redistricting litigation. The country’s system, he said, “was founded on this idea that it’s majority rule with minority rights.” “There is no more rule of law in redistricting,” Cervas said. “There have to be some constraints, somewhere. Otherwise we don’t really have elections.” Politicians’ best tool to game elections The arcane art of drawing legislative lines is the most powerful tool that politicians have for gaming elections. They can make districts an almost guaranteed win for their side by drawing lines that scoop up a majority of their voters and just enough of the opposition’s supporters to ensure the other party cannot win that seat or the one next door, either. Lawmakers have used the trick since the country’s founding. Democratic gerrymanders helped the party hold onto the House through the Reagan revolution. After the 2010 midterms, Republican majorities in state legislatures allowed the GOP to draw districts to lock up control of the House even during President Barack Obama’s reelection two years later. However, that didn’t prevent the “blue wave” in 2018, during The President’s first term, when Democrats retook the House. It was a reminder that even the most partisan gerrymanders may stifle shifts in public opinion but eventually crack as political tides turn. “When you try to get every last ounce of blood from the stone you can end up shooting yourself in the foot,” said Michael Li of the liberal Brennan Center for Justice in New York. Political coalitions also change, and voters that a party thinks will be reliable can switch sides. That’s what’s happened in the The President era, as Democrats have expanded their support among wealthier and suburban voters and Republicans among Blacks and Latinos. Although Republicans won’t be able to exploit the full force of the Supreme Court ruling until after the November midterms, it will be challenging for Democrats to find enough seats to counter those gains. Sean Trende, a political analyst who has drawn maps for Republicans, agreed that the court decision is likely to lead to partisan gerrymandering run amok. He said it’s been hard to find neutral arbiters to rein in politicians who draw lines to benefit themselves. The coming storm, Trende said, will be more of a symptom of polarization than its root cause. “All our institutions are broken. We don’t speak a common political language,” Trende said. “This is what you get.” —Nicholas Riccardi, Associated Press View the full article

When considering the average tax rate for corporations, it’s crucial to acknowledge that the current rate stands at 21 percent, a significant drop from the historical average of nearly 32 percent. This decline reflects various fiscal policy changes over the years, impacting large firms differently, as their effective tax rate hovers around 16 percent. Comprehending these nuances, along with the role of pass-through entities, can illuminate broader implications for corporate taxation and business strategies. What might these trends suggest for future reforms? Key Takeaways The current U.S. corporate tax rate is 21 percent on net income. The historical average corporate tax rate from 1909 to 2025 is approximately 31.99 percent. In 2022, the average effective tax rate for firms over $100 million was 16.0 percent. U.S. corporate tax revenues account for about 1.3 percent of GDP, lower than many OECD countries. Pass-through entities report around 70% of business income, impacting overall corporate tax revenues. Overview of Corporate Tax Rates Corporate tax rates play a crucial role in shaping the financial environment for businesses in the United States. Currently, the corporate tax rate in the United States stands at 21 percent, which applies to a corporation’s net income. Historically, the average tax rate for corporations from 1909 to 2025 is around 31.99 percent, with significant fluctuations over the decades. For instance, the highest recorded corporate tax rate was 52.80 percent in 1968, whereas the lowest was just 1.00 percent in 1910. In 2022, corporations with net incomes exceeding $100 million reported an average effective tax rate of 16.0 percent. Compared to other wealthy countries, the U.S. corporate tax revenues accounted for approximately 1.3 percent of GDP, indicating a lower tax burden overall. Historical Trends in Corporate Tax Rates Although many factors influence corporate tax rates, an extensive look at historical trends reveals a significant evolution in the U.S. tax environment over the last century. The average corporate tax rate in the U.S. has been approximately 31.99 percent since 1909, with notable fluctuations. In 1968, the highest recorded rate reached 52.80 percent, whereas the lowest was just 1.00 percent in 1910. Since the late 1960s, federal corporate tax rates have typically declined, currently sitting at 21 percent. This downward trend reflects broader fiscal policy changes and aligns with data from the tax rates by president chart. Comprehending these historical trends can help you grasp the shifting terrain of corporate tax by nation and its implications on business behavior. Comparison of U.S. Corporate Tax Rates With Other Countries When you compare U.S. corporate tax rates to those in other wealthy OECD countries, you’ll find some notable differences. Whereas the U.S. has a federal statutory tax rate of 21 percent, many OECD countries have average rates around 13 percent, which can greatly affect overall business costs. Moreover, comprehending the impact of state and local taxes, in addition to the distinction between effective and statutory rates, is essential for grasping the full picture of corporate taxation in the U.S. U.S. vs. OECD Rates In comparing U.S. corporate tax rates with those of other OECD countries, it’s important to recognize that the U.S. federal statutory rate stands at 21 percent, which aligns closely with the average rates of 13 wealthy OECD nations. Nevertheless, the effective tax rate for U.S. firms earning over $100 million is around 16.0 percent, illustrating a disparity between statutory and actual tax burdens. Here’s a quick comparison of statutory rates: Country Statutory Tax Rate United States 21% Germany 30% France 26.5% Japan 30.62% Despite the U.S. rate being competitive, corporate tax revenues account for only 1.3 percent of GDP, lower than many peers. State and Local Taxes Grasping the impact of state and local taxes on the overall corporate tax burden is vital for businesses operating in the United States. During the federal statutory corporate tax rate is set at 21 percent, adding state and local taxes can greatly increase the total tax burden. The average top state rate stands around 6.5 percent, pushing the effective tax rate higher for many corporations. In comparison, countries like Ireland attract multinational corporations with a much lower corporate tax rate of 12.5 percent. As a result, U.S. corporate tax revenues, which were only 1.3 percent of GDP in 2022, reflect a decline relative to similarly wealthy countries, emphasizing the importance of considering state and local taxes in overall tax strategy. Effective vs. Statutory Rates Even though the statutory corporate tax rate in the U.S. is set at 21%, comprehending the effective tax rate reveals a more nuanced picture. For large firms, the average effective tax rate was 16% in 2022, showing significant differences because of deductions and credits. In comparison, countries like Ireland and Hungary have lower rates at 12.5% and 9%, respectively. Meanwhile, the average effective rate across OECD countries was about 23.5% in 2021. This data highlights that U.S. corporate taxes are relatively low among developed nations. Country Statutory Rate U.S. 21% Ireland 12.5% Hungary 9% OECD Avg. 23.5% Large U.S. Firms 16% Impact of Pass-Through Entities on Corporate Tax Revenues As the popularity of pass-through entities, like S corporations and partnerships, grows, the scope of corporate tax revenues is undergoing significant changes. Today, about 70% of business income in the U.S. is reported by these entities, which means more income is taxed at individual rates instead of the corporate tax rate. This shift has led to a substantial reduction in overall corporate tax revenues, as pass-through entities completely avoid the corporate income tax. For instance, in 2022, firms earning over $100 million had an average effective tax rate of just 16.0%, well below the statutory corporate tax rate of 21%. This trend highlights the increasing influence of pass-through entities on the framework of corporate taxation, warranting careful consideration. State and Local Corporate Tax Rates Corporate tax rates at the state and local levels play a significant role in shaping business environments across the United States. The average top state corporate income tax rate is 6.5%, with New Jersey at 11.5% and North Carolina at a low 2.25%. States like South Dakota and Wyoming attract businesses by not levying any corporate income tax. Here’s a summary of some notable state corporate tax rates: State Corporate Tax Rate New Jersey 11.5% Nebraska 5.2% Louisiana 5.5% North Carolina 2.25% South Dakota No Tax Twelve states, including Arizona and Arkansas, as well maintain rates at or below 5%, impacting profitability for businesses. Policy Options for Reforming Corporate Taxation To effectively address the challenges faced by the current corporate tax system, lawmakers are considering a range of policy options aimed at reforming corporate taxation. One approach involves broadening the tax base and eliminating certain tax expenditures that disproportionately benefit a few corporations. Adjusting the corporate tax rate could improve fairness and efficiency, ensuring that all companies contribute a fair share to federal revenues. Lawmakers are additionally examining the implementation of a minimum tax on large corporations, targeting those with substantial profits that currently pay low taxes. Implications of Corporate Tax Rates on Business Decisions Comprehending how corporate tax rates affect your business decisions is essential for effective financial management. With the current federal rate at 21 percent and an average effective rate of 16.0 percent for large firms, you might need to implement tax liability management strategies to optimize profitability. Furthermore, fluctuations in these rates can influence your choices regarding investment, growth opportunities, and whether to reinvest profits or distribute dividends. Tax Liability Management Strategies As the federal corporate tax rate in the U.S. stands at 21%, businesses must navigate a complex environment of tax liability management strategies to optimize their financial performance. In order to minimize liabilities, corporations often employ tax planning techniques, utilizing deductions and credits that can lead to effective rates as low as 16.0% for firms earning over $100 million in 2022. Furthermore, with the rise of pass-through entities, companies need to evaluate their business structures carefully to achieve better tax outcomes. Changes in tax legislation, such as the Corporate Alternative Minimum Tax (CAMT) at 15%, further require businesses to adapt their strategies. Investment and Growth Decisions The implications of corporate tax rates on investment and growth decisions are significant, as they directly influence how businesses allocate their resources. With the federal corporate tax rate currently at 21 percent, companies often find themselves with higher after-tax profits compared to the historical average of 31.99 percent. This lower rate may encourage reinvestment in expansion or research and development. Furthermore, firms earning over $100 million faced an effective tax rate of about 16.0 percent in 2022, which can drive mergers and acquisitions as businesses aim to optimize tax liabilities. In addition, the rise of pass-through entities has shifted more income to individual tax rates, prompting companies to reconsider their strategic planning to improve overall profitability and growth potential. Frequently Asked Questions What Is the Average Corporate Tax Rate? The average corporate tax rate in the U.S. is currently 21 percent, effective until at least December 2025. Nevertheless, large corporations often pay a lower effective rate, around 16 percent, as a result of various deductions and credits in the tax code. Historically, rates have fluctuated markedly, peaking at 52.80 percent in 1968. Today, corporate tax revenues account for about 1.3 percent of GDP, reflecting a long-term decline in tax contributions relative to the economy. Why Is the Corporate Tax Rate 21%? The corporate tax rate is 21% primarily because of the Tax Cuts and Jobs Act enacted in December 2017. This law aimed to boost U.S. business competitiveness globally by lowering the previous rate of 35%. The 21% rate aligns more closely with those of other developed nations, making it easier for U.S. corporations to operate effectively in the international market. Moreover, various deductions and credits can influence the effective tax rate for companies. Why Is My Blended Tax Rate 37%? Your blended tax rate is 37% since it combines the corporate tax rate of 21% with other taxes you may owe, such as personal income taxes and state or local taxes. If your business is structured as a pass-through entity, your profits get taxed at individual rates, potentially reaching the highest personal tax rate of 37%. Furthermore, if applicable, the Corporate Alternative Minimum Tax adds a minimum tax burden of 15% on adjusted income. Are C Corps Taxed at 21%? Yes, C Corporations are typically taxed at a federal statutory rate of 21% on their net income. This rate was established by the Tax Cuts and Jobs Act in 2017 and is effective until at least December 2025. On the other hand, large corporations with net incomes exceeding $100 million may experience an effective tax rate of about 16% because of deductions and credits. Furthermore, certain corporations might face a Corporate Alternative Minimum Tax starting in 2023. Conclusion In conclusion, grasping corporate tax rates is vital for businesses and policymakers alike. The current U.S. statutory rate of 21 percent contrasts with an effective rate of 16 percent for large firms, reflecting complex tax strategies and the impact of pass-through entities. Historical trends show significant declines in tax rates over the last century. As debates on reform continue, the implications of these rates on business decisions and revenue generation remain critical for economic planning and growth. Image via Google Gemini This article, "Average Tax Rate for Corporations?" was first published on Small Business Trends View the full article

When considering the average tax rate for corporations, it’s crucial to acknowledge that the current rate stands at 21 percent, a significant drop from the historical average of nearly 32 percent. This decline reflects various fiscal policy changes over the years, impacting large firms differently, as their effective tax rate hovers around 16 percent. Comprehending these nuances, along with the role of pass-through entities, can illuminate broader implications for corporate taxation and business strategies. What might these trends suggest for future reforms? Key Takeaways The current U.S. corporate tax rate is 21 percent on net income. The historical average corporate tax rate from 1909 to 2025 is approximately 31.99 percent. In 2022, the average effective tax rate for firms over $100 million was 16.0 percent. U.S. corporate tax revenues account for about 1.3 percent of GDP, lower than many OECD countries. Pass-through entities report around 70% of business income, impacting overall corporate tax revenues. Overview of Corporate Tax Rates Corporate tax rates play a crucial role in shaping the financial environment for businesses in the United States. Currently, the corporate tax rate in the United States stands at 21 percent, which applies to a corporation’s net income. Historically, the average tax rate for corporations from 1909 to 2025 is around 31.99 percent, with significant fluctuations over the decades. For instance, the highest recorded corporate tax rate was 52.80 percent in 1968, whereas the lowest was just 1.00 percent in 1910. In 2022, corporations with net incomes exceeding $100 million reported an average effective tax rate of 16.0 percent. Compared to other wealthy countries, the U.S. corporate tax revenues accounted for approximately 1.3 percent of GDP, indicating a lower tax burden overall. Historical Trends in Corporate Tax Rates Although many factors influence corporate tax rates, an extensive look at historical trends reveals a significant evolution in the U.S. tax environment over the last century. The average corporate tax rate in the U.S. has been approximately 31.99 percent since 1909, with notable fluctuations. In 1968, the highest recorded rate reached 52.80 percent, whereas the lowest was just 1.00 percent in 1910. Since the late 1960s, federal corporate tax rates have typically declined, currently sitting at 21 percent. This downward trend reflects broader fiscal policy changes and aligns with data from the tax rates by president chart. Comprehending these historical trends can help you grasp the shifting terrain of corporate tax by nation and its implications on business behavior. Comparison of U.S. Corporate Tax Rates With Other Countries When you compare U.S. corporate tax rates to those in other wealthy OECD countries, you’ll find some notable differences. Whereas the U.S. has a federal statutory tax rate of 21 percent, many OECD countries have average rates around 13 percent, which can greatly affect overall business costs. Moreover, comprehending the impact of state and local taxes, in addition to the distinction between effective and statutory rates, is essential for grasping the full picture of corporate taxation in the U.S. U.S. vs. OECD Rates In comparing U.S. corporate tax rates with those of other OECD countries, it’s important to recognize that the U.S. federal statutory rate stands at 21 percent, which aligns closely with the average rates of 13 wealthy OECD nations. Nevertheless, the effective tax rate for U.S. firms earning over $100 million is around 16.0 percent, illustrating a disparity between statutory and actual tax burdens. Here’s a quick comparison of statutory rates: Country Statutory Tax Rate United States 21% Germany 30% France 26.5% Japan 30.62% Despite the U.S. rate being competitive, corporate tax revenues account for only 1.3 percent of GDP, lower than many peers. State and Local Taxes Grasping the impact of state and local taxes on the overall corporate tax burden is vital for businesses operating in the United States. During the federal statutory corporate tax rate is set at 21 percent, adding state and local taxes can greatly increase the total tax burden. The average top state rate stands around 6.5 percent, pushing the effective tax rate higher for many corporations. In comparison, countries like Ireland attract multinational corporations with a much lower corporate tax rate of 12.5 percent. As a result, U.S. corporate tax revenues, which were only 1.3 percent of GDP in 2022, reflect a decline relative to similarly wealthy countries, emphasizing the importance of considering state and local taxes in overall tax strategy. Effective vs. Statutory Rates Even though the statutory corporate tax rate in the U.S. is set at 21%, comprehending the effective tax rate reveals a more nuanced picture. For large firms, the average effective tax rate was 16% in 2022, showing significant differences because of deductions and credits. In comparison, countries like Ireland and Hungary have lower rates at 12.5% and 9%, respectively. Meanwhile, the average effective rate across OECD countries was about 23.5% in 2021. This data highlights that U.S. corporate taxes are relatively low among developed nations. Country Statutory Rate U.S. 21% Ireland 12.5% Hungary 9% OECD Avg. 23.5% Large U.S. Firms 16% Impact of Pass-Through Entities on Corporate Tax Revenues As the popularity of pass-through entities, like S corporations and partnerships, grows, the scope of corporate tax revenues is undergoing significant changes. Today, about 70% of business income in the U.S. is reported by these entities, which means more income is taxed at individual rates instead of the corporate tax rate. This shift has led to a substantial reduction in overall corporate tax revenues, as pass-through entities completely avoid the corporate income tax. For instance, in 2022, firms earning over $100 million had an average effective tax rate of just 16.0%, well below the statutory corporate tax rate of 21%. This trend highlights the increasing influence of pass-through entities on the framework of corporate taxation, warranting careful consideration. State and Local Corporate Tax Rates Corporate tax rates at the state and local levels play a significant role in shaping business environments across the United States. The average top state corporate income tax rate is 6.5%, with New Jersey at 11.5% and North Carolina at a low 2.25%. States like South Dakota and Wyoming attract businesses by not levying any corporate income tax. Here’s a summary of some notable state corporate tax rates: State Corporate Tax Rate New Jersey 11.5% Nebraska 5.2% Louisiana 5.5% North Carolina 2.25% South Dakota No Tax Twelve states, including Arizona and Arkansas, as well maintain rates at or below 5%, impacting profitability for businesses. Policy Options for Reforming Corporate Taxation To effectively address the challenges faced by the current corporate tax system, lawmakers are considering a range of policy options aimed at reforming corporate taxation. One approach involves broadening the tax base and eliminating certain tax expenditures that disproportionately benefit a few corporations. Adjusting the corporate tax rate could improve fairness and efficiency, ensuring that all companies contribute a fair share to federal revenues. Lawmakers are additionally examining the implementation of a minimum tax on large corporations, targeting those with substantial profits that currently pay low taxes. Implications of Corporate Tax Rates on Business Decisions Comprehending how corporate tax rates affect your business decisions is essential for effective financial management. With the current federal rate at 21 percent and an average effective rate of 16.0 percent for large firms, you might need to implement tax liability management strategies to optimize profitability. Furthermore, fluctuations in these rates can influence your choices regarding investment, growth opportunities, and whether to reinvest profits or distribute dividends. Tax Liability Management Strategies As the federal corporate tax rate in the U.S. stands at 21%, businesses must navigate a complex environment of tax liability management strategies to optimize their financial performance. In order to minimize liabilities, corporations often employ tax planning techniques, utilizing deductions and credits that can lead to effective rates as low as 16.0% for firms earning over $100 million in 2022. Furthermore, with the rise of pass-through entities, companies need to evaluate their business structures carefully to achieve better tax outcomes. Changes in tax legislation, such as the Corporate Alternative Minimum Tax (CAMT) at 15%, further require businesses to adapt their strategies. Investment and Growth Decisions The implications of corporate tax rates on investment and growth decisions are significant, as they directly influence how businesses allocate their resources. With the federal corporate tax rate currently at 21 percent, companies often find themselves with higher after-tax profits compared to the historical average of 31.99 percent. This lower rate may encourage reinvestment in expansion or research and development. Furthermore, firms earning over $100 million faced an effective tax rate of about 16.0 percent in 2022, which can drive mergers and acquisitions as businesses aim to optimize tax liabilities. In addition, the rise of pass-through entities has shifted more income to individual tax rates, prompting companies to reconsider their strategic planning to improve overall profitability and growth potential. Frequently Asked Questions What Is the Average Corporate Tax Rate? The average corporate tax rate in the U.S. is currently 21 percent, effective until at least December 2025. Nevertheless, large corporations often pay a lower effective rate, around 16 percent, as a result of various deductions and credits in the tax code. Historically, rates have fluctuated markedly, peaking at 52.80 percent in 1968. Today, corporate tax revenues account for about 1.3 percent of GDP, reflecting a long-term decline in tax contributions relative to the economy. Why Is the Corporate Tax Rate 21%? The corporate tax rate is 21% primarily because of the Tax Cuts and Jobs Act enacted in December 2017. This law aimed to boost U.S. business competitiveness globally by lowering the previous rate of 35%. The 21% rate aligns more closely with those of other developed nations, making it easier for U.S. corporations to operate effectively in the international market. Moreover, various deductions and credits can influence the effective tax rate for companies. Why Is My Blended Tax Rate 37%? Your blended tax rate is 37% since it combines the corporate tax rate of 21% with other taxes you may owe, such as personal income taxes and state or local taxes. If your business is structured as a pass-through entity, your profits get taxed at individual rates, potentially reaching the highest personal tax rate of 37%. Furthermore, if applicable, the Corporate Alternative Minimum Tax adds a minimum tax burden of 15% on adjusted income. Are C Corps Taxed at 21%? Yes, C Corporations are typically taxed at a federal statutory rate of 21% on their net income. This rate was established by the Tax Cuts and Jobs Act in 2017 and is effective until at least December 2025. On the other hand, large corporations with net incomes exceeding $100 million may experience an effective tax rate of about 16% because of deductions and credits. Furthermore, certain corporations might face a Corporate Alternative Minimum Tax starting in 2023. Conclusion In conclusion, grasping corporate tax rates is vital for businesses and policymakers alike. The current U.S. statutory rate of 21 percent contrasts with an effective rate of 16 percent for large firms, reflecting complex tax strategies and the impact of pass-through entities. Historical trends show significant declines in tax rates over the last century. As debates on reform continue, the implications of these rates on business decisions and revenue generation remain critical for economic planning and growth. Image via Google Gemini This article, "Average Tax Rate for Corporations?" was first published on Small Business Trends View the full article

Google said it has “resolved” an issue with logging data within Google Search Console reporting. The logging issue happened between May 13, 2025 through April 27, 2026, about 50 weeks. The resolution did not fix the past data, but it did fix the issue going forward. What Google said. Here is what Google posted: “A logging error prevented Search Console from accurately reporting impressions from May 13, 2025 until April 27, 2026. This issue has been resolved. As a result, you may notice a decrease in impressions in the Search Console Performance report. Only impressions and related metrics – CTR and average position – were affected; clicks were not affected by the error, and this issue affected data logging only.” What was fixed. Just to be clear, Google has not fixed the data from May 13, 2025 through April 27, 2026 but just fixed the data going forward. So keep this in mind when reviewing the data in that date range. John Mueller from Google confirmed on Bluesky that this is only fixed going forward and the old data will not be fixed. Why we care. When reviewing your Search Console data, please note that for about 50 weeks, almost a year, the reports may be off and you may see a decrease in impressions, and thus click-through rate and average position data are also impacted. View the full article

A landmark federal court decision has opened the doors to COVID-era tax refunds for millions of U.S. taxpayers. In Kwong v. United States, the U.S. Court of Federal Claims determined that the COVID-19 pandemic effectively paused federal tax deadlines from January 2020 through July 2023, giving taxpayers more time to file and pay their taxes than the Internal Revenue Service (IRS) had previously recognized. The court ruled that the disaster-relief provision in Internal Revenue Code Section 7508A requires the IRS to pause all penalties and interest throughout the entire disaster period, plus an additional 60 days. That means that while the COVID-19 federal disaster period ran from January 20, 2020, through May 11, 2023, returns and payments weren’t late until after July 10, 2023. Last week, Erin Collins, the national taxpayer advocate, wrote that tens of millions of taxpayers could be eligible for COVID-era refunds, given that they were hit with penalties or interest for late filings or payments during this period. “This issue is widespread and not limited to a small or specialized group of taxpayers,” she wrote. Collins leads the Office of the Taxpayer Advocate, an independent organization within the IRS that helps taxpayers resolve IRS issues and advocates for taxpayers’ rights. In the blog post, Collins explains that the ruling affects individual taxpayers, small businesses, corporations, trusts, and estates. She expects the Department of Justice (DOJ) to appeal the court’s decision. However, taxpayers can file a claim for a pandemic-era refund. Fast Company wrote about the court’s decision in March when it first happened. Who qualifies for a refund? Taxpayers may be eligible for refunds or abatements of penalties and interest the IRS assessed during the COVID-19 federal disaster period. This includes taxpayers who were: Assessed penalties for failure to timely file returns, failure to pay taxes, or failure to make estimated tax payments; Interest that began occurring earlier than it should have, or not at all; Overpayment interest for the same time period. Here’s how to file a refund claim Tax relief is not automatic. Taxpayers must file a claim. Collins writes, “Unless the IRS or Congress acts to ensure all affected taxpayers will receive refunds if the Kwong decision is upheld, taxpayers seeking refunds for penalties and interest they paid relating to that period will, in most cases, need to file claims by July 10, 2026.” Here’s how to check whether you qualify for a refund and file a claim: Review your tax records and transcripts through your Individual Online Account on the IRS website. Analyze your account activity during the 2020 to 2023 timeframe to verify whether any penalties or interest fees were charged. If you’re eligible for a refund, file IRS Form 843. File this form by July 10, 2026. Collins encourages taxpayers to send their forms by certified mail so they can easily prove they submitted a claim on time in case their form gets lost or misplaced. Millions of Americans filing claims could result in an IRS backlog and lengthy delays. View the full article

US tech billionaire leads $140mn investment into Panthalassa as search for AI power pushes into exotic new frontiersView the full article

A reader writes: I work in higher education, in an area that is particularly under political fire. Due to anti-DEIA legislation, there have been people who have been targeted and fired due to anti-diversity advocacy. Some of the incidents have involved video that had been taken clandestinely and then edited for maximum damage. This has led to people losing their jobs and created a space of paranoia. I work in an environment that requires collaboration and collegiality in order to complete work. During a casual meeting with a friendly colleague, they mentioned that another colleague showed them a piece of tech that they were now carrying that allowed them to record the people around them without their knowledge. Think Meta glasses but actually more discreet (like an AI transcribing device you can carry in your pocket). This information was *kind of* given in confidence, as the person who told me was the only one would know that our colleague was walking around with it. I hope to circle back to have a deeper conversation about what could be shared once I get your advice. I walked away from that conversation kind of freaked out. My profession has specific norms around privacy that are definitely in contrast to this technology and our front-facing policies reflect those norms. But our policy norms are not the same as the larger workplace and there are definitely a small but loud minority of people who would try to argue for the use of the tech. Regardless, I am extremely uncomfortable with the idea of this colleague wandering from meeting to meeting, recording coworkers without their knowledge. The space I work is intensely hierarchical and while I’m not at the bottom of the hierarchy, I don’t actually interact with this person. So I technically don’t have a way to directly make him stop. But I do have strong networks in administration that I could involve. This also brings larger issues about recording colleagues, trust in the workplace and current standards of privacy. I guess I’m asking, am I overthinking/overreacting? And if I’m not, what should be the next step and what recommendations can I make to try to make sure that my colleagues are aware that we have a recorder in our midst? You are not overthinking or overreacting. Most workplaces have policies or practices that assume or require that people be informed before they’re recorded, and having someone surreptitiously recording every work conversation they’re involved in (and then having the data sent elsewhere to be processed and stored by AI) raises enormous security issues. As these devices get more common, employers are going to need to come up with more explicit policies to address their use. In fact, are you sure that your organization doesn’t have existing policies that would cover this? It’s possible that they do, even if those policies didn’t envision this specific technology. Either way, though, this is a very, very reasonable thing to raise. In fact, I’d argue that now that you know about it, you have an obligation to raise it (doubly so if you’re in any kind of leadership or senior role). Go to those strong administration networks you mentioned, explain what you’ve become aware of, share your concerns, and ask how to address it. The post my coworker carries a hidden recording device everywhere appeared first on Ask a Manager. View the full article