3 Things You Should Know About Small Business: May 16

NEW YORK ( MainStreet) -- What's happening in small business today?

1. Where do Obama and Romney stand on small business taxes? While corporate tax reform is one issue at the election table, a majority of small businesses wouldn't benefit since they claim income on their personal returns.

The Associated Press compares President Barack Obama and Republican candidate Mitt Romney's proposals on small business tax issues.

President Obama's proposal that households making more than $250,000 a year pay a tax rate of as much as 39.6% would not be good for a significant number of small businesses. Still the President's plan includes tax incentives for small businesses that make hires and other new investments as well as doubling the deduction for startup costs and expanding the health insurance tax credit for small businesses.

Romney suggests cutting the top individual rate from 35% to 28%. Still Romney's plan favors big business, since corporations would get a more favorable rate of 25%.

The National Small Business Association says Romney's tax rate cuts would help small businesses, while Obama's proposal, "fails to ensure parity between small and large business, which would only exacerbate the competitive disadvantages small businesses face."

2. View your business through the eyes of a banker. Whether you're sitting on a great idea but can't get a bank loan to fund the project or want to boost sales but can't get extra cash to execute the plan, seeing your business through the eyes of a banker may help your business.

According to an article on Accesstocapital.com, a small business education initiative by Dun & Bradstreet Credibility Corp., here are three tips:

First, since bankers are in the game for profit and profit only, make sure you know the true value of your assets and know that you won't get a loan for more than what the assets could sell for today.

Second, bankers want to see business performance, not business plans -- as in, are you getting paid? The article suggests that applicants " think of a good business plan more as a foundation for a great marketing plan. Show how your business is going to outperform the competition."

Finally, make sure to do your homework. Bankers don't make guesses when evaluating your business, so you shouldn't either. "It's your business. You need to know everything surrounding it before applying for a loan. Be the business expert, not just the industry expert."

3. Has the Facebook IPO got you eyeing entrepreneurship? Know this. It's an exciting time in the world of entrepreneurship. Facebook's imminent IPO has surely spawned many would-be entrepreneurs to come up the next best thing. But entrepreneurship isn't for everyone.

According to SurePayroll's Michael Alter there are two types of entrepreneurs: those who come by nature and those who nurture their entrepreneurial desires, he writes in an Inc.com column.