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[Table] IAmA Goldman Sachs Investment Banker AMAA

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Date: 2013-01-12
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Questions Answers
I have a good friend who is a VP at your firm . They blamed the entire Financial crisis on ' poor people who could not afford their mortgages ' they said this was pretty much he opinion among the investment banks . How do you feel about what happened to Greece and Goldmans hand in it ? That is not true. Opinion is very much split within the investment banks and there is no right or wrong answer. I personally don't believe at all that the crisis was caused by 'poor people' - and I don't like that sort of categorization of people in the first place. There are perhaps 15/20 different institutions you could blame for the crisis, there's no way of isolating individuals. I'm not sure what exactly you think GS's hand in the Greece affair was. Of course it's a sad story and I feel remorseful - I recently donated £50,000 at a charity ball to help rebuild one of the islands which has almost been burned to the ground. But ultimately Greece employed GS at the time because they wanted to fudge their finances so as to meet entry requirements for the Euro i.e. the greek government was knowingly employing GS to help perform an extremely risky task - GS didn't force anything upon them. If the experiment explodes 10 years later (as it did), should GS really be the party to blame?
The next day, you are flipping through television channels and randomly come across a pre-season CFL game between the Toronto Argonauts and the Saskatchewan Roughriders. Knowing your inevitable future, do you now watch it? Yes of course i fucking do. The future is inevitable. Chuck Klosterman i like your name.
I love seeing the ignorance that emerges in these AMA's relating to investment bankers. I am really interested in a career in either IB or Consulting, have a few questions for you. Thank you to fletch below for answering this question.
1) How did you cope with the hours? I like working hard, I like working for my money but I also like enjoying free time and having a social life. When working a 100 hours as an analyst that would certainly have to suffer 2)What were you academic results like through your degree? I'm currently in my second year and will be realistically looking at 2.2, 2.2, 2.1 and 2.1 (years 1-4). This summer I'd hope to get an accountancy internship in one of the big 4 followed by an internship next year in one of the large IBs. I know there's more to a candidate than solely their academic credentials + internship but would this stand me well for a BB in London? (Top Irish university, undergrad will be in Business and French) 3) What is it that makes you enjoy this job? I know the paycheck is certainly a bonus but you've said there's more to it than that? Whatever your breakdown between modules is, you need a 2.1 overall. Even if your average is 60% or 61%, that's enough to get you past the minimum requirements and through to interviews. After that it's up to you - they'll take someone with a good business mind and strong communications skills irrespective of whether they average 60 or 78 or 92. I disagree with him. My job is extremely rewarding and i wouldn't swap it for any other industry at the moment. If you want evidence of people enjoying their jobs look at the number of years they spend at their respective firms. Most of the partners at GS are 'home-grown' and have spent 20/30 years sweating away but don't regret it for a second.
Do you realize that in countries like Spain you're seen as an evil person that only wants to get profit and don't have any soul or feelings and probably kicks puppies for fun? If so, how do you feel about it? Yes and understand their anger but it should be re-directed to politicians!
Proof? and of course... how much did you make in 2012 approximately? Approx 600k. How do upload proof e.g. photo evidence?
Sorry, new to reddit!
Do you have free ticket for me? Always looking for handouts. What is it young people say, lolz??
I'm very curious of your opinion of Secretary Geithner's role in LIBOR. Do you think he was guilty? innocent? Thanks! LIBOR scandal is way too complicated to explain at 2.30 am after a few beers. Many active players are implicated and i think he will be seen in the wrong eventually like many others.
What hours do you work? Approx 80 hours a week not incl. flight time I go to festivals in Europe but would love to go it. Do you have free ticket for me?
If the concept and idea of a monetary system was replaced with something better (hypothetically) what would you do? As in for a career or what not since now you are jobless. Resources will always be scarce so someone will have to ensure an optimal allocation. There will always be a market of some kind whether it be a public market or an internal government one.
Hypothetically we could have unlimited power, molecular production, and master matteenergy conversion. Would that change your answer? Good interview question. I'll keep it in mind.
In your view, are there any regulations that could meaningfully alter the moral hazard typified by the 2008-2009 bailout of the financial sector? If so, what might they be? And if not, to what extent does regulatory capture play a role? Regulatory capture is a seriously problem not just in banking e.g. also in the energy business. How do you reduce it? It won't happen unless the public demand it, as everyone with power tends to benefit from it and so they won't make meaningful steps to change anything, i.e. its a win win situation for government and business. However it needs more than just 'occupy movements' but rather i am talking the mass voter population.
Have you seen @gselevator on twitter? if so have you ever contributed/is it legit? Haha yes i have seen it and no its not legit, well at least i think its not. Seriously though the elevator chats can be quite entertaining and revealing.
Do you use a mouse when you work on excel? Are you joking?
No.
In your opinion, do you think the money you make is worth the hell that you go through to make it? I love my job and so i am lucky that the money is not the only motivator.
But yes i love checking my bank balance at an atm.
How can i break into finance with a sub-par gpa? Network and try non BB firms.
A company founded by 100 duck sized horses. or A company founded by 1 horse sized duck? 100 duck sized horses every time. Basic risk management theory - don't put all your eggs in one basket. If that 1 horse sized duck isn't exceptional, your business is going down the tubes.
Prior to the collapse, did you have any idea what was about to happen? It was getting obvious that there was a bubble, but never predicted how great the fallout would be and that in 2013 we would still be suffering
What do you do day to day? I work in the energy field in Europe but don't want to get too specific. Day to day we advise natural resource companies on all things financial such as m&a and financing strategy and then execute on their behalf. So I am on the corporate finance side rather than sales and trading. However I work closely with the syndication and sales guys such as if we are executing an IPO or a follow-on share offering.
I have a buddy who's small but established clean tech company needs money building biodiesel manufacturing plants around the US that run off garbage and wood chips. The technology is actually coming from a company based in Sweden. Can you help him on the money side? Send me a link to their website.
I find clean tech very interesting.
How did you get your job? Did a summer internship then got FT conversion.
What college did you go to? I went to LSE (university in the UK)
What jobs did you work before getting this one? Did another internship whilst at university at an oil company.
At what age did you get this job? 22.
I hear the GS company culture is like " a frat on steriods" true or false? False more than true but depends on team.
Is it as cut throat as I have heard with the bottom 50% of people getting sacked each year to make way for new guys who will probably be sacked the year after? Bottom 5% is more accurate. 7-8% in a bad year, 3-4% in a good year. It's a fine line between 'cut throat' and having a 'healthy competitive atmosphere'. But we'd be out of business very quickly if we kept firing half of our staff every year...
Is there any stock I should look into in 2013? Long term or short term. Short term- African Barrick Gold. The chinese walked away and so the share price plunged and despite serious operational issues, the massive drop has presented a golden buying opportunity.
Long term- anything to avoid inflation, inflation scares the crap out of me and is going to be a big problem in the Uk and elsewhere in the future.
Also buy into soft commodity boom e.g. meat in africa, think zambeef etc if you can find an attractive entry point.
What's the best preparation for an interview with an i-bank? I'm over here in the states and come from a non-target. Read WSO, the forums are full of useful hints and tips especially for non target guys. Depending on what area you are applying for, make sure you know some really good examples and stock pitches as it is amazing how many candidates lack knowledge e.g. if applying for ECM for god sakes know some of the recent IPO's and likewise for equity research have good stock pitches and have conviction when presenting. Best of luck!
How important is your undergrad majogpa I'm double majoring in Econ/Conflict resolution studies with a possible minor in poly sci (depending on how the credits work out) I got a 3.9 gpa last semester but it only brought my overall gpa to a 2.4 because fuck klonopin. I should have at least a 3.0 by graduation, but I'm wondering its worth it to pay for and retake my first semester. Can I have $373 dollars? :D :D I promise only to get moderately drunk with this money. Sorry, a lot of questions, thanks for answering. Oh also, one last thing, all else being equal, is calc I enough math to apply for analyst job? or do I need more? Undergrad course choice is not that important for IBD but obviously for more quant roles you need maths skills Again i am sorry but i am not very clued up on GPA Ok i give you money but first you have to register yourself as a charity so that you can gift aid it and get much more!
Where did you go to college? LSE.
As an undergrad? How hard was it? I hear it's very difficult. Yes, undergrad.
Harder than most places depending on your course. Especially as you are competing with loads of kids from Asia who do extra calculus to relax.
How do you see regulation affecting the overall banking culture? Everything I have been reading and what people have been saying is that the culture is changing. Have you been seeing this? I recommend reading "The Culture of Success" by Lisa Endlich.
Also how do you like the goldman culture? Regulation is hurting us...but: Link to business.financialpost.com
How much total did you make in each of your years at the firm? I don't want to get into specifics.
But for your first three years as an analyst roughly 50k-70k (£ not $)
As an associate 120k-160k.
After that the numbers get exciting.
What tools do you use on a regular basis? Excel, Outlook, Excel, Outlook, Excel, Outlook...powerpoint.
What is the biggest reward of working in IB? Where I study, students with high grades are pushed to chase the prestigious internships firms like GS, MS, etc offer. Their reasoning why they chase these jobs is that they think it is the highest (prestige) in finance they can go or are attracted by the money. It seems shallow to me. What does IB offer that makes your career personally fulfilling? Why didn't you choose to work elsewhere? I find what i do at the front end of the energy sector fascinating. If your interested in business or globalisation or other similiar areas then IBD is pretty much at the cutting edge of it.
Thanks for the reply! When you were first starting out at GS, were you able to balance a personal life aside from your work? Has it gotten easier as you have gained more experience? Would you recommend IB as a field to pursue to your own children today? Thanks again! I'd say during my first 3 years as an analyst the 'balance' was almost non-existent i.e. i was regularly working 100+ hours/week. Since then it's become easier year by year and i think that's true for most. And yes certainly i would encourage my children to pursue it - not that i have any yet.
Where did you go to uni what was your gpa? how many physics majors work their? did you start off as an intern? sorry for rapid firing questions. LSE (london school of economics) - first class honours but don't know how that translates into GPA.
I know only 3/4 physics majors in the office at the moment.
Yes started as an intern.
Do banker run the world? how much political influence do they really have? It works two ways. Some bankers have their fingers in politics in a way they perhaps shouldn't. But equally many politicians have their fingers in banking and can force our hands.
How hard is it for a non ivy leager studying finance to get an entry level job at GS? what about internships? Tough. But with enough internship experience beforehand it's possible.
What do you think of Forex? Would you ever trade on it with your personal money? Difficult to answer - you can trade forex in a million different ways - some ways are more interesting than others. I don't personally trade it, but others forge a very successful career out of it.
What was your bets investment in? (If that's how it works) That's not really my role in IBD.
But outside GS I invested in the Shanghai property market a decade ago or so. My 4 flats there are now worth 10-12 times what they were worth then.
WTF caused the 2010 flash crash? Good question. Nobody knows for sure.
From the link you've provided, I find no.2 the most plausible explanation. But I would also add 6. UBS did something stupid again.
As hardcore capitalists what is your feeling about (management of) banks that seem to live under the impression that profits are for a happy few while losses should be carried by tax-payers? That's not what I believe at all.
And by the way all of us are tax payers too. The top 5% contribute approx. 50% of the government's taxation revenue. So if losses are being 'carried by tax-payers' - that doesn't exclude people in the banking industry by any means.
Matt Levin at Dealbreaker (former GS guy) describes Investment Bankers as "Travelling money salesmen". Do you feel that this description is apt? The operative word in your question is 'former'
Do you think that's how he described investment bankers whilst he was still with the firm?
People tend to get very bitter and sensitive after they get fired. See Gregg Smith for further evidence..
Is an MBA necessary to be competitive when looking for a job or is a B. Comm enough to compete with others when looking for jobs in the industry? Depends on what entry point - if you do an mba then you apply for associate entry whereas b.comm is an undergrad degree and so you apply for analyst roles. If you do a b.comm at a top university/college and get some internships then you should be well placed. Good luck!
Do any of your co-workers frequent Reddit? I imagine less than 0.1%.
Then again 2 people on this feed at least have claimed to be my co-workers, so who knows...
Since you're new to Reddit, what made you want to do an ama here? I'd like to alter the public perception of bankers - not all of us are the obnoxious greedy individuals you read about in the media.
I'm also extremely interested in hearing what non-finance people see as our key economic issues at the moment - this seemed a good way to find out.
Proof? How do i upload photos? i will upload photo proof. Sorry not very experienced with reddit!
I am a senior in high school and I am interested in majoring in either accounting or finance, but I don't think I know enough about either career path to make the best decision, can you explain the large differences the two paths I would go down depending on major, or any advice that may influence my decision that I would not know at this point? What you choose to study doesn't necessarily determine the industry you'll end up in. We have guys in the office who studied history, languages, even medicine. Just go for what interests you the most and focus on getting high marks.
Curious as to what kind of degree you hold/what was your GPA in college? BSc. Economics degree from LSE. First class honours, don't know about gpa
I used to work for the swiss banks and swiss stock market indirectly, and have a few friends in the banking business, including GS and Nakamura in London. What is your personall opinion on prostitution, cocaine, and medication misusage in your business? Also, also what is your stance on GS' questionable involvment in Backpage.com? With regards to backpage.com, the guys on the deal did not do their KYC checks properly. KYC checks are crucial for banks- your reputation and future success is more important than any single customer. Look up riggs bank and the Obiang family and then you'll see!
Possible. But realistically those kind of excuses are given no matter what really happened. For a company as big and powerful as GS I can only take it with a grain of salt. Are you content in the way GS does business from a moral point of view? It's either a pinch of salt, or a grain of sand...
Thanks. I'm not a native english speaker and have not used it regularly for years, so it's gotten pretty shit. Any chance you answer the other questions? Yes, apologies. I think some of our deals have been morally reprehensible in the past. The same goes for any major investment bank. But i think we've done a very good job in 'cleaning up our act' over the past few years and the public has played a large part in that. With any luck we will see a much healthier banking industry soon.
How accurate is what is said on the Twitter handle @GSElevator? It's grossly exaggerated, but not entirely inaccurate...
You guys got trolled hard. A GS IBD guy not knowing how to upload something to the internet? Seriously wtf. Probably some guy from wso who wanted to feel like he was "in". Link to i.imgur.com Just doing some work now! Link to i.imgur.com In case you wondered what Lloyd's signature looked like.
Is there anyway you can help me out, connections or anything, someone I should talk to to get a interview? Can you interview me, I shall forward you my resume! Private message me and we will discuss. Sure i can help you out. I know how tough it is for you guys who are trying to get in!
Any thoughts on the MSI/SSG mini-scandal this week? Yes but won't comment.
Very hush hush.
I also work for GS. Which building are you in? I'm based in PBC. Also IBD, North. Would do an AMA and provide proof. I'm in PBC too, moved from RC quite a few years ago. I'm not sure exactly what sort of proof i'm supposed to provide...?
Would you say you were groomed for this kind of work from a young age? LSE is an elite school. Did you go to elite private schools growing up or were you an exceptional student at a normal school? Yes, Jimmy groomed me from four years old
Do you like your job, or should i say career? Yes. If i did not then i would go and sail around the world again.
From your experience, how relevant is CFA nowdays? Definitely worth doing.
How large was your Xmas bonus and did it get taxed over 50%? See below - total comp was c.600k and yes taxed above 50%
You said in other replies that you were 22 when you got this job and make 600K now. How old are you now, and how long did it take you to get the that salary level? Is it all commission? Was analyst at 22 and then moved up the ranks. Just turned 30, feeling old now!.
Can you give some insight on the business model of Investment banking? (I have no clue to be honest) . And what does a portfolio manager do exactly? Portfolio manager is not IBD. He/she would work in investment management e.g. for blackrock or GSAM or a hedge fund.
I'm currently writing a thesis on the future of rentierism in the gulf with an emphasis on Saudi Arabia. I don't have much of an economic background apart from this, but the international energy market is obviously important to my research. Can you recommend any good (preferably free or low cost) primers and newsletters on the subject? Hmm there are many on energy market but not too sure about rentier specific ones. Will have a think. I did my university thesis on Saudi and so will have a dig around.
How do you live with yourself? Knowing that the company that you work for doesn't give a fuck about you or anybody. All they care about is money. They have ruined america many times over. Seriously, how do you live with yourself? Actually our business is dependent on America and more importantly the rest of the world's prosperity. So actually our interests are nicely aligned.
Link to www.rollingstone.com. Seems to me like your bosses and former bosses don't give a flying fuck about anyone but themselves. Can you name one good thing Sachs has done since you have been there? I think you meant 'don't give a flying fuck" in your comment.
Do you happen to work with quantitative analysts? Depends which deal we are working on. Sometimes we need them, other times we don't.
What's your retirement savings invested in? Property (international and uk), shares mainly through tax efficient ways e.g. isa and EIS, pensions and artwork.
No swiss bank account i am afraid.
"The first thing you'll realize is that they are extremely disciplined. You would never come across a Goldman employee, who would, after two or three beers, say "My colleagues are a bunch of dickheads" From Money and Power William D Cohan. What do you have to say about this? I agree with it.
What advice would you give someone who is interested in going into finance and is currently in university. What would you have liked to do in your time spent at LSE now looking back? Party more! You only live once. You can have that advice for free.
Thanks for the AMA. Do you know anybody I could speak with regarding interviewing and internship opportunities? Private message me.
Doing an AMAA are you putting your job at risk for releasing company secrets/opinions whatever? I've not released a single company secret.
Edit: added an A to AMA. There's nothing in my contract to say I can't express my own opinions.
What do the hopes and dreams of Americans taste like? Raspberry sorbet, in my opinion
What is your feeling on the separation of traditional banking and investment banking as is proposed by the FSA? I think overall it's sensible - Barclays being the best example of why they should be separated.
At GS specifically of course we're not involved in traditional retail banking at all so it's not the most pressing issue for us at the moment.
You mentioned 80 hour work weeks. Could you explain the timeline for your typical work day. Do you work 7 days per week? Is your work more project based where you go non stop and have some time off between projects? There's no typical working day - some days are 18 hours and others are 12. Depends entirely what stage of a deal we are at. Generally I work 5/6 days a week, but keep in email contact with the office 24/7.
Yes, entirely project based. But if we are doing our jobs properly there's not much 'time off' in between.
I'm currently on target for a 2:1 or a first at university in my economics degree. But due to a slight hiccup in my a-levels, in which i got A* A C, still managed to go to a top 10 university but do they look at the C, which was in maths. Your university grades are definitely more important. If you do well in a mathematical module at uni that will allay any fears they have about an A-level grade.
Do they look at a-level grades and expect a minimum maths grade? I'm not bad at maths by any means, just an unfortunate anomaly in the exam season. Which uni are you at and what do you study?
Manchester and economics BA - but i have econometric modules and another mathematical module for 2nd year. Any chance of switching it to a BSc? Immediately reassures employers about your quantitative skills..
Hello there, first of all I want to thank you for doing this AMA. I am a dutch college student and currently I'm writing an essay about the BRIC countries. I used your book to write down predictions of their economic future, and I'd like to ask: did you participate in writing that book? Are you referring to Jim O'Neill's book? I have a copy on my desk, but no I wasn't involved in writing it.
What do the guys at GS think about @gselevator? See same q&a earlier on!
How often do interns get recommended to come back? In a good year, approx. 50% of an intern class will get hired.
In a bad year (2008 for example) perhaps only 10% or 20%
Any opinion on Nautilus Minerals? Can't comment on that company i am afraid.
How do you feel about manipulating the currency markets to screw over the average retail trader? I don't know what you are talking about.
Have you ever seen American Psycho? Yes.
I am going to copy and paste this in an email and send it around my team. You will famous at the firm, well at least in my team in london anyway! Yes of course i fucking do. The future is inevitable. Chuck Klosterman i like your name. That would also be an awesome interview question! And i give them 5 secs to answer.
I highly doubt GS interns work for free. I've almost never heard of an internship in finance that didn't pay -- most firms I've encountered usually pay the same base wage as the first year full timer positions you are interning for. Interns in front office at GS in london get circa £42k pro rata. So not bad for a summer job and remember no tax as they are below threshold across the year!
Gold Mansachs. Not sure about that one.
I prefer Goldman Snachs, the name of our canteen.
Yes, Jimmy groomed me from four years old But yes went to a private boarding school before. Widening the diversity of applicants in IB is a key target for HCM.
What is the future of investment banking in a new world order where both governments and the people are fed up with the excesses that led us into this credit crisis. The industry is always evolving, that's what makes it an exciting industry to be in. I imagine it will take us a good few years to fully regain the trust of certain clients, but ultimately if this whole saga causes us to readdress our methods and practices to improve our service then in the long run it's a positive outcome.
PS. Do you not think people should be fed up with the governments too, as well as the banks?
Not OP but I can answer this as a 2012 intern who got converted for Programming. A Math degree is a good +. There are 2 ways. Either join in as a programmer, show your merit and change departments, ie move to Quant side. Other option is to get a MBA, and join the I-Banking dept you want. What's your name?
Do you have any books or resources you'd recommend the layman for learning investment skills (i.e. the wealthy barber) I ask because i feel there is a lot of crap out there and would like to genuinely learn. I have never heard of the wealthy barber.
Last updated: 2013-01-16 15:54 UTC
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What have I learned while building Phantom AM? My experiences and goals

Before you start, I apologize for it being so long. I had intended it to be only 500 or so words but as of typing this when I am done I am over 2300 words. Quite a bit more than my first thought, everything seemed to just flow so well on the keyboard. Hope you enjoy the read and can either learn something or can teach me something. Read ON!
Introduction
A bit about me, my name is Josh Kirby and I am the founder of Phantom Asset Management or Phantom AM for short since that would make one long domain name. I am 20 years old and this is my 3rd business, the first two were web design/ dev agencies. First one I did solo then the second I did with a remote team of 8. I made some money off these but most of it was spent on living since I never really scaled it in a way to give me profit. I wanted to be the ‘good guy’ and pay everyone well, well I paid them enough to wipe out 80% of the profits. My total take from both web businesses is in the $XX,000 range. I started my first one at 14 then the second at 17. So not much total experience between them but I did learn a lot about marketing and cold emails. Cold emails were the main source of contracts over the years. I never found ads to be of much use. It felt like I was just paying for no return and likely that was the case since I only got 8.3% of total contracts from customers who said they heard of me through our ads. I did quit doing ads 1 year into the second business because of the poor return, I figured know when to quit and save the money to spend on other methods.
When I was young I was not very social and as a result once I moved to the concrete jungle we call cities, I became a hermit of sorts. I stayed inside and played games a lot, but I always had a thirst for knowledge. This resulted in me learning a lot of different things, what ever happened to be my special interest at the time (I have ASD, so I get really into these special interests more so than most). I learned about everything from military (childhood dream job that got crushed), to space and space exploration, to computer hardware, to programming.
So that is where I have ended up, I built an asset tracking and management SaaS that I am targeting at small business owners and individuals who have a lot of tech to keep track of. Though I am thinking the small businesses will be my main target, the individuals is more of a secondary thought.
Project Story
A bit of backstory for this project, I have a ton and I mean a ton of computer hardware and cables. It is to the point a good section of my basement is full. I never could know what I had and if I was giving away the last of that cable or not. Never knew who I leant out cables and hardware to either. I knew I needed a software solution to this issue since Excel was not going to be an appropriate solution, so, I built what I needed then I focused on making it into a SaaS application when others said I should and showed demand for it.
Now if you have a look at it you will see the dashboard template is the same as another competitor in the space. This was by complete accident and frankly I hate that it is the same but at the same time I have decided that it will stay until it becomes an issue, or I just can’t stand it anymore. That is the likely one. I do have it in my roadmap to create a more custom dashboard template but that is for the future not today. Say 18 months down the line or so.
I know that some people will hate on me for using the same one and frankly that is fine since I know that I built most of this system for personal use and adapted it to a business. Some of the features are ideas that I had from talking to IT consultants and other small business owners. Each of them provided me with information that has gone into this project and I know each and every one of them is going to be happy with what is there or is coming in the next few months.
Speaking of coming features, if you can think of any that you believe should be in an asset tracking/ management software please say so. I would love to get feedback on what I have and what I can add.
Okay so we are past the basic personal project and talking to potential customers, what else is there to do other than finish the software? Well there is a ton to do and a ton I still must do. Getting the legal part of the business chosen and set up took a while, I spent 2 days emailing lawyers trying to find the right one. I did do my research on each one and sadly not many of the ones I contacted replied. The one I ended up talking had to do a background check on me and all proposed shareholders. I am not sure why they did this but when they did, they found a “conflict” they had to have one of their lawyers sign off on. That took a few days to solve. I talked to the lawyer, Rob, he knew a lot and informed me on what I needed to do. He said I didn’t need a proper shareholders agreement since I will be the only shareholder. Saved some money there but he did mention I needed a software license agreement. Well before I signed the retainer I did some research on it all, I decided a software license agreement was not right and that I needed terms of use and a service agreement since my software is not downloadable. I went back and consulted him on this and turns out I was right and that when I explained the SaaS
I contacted him back about this and we talked and agreed that is what I would need. He gave me a price of $3000 to do it all up and a timeline of 6 weeks since he would be gone for a family holiday between now and when he could finish. Okay so more research (research is critical for a successful business), I found out that I could use the federal site and do it myself to save $1500, that was the price to incorporate through Rob. I did it myself after debating on it for 2 days and going over it with my father and friends who know business better than me. Then came the other stuff, I did that all online too for only $200 ish, glad I went that route instead of the other $1500 through the lawyer. I talked to a family friend who is a lawyer and he said that doing it myself would save me a lot and that it would not be perfectly suited to me, but it would be good enough till I get the business up and running and more importantly profitable. I agreed that I would be better off using the funds to advertise and grow the business instead of having perfect legal stuff when what I got protected me properly and government wise I was fine because the specifics don’t matter at first.
When incorporating you had to select the number of directors and while selecting only 1 seems like a good idea when I am the only one it doesn’t leave much room for growth and at the end of the day I want to grow this to at least a medium sized business and that involves bringing on more directors, so I chose the max range of 1-10 directors. The next choice was named vs numbered corporation, I chose numbered because the named cost more to start up and I can change it to named later once I got money coming in. You will notice a trend here of that I went cheap as possible where I could change things later to make it more prope to what I wanted. I only did this when the cost to make these changes would not be much money compared to what it cost in the first place.
So now I got the legal done I can do the banking, this is always an exciting time for me because I love money and knowing that I am opening an account to put profits in makes me giddy. I did have to make some choices here about how I wanted it set up, I am in Canada, so I will be paying taxes here and paying for expenses here too. So easy, put it in CAD and convert it right? Well no, simply because many services I need to use are in USD. I decided to open both a CAD and a USD account. I figured this would give me the most flexibility and cost savings on the forex fees, so I could hook up the bank accounts directly to services that correspond to their currencies. This should be the cheapest route I can do without much trouble. I would only transfer money into CAD for making my payments.
While we are on the financial stuff, charging taxes was something I could not get a clear answer on, no matter what I looked up I could not figure it out and accountants were either not willing to provide advice on an hourly rate (well other than one who said $295 an hour) or just didn’t contact me back. Taxes are an evil of life that we all suffer through, so I ended up calling the CRA to figure out whether I needed to or how I needed to. I knew I could not just apply it to all customers because why add 13% to the price when I don’t need to. I also thought I needed to add it only to those in my province. Well the CRA cleared that one up and I decided that for those who I had to charge it to I would eat the cost on it and sell to those at a “lower” price when I just put it as sold at lower price and I pay the taxes to make it so the invoices to all customers are the same. I shouldn’t penalize certain customers since they are in my province.
Where I Am Now
Once this all got set up I get onto where I am now, marketing and sales. Marketing and sales has never been my strong suit, I am more technical, financial and operations. Because of this I am hoping that I can create enough momentum to make it, so I prove my business can generate customers from a conversion stand point. If I can do enough to make it so I make even a slight bit of profit I think I can find a way to hire someone who knows marketing and sales. I did at first think about a co-founder, but I just could not find one who I liked and felt like I could trust. I am hoping I can make some right hires when this grows enough to warrant that. And hopefully those hires can be almost as good as a co-founder. This choice also gives me a bigger share of the company to start with and allows me to raise more funding should I need it. I am not writing this post to advertise my company but to share my experiences and what I have learned. I welcome questions about the process and how it all came along for anything I didn’t touch on.
Going Forward
My biggest challenges going forward are going to be marketing and sales as you would have guessed. I do also think that figuring out how to get cash flow positive soon as possible will be hard. I know I can only fund this for 8 months from launch. Any more and I have to get a “real” job and get back to working on saving up. Should I have saved more before starting this, well it would have been nice to have more yes but I think this will do well enough to support me within 6 months. My expenses are next to nothing, not that I expect to live high on the hog with 6-8 months either. Well not even for the first few years if ever. I just want to create stuff that people will like and be able to use to better their business or lives.
Have any questions or comments?
My site is phantomam.com and my business email is [email protected] contact me either direct through email or our contact us page found here.
I do want to offer a discount to those who sign up through reddit, I am offering 50% off for life. That means you can try it for only $5 a month. To redeem this, I need to do it manually since I do not have coupons set up currently (features came before admin stuff). So, either email me from your email you used to sign up or message me on reddit with the email you used. I should have all discounts added within a day or two.
I look forward to all your comments and feedback! Thank you for reading and hopefully some of you enjoy my offering enough to share it out with others you think might find it useful. This has been a great learning experience and I hope to continue to learn more each day.
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Transcript of George Webb Video Series Part 101: "Hillary's Leakers, Hackers, and Henchmen" [@Georgwebb / #HRCRatlne]

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New IRS 2018 Tax Code Screws Crypto Traders! GST India Forum: Good and Services Tax Discussion Forum Wayne Lippman's Tax Tips - YouTube How to eFile W2 W3 Forms to SSA HOW TO FILE A NIL RETURN  TAX RETURN FILING TDS On Salary Calculation 2018 MOVILES DE SALUD QUILPUE LIMACHE - YouTube

Explanation: If the goods specified in this entry are supplied, by a supplier, along with supplies of other goods and services, one of which being a taxable service specified in the entry at S. No. 38 of the Table mentioned in the notification No. 11/2017-Central Tax (Rate), dated 28th June, 2017 [G.S.R. 690(E)], the value of supply of goods for the purposes of this entry shall be deemed as ... Service Tax on Foreign Currency Conversion (with effect from 1st June, 2015): As stipulated by the Government of India, any conversion from one currency to another, both incoming and outgoing will be charged a service tax on the gross amount of currency exchanged as per the following slabs. – 0.14 % of the gross amount of currency exchanged for an amount up to INR. 8. Service tax is not chargeable for imported and exported services under the STA 2018. Rate of Service Tax 9. The rate of service tax is fixed under the Service Tax (Rate of Tax) Order 2018 and comes into force on 1 September 2018. 10. The rate of service tax is 6% of the price or premium for insurance policy, value For the support services provided by the Government, other than where such support services are by way of renting of immovable property, to business entities government departments will not have to get registered because service tax will be payable on such services by the service receiver i.e. the business entities receiving the service under reverse charge mechanism in terms of the provisions ... You must express the amounts you report on your U.S. tax return in U.S. dollars. If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U.S. dollars. How you do this depends on your functional currency. Your functional currency generally is the U.S. dollar unless you are required to use the currency of a ... SERVICE TAX RULES, 1994 (Incorporating changes made till issuance of notification no 6/2017-Service Tax dated 30-1- 2017) In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules for the purpose of the assessment and collection of service tax, namely :- 1. Short ... Service Tax on Forex Transactions . All foreign currency conversion transactions will be subject to prevalent GST rates of the Government of India with effect from 01 July 2017. Value of service in case of purchase/sale of foreign currency to be determined per table below on which GST @18% be applicable. However, such transactions amongst banks or authorised dealers or between banks and ... Foreign Exchange conversion services allow users to convert their currencies to other foreign or domestic currencies. When exchanging (purchasing or selling) a foreign currency in India, the value of supply will be calculated by the service supplier. GST on Foreign Exchange Conversion will be determined based on the value of supply. Generally, As per GST Act 2017, the invoice value will be the ... With the implementation of the Good and Service Tax (GST) on July 1, 2017, the tax structure for forex services has changed. Contrary to what people imagine, the GST to be paid on forex is actually very less. In fact, it would be just in the range of 0.058% to 0.18% of the total forex transaction! For example, 26 October 2020. The November 2020 monthly exchange rates have been added. 28 September 2020. The October 2020 monthly exchange rates have been added.

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New IRS 2018 Tax Code Screws Crypto Traders!

Try watching this video on www.youtube.com, or enable JavaScript if it is disabled in your browser. Calculate tds on salary.Tax Deduction at Source (TDS) or TDS on Salary is mandatory for employers in India paying salaries to employees on which income tax is applicable. Watch our video to find out the basic processes taking place on the foreign exchange market and how you can benefit from them. In addition, you will learn ho... How to order food in zomato step by step at the following link. https://www.youtube.com/watch?v=GiR1b... --~--. The process of filing Nil and refund returns is same as filing a normal return. The... Here is the step by step guide about how generate the efile document and upload it to SSA site. ezW2 software makes it easy to prepare, print and file W2, W3, 1099-misc and 1096 tax forms. View ... Cryptocurrency, Forex and Stock Webinar and Weekly Market Outlook from 4 to 8 November 2019 Wave Trader 220 watching Live now Indore Youth Speak Forum 2015- OC Announcement - Duration: 2:16. Coin conversions service. Of note: I am not giving you professional investment advise. You need to do what you feel is best for you. I am just relating what I have found to work and not work for ... Service Tax : Basic Concept of ... Every GST invoice shall be registered w.e.f. 1-4-2020 in www.einvoice1.gst.gov.in. Rule 48 GST Rules - Duration: 25:29. kaushal agrawal 527 views. 25:29. For the ... This playlist is for the students who are doing CA Inter or CA Final. This playlist consists of the topics related to taxation subject in CA Inter group 1. C... Wayne Lippman's Tax Tips is a playlist of select YouTube videos featuring tax tips for individuals both in California and nationally. Wayne Lippman is a worl...

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