Tag: I

5 Things to Do Before Saying I Do to a Business Partner #micro #business

#business partner

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5 Things to Do Before Saying ‘I Do’ to a Business Partner

CEO Founder, Deborah Mitchell Media Associates

September 24, 2014

As an entrepreneur, you may at some point consider getting a business partner or co-founder. Maybe you miss working with a larger team that complements your skills, or perhaps you are trying to broaden your market or expand your clientele. Whatever your motive, you should know that business partnerships always start with excitement, but have the potential to end tumultuously. When forming a business partnership — just like a marriage — there are certain key steps to take at the beginning that will help in the transition if your professional relationship should end.

1. Perform due diligence. Yes, everyone is fun over cocktails, but when the time comes to sign contracts and do business, you d better be sober and confident you re shaking the right hand. Asking for referrals about a potential partner goes beyond contacting common friends and asking their opinions. Call former partners and business associates, inquire with clients, read comments on their social media pages and look them up on Google. (Keep reading way past page one of the search results.)

By the time you re done, you should be able to name anyone who dislikes them — from their first high-school enemy to their latest unhappy client. Only then will you be able to either take a calculated risk or a major step back.

2. Make sure you lawyer up. If the legal fees in the beginning of a business relationship don t make you wince, then you re doing something wrong. When you partner with other people, every aspect of the business relationship should be put down in writing — including the goals for the company, duties and responsibilities of the partners and an exit strategy. Every sentence of a contract — no matter how innocuous — should be looked at by a lawyer. Since tax laws can be tricky, have your accounts receivable/payable arrangements scrutinized by an accountant.

3. Ensure you have exit strategy. Ending your business partnership is the last thing you want to think about when you are beginning one. It is similar to thinking about divorce on your wedding day, but you should have a plan. The business exit strategy should include several legal points including the division of the business assets and how the partner s portion of the business will be handled in case of death.

4. Protect yourself. One of the smartest moves you can make is to protect your personal assets in case of a lawsuit. Whether you choose to incorporate or become an LLC, the top benefit will be shielding your savings, home, car and even your favorite pair of Louboutins from any liabilities associated with the business.

5. Protect your brand. Joining forces with a partner takes a lot of energy, and chances are that somewhere down the line you will lose your focus. Working for a common goal within a new team is really exciting but merging forces does not necessarily mean merging identities. Don t lose sight of who you are. If part of the original business plan is to maintain your brand, make sure it doesn t suffer while you re giving all your time and energy to your new endeavor.

When you meet a potential partner, your personalities may click and your goals may be identical but to have a successful relationship, clarity is key. The more precautions you take in the beginning, the happier and more productive you will be later on. And the day you see that the team you ve tried to build has become nothing more that a group of people looking in different directions, then it s time to part ways and move on.





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What Can I Become with a Master s in International Business? #business #apps

#international business jobs

#

What Can I Become with a Master’s in International Business? After graduation

A Master’s in international business is ideal for students who are planning to build a career in international business. Through this program, you can develop a variety of skills necessary to understand the global economy. It also gives you the ability to plan strategically for international operations and the capabilities required to execute those operations. A study programme in international business solely focuses on the area of international business.

Career opportunities with a degree in international business

With the massive growth of international business, there is a huge demand for individuals with an in-depth knowledge and understanding of global markets. This is one of the reasons why completing a Master’s or Bachelor’s degree in international business can open the doors for a series of career opportunities. Whether you choose to explore careers in the field of marketing or finance, you will be able to choose from a wide range of opportunities.

If you choose to go in the marketing direction, international business studies can be useful to land a job as an International Marketing Manager. In this position, you will be required to oversee the marketing strategy of a company in the international market. Your job will involve analyzing the potential market and predicting the profitability of various products or services.

The role of an International Finance Controller is popularly given to those who have completed an according specialisation in their international business programme and chosen to build a career in the field of finance. With this role, you will be dealing with various issues related to taxes, audits, accounts, regulatory compliance, and budgets. This position is typically the highest in the finance department for most companies.

After completing an international business degree, you can even land the role of an International Banking Manager. Your job will be to oversee the international banking policies and objectives as well as initiatives of a financial institution. You will also have the responsibility of developing and maintaining banking services to clients in the global market.

As a graduate in international business, you can also become an International Trade Manager. You will have the responsibility of overseeing every aspect of the trade negotiations and policies of an establishment be it a private firm or a government office. A Master’s program in international business will give you the necessary skills and knowledge to oversee contacts with important industry leaders and trade officials.

5. Business development

International business studies also prepare you for a career in the field of business development. You can become a Business Development Manager, which requires you to assess various marketing opportunities as well as the international target market. Your responsibility will be to evaluate a business to help it realize its full potential.

Higher studies in international relations degree

Once you complete a Master’s program in international business, you can even pursue a higher degree by enrolling in a doctoral degree program in the field. This degree will qualify you for more prestigious job opportunities such as the role of a CEO. You can even get into teaching at university level or get involved in research work.





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Why Should I Incorporate My Business or file an LLC? #innovative #business #ideas

#incorporating a business

#

Why Incorporate ?

Choosing how a business is organized may be one of the most important decisions a business makes. Incorporation may be the wisest decision, but for some, it may be an unnecessary decision, and so each business should carefully assess the benefits (and challenges) of incorporation before moving forward. With that said, the greatest benefits to incorporation can be summarized into the 3Ls: Life, Liquidity, and Liability. Let’s start with Life.

Life

The best way to understand a corporation is to imagine it as a separate artificial person (with limited rights and privileges). Incorporating a business is essentially creating that separate person thereby making the business separate from the owner (in a sense, the business has a life of its own). As a separate entity, the corporation exists independent from the shareholders/owners and its employees. Regardless of what happens to the shareholders, or the directors, or the employees, the corporation itself continues to exist in perpetuity until a time the directors and shareholders decide to dissolve a corporation. In a sole proprietorship or general partnership where the owner(s) is the business, what affects the owner may affect the business. Any personal debt or liability of an owner or partner allows the creditor(s) to pursue the assets of the business whether or not the debt or liability has any relation to the business itself. Furthermore, personal bankruptcy of an owner or partner will directly impact a business by opening up its assets to any creditors the owner or partner is liable to. By incorporating a business. the personal finances of an owner or partner remains separate from the finances of the corporation and allows the business to continue without disruption. In the event of an unfortunate death of an owner or partner, the business is generally dissolved regardless of the wishes of the owner or partner(s). All of this could easily be avoided by incorporating the business as a separate entity.

Liquidity

As much as we believe that all owners of a business should remain forever committed to the success of the business, there may be times when an owner or partner will need to leave the business. Regardless of the reasons for leaving the business, incorporation allows the free transferability of interest from one person to another. Generally in a partnership, a partner cannot transfer his/her interest in a business to another without the express consent of all other partners. If a partner still decides to leave the partnership against the will of the other partners, the partnership is automatically dissolved. Incorporating a business removes this limitation by allowing shareholders/owners to freely transfer his/her interest to another without the unanimous consent of all other shareholders. Small businesses may see the restrictions against transferring shares as a good thing and may want to control how a shareholder may transfer his/her interest and to whom. Incorporation allows this flexibility as well. The free transferability of shares is a default rule, but by no means is it mandatory for all incorporated businesses. Businesses have the option to place restrictions on the transferability of certain shares and so even if this benefit of liquidity may be seen as a detriment to a business, incorporation lets the business decide whether or not to take advantage of this option. More importantly, unlike a partnership, incorporation prevents the ability of a minority shareholder from dissolving a business without cause.

Liability

One of the greatest benefits for incorporation is its limited liability against the shareholders. As mentioned above, any debt or liability against a specific shareholder remains separate from the corporation. Likewise, the inverse is similarly true. Any debt or liability against a corporation does not open the doors of shareholders’ assets to the creditor(s). The shareholder’s liability in any corporate debt or liability is limited to what the shareholder invested (unless there is fraud). In a sole proprietorship or general partnership, the owner(s) and/or general partners remain completely liable to any debt or liability placed against the business. If a business is unable to pay a debt, the creditor can attack the assets of an owner or partner until the debt is satisfied. In a corporation, a creditor can only attack to the extent the shareholder invested into the corporation (unless there is fraud). This allows the corporation to make business decisions without the risk of endangering the personal assets of its shareholders beyond what was invested. Risk is a necessary element to a successful business. Anything that minimizes the risk to investors makes the business more attractive, and so the limited liability of an incorporated business is quite valuable.

Taxes

The major detriment to incorporation is the taxes involved. In a sole proprietorship or partnership, the taxable income of the business flows directly to the owner and/or partners and are taxed based upon the individual’s income tax bracket. However, because the corporation is considered a separate entity, the taxable income of a corporation is taxed first under a corporate tax. If the corporation decides to distribute the remaining income to the shareholders, that income is taxed once more based upon the individual’s income tax bracket (essentially, a double-taxation). The marginal tax rate for a corporation can be significantly higher than the marginal tax rate for a sole proprietorship. Although this characteristic of incorporation may deter a business from incorporating, small businesses can avoid this double-taxation by taking advantage of the options given to a corporation by the states. Some options include incorporating as an S-corporation (see below) or filing as a Limited Liability Company (LLC) (see below). These options allow the taxable income to flow directly to the shareholders/members without being taxed twice, while at the same time, maintaining the benefits of incorporation. The 3Ls are important benefits, but not the only benefits. There’s also something psychologically beneficial about incorporating that goes beyond the number crunching and legal issues involved. Incorporation may seem to be a daunting task, but it is also an exciting moment in the life of a business. First conceived through an idea, a business can be birthed at the point of incorporation. No longer will it simply be an idea or something intangible, but an actual and existing entity. Sometimes this psychological step of seeing the business as something real will further motivate and inspire you to bring greater success to your business.

Reduced Chance of Tax Audit

Sole proprietors tend to be more likely to file incorrect returns (many are self-prepared). and tend to under report revenue or over report deductions. For these reasons, the IRS has audited a much higher percentage of sole proprietor tax filings than corporate filings in recent years. In tax year 2006, a Schedule C filer stood a 1 in 32 chance of being audited. For non-business filers, the odds were around 1 in 124. This means that sole proprietors are significantly more likely to be audited.

Build Credibility

Distinguishing yourself from the competition by establishing a professional identity helps increase credibility with your customers. Most businesses choose to incorporate a business to prove their legitimacy to both customers and suppliers. Adding “INC.” or “LLC” after your business name gives you the credibility and professionalism that many customers are looking for.

You could file all the necessary incorporation documents yourself. However, when you consider the time involved for filing, administering, and maintaining all the documents necessary to keep your business running legitimately. why would you? Let us help you get it done, so you can get back to business!

  • Forming a business with MyCorporation is a cost-effective way to protect personal assets and gain potential tax savings.
  • Our incorporation services start at just $69 (plus required government fees).
  • Lawyers charge, on an average, over $200 per hour. With our document filing services. you’ll know exactly what you are getting, and how much it costs from the very beginning.

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5 Things to Do Before Saying I Do to a Business Partner #business #awards

#business partner

#

5 Things to Do Before Saying ‘I Do’ to a Business Partner

CEO Founder, Deborah Mitchell Media Associates

September 24, 2014

As an entrepreneur, you may at some point consider getting a business partner or co-founder. Maybe you miss working with a larger team that complements your skills, or perhaps you are trying to broaden your market or expand your clientele. Whatever your motive, you should know that business partnerships always start with excitement, but have the potential to end tumultuously. When forming a business partnership — just like a marriage — there are certain key steps to take at the beginning that will help in the transition if your professional relationship should end.

1. Perform due diligence. Yes, everyone is fun over cocktails, but when the time comes to sign contracts and do business, you d better be sober and confident you re shaking the right hand. Asking for referrals about a potential partner goes beyond contacting common friends and asking their opinions. Call former partners and business associates, inquire with clients, read comments on their social media pages and look them up on Google. (Keep reading way past page one of the search results.)

By the time you re done, you should be able to name anyone who dislikes them — from their first high-school enemy to their latest unhappy client. Only then will you be able to either take a calculated risk or a major step back.

2. Make sure you lawyer up. If the legal fees in the beginning of a business relationship don t make you wince, then you re doing something wrong. When you partner with other people, every aspect of the business relationship should be put down in writing — including the goals for the company, duties and responsibilities of the partners and an exit strategy. Every sentence of a contract — no matter how innocuous — should be looked at by a lawyer. Since tax laws can be tricky, have your accounts receivable/payable arrangements scrutinized by an accountant.

3. Ensure you have exit strategy. Ending your business partnership is the last thing you want to think about when you are beginning one. It is similar to thinking about divorce on your wedding day, but you should have a plan. The business exit strategy should include several legal points including the division of the business assets and how the partner s portion of the business will be handled in case of death.

4. Protect yourself. One of the smartest moves you can make is to protect your personal assets in case of a lawsuit. Whether you choose to incorporate or become an LLC, the top benefit will be shielding your savings, home, car and even your favorite pair of Louboutins from any liabilities associated with the business.

5. Protect your brand. Joining forces with a partner takes a lot of energy, and chances are that somewhere down the line you will lose your focus. Working for a common goal within a new team is really exciting but merging forces does not necessarily mean merging identities. Don t lose sight of who you are. If part of the original business plan is to maintain your brand, make sure it doesn t suffer while you re giving all your time and energy to your new endeavor.

When you meet a potential partner, your personalities may click and your goals may be identical but to have a successful relationship, clarity is key. The more precautions you take in the beginning, the happier and more productive you will be later on. And the day you see that the team you ve tried to build has become nothing more that a group of people looking in different directions, then it s time to part ways and move on.





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I – m Too Busy! #great #business #ideas

#busy

#

TRANSFORMING PERFORMANCE

TRANSFORMING PERFORMANCE

TRANSFORMING PERFORMANCE

I m Too Busy!

Have you found yourself saying ‘I’m Too Busy’ recently. I mean it happens to everyone right? There genuinely are times where you have too much to do and find yourself suddenly realising it is 4.30pm and you haven’t stopped for lunch, or it’s 9pm and you can’t finish for another few hours yet.

However, I do believe that often ‘too busy’ is a myth we create in our own minds. It is all about priorities, and taking a longer term approach. For example, I was speaking to someone last week who was ‘too busy’ and an hour later they popped up on Facebook for 20 minutes taking about something and nothing (non business related). The same person later in the day was tweeting about Pokémon Go hunting.

If you have time for Pokémon then great (and actually it is a genius idea for getting kids off their Xboxes and doing some exercise – going round the streets on a Pokémon hunt). However, in some cases Pokémon has literally taken over people’s lives – there have been reports of people crashing their cars, breaking into houses and walking into rough seas, while chasing Pokémon.

You might think it is really stupid to let Pokémon take over your life in a way that threatens your health but maybe your business is YOUR Pokémon? Maybe your business is taking over your life. You might be looking at Pokémon and thinking – Why? Your husband/wife/partner/kids/family member or friends might be looking at you over-working in your business and think Why?

Are you in the position where you are not making your boat go faster despite all your hard work, where the only thing going faster is your life. Would you like to know how to get your business running as brilliantly as Nintendo (50% rise in share price in a week is not bad!).

What you will get

  • 30 minutes devoted to working ON and not IN your business
  • At least 2 ideas you can take away and implement immediately
  • A clear plan of what to do next to delete some ‘busyness’ and be more effective in your business

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  • When Do I Need a Business Lawyer for My Small Business? #business #valuation

    #business lawyer

    #

    When Do I Need a Business Lawyer for My Small Business?

    Among the countless worries for entrepreneurs who are starting or are already running a small business is the question of whether they need a business lawyer. The perception is that attorneys charge high rates and many small businesses don’t have much, if any, extra capital with which to pay lawyers. As a result, most small business owners only hire an attorney experienced with business matters when confronted with a serious legal problem (e.g. you’re sued by a customer). However, legal help is a cost of doing business that often saves you money and helps your business in the long run.

    While you certainly don’t need an attorney for every step of running your business, an ounce of prevention is worth a pound of the cure. This article will explain when you can cover legal issues on your own or with minimal attorney assistance and when you will definitely need a business lawyer.

    Issues You Can Handle on Your Own

    There are certain matters that are fairly straightforward and/or not unduly difficult to learn and therefore do not require the services of an attorney who charges at least $200 per hour. There are enough expenses associated with running a business, why not save yourself a load of money and do it yourself if you can?

    The following is a list of some tasks that business owners should consider taking on themselves (with the aid of self-help resources, online and in print):

    • Writing a business plan
    • Researching and picking a name for your business (previously trademarked business names can be researched online)
    • Reserving a domain name for your website
    • Creating a legal partnership agreement, limited liability company (LLC) operating agreement, or shareholder’s agreement (see Choosing a Legal Structure )
    • Applying for an employer identification number (EIN), which you will need for employee tax purposes
    • Applying for any licenses and permits the business requires
    • Interviewing and hiring employees (there are federal and state antidiscrimination laws which regulate the hiring of employees)
    • Submitting necessary IRS forms
    • Documenting LLC meetings
    • Hiring independent contractors and contracting with vendors
    • Creating contracts for use with customers or clients
    • Creating a buy-sell agreement with partners
    • Updating any partnership, LLC, or shareholder’s agreements under which you are currently operating
    • Handling audits initiated by the IRS

    The above is not an exhaustive list of legal tasks which small business owners can do on their own. It should be stated that if your business is well-funded or you feel that you need the assistance of an attorney, you can always retain a lawyer to help you with everything listed above.

    Issues Where You Will Need a Business Lawyer

    Most of the issues outlined above can be handled by any intelligent business owner (if you can run a business, you can certainly fill out IRS forms or fill in boilerplate business forms). There are times, however, when a business faces issues that are too complex, too time consuming, or fraught with liability issues. At that point,the wisest move is to retain a business lawyer.

    A few examples include:

    • Former, current, or prospective employees suing on the grounds of discrimination in hiring, firing, or hostile work environment
    • Local, state, or federal government entities filing complaints or investigating your business for violation of any laws.
    • You want to make a special allocation of profits and losses or you want to contribute appreciated property to your partnership or LLC agreement
    • An environmental issue arises and your business is involved (even if your business didn’t cause the environmental problem, you may be penalized)
    • Negotiating for the sale or your company or for the acquisition of another company or its assets

    An Ounce of Prevention

    While you certainly need to retain an attorney for the serious issues above, your emphasis should be placed on preventing such occurrences in the first place. Prevention does not necessarily involve hiring an attorney, though consulting with one wouldn’t hurt. By the time you or your business is sued, the preventable damage has been done and the only question that remains is how much you’ll be paying in attorney’s fees, court fees, and damages.

    For example, by the time a prospective employee files a lawsuit claiming gender discrimination based in part upon questions posed at the job interview, all you can do is hire an attorney to defend the lawsuit. If, on the other hand, you had done your own research on anti-discrimination laws, or you had consulted an attorney beforehand, you would have known not to inquire as to whether the applicant was pregnant or planned on becoming pregnant. The small effort at the beginning of the process would save you an enormous headache later.

    To prevent unnecessary attorney costs at the inception of your business as well as tremendous costs after a lawsuit has been filed, you might consider a consultation arrangement with an attorney. Such an arrangement would entail you doing most of the legwork of research and the attorney providing legal review or guidance.

    For example, you might use self help and online sources to create a contract with a vendor and ask an attorney to simply review and offer suggestions. Or from the previous example, you might research types of questions to ask during an interview and then send the list to an attorney for his or her approval. This way, you prevent the potential headache later and the cost to you is minimal because you’ve already done most of the work and the attorney simply reviews the document.

    Find the Right Attorney for Your Business Needs

    You won’t need a lawyer for each and every legal issue that comes up in your business. But when you do, it’s good to know where to find the right one. Check FindLaw’s legal directory for a business and commercial law attorney near you.





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    What Can I Become with a Master s in International Business? #own #business

    #international business jobs

    #

    What Can I Become with a Master’s in International Business? After graduation

    A Master’s in international business is ideal for students who are planning to build a career in international business. Through this program, you can develop a variety of skills necessary to understand the global economy. It also gives you the ability to plan strategically for international operations and the capabilities required to execute those operations. A study programme in international business solely focuses on the area of international business.

    Career opportunities with a degree in international business

    With the massive growth of international business, there is a huge demand for individuals with an in-depth knowledge and understanding of global markets. This is one of the reasons why completing a Master’s or Bachelor’s degree in international business can open the doors for a series of career opportunities. Whether you choose to explore careers in the field of marketing or finance, you will be able to choose from a wide range of opportunities.

    If you choose to go in the marketing direction, international business studies can be useful to land a job as an International Marketing Manager. In this position, you will be required to oversee the marketing strategy of a company in the international market. Your job will involve analyzing the potential market and predicting the profitability of various products or services.

    The role of an International Finance Controller is popularly given to those who have completed an according specialisation in their international business programme and chosen to build a career in the field of finance. With this role, you will be dealing with various issues related to taxes, audits, accounts, regulatory compliance, and budgets. This position is typically the highest in the finance department for most companies.

    After completing an international business degree, you can even land the role of an International Banking Manager. Your job will be to oversee the international banking policies and objectives as well as initiatives of a financial institution. You will also have the responsibility of developing and maintaining banking services to clients in the global market.

    As a graduate in international business, you can also become an International Trade Manager. You will have the responsibility of overseeing every aspect of the trade negotiations and policies of an establishment be it a private firm or a government office. A Master’s program in international business will give you the necessary skills and knowledge to oversee contacts with important industry leaders and trade officials.

    5. Business development

    International business studies also prepare you for a career in the field of business development. You can become a Business Development Manager, which requires you to assess various marketing opportunities as well as the international target market. Your responsibility will be to evaluate a business to help it realize its full potential.

    Higher studies in international relations degree

    Once you complete a Master’s program in international business, you can even pursue a higher degree by enrolling in a doctoral degree program in the field. This degree will qualify you for more prestigious job opportunities such as the role of a CEO. You can even get into teaching at university level or get involved in research work.





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    Why Should I Incorporate My Business or file an LLC? #small #business #development #center

    #incorporating a business

    #

    Why Incorporate ?

    Choosing how a business is organized may be one of the most important decisions a business makes. Incorporation may be the wisest decision, but for some, it may be an unnecessary decision, and so each business should carefully assess the benefits (and challenges) of incorporation before moving forward. With that said, the greatest benefits to incorporation can be summarized into the 3Ls: Life, Liquidity, and Liability. Let’s start with Life.

    Life

    The best way to understand a corporation is to imagine it as a separate artificial person (with limited rights and privileges). Incorporating a business is essentially creating that separate person thereby making the business separate from the owner (in a sense, the business has a life of its own). As a separate entity, the corporation exists independent from the shareholders/owners and its employees. Regardless of what happens to the shareholders, or the directors, or the employees, the corporation itself continues to exist in perpetuity until a time the directors and shareholders decide to dissolve a corporation. In a sole proprietorship or general partnership where the owner(s) is the business, what affects the owner may affect the business. Any personal debt or liability of an owner or partner allows the creditor(s) to pursue the assets of the business whether or not the debt or liability has any relation to the business itself. Furthermore, personal bankruptcy of an owner or partner will directly impact a business by opening up its assets to any creditors the owner or partner is liable to. By incorporating a business. the personal finances of an owner or partner remains separate from the finances of the corporation and allows the business to continue without disruption. In the event of an unfortunate death of an owner or partner, the business is generally dissolved regardless of the wishes of the owner or partner(s). All of this could easily be avoided by incorporating the business as a separate entity.

    Liquidity

    As much as we believe that all owners of a business should remain forever committed to the success of the business, there may be times when an owner or partner will need to leave the business. Regardless of the reasons for leaving the business, incorporation allows the free transferability of interest from one person to another. Generally in a partnership, a partner cannot transfer his/her interest in a business to another without the express consent of all other partners. If a partner still decides to leave the partnership against the will of the other partners, the partnership is automatically dissolved. Incorporating a business removes this limitation by allowing shareholders/owners to freely transfer his/her interest to another without the unanimous consent of all other shareholders. Small businesses may see the restrictions against transferring shares as a good thing and may want to control how a shareholder may transfer his/her interest and to whom. Incorporation allows this flexibility as well. The free transferability of shares is a default rule, but by no means is it mandatory for all incorporated businesses. Businesses have the option to place restrictions on the transferability of certain shares and so even if this benefit of liquidity may be seen as a detriment to a business, incorporation lets the business decide whether or not to take advantage of this option. More importantly, unlike a partnership, incorporation prevents the ability of a minority shareholder from dissolving a business without cause.

    Liability

    One of the greatest benefits for incorporation is its limited liability against the shareholders. As mentioned above, any debt or liability against a specific shareholder remains separate from the corporation. Likewise, the inverse is similarly true. Any debt or liability against a corporation does not open the doors of shareholders’ assets to the creditor(s). The shareholder’s liability in any corporate debt or liability is limited to what the shareholder invested (unless there is fraud). In a sole proprietorship or general partnership, the owner(s) and/or general partners remain completely liable to any debt or liability placed against the business. If a business is unable to pay a debt, the creditor can attack the assets of an owner or partner until the debt is satisfied. In a corporation, a creditor can only attack to the extent the shareholder invested into the corporation (unless there is fraud). This allows the corporation to make business decisions without the risk of endangering the personal assets of its shareholders beyond what was invested. Risk is a necessary element to a successful business. Anything that minimizes the risk to investors makes the business more attractive, and so the limited liability of an incorporated business is quite valuable.

    Taxes

    The major detriment to incorporation is the taxes involved. In a sole proprietorship or partnership, the taxable income of the business flows directly to the owner and/or partners and are taxed based upon the individual’s income tax bracket. However, because the corporation is considered a separate entity, the taxable income of a corporation is taxed first under a corporate tax. If the corporation decides to distribute the remaining income to the shareholders, that income is taxed once more based upon the individual’s income tax bracket (essentially, a double-taxation). The marginal tax rate for a corporation can be significantly higher than the marginal tax rate for a sole proprietorship. Although this characteristic of incorporation may deter a business from incorporating, small businesses can avoid this double-taxation by taking advantage of the options given to a corporation by the states. Some options include incorporating as an S-corporation (see below) or filing as a Limited Liability Company (LLC) (see below). These options allow the taxable income to flow directly to the shareholders/members without being taxed twice, while at the same time, maintaining the benefits of incorporation. The 3Ls are important benefits, but not the only benefits. There’s also something psychologically beneficial about incorporating that goes beyond the number crunching and legal issues involved. Incorporation may seem to be a daunting task, but it is also an exciting moment in the life of a business. First conceived through an idea, a business can be birthed at the point of incorporation. No longer will it simply be an idea or something intangible, but an actual and existing entity. Sometimes this psychological step of seeing the business as something real will further motivate and inspire you to bring greater success to your business.

    Reduced Chance of Tax Audit

    Sole proprietors tend to be more likely to file incorrect returns (many are self-prepared). and tend to under report revenue or over report deductions. For these reasons, the IRS has audited a much higher percentage of sole proprietor tax filings than corporate filings in recent years. In tax year 2006, a Schedule C filer stood a 1 in 32 chance of being audited. For non-business filers, the odds were around 1 in 124. This means that sole proprietors are significantly more likely to be audited.

    Build Credibility

    Distinguishing yourself from the competition by establishing a professional identity helps increase credibility with your customers. Most businesses choose to incorporate a business to prove their legitimacy to both customers and suppliers. Adding “INC.” or “LLC” after your business name gives you the credibility and professionalism that many customers are looking for.

    You could file all the necessary incorporation documents yourself. However, when you consider the time involved for filing, administering, and maintaining all the documents necessary to keep your business running legitimately. why would you? Let us help you get it done, so you can get back to business!

    • Forming a business with MyCorporation is a cost-effective way to protect personal assets and gain potential tax savings.
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    Business – What Should I Use as My Business Address? #sample #business #proposal

    #business address

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    What Should I Use as My Business Address?

    Q: I m in the process of creating a business plan for a homebased business that I would like to start. I will be selling products like T-shirts and novelty items. But I have come to a point in the business plan that has me stumped. The problem is, I live in an apartment. What if a customer wishes to return an item that they purchased from me? How unprofessional would it be to have a return address listing an apartment?

    A: You re right–creating a professional image from the get-go is important, and it can be particularly challenging for homebased entrepreneurs. Nowadays, people are much more accepting of the idea of operating a business from home, but it s taken some time for everyone to get past the stereotypical image of the homebased entrepreneur waltzing around the house in bunny slippers and making frequent visits to the refrigerator. Still, it pays to give yourself every advantage in starting a business, so it pays to look as professional as possible.

    Deciding whether to use your home address for business purposes is a matter of what that address is. Something like 1114 Grove Ave. sounds perfectly fine, but, as you indicate, something like 1114 Grove Ave. Apt. 4, probably doesn t. Luckily, there are solutions. Since you ll evidently be doing some heavy shipping and perhaps dealing with returns, consider using a mail-receiving service, such as Mail Boxes Etc. These services provide you with a street address and a suite number rather than a post office box number (which some people perceive as questionable in itself). They ll also generally just save you a lot of headaches, handling everything from packing and shipping to package tracking. Shop around in your area for a service that s conveniently located to your house and reasonably priced.

    You should also think about how you re going to handle mail on a daily basis. Set up a system, and stick to it. Otherwise, before long you ll find yourself buried in paperwork, with a long list of angry customers to deal with. Designate an area in your home office just for mail-related tasks, whether it s incoming or outgoing mail. In your case, it might be best to set up a large table where you can sort and process mail and prepare items for shipping. Don t just use your desk–with all the other business-related paperwork that goes along with running a home office, you don t want to mix and mingle. And pick a time when you ll be able to deal with mail every day–whenever it s most convenient and won t interfere with any other pressing activities.

    When sorting through incoming mail, try to handle each piece of mail only once rather than looking at it and setting it aside to deal with later. Separate things into piles based on their priority–for example, items to be filed, items that need immediate action and items to be trashed. Then take care of each pile–and move on to something else.

    In addition, consider setting up an e-mail account where customers can send you their inquiries electronically. This will cut down on excess mail and phone calls. Just remember to be diligent about checking your e-mail and responding to inquiries in a timely manner.

    In time, you ll have your system down to a science and you ll be able to do it in your sleep. And that can only mean satisfied customers who will provide you with repeat business.

    The opinions expressed in this column are those of the author, not of Entrepreneur.com. All answers are intended to be general in nature, without regard to specific geographical areas or circumstances, and should only be relied upon after consulting an appropriate expert, such as an attorney or accountant.





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    What type of accounts should I use for ATM businesses cash flow? QuickBooks Learn

    #atm business

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    What type of accounts should I use for ATM businesses cash flow ?

    I use the cash accrual accounting style for my ATM business. I cycle cash through my ATM’s that I have entered into my QB as owners equity originally. I am wanting to balance the checking account. When that money cycles back through to my bank account and gets electronically deposited what is it considered? Is it an “other assett” or what? Then when I withdrawl to load machines again what type of account should I use for the withdrawls, a “short term liability” account? I really need some clearity.

    You might say the cash is my reaccuring supplies.

    Why do you want to report this?

    I think I am tracking with Mistyblue. I have the income account for the surcharge fees that users of the machine owe me. The expense account for any fees for the particular bank where my money is cycled through. But what about the ST liability account. are you saying use this account type for the electronic deposits from user’s of my machine’s back to my account and use it for my withdrawls to load back into my machine. I thought I would need a “plus” and a “minus” sort of set up with the accounts?

    Recommended Answer

    2 people found this helpful

    This is how I have done this: I’ve set up a bank account for the ATM in qb as well a income account and I used a short term liability account. Of course a bank service charge account for the ATM.

    The short term liability account is the cycle account (withdraw and well as put back) – The income part I separate to its own income account. This way tracking income, expense, and your main cycle account. Which bottom line each rec balances. Note: I would check as well with your accountant on according to your area on sales tax requirements.

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    I think I am tracking with Mistyblue. I have the income account for the surcharge fees that users of the machine owe me. The expense account for any fees for the particular bank where my money is cycled through. But what about the ST liability account. are you saying use this account type for the electronic deposits from user’s of my machine’s back to my account and use it for my withdrawls to load back into my machine. I thought I would need a “plus” and a “minus” sort of set up with the accounts?

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