Q: Does an S Corporation protect your personal assets? It has become obvious I need help with this. Any ideas you have would be very much appreciated. A: Generally, yes, a corporation will protect the business owner’s personal assets. The “S” in “S Corp” is merely a way of designating the way in which the [...]
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Q.: I have always been advised, by CPAs, that until a small company has a specific NET income of approximately $100,000, incorporating is out of the question. The fees associated with Inc. may not be worth the trouble of incorporating. Wrong? If wrong, why? Thank you. A.: A $100,000 threshold? Hmmm. Plenty of companies are [...]
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Why open yourself up to personal liability when you don’t need to? Today’s query comes from someone wanting to know that fundamental first question: “What form of business should I be?” Q.: I’m wondering what kind of company you would recommend for me to register under for a clothing company. I was thinking going Limited [...]
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Investors can be a real boon to your business, but no question–they’ll want a piece of the action. What’s involved in issuing shares to them? Q: We currently have a market cap of $200,000 (2,000 shares X $100 per share). We were wondering how to authorize new shares to new investors. A: It’s not unusual for companies [...]
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When you’re in business by yourself, the math is easy. But when you have multiple owners, how should you share the spoils? That’s the nature of this week’s basic training post. Q: How should I divide profits in an LLC? A: Especially in an LLC, you have many options for how to divide your profits. There’s no hard-and-fast [...]
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Today’s post deals with the conundrum, how to account for business expenses without a company bank account, and how to set up a company without business funds? Q.: “I recently formed an LLC to create an online store. Because I saved diligently I had enough money in my personal savings account to cover all setup [...]
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Here are tips to help you avoid multiple headaches from having multiple business lines. Tough times call for creative measures. So it’s no surprise that many of the entrepreneurs I’ve encountered are taking on something new: a new line of business, a new venture, a new alliance, a new target market. Let’s look at a [...]
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. . . but you can’t pick your partner’s nose. (Or can you?) I received an inquiry from someone who, I’m sorry to say, is going at this bass-ackwards. She’s chosen a business partner, but not the kind of business she wants to set up. She wants to control all the decisions, but seems more concerned [...]
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You’d think that would be self-explanatory. But with the proliferation of the internet, holistic products and that gray area of “wellness,” who’s to say? Today’s Basic Training entrepreneur already had a website selling a product that’s 100 percent natural. She didn’t disclose the product to me but says that it could be perceived as medicine [...]
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People are getting smart about creating communities online. If you can get people to join, and you provide a benefit at a reasonable cost, chances are you’ll be on your way to building a nice annuity stream. The problem comes (as it does in other kinds of businesses) when the founders want to “sweeten the [...]
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Taking on a business partner is not a decision to be made lightly. It’s much like getting married. With the tools provided to you in The Entrepreneur’s Prenup you will always have the partnership guidance you need, regardless of where you are in your partnership process.
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