Category Archives: Business Planning

Business Planning

What do I need to know to start a business? (Part 4)

In Part 1, we explored Sole Proprietorship and Partnership ownership interests.  In Part 2, we explored Limited Liability Partnerships, Limited Partnerships, Limited Liability Companies.  In Part 3, we explored Corporations, where to incorporate, and started discussing some basic tax considerations.

Now we will explore the taxes in a little more detail and what tends to be the cheapest to start.   Continue reading What do I need to know to start a business? (Part 4)

Business Services to stay out of trouble

When you open a business, sometimes it feels like there are always people trying to get more money out of you.  They often talk about how they will drive more business to you and help you find clients.  While getting more [good] clients is important, one thing often overlooked is the need to protect your business and often times, there are additional expenses that you should really consider that can really help keep you out of trouble.

Continue reading Business Services to stay out of trouble

Partnerships

Choosing what type of entity your business will be is an essential part of business planning.  A partnership is two or more people working together for a profit.  There are two basic types of partnerships, general partnerships and limited partnerships.

There is no requirement to create a partnership agreement, however it is smart to do so.  A Written partnership agreement helps to avoid misunderstandings between partners and a failure to have a written agreement will result in default rules based on the states statute.  A written agreement also permits the partners to discuss various aspects of the business and expectations of the partners.

Continue reading Partnerships

Where should I incorporate? (Part 2)

In Part 1, we discussed the non-legal issues that can influence where to incorporate, such as financial, convenience of where they are doing business, and continuing operations.  Now we will discuss some of the legal considerations for where to incorporate.  As we mentioned in Part 1, Delaware, Nevada, and Wyoming are three states considered corporate havens, so we will discuss some basic information about these three states.

Continue reading Where should I incorporate? (Part 2)

Where should I incorporate? (Part 1)

Where should I incorporate?

This is a question that I am often asked, and although we can explore the legal issues as to where you should incorporate, there are non-legal issues to consider as well.  People often hear advertising focusing on “Incorporate here, it is tax free!”  The problem with the advertising is people don’t really understand how things work, and that will end up just costing more money when their only focus is to save money, and that just leaves people feeling ripped off.

 

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Continue reading Where should I incorporate? (Part 1)

What do I need to know to start a business? (Part 3)

In part 2, we explored some methods to limit liability for your business with limited partnerships and limited liability companies.  In Part 3, we will explore Corporations and tax considerations in business formation.

Corporation

The Corporation, according to Black’s Law Dictionary, is an entity having authority under law to act as a single person distinct from shareholders who own it and having rights to issue stock and exist indefinitely; a group or succession of persons established in accordance with legal rules into a legal or juristic person that has a legal personality distinct from the natural persons who make it up, exists indefinitely apart from them, and has the legal powers that its constitution gives it.  A corporation is an artificial being, invisible, intangible, and existing only in contemplation of the law…[I]t possesses only those properties which the charter of its creation confers upon it.

Continue reading What do I need to know to start a business? (Part 3)

What do I need to know to start a business? (Part 1)

Starting a business can be a fun, exciting, and terrifying ordeal. It takes a vision, a plan, and the execution of the plan while also adjusting for events as they affect the plan.

During a lecture I was attending once, the speaker said, “Anyone can start a business, but not everyone can run a business.” That, combined with a recent conversation I had got me thinking that I should write about this topic, and all of the questions that come with starting a business. While this is a general discussion of legal principles, it will provide a good foundation of information to think about and discuss with your attorney. Continue reading What do I need to know to start a business? (Part 1)

Am I required to provide insurance for my employees?

The Affordable Care Act, commonly referred to as ObamaCare places requirements on some businesses to offer health insurance for their employees.

The Affordable Care Act has become a highly debated topic and this article is not addressing the merits or drawbacks to the law, it is simply explaining what is required.

Continue reading Am I required to provide insurance for my employees?