Archive for the ‘News’ Category
Great Article About Sole Proprietor vs. Incorporation or LLC
I just found a great article on FoxBusiness.com that helps explain why you may or may not want to consider different types of business structures. This is definately worth a read. Go to: http://smallbusiness.foxbusiness.com/entrepreneurs/2011/03/11/pros-cons-sole-proprietorship/
After reading this article, we would love to help you file your company. Remember, we are the top rated website (by Customers) for Business Incorporation and LLC Formation.
New Business Incorporations Grow Even As Jobs Return-Why?
New business incorporations and LLC formations are continuing at a record pace, even as the jobs market seems to be recovering, so what’s going on? Well, even though hundreds of thousands of jobs are being added back into the economy each month, they simply aren’t the kind of jobs we had before the Great Recession. Studies are showing that the new jobs pay less and are offering fewer hours. Here is a sampling of what I mean:
- High wage industries took a beating during the recession, with job loss rates of around 40%, but in the new job market they only account for 14% of the jobs gained. Lower wage industries fared somewhat better during the recession, accounting for only 23% of the jobs lost, however, 49% of the jobs created over the last year are in these same industries. For you and me, that means when we look for a job it is far more likely we will find openings in retails stores than in traditional corporate arenas.
- In addition to pay per hour changes, more of these open positions are part time instead of full time when compared to pre recession. A new Gallup poll shows that almost 20% of part time employees really want a full time job, but seem to have settled for less while they continue to look.
As we review the numbers of unemployed vs. employed Americans over the next few months (the traditional way to measure a return to normalcy following a recession) it may be worth digging deeper to see what the quality of those jobs is. Are people finding similar employment opportunities and pay to what they lost when the economy went south? So far, the numbers look grim and this is driving record numbers towards self employment and entrepreneurial opportunities, leaving new business incorporation and LLC formation starts at a 15 year high.
Business Incorporations and Start-Ups Surge…and Boost Hiring
The difficult economy has certainly changed the way Americans view jobs. Those who have them are hanging onto them dearly and those who don’t are turning away from traditional corporate jobs in favor of starting their own businesses. New start-ups and business incorporations are reported at a 15 year high which is boosting hiring in some studies, but the results may depend on what group you talk to.
Here are some fast facts:
- Last year, 565,000 start-ups were created each month
- Business incorporation numbers have risen steadily since 2006
- Immigrants, particularly Latinos, are twice as likely to start a business as someone who is American born
- High School dropouts are among the most likely to start their own business
- Construction businesses consistently rank at or near the top for new start-ups
So what does this mean? “It certainly appears that the recession and its resulting high unemployment are driving the majority of this trend” said Scott Weddle, Manager of an online business filing firm. “Our customers are largely driven out of necessity. They simply can’t find employment in many cases.” Businesses started out of desperation don’t typically drive hiring growth. Instead, these new business owners tend to stay self-employed and hire few, if any, employees.
Small business as a whole, however, is continuing to improve. This sector of the economy lost around 2.7 million jobs since last March, but has added around 100,000 in each of the last three months. While I wouldn’t call that a recovery, I would be willing to call it a start.
LLC or DBA…Do You Know Which You Need?
LLC or DBA?
LLC or DBA? We start conversations at our company with this basic question more times than I can tell you. Many customers don’t understand the fundamental difference between an LLC and a DBA, and choosing the wrong one can have unbelievably huge consequences!
Let’s start with what the abbreviations mean:
LLC is short for Limited Liability Company.
DBA is short for Doing Business As.
Getting a DBA is basically an application that is filled out and filed with your state and/or county to let them know you wish to conduct business under a name that is not your own. Once your application is approved, you can advertise under the name, take payments under the name, open a bank account, etc. However, from a legal perspective, it is YOU conducting business and that is a very important distinction to understand.
Getting an LLC is also an application, which is filed with the Secretary of State. Similar to a DBA, it allows you to operate under a name other than your own, however, there is a major difference…from a legal perspective, it is the LLC conducting business and not you personally. What does that mean to you? This seemingly small difference means everything when things go badly!
Business is inherently risky and many entrepreneurs and small business owners have learned the hard way that you can be sued for anything…even if you are completely upfront and above board with your business practices. The smart business owner considers this form the beginning.
If you find yourself in a lawsuit and you are operating as a DBA, you are being sued personally! Every one of your assets is up for grabs. Think about the equity in your home, your car, your kid’s college fund, savings…really anything and everything you have can be lost. This is why you will not find a business owner who will recommend a DBA as your primary business structure.
Take this same scenario and apply it to an LLC. In a lawsuit, it is not you personally who is being sued. It is actually the LLC and as a result it is the assets which belong to the LLC that are up for grabs, and not typically yours. This distinction makes the LLC a very attractive choice for small business owners.
So why do DBA’s even exist? Not too long ago, Limited Liability Companies didn’t even exist. Business owners had to choose between a full-on incorporation or a DBA and incorporations have a relatively high level of maintenance and work that must be done just to maintain the corporation, which doesn’t work well in many cases. In current times, DBA’s are still used regularly, sometimes by those who have not done enough homework to understand the difference, but more often they are used by corporations and LLCs. That’s right, an LLC or corporation can apply to do business as a DBA. For them it can still make sense because the liability will still stop with the LLC or corporation and not go back to the owners of the company.
Before you file a DBA, look carefully at the LLC as an option.
New LLC Pricing = Great Success!
This is a big THANK YOU to all of our customers who have helped to make our new pricing structure such a huge success! Moving our price to just $39 to file an LLC seemed like a pretty big risk to take for the company, but the response has been overwhelming and we couldn’t be happier.
For anyone who wants to file an LLC, I have this one question…why would you pay more when the #1 company for customer satisfaction will help you for just $39?