Posts Tagged ‘LLC Formation’
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.
Build a Business Website for less than $500
These days, having a website for your business is not optional. More and more potential customers go to the web to research every decision and purchase they intend to make and your success may very well rely on how customers perceive you online. The online world can be a tremendous stream of opportunity for your company, but it can also be extremely daunting. Costs for professional websites run thousands of dollars and large corporations can often pay in the millions for their sites, but great results can come from very small expenditures.
Your business is on a budget (or should be), so what can you do for the least amount of money and is it worth it? For many small businesses, their website has become the new business card. It tells customers who they are, what they do, and offers a price. This type of website can be done easily for well under $500. Here is a short list of how I would do it:
- Review your competitor’s websites. What functionality do they offer? Do they have an 800 number? Email? Can you buy products on their site?
- Buy a domain name. Often times the domain name is the same as the business name and the domain can be searched and bought through online services like GoDaddy.com for as little at $10 or $12.
- Decide where you will host your site. This is the computer server location where your website information is stored and accessible for viewing on the web. If you are tech savvy, you may decide to host it yourself on a computer you own. If not, there are ample online services that can help. GoDaddy.com can host your domain for as little as $4.99 a month and Hostgator.com lets you host for as little as $6.95 per month.
- Next, decide on a platform that will let you manage the website and the information you put in it. WordPress may be the most popular right now, but others that come to mind are Joomla or Drupal. For most new website owners, any of these will work fine. Costs for these services vary depending on how you use them, but you will find them to be very affordable.
At this point, your expense is still very low…probably less than $100, but the next step may have a more significant cost. Now you need to edit the platform you selected so it looks like you want and add your content. The going rate to have a local web developer do this is usually around $300 to $400. Going that route will easily have you at the $500 price tag I promised, or you can do it yourself…maybe for free. YouTube can be a great source to learn how to do some or all of the work yourself. Additionally, you may be able to learn all you need to know from the platform website. They offer pretty easy to understand guides that may get you through this step. If you have decided to accept payment over your website, consider PayPal. This can be integrated to your site for just a few dollars and may be an acceptable alternative to having a regular merchant account.
While this process never stops, this should get you on your way to developing a web presence you can be proud of and that will drive customers to your business! Good luck!
Thinking about business incorporation or forming an LLC? Let us help!
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.
What is an LLC? Definition of a Limited Liability Company
Limited Liability Company Definition/Explanation
Ever wondered exactly what a limited liability company is? How it differs from corporations and partnerships? How about how they are the same?
It definitely can be confusing, so we compiled a ton of information for you on this topic and placed it in our Articles section of the site. You can read the full (and very long) document by clicking here. This will tell you everything you ever wanted to know about an LLC and a few things you probably have never thought or heard of.
It is not wasted time to understand LLCs. They are the most common type of business formation, and you should understand how they can help you. If you have questions after reading the article, just give us a call. We are always glad to help.