Thinking about starting business

Thinking about starting business

Thinking About

Starting A Business ?

Let’s Talk About What’s Next…

Creating a business that brings you joy

The top 10 essentials for making a hobby into a business

Why incorporate your business

Choosing the right business structure for you

Your business success check list

Free resources for new business owners

Recommended book list

By Maria Marsala

Creating A Business That Brings You Joy

Building a strong business foundation is one of the keys to owning a successful busi-ness Best of all, you can start to create your business while you're working at another

job Create a business your heart desires and have fun, too!

You just won the lottery and in order to receive your check, you must have a full time job What would you be doing? Would it be what you are doing now? If not, ask yourself why Do you just need to add a little fun to your career or business, or is it that you are not happy with your current position and feel ready to go for what you REALLY want to do? Following are some ideas on how you can make the most of where you are, or take the steps to get to where you want to be

• Choose a career that "makes your heart smile." It's your desire level and commitment that will keep you going during any rough times Use this guide "Finding Your Ideal Career (or Business)" to assist you as you create a business around what you enjoy Make sure that your end product (your business) has a market, too www

coachmaria.com/article/idealcareer.html

• Know what helps you maintain your integrity your top 5 values, needs and wants Base your decisions on what's important to you Read Tony Robins book, Awaken The Giant Within for more information www.coachmaria.com/personalbooks.html

• Be prepared financially when transitioning into your business by making sure that you have a reserve of money in the bank or another income Even with the best plan-ning strategies, "things do occur" that end up costing us more money than we had planned to spend

• Build a strong support system - business and volunteer network, and friends Join a success group www.coachmaria.com/events.html for support or hire a coach to assist you in your business evolution

• Recognize your strengths and work from them: Acknowledge your weaknesses and failures (life's way of providing feedback) and grow from them Read The E-Myth Re-visited by Michael Gerber it's a "must have" business book

• Create a strong business foundation: a business plan, marketing plan, and operations manual Follow them Create forms and processes to keep you on track, etc Choose

to be organized and consistent Your clients and employees will appreciate it!

• Develop your boundaries and standards They affect your business too! There are some wonderful Top Ten Lists on both topics at www.topten.org

• When business is no longer fun, it is time to reassess what you are doing Even bet-ter - step back and assess your "fun" quotient every six months Hey! Maybe its time

to take your vacation!!

• If you do not have enough time in your life, work with your coach to pinpoint tasks that you may be able to delegate or eliminate In general, a Virtual Assistant (VA) is someone who performs administrative tasks away from the office of their clients A

VA is the modern day version of the executive assistant or personal assistant Are you interested in learning more about VA's? Or are you a VA looking for resources? Enjoy this list of resources www.coachmaria.com/coaching.html#Virtual

Listen to others and consider outside advice Incorporate what you like into your plan However, do not feel pressured to adopt another's practices as your own Ultimately, you are best equipped to implement how and why you run your business

The Top 10 Essentials for Making a Hobby into a Business

The essential thing here is that the IRS is going to look at your intent Did you intend

to make money? You must intend to make a profit or it's just a hobby Here are some

of the tangible indications that you have really embarked on a business enterprise

1 Register your business name by filing a "doing business as" (DBA) statement with your local county clerk

2 Use business cards and stationery

3 Take out a company listing in the Yellow Pages

4 Keep a log of the business contacts you've seen during the year

5 Advertise in local papers

6 Send promotional mailings to prospective customers

7 Set up a business bank account

8 Get a business telephone

9 Buy a postage meter and a copy machine

10 Hire at least some part-time help

Copyright 1998-2002 by Charles Powell, Personal and Business Coach who can be reached http://www.coach-charles.com The original source is: Randy B Blaustein, a former IRS agent Used with permission

Why Incorporate your Business ?

Anyone who operates a business, alone or with others, may incorporate Under the

right circumstances, the owner of any size business can benefit!

Reduces Personal Liability

Incorporating helps separate your personal identity from that of your business Sole proprietors and partners are subject to unlimited personal liability for business debt or law suits against their company

Creditors of the sole proprietorship or partnership can bring suit against the owners of the business and can move to seize the owners’ homes, cars, savings or other personal assets

Once incorporated, the shareholders of a corporation have only the money they put into the company to lose, and usually no more

Tax Advantages – Deductible Employee Benefits

Incorporating usually provides tax-deductible benefits for you and your employees Even if you are the only shareholder and employee of your business, benefits such as health insurance, life insurance, travel and entertainment expenses may now be de-ductible

Best of all, corporations usually provide an increased tax shelter for qualified pensions plans or retirement plans (e.g 401K’s)

Anonymity

Corporations can offer anonymity to its owners For example, if you want to open an in-dependent small business of any kind and do not want your involvement to be public knowledge, your best choice may be to incorporate

If you open as a sole proprietorship, it is hard to hide the fact that you are the owner And as a partnership, you will most likely be required to register your name and the names of your partners with the state and/or county officials in which you are doing business

Easier Access to Capital Funding

Capital can be more easily raised with a corporation through the sale of stock

With sole proprietorships and partnerships, investors are much harder to attract be-cause of the personal liability

Investors are more likely to purchase shares in a corporation where there usually is a separation between personal and business assets Also, some banks prefer to lend money to corporations

An Enduring Structure

A corporation is the most enduring legal business structure Corporations may continue

on regardless of what happens to its individual directors, officers, managers or share-holders

If a sole proprietor or partner dies, the business may automatically end or it may be-come involved in various legal entanglements Corporations can have unlimited life, ex-tending beyond the illness or death of the owners

Easier Transfer of Ownership

Ownership of a corporation may be transferred, without substantially disrupting opera-tions or the need for complex legal documentation, through the sale of stock

Centralized Management

With a corporation’s centralized management, all decisions are made by your board of directors Your shareholders cannot unilaterally bind your company by their acts sim-ply because of their investment

With partnerships, each individual general partner may make binding agreements on behalf of the business that may result in serious financial difficulty to you or the part-nership as a whole

Adds Credibility !

A corporate structure communicates permanence, credibility and stature Even if you are the only stockholder or employee, your incorporated business may be perceived as a much larger and more credible company Seeing “,inc.” or “corp.” at the end of your business name can send a powerful message to your customers, suppliers, and other business associates about your commitment to the ongoing success of your venture

Provided by Active Filings LLC Incorporation Services in all 50 States http://www activefilings.com

Sponsored byACTIVE FILINGS LLC

Choosing the Right Business Structure For You.

Businesses may choose from a variety of corporate entities, based on their needs

Below are useful descriptions

General Corporation

A general corporation, also known as a “C” corporation, is the most common corporate structure A general corporation may have an unlimited number of stockholders Con-sequently, it is usually chosen by those companies planning to have more than 30

stockholders or large public stock offerings

Since a corporation is a separate legal entity, a stockholder's personal liability is usually limited to the amount of investment in the corporation and no more

Close Corporation

A close corporation is most appropriate for the individual starting a company alone or with a small number of people

There are a few significant differences between a general corporation and a close corpo-ration A close corporation limits stockholders to a maximum of 30

In addition, many close corporation statutes require that the directors of a close corpo-ration must first offer the shares to existing stockholders before selling to new stock-holders

Not all states recognize close corporations

Subchapter S Corporation

A Subchapter S Corporation is a general corporation that has elected a special tax status with the IRS after the corporation has been formed

Subchapter S corporations are most appropriate for small business owners and entre-preneurs who prefer to be taxed as if they were still sole proprietors or partners

When a general corporation makes a profit, it pays a federal corporate income tax on the profit If the company also declares a dividend, the stockholders must report the dividend as personal income and pay more taxes

S Corporations avoid this "double taxation" (once at the corporate level and again at the personal level) because all income or loss is reported only once on the personal tax re-turns of the stockholders

For many small businesses, the S Corporation offers the best of both worlds, combining the tax advantages of a sole proprietorship or partnership with the limited liability and enduring life of a corporate structure

Limited Liability Company (LLC)

The LLC is not a corporation, but it offers many of the same advantages Many small business owners and entrepreneurs prefer LLC’s because they combine the limited li-ability protection of a corporation with the "pass through"" taxation of a sole proprie-torship or partnership

• LLC’s have additional advantages over corporations:

• LLC’s allow greater flexibility in management and business organization

• LLC’s do not have the ownership restrictions of S Corporations, making them ideal business structures for foreign investors

• LLC’s accomplish these aims without the IRS' restrictions of an S Corpo-ration

• LLC’s are now available in all 50 states and Washington, D.C

If you have other questions regarding LLC’s, be sure to speak with a qualified legal and/

or financial advisor For an Entity Comparison Table, please visit http://www activefilings.com/en/information/entity_comparison.htm

Provided by Active Filings LLC Incorporation Services in all 50 States http://www activefilings.com

Sponsored byACTIVE FILINGS LLC

Your Business Success Checklist

How do you start to plan your business? What is required? What should you re-search? Where do you start? Use the checklist below to guide you as you build a

strong, solid business foundation

Check your Personal Foundation Make sure you are ready mentally, emotionally and financially to begin your new venture

• Make the time

• Budget your income

• Create balance in your life

• Know your strengths, weaknesses, top 5 values and needs

• Order a copy of your credit report

• Choose your ideal business

Get organized Any new business venture will go more smoothly if you know right from the start what you have to offer, who you want to offer it to, and how you want your business to be organized

• Read a few books on business start-ups and marketing

• Check the need for your services

• Prepare a business plan and ideal client profile

• Price your service or product

• Develop a customer service policy

• Create an Operations Manual

• Plan for your office - location, supplies, utilities, and set-up fees

Develop a strong network and referral base From support to legal advice, star-ting your own business is never something you do all by yourself

• Look for assistance: employee, independent contractor

• Legal: licensing, business type, contracts, trademarks, copyrights, patent, service marks

• Build support: family, friends, business coach, consultant, advisors, business and so-cial networking

• Insurance: health, home, car, income, liability, risk, disability, loss of pay

• Money: taxes, accounting, banking, billing, cash flow, loans

• Marketing: copywriter, proofreaders, website designer, graphic designer, an assis-tant, Toastmasters, etc

Create a Marketing Plan A new business often doesn't have a huge budget for mar-keting and a plan can help you save money

• Design your marketing plan with your integrity in mind

• Develop print media (business cards, stationary, forms, advertisements, newsletter, etc.)

• Decide if online marketing will be part of your plan (website, newsletter, ad's, etc.)

• Practice describing the benefits of what you do in 30 seconds and 2 minutes (called verbal logo, USP, elevator speech)

• Re-evaluate your plan every 3 months

Start your research with the business, marketing and personal development articles at

www.coachmaria.com/articles.html

“Helping You and Your Business Grow" is a weekly HTML online newsletter

containing business, marketing, internet, computer and life tips and resources To subscribe email:mariasplace-subscribe@topica.com

Free Resources for New Business Owners

Below is a list of time saving resources to help you start formalizing

your new business

OK So you're ready to start your own business be your own boss or are you? If you still have questions, below is a list of places offering free information that can assist you

Consult phone books and web sites for local information Remember to ask about any mailing lists, classes they offer, or additional contacts that would be helpful for you to add to this list

Enjoy this list as a guide as you "plant the seeds" for your new venture and enjoy the networking opportunities

1 Federal Agencies

• U.S Small Business Administration (SBA)

• Web site www.sba.gov

• Toll Free: (800)U-ASK-SBA

• Request any free information and an order form for other publications

• Web site also has templates and sample Business Plans

• Internal Revenue Service (IRS)

• Web site www.irs.treas.gov/prod/bus_info/sm_bus

• Toll Free: (800) 829 - 3676

• Business Kit Publication # 454 includes an Employee Tax ID Form

• STEP (Small Business Tax Education Program) Publication # 1057, contains information on Business Tax Classes given in all 50 states, Puerto Rico and Guam

• Tell them what type of corporation you are thinking of becoming, how many employees, etc., so that they can send you other free, helpful publications

• Contact your local office to find out where you can attend a free business owners tax class