How To Start A Business and File Your Own Company

Starting you own business can be difficult, especially trying to figure out everything you need to do to get your business structure up and running. The goal of this article is to give you some information that will make that process easy. First this article will describe how to file a business name with your state, how to create your own LLC or Corporation, items you should consider in choosing a tax/legal structure and lastly how you can find some financing to start your dream.

The first step in starting your own business is to decide on a business name. This is of course assuming you already have product or service in mind. If you don’t have a product or service in mind do some research on Google for the top ten businesses to start, you will get plenty of ideas. But after you have your business name selected, the next step is to check with your Secretary of State to find out if your desired assumed name is available. If you are wondering what an assumed name is, it is basically a name that will separate yourself from the name you want to operate under. An assumed name can also separate itself from a LLC or Corporation as well. For instance, if I operate under a Sole Proprietorship an example of an assumed name would be something like Bob Smith (DBA) Business Name. If I use an assumed name to separate the name from a Corporation it may read as Bob Smith Inc. DBA Business Name.

Let me assure you filing a name with your Secretary of State is very easy to do. I live in Minnesota so what I do to file a name is I go to my secretary of state website. Once I am there I type in my chosen business, I proceed to file by filing out the application and pay the state roughly $35 to reserve that name. In doing so secures that name for me, meaning no one else can operate with that name. Also, it means that I will legally be able to operate my business in my state. Most likely once you file a new assumed name you will need to post the new business name in your local legal newspaper. This should cost roughly $50 to do so, but check with you state to make sure that is a requirement.

After you have a name filed the next step would to decide what type of tax entity you should operate under. The most common entity types are Sole Proprietorship, partnerships, LLC or corporation. If you want a corporation, or a LLC you basically file Articles of Organization (LLC) or Articles of Incorporation (Corporation) with your secretary of state. (You can either prepare these yourself with Legal Zoom, or have an attorney prepare them. And most likely filing such articles with your state will roughly cost you about $150. If you would like to operate under a corporation, but file taxes as a sub-chapter S you would notify the IRS of your intentions to do so by filing IRS form 2552 no later than 3rd month of the incorporation date.

If you are looking for something quick and easy to operate under a Sole proprietorship may be a good solution. A Sole Proprietorship is the cheapest and easiest to start roughly $35 to file the assumed name and $50 for the legal newspaper advertisement, but keep in mind the Sole Proprietorship offers no liability protection. That said your personal assets will be at risk to creditors and if you get sued you could lose a lot. However, if a Sole Proprietorship is what you want then file the name and start your operations and you can incorporate later if you choose to do so. The two most common entities that offer personal protection are Limited Liability Company s (LLC) or Corporations. But an LLC is easier to form and manage if you are still looking for something relative easy.

An S-Corp there is a little extra work to manage in regard you will need to appointing a board of directors, run shareholder meetings, keep minutes of such meetings and file quarterly payroll returns with the IRS. The reason you will need to file quarterly payroll tax returns is because owners of S-crops need to pay themselves a reasonable salary; therefore, a little extra work with an S-corp. With an LLC there is no need to operate in that manner. You basically just file articles of organization and that is about it. As with the S-Corp you are not required to have a board of directors, run meetings and keep minutes because LLC’s do not have shareholders, instead they have members in which each member will manage their own basis in the organization.

Now for both entities I do recommend putting together a shareholder agreement (Corp) or member control agreement (LLC). If you are putting an agreement together I do recommend consulting with an attorney. It might be a few extra bucks but a lot cheaper if things do not work out with partners. For instance agreements will provide details and a clear understanding with you and your partners if anything goes wrong. I know a group of guys who started an s-corp. together Four months later one of the shareholders was in total disagreement with the other two members. A shareholder agreement will spell out what happens if one of the shareholder decide to sell his shares, what options the other shareholder have, what the voting rights are of shareholders, can a shareholder be fired by what percentage of votes will be required to fire a shareholder, all of these details need to be figured out and that is the purpose of the agreement.

Now lets discuss some of the financial differences between and LLC and a S-Corp. A S-Corp has shareholders/owners and the shareholder have to pay themselves a reasonable salary, hence having to file quarterly returns with the IRS. At the end of the year what ever is left over, or if there is a loss is distributed in the form of dividends proportionality to its shareholder. For instance, if you own 25% of a S-Corp you will collect 25% of the income or losses. Keep in mind that a S-Corp is just a pass through entity filing an 1120S informational return, the S-Corp itself does not pay taxes. Instead it is passed on to its owners in the form of dividends which will be reported on a Schedule E with you personal returns. Oh and at this time you will also need to contact the IRS to obtain a Federal Tax ID number. Once again very easy, just look of the IRS online you can get the tax id number over the phone, online, traditional mail etc.

In regard to financing your business idea the first option is to have all your due diligence complete in regard to choosing your tax entity, filing all your paper work with your state and complete your business plan. Then is will be time to find some equity, equity will come in the form of your personal savings, a home equity loan, family, neighbors, you could also find partners. If you are really up to it than dress up in your most-professional attire and head downtown to meet with investment firms and Angel Investors. Just make sure you have a complete business plan and an offer that will provide a higher rate of return than what an investor can find in the market.

Once you have found enough investment capital to fund roughly 20% to 30% of your total start-up funds needed you can then apply for a bank loan. Once again you will need a business plan, but in addition to your business plan you will also want prepared your last three years of tax returns, a completed personal financial statement and all your business paper work that you filed with the State.

And lastly the bank, I like local banks smaller community type banks because you can typically get a faster answer on your loan request. However, I recommend to meet with a half-dozen bankers or so and choose the one you feel most comfortable with.

If you have any questions feel free to contact me anytime.

Cordially,
Bryan Rogers

Defining and Investing in Your Top 5 Assets

In my financial advising practice I help my clients to take inventory and check their wealth in five categories of assets that few have considered. Each of these categories represent a significant source of wealth or in some cases debt for the client. It is important to add strategies to build wealth in all five of these areas.

We start the process by defining the five asset classes and asking the client to rate the level of wealth in each account on a score of 1-10 with 10 being the highest and requiring no improvement. On the other end of the scale a 1 would need much attention and signify debt in this asset class. The five classes of assets are physical, mental, social, financial and spiritual.

Physical assets concern the body. Are you able to complete your day with little stress and do physical tasks as needed? This evaluation is different for each person. A professional athlete may need more from their body than a retiree. If you fail to pay attention to this asset you may find that your body will fail when you need it the most. Excercise, proper nutrition, stress reduction and rest are great investments that will offer a great a return on investment.

Mental assets concern the mind and intelligence. Many people brag about never reading a book since leaving high school. We live in a complex world and surrounded by fantastic amounts of information. Without leaving our homes we can discover and research many topics to enrich all areas of all live. There is just no excuse for ignorance. What systems do we have in place to expand our knowledge.

Social assets refer to our relationships. These would include family, friends and professional relationships. Do we spend time with the ones we care about and often let these people know how much we value them? Our professional relationships directly influence our career growth and income opportunities. If you research many of the rich and famous including Richard Branson you will quickly discover the high value they place on relationships.

Financial Assets are the most well-known but least important of the asset classes. If you have enough wealth in the other four areas it will never be difficult to rebuild financial assets. If you primarily value financial assets to the debt of the other areas it is only a mater of time till you will begin losing your financial assets. For example it is common to sacrifice health in the early years of a career while pursuing wealth. Later when your health becomes a debt you quickly begin spending wealth in the form of medical bills. My definition of enough financial wealth is the ability to do what you want to do when you want to do it without being concerned over how much it costs.

Last but not least is Spiritual assets.This is not necessarily religion. My experience is we all acknowledge a special connection to a greater power that is a source of peace and satisfaction. This connection requires time and attention which could be prayer, meditation or simply being in nature. The issue is honoring this connection and continuing to keep up our discipline and practices even when life gets busy.

I have listed these as separate assets but they are actually connected. Debts in one asset will be compensated for in another asset class. This can soon cause debt levels in all asset classes. For example debt in financial assets such as not having enough money to pay the monthly bills. This causes physical stress that may lead to health problems or even addiction. Relationships suffer and arguments break out that can lead to divorce. Mental assets are sacrificed by not being able to afford education or simply too stressed to learn. This can lead to feeling a victim and cutting off the spiritual relationship which increases isolation.

My advice is take an inventory and to make sure you have plans in place to cut debt and to increase wealth in each class. Create harmony in your life by not focusing on one area and sacrificing others.Share this article with those you care about and work together to create improvement plans and hold each other accountable.

Many of my clients learn to appreciate the value of these assets only when it is too late and they are faced with tragedy. You still have time and choice.

How To Start A Estate Agency Business And What Are The Requirements Needed For Starting It

Real estate business has become quite popular around the World in recent days as the number of people wishing to have their dream home has increased tremendously. Meanwhile due to this factor, the number of people has started to invest their money in estate business. But they don’t know the best ways on how to start up and estate agency and what are the requirements needed for starting it. Here in this article you will all about how to start estate agency and be successful in it.

Actual estate asset has always been a great financial commitment choice. It is also a much more secure choice in comparison to other types of financial commitment such as the currency markets. However, before you spend your hard-earned cash, it is necessary that you are conscious of the threats and predicted profits from the financial commitment. So, this article will give you some suggestions on how you can go about beginning your venture into the exact estate business.

Market Study

If you wish to purchase tangible estate, but have restricted funds, then perform a thorough general industry trends to know about eye-catching financial commitment possibilities. By doing a research, you will comprehend which estate deal you wish for best and it may produce the highest possible profits.

Fix Your Budget

First fix the funds for your real estate investment strategies. Choose what your financial commitment potential is first. Desire the price amount to be spent, take into consideration factor such as your yearly earnings, present obligations, per month costs, etc.

Finalize the Type of Estate agency

There are different types of qualities you may decide from. Flats, row homes, separate rentals, cottages, penthouses, workplaces, stores, personal plots of area or professional area are some alternatives which you can discover. Know that professional businesses will price more than the personal ones.

Finalize the Location

Location performs an important part in all types of real state agency strategies. Whether you get excellent profits for your home is determined by where your estate is situated. So, research the place in the which city your going to buy and discover out the present estate rates and opportunity for further price admiration there. Preferably, you can try to purchase future places where you be capable of get qualities at inexpensive prices.

Check for the Producer’s Reputation

Checking the popularity of the exact estate agency from whom you will be buying the exact rentals is essential. You should buy your home from a programmer who has an excellent reputation of providing qualities on time and having the best development requirements and worth in the exact estate agency. Make clear in your mind that the programmer has follow all the necessary regulations while building the venture and present are no disputes and legal complications.

Check for the best Plan

The next step is to examine the floor plans with the programmer. Visit the programmer and comprehend each and every minute details and requirements of the venture. Take along your estate agency that you be familiar with as a result of that he can information you in your home selection.

Get Fund from Lenders

Real estate is one of the greatest financial commitment alternatives in the existence of any individual and a lot of cash is necessary for that. So, you may feel the need for money and hence you be supposed to strategy top financial institutions with your earnings and private information. Also take the venture information to acquire your loan approved easily.