Naming your new business is probably the biggest decision you will make about your budding enterprise…it’s what the world will know and remember you as so you want it to be practical and memorable too.
And you will want to spend some time thinking about this too – don’t simply go with the first thing that pops into your head or your gut instinct. Chat it over with friends, do some research and come up with several ideas before making a decision.
Before doing any of this though you may want to do a trademark/name search to find if there are any other businesses out there using that name. You would hate to go through this arduous process just to find out that someone already has that name and has trademarked it.
Incorporating a business with a trademarked can be a costly mistake – at minimum you will be forced to change names and incur all expenses with doing that. Next, you could be sued by the trademark owner and if you use a federally registered trademark improperly, you could really be in trouble. In this instance, a court will assume you knew the name was federally registered and consider you a “willful infringer,” meaning you could be put on the hook for large damages and the owner’s attorney fees.
If you choose to incorporate a business online with MaxFilings, we do a preliminary name check as part of our online incorporation process.
However, save yourself the trouble before hand when you’re deciding on what to call your new venture and do a quick trademark/name search (U.S. Patent and Trade Office) for your new business or products and also do some general searches on the Internet to see how the name is being used. You can also use a fee-based service like Thomson’s SAEGIS database.
Whatever you do, look into it…it will save you in the long run.
We’ve all heard the news – supposedly the worst recession in a generation is nearing an end. With the advent of bailouts and massive government stimulus, many political leaders are playing the economy up in hopes a strong recovery is under way.
Of course economic recovery would mean people can find meaningful full-time work and begin rebuilding their lives.
And of course, many entrepreneurs and small business owners have been hanging on a thread for the last two years waiting for a meaningful recovery to get underway – according to a recent National Federation of Independent Business (NFIB) study, 53% of small business owners believe the economic climate will worsen in the next six months – that’s up from 37% just a month ago!
Other tidbits from the survey – the number of businesses saying it’s harder to get a loan rose to 15%. One good bit of news, 15% of businesses say they plan to hire, which is up a couple of points from the month before.
But the NFIB’s optimism index came in at 86.8 in March. Readings below 90 for this long is unprecedented (18 months straight to be exact). Nine of the ten components the NFIB uses to arrive at this optimism index number either fell or remained unchanged from their readings in February – not the “picture of an economic expansion” as so eloquently expressed by the NFIB.
Take a look at this report to see for yourself. While the economy’s future is uncertain, don’t let that dissuade you from incorporating a business. Many successful companies got their start during the Great Depression and other recessions that have rocked the U.S. since.
If you have a good product/service that people in a recession would find useful, don’t let the economic numbers discourage you…incorporate online today and when things finally turn around, you will be in a good position to really grow your business.
Once you decide to incorporate a small business online and depending on your particular needs, you need to consider how you’re going to finance the new venture. This is one of the biggest challenges business startups face – finding funding.
You can go to investor conferences and pitch your idea. However, a casual atmosphere to discuss things with potential investors is lacking to say the least.
And if you’re asking people for money, they probably want to get to know you a little bit unless your business plan just wows them from the start.
In comes Venture Café, an idea hatched by Cambridge Innovation Center founder and CEO Tim Rowe. The café opened March 1st in Boston to provide area entrepreneurs and investors a place to interact in a casual atmosphere and talk business. Currently housed in a temporary location, the café is looking for a permanent location.
To get things started, organizers are holding a series of “office hours” sponsored by the New England Venture Capital Association where entrepreneurs can hold 25-minute pitch sessions at the café. Organizers invite investors to attend and encourage them to come a little early and stay a little later – all in the hopes of them making more random, casual connections.
It’s especially nice to see innovative techniques like this being put into action. Nothing can take the place of one-on-one relationships so it’s nice to see ideas like this put people together. Not only does it serve as a wonderful way to meet prospective business partners, its casual nature will help those entrepreneurs who may be nervous about approaching some large venture capital firm.
Incorporating a business and running it successfully requires a lot more than simply completing some forms. But places like Venture Café in Boston help make the journey more fulfilling.
It’s a common question for budding entrepreneurs – what type of bank should they choose?
Banks can pretty much be divided into two categories – small community banks that serve a specific city, region or state and large commercial banks that have branches in many states or across the entire country. Each has its own advantages and disadvantages and which one you choose depends a lot on how many places your business operates.
There are over 7500 community banks in the United States and typically have under $1 billion in assets. It is easier to establish a relationship with a branch manager or loan officer at a community bank. These relationships may allow you to deposit checks into your account without a hold or get a quick loan with little trouble.
Large banks on the other hand operate in several states. And while it’s harder to establish a personal relationship with a large bank, they generally have more capital to loan out. Also, if you operate in different states, it may be worth looking into a large bank so you can better manage your business.
Check out the video below for more tips on how to choose the right bank for your business.
One question that may come to mind for businesses wanting to incorporate is how many “founders” they should have. By “founders”, we mean individuals who have collaborated together to establish a new company.
It really depends on how you structure it as to whether there should be one or two founders or five or more as expressed in the video below.
Simply having several people who come together and say – “We want to start a company that will be successful in the future” – isn’t enough. In this case, having more than one or two founders could be huge mistake. Progress will be elusive and chances are, the venture won’t succeed.
On the other hand though, if each person has their own area of responsibility like one in charge of marketing, another in charge of development and another in charge of fundraising for example, several founders for a company could be a plus.
Watch this quick interview of venture capitalist David Hornik for more. And if you’re ready to incorporate a business, turn to the online incorporation experts at MaxFilings to quick and reliable service.
Now that we’re into the New Year, it’s time to think about your tax strategy for 2010. And this could be one of the craziest years to try and plan a workable strategy – but no matter what Congress does, you can take some useful precautions to minimize the impact of your tax bill on the bottom line.
One highlight of this year – the estate tax is supposed to go to 0% for this year. President Obama though is opposed to this move and is pushing for the rates to be set to levels comparable to recent years.
The American Recovery and Reinvestment Act provided some great tax breaks for small businesses in 2009 such as larger first-year and bonus depreciation tax write-offs. Expect some of these to be extended into 2010.
Bonnie Lee, a tax expert with Entrepreneur.com says “who knows what’s going to happen” but added that taxes are likely to rise, especially if the proposed healthcare legislation passes.
In spite of the uncertainty, Lee suggests a few prudent steps you can take to minimize your tax bill. These include:
Do what you can to reduce taxable income – contribute to a health savings account or make charitable donations. Contribute the maximum allowance into your IRA or 401k.
Develop better strategies to track your expenses. Buy a mileage log and develop company-wide strategies to track all expenses. You’ll need all the deductions you can get.
As stay on top of all the changes that go on from year to year so if you haven’t used one in the past, consider hiring one.
Set aside money each month for your tax bill that will be due in 2011. You can probably bet your 2010 taxes will be higher than 2009 so be prepared.
Taxes for small businesses are unfortunately a fact of life so we need to stay proactive so we don’t end up paying more than we should.
After working for years in an office with coworkers, it can be very challenging to work from home alone. There’s no one to go to lunch with, bounce ideas off of or vent frustrations.
How does a person working at home avoid feeling isolated and motivated to be as productive as possible?
A new article in the online incorporation knowledge center courtesy of Leah Grant has some great tips on how to cope with the traumatic change of working with others nearby to by yourself at home.
Tips include:
1. Find an accountability partner
2. Find or join a Mastermind group
3. Join offline networking groups
4. Join your industry’s professional organization
5. Schedule time every week to reach out to customers and colleagues
6. Try to work outside your home at least once a week
Working from home doesn’t have to feel like being trapped on a deserted island. Read the article for more detail on how you can ensure success in running a small business from the confines of your home.
Franchises are sometimes a good option for entrepreneurs considering business incorporation online. As we’ve explored before, there are things you need to consider when comparing venturing on your own or incorporating a franchise.
If you’re considering a franchise, there’s much more than just whether it can make you money or not. You have to be sure you enjoy what you’re doing and if you have the skills for that.
Which leads to step #1:
Consultation
First thing you need to do is evaluate all your options – our online incorporation blog post from September advises whether franchising is for you or not depending on your goals. Talk with people in similar industries and others in your community.
Gather as much information as you can!
Next, if you decide on a franchise, read the financial disclosure document (step #2) very carefully, word for word.
There are many things you can learn from the corporation’s FDD – is it financially viable?…what other franchisees are in your state?
Finally, get some professional advice (step #3) from an accountant and/or business attorney. Sit down and develop a business plan and consider the proposition’s profitability. Don’t make any final decisions before talking with the pros.
Once you easily form a LLC online with MaxFilings.com, you need to develop a formal written operating agreement between each of the partners in the company. Even if you’re a one man show, an operating agreement helps codify your limited liability.
But especially in multi-partner firms, the operating agreement can help reduce or eliminate future misunderstandings and disputes by pre-addressing management and money issues.
Corporations have specific rules from the state of incorporation – limited liability companies on the other hand have much more flexibility in their management, etc. This is why an operating agreement is important, even if your state doesn’t require you have one.
So what should I include in my LLC operating agreement? Some of the issues an operating agreement should address include:
Ownership percentages
Management
Voting
Allocation of profits and losses
Distributions
Rights and responsibilities of LLC members
Ownership changes
Amendments and dissolution
These are just a few of the general things your LLC operating agreement needs to address. We invite you to read the article LLC Operating Agreement – What Should Be Included in MaxFilings’ online incorporation knowledge center to learn more.
One of the benefits of the digital age is the fact that there is no age limit to starting a business. Before, banks would not lend to someone who hasn’t been in the corporate world for many years and demonstrated a certain maturity.
But the Internet makes forming a corporation on a shoestring easy - many new and successful businesses like Mark Zuckerberg’s Facebook are routinely started in college dorm rooms.
There are many examples of innovative young people using their drive and initiative to launch their own businesses. And now they will be getting a shot in the arm thanks to the Ewing Marion Kaufmann Foundation and the University of Miami. The Kaufmann Foundation awarded the university a $75,000 grant for the Launch Pad, a program to help college students start their own businesses while they’re still in school.
The Launch Pad started in 2008 and to date has helped over 750 students and alumni. This effort has seen the launch of 20 new companies. If it continues to be successful, this program may be replicated at other universities.
Have a new venture that you’re trying to get off the ground? We invite you to consider incorporating online through MaxFilings where you can form a corporation in as little as 10 minutes or save your information and come back later.