Articles of organization must be filed with the appropriate state to form an LLC. While an operating agreement does not have to be filed, it is an important document that should set forth
the members rights and responsibilities….Incorporation Knowledge Center
In some states, only professionals (required to have licenses to do business) are allowed to form a Limited Liability Partnership and, in addition, some states have special insurance requirements. Limited Liability Partnerships are similar to LLC’s ….Incorporation Knowledge Center
Business choose Florida as one of the top few states to incorporate. Florida has become one of the most desirable states in the country in which to conduct business. The State consistently leads the nation in new business incorporations. With one of the largest supplies of business parks, an advantageous business tax system, transportation availability, 14 foreign trade zones, an abundance of electrical power, and a large population of skilled human resources, Florida provides everything that a business requires to function.
New businesses are registered in Florida each year. Most of these businesses are incorporated as Florida corporations. In 1997, over 100,000 new Florida corporations were formed. The number of businesses that registered as limited liability companies, on the other hand, were less. There was only a little over 2000 Florida LLCs in 1997.
The substantial difference in the number was due to Florida’s LLCs laws. A 5.5% income tax was applied to every Florida LLCs. In addition, start up fees for forming an LLC in Florida is higher than incorporating as a Florida corporation.
The LLC law was changed in 1998. 5.5% income tax was eliminated. LLCs start up fees were lowered. Interests earned in LLCs were protected from any claims filed by creditors. This drastic change in the Florida LLCs law has prompted a increase in the number of businesses registration as LLCs.
Should you form an LLC or incorporate and elect an S Corporation?
An S Corporation eliminates double taxation. However, the S Corporation does not have the flexibility of an LLC in regard to the allocation of income to its members.
An LLC may have an unlimited number of members. However, ownership in an S Corporation is limited to no more than 35 shareholders. Further, an S Corporation cannot have shareholders who are C Corporations, other S Corporations, certain trusts, LLCs, partnerships or nonresident aliens.
LLCs are permitted to own subsidiaries without restriction, while S Corporations are not allowed to own 80% or more of another corporations shares.
You can use our guaranteed services to form a corporation or form an LLC, and save a substantial amount of money you would otherwise pay an attorney. However, if you need legal or financial advice as to the type of corporation or LLC that would best suit your business needs, consult your attorney or financial advisor.
General Incorporation Requirement to form a LLC:
A LIMITED LIABILITY COMPANY is a hybrid form of business entity combining some of the attributes of a corporation with the status of a partnership.
Any entity that transacts business in Florida as a limited liability company is required by Florida Statutes to file Articles of Organization or an application for authorization with the Division and pay the filing fee. These documents must be typewritten or printed legibly in the English language. The professional advice of your legal counsel to ascertain exact compliance with all statutory requirements is strongly recommended.
All limited liability companies must file a Uniform Business Report with the Division each year between January 1 and May 1 and pay the filing fee. Failure to file will result in administrative dissolution of the limited liability company or loss of authorization to transact business in Florida as a foreign limited liability company.
by Laura Orsini
In What Subject Are You An Expert?
If you’re a small business owner, presumably you are an expert in your industry or profession - or you would not be in that industry or profession.
Expertise does not mean being the best in the world at something - like Lance Armstrong or Bill Gates. Can you imagine being ranked #1 IN THE WORLD at a particular skill or talent?? It sure would be nice - but it doesn’t happen for most of us. And yet many more of us are experts than we may realize.
With more than 6 billion people in the world, good thing it’s utterly unnecessary to be the best in the world at something to qualify as an expert. All expert means is that you know your subject BETTER THAN MOST people. American Heritage Dictionary defines an expert as “a person with a high degree of skill in or knowledge of a certain subject.” Given those more relaxed standards, chances are pretty good you know a great deal about at least one particular subject, meaning that you are an expert in some area.
So you’ve given it some thought and have acknowledged that you really are very good at something. Canvas pool covers. History of birdhouses in America. Ways to help college freshmen succeed. The subjects are limitless - but you ARE an expert at one of them.
Question: What are you doing with that knowledge and expertise? If “using it to build credibility in my area of specialization” is not your answer, it should be!
Why Credibility?
Simple. Credibility is the thing that makes people respect you as an expert. It’s the thing that gives you an edge because it causes people to seek you out for your knowledge. Credibility means the quality of being logically or apparently valid. And with credibility comes authenticity, believability, genuineness, legitimacy, visibility, trust, plausibility, reputation, and word of mouth.
Are those qualities helpful in building a successful business? You’d better believe they are!
Benefits Of Creating Credibility For Yourself / Your Business
Perception of Trust - Credibility creates an implied trust that decreases your need to work as hard to prove yourself. People trust you if you have credibility.
Knowledge Showcase - Credibility allows you to share useful and/or entertaining information about your area of specialization that draws added attention to you/your business but is not confused with advertising.
Implied Quality - Credibility carries with it an assumption of due diligence. For example, if Oprah recommends a book, do people bother to read other reviews or do they run out and buy the book? Deserved or not, Oprah’s opinion carries some of the highest credibility in the world.
Increased Exposure - Credibility enables you to reach potential customers who fall beyond the reach of your traditional marketing efforts.
Improved Recall & Recognition - Credibility reduces your audience’s resistance to your marketing message. With traditional advertising, a customer must hear your message as many as 21 times before they recognize your message as your message, remember the contents of your message, and are moved to take action.
Heightened Demand - The more credibility you have, the more likely someone is to want to pay for your product or service.
Brighter Visibility - The more your credibility increases, the more likely people are to seek you out to suggest joint ventures and other opportunities.
How Can You Build Expert Credibility?
There are many ways to increase your credibility, some of them more instant in nature, while others require a more plodding, long-term effort.
Get interviewed by the mass media. PRO: Provides immediate visibility. CON: Is inordinately difficult to accomplish. KEY: The old 80/20 rule - put the large majority of your efforts into more realistic goals, but never neglect the attempt for widespread coverage entirely.
Contribute to mass media publications. PRO: Offers virtually instant credibility. CON: This market is neither specialized nor particularly focused on your industry. KEY: Regular appearances, like a featured column.
Get interviewed by or contribute to niche media outlets. PRO: Is easier to achieve than national exposure. CON: Offers less exposure than national outlets. KEY: Write or speak as THE expert in your field.
Get a blog. PROS: Easy to do, very inexpensive, and most blog providers have syndication technology built right in. CONS: Everybody’s doing it, and just because you write does not mean anyone will read. KEYS: Write more than one blog on hyper-niche topics, cross-link them, and promote them just like you do your Web site.
Try Podcasting. PROS: Almost as easy as blogging, but with audio - once you learn how; new listeners are seeking Podcasts daily. CONS: Finding the resources to learn how to Podcast is still a challenge; attempting to produce a quality show is more difficult than it seems. KEYS: Commit to a niche topic, have fun, and experiment until you find your own unique show format.
Write! Articles, media releases, books, info products, etc. PRO: It’s the easiest way to create visibility. CONS: It takes time, effort, and research; may require you to hire an editor. KEYS: Test various markets; develop a system.
The trick to creating expert credibility and its subsequent increased publicity - even notoriety - in your field is to GET OUT THERE! No matter how good you are at what you do, no one’s likely to stumble over your genius as you quietly plod away at your desk or in a corner of your shop. You must draw attention to yourself like a beacon. However, with some directed and dedicated effort, you can achieve expert credibility in your industry and race to the forefront of your profession.
—
Laura Orsini is an editorial consultant, helping small business owners use words to build credibility and enlarge their client bases. For further information regarding a viable alternative to the credibility-building methods mentioned in this article, join Laura and fellow credibility expert Allan Sabo, of Alti Success Strategies, for their next tele-class, “Credibility-Building Secrets Revealed.” Visit http://www.credibilityexpertspublishing.com/telsem-landing.html for dates and times.
Using sample business plans and their structure, along with studying as many business plan examples as you can, will provide you with the necessary framework to consider your business from every possible angle, whether you’ll be taking advantage of incorporation or LLC Formation .
Starting or running your business without a business plan is akin to being a human without a skeleton!
Not only will using a sample structure highlight any areas you haven’t fully thought through, but it will also provide you with a good idea of what makes a good business plan, and what doesn’t.
The importance of your business plan as a motivational factor in running or starting your business cannot be underestimated. You will find that your commitment continues to build as you collect information, research and write each section.
Your business plan should always accompany requests for Small Business Loans , and lenders or any kind of angel investor will simply refuse to consider your business proposal without one.
Lenders and investors want to see your plan with the aim of satisfying key questions before they make their decision to grant funding or not.
Once you’ve commenced trading your small business plan will act as a steak in the ground, and help you measure where you expected to be against where you actually are. It will help you take corrective action as necessary.
Sample Business Plan Structure
All plans should include at least the elements listed below, and perhaps additional sections depending on the type of industry.
* Executive Summary
* Company Background
* Products or Service Overview
* Unique Selling Proposition and competitive advantages
* The Marketplace
* Operations
* Leadership and management profiles including professional competencies
* Professional Support
* Risks and Threats assessment
* Financial forecasts including key assumptions
* Relevant appendices
Collecting the information for all the sections is time consuming and sometimes difficult. The business section of your local library is always a good place to start research. Ask your friendly librarian about how to look up market research reports, and how to investigate competitors.
If you are not familiar with spreadsheet software, constructing the necessary financial forecasts represents a significant hurdle. You have 2 choices:
Pay someone to put part or all of the plan together for you, or a small investment in some business planning software.
The advantage of using a professional is you will receive the benefits of their experience, combined with a professional looking plan.
The disadvantage is that it won’t be easy to make changes, and more importantly, because you will not have been as involved in its preparation, you won’t be as familiar with its contents as you should be. Make sure to learn the contents well.
One final tip though, remember it’s the quality of the information you put into it that determines what comes out.
—
by Neil Best
Neil Best has over 15 years experience in business finance. For successfully funded sample business plans, tips and advice, visit http://www.smallbusinessfinancetips.com