Archive for June, 2009

Plan for the Unexpected – Prepare your Small Business for the Unthinkable

Tuesday, June 30th, 2009

It’s not a pleasant thing to think about, but what would your employees do in the event of a disaster? Are mechanisms in place to keep things going even if you’re gone?

No matter your age, continue reading for important tips from small business blogger Denise O’Berry.

First off, when you consult with an attorney and accountant before incorporating online, make sure your affairs are in order should something happen to you…don’t forget about your will!

Next, have a small business operations manual that’s easily accessible and includes all the information needed to make your business run.

Finally, don’t forget about all those online passwords – keep a running master username/password list of online subscriptions, blogs, business accounts, etc.

When you incorporate online at MaxFilings, have these things in order before you even begin.

Easily locate an accountant and attorney through MaxFilings’ affiliate program!

Learn your Odds of Success and How to Improve Them

Wednesday, June 24th, 2009

In an effort to help entrepreneurs accurately assess the risk associated with incorporating a business, an Odds of Success Calculator has been introduced by business advice and networking website StartUpNation.com.

The device uses eight factors to determine entrepreneurs’ chances of success: amount of capital investment, difficulty in obtaining funds, quality of financial management, degree of business planning, annual industry growth rate, management experience, industry experience and timeframe.

After completing a questionnaire, the tool computes the probability of success by comparing the company with data points of up to thousands of other companies.

The idea for the calculator was in response to the site’s visitors who wanted a tool that could tell them if they’re on the right track or not. It’s also a bit entertaining – giving quick and definitive results.

Read this Daily Dose post and see how Twitter fared on the calculator.

Small Businesses Can Save a Estimated $855 Million with Healthcare Reform

Monday, June 15th, 2009

Over the next 10 years, healthcare reform could save America’s small businesses $855 million according to a report released by the nonpartisan Small Business Majority and featured in this Daily Dose blog post.

Healthcare reform is a hot topic in Washington right now. Increasing costs have forced entrepreneurs and small businesses to make tough choices about whether to cover their employees or not.

The study, entitled The Economic Impact of Healthcare Reform on Small Businesses, noted that successful reform will require shared responsibility among the healthcare industry, businesses, government and individuals.

In an interview with Entrepreneur.com, Small Business Majority CEO John Arensmeyer commented “Not enacting healthcare reform is going to be an unmitigated disaster, but implementing a system based on the framework Congress is working on right now–even with the [controversial] mandates for employee coverage–will be a tremendous benefit to small business. Even the most conservative versions of reform will produce better results.”

Data from the study also concluded that without reform, up to 178,000 jobs could be lost by 2018 and that small business employees will see $12 billion in lost wages this year alone.

Arensmeyer is confident reform will be completed this year.

Micro-Lending Helps Low Income Entrepreneurs Get Started

Wednesday, June 10th, 2009

Have an idea for a business but unable to secure the needed financing? The threshold for borrowing from banks has gotten tighter in recent months. And, it’s best to avoid high-interest options like credit cards and predatory lending.

Micro-lending is an option available to moderate and low income entrepreneurs. Funds from micro-loans can be used for a wide range of startup and operating costs like purchasing equipment, marketing, licensing fees and insurance to name a few.

Micro-loans through the U.S. Small Business Administration (SBA) average around $13,000 while the maximum you can borrow is $35,000. Repayment takes no more than six years and interest rates vary depending on the intermediary lender but generally are between 8 and 13 percent.

All credit decisions are made by an intermediary at the local level. If you’re interested in applying for a microloan, contact your local SBA microloan intermediary.

Accion USA is a non-profit, private sector source for microloans…they provide loans from $500 to $50,000 to business startups and small businesses. The average loan is $5500. They work one-on-one with you to help build a solid credit history and get your venture off the ground.

Kiva.org is an organization where individuals can donate small amounts (i.e. $25-$50) and see who it’s going to and how they’re using it. Choose an entrepreneur in either the U.S. or the third world to support – you can receive updates as to how they’re using the funds, their progress and even repayment.

After obtaining a micro-loan to get you started, online incorporation service MaxFIlings.com can help you form a corporation easily for minimal cost.

Four Types of Federal Taxes Small Businesses Should Know About – And Where to Find Information from the IRS

Thursday, June 4th, 2009

Looking for some simple explanation of federal small business taxes? Click over to the online incorporation knowledge center at MaxFilings.com for an overview of the next most certain thing in life next to death.

Federal taxes a small business may be subject to depend a lot on its structure (i.e. C corporation, S corporation, LLC, etc.) along with many other factors.

Four different types of taxes a small business could be exposed to include

  1. Income taxes – required for all individuals and businesses (except partnerships, who file an informational return).
  2. Self-Employment taxes – primarily affects the self-employed
  3. Employment taxes – small businesses with employees
  4. Excise taxes – required depending on various conditions, usually for businesses who manufacture certain things or are in a certain industry.

Read Four Types of Federal Taxes Small Businesses Should Know About – And Where to Find Information from the IRS today in the business incorporation knowledge center at MaxFilings.com for more insight and links to further information about this complex subject.