Online Incorporation MaxBlog

Considering Incorporation in Delware? Think Delaware South and Delaware West

Delaware incorporation has long enjoyed a reputation as the choice for many businesses, but that is changing as other states make efforts to foster a business-friendly environment for incorporation, says a new article released by MaxFilings Online Incorporation Service.

The Delaware incorporation article looks at points that businesses should consider when deciding where to incorporate, helping you compare and contrast incorporation in Delaware, Nevada and Florida.

You may also be interested to learn when none of these states may be the best choice for incorporation. Check out the article here: Where to Incorporate: The 3-Man Fight between Delaware, Delaware West and Delaware South

By Jawwad Farid

Yes to have a pot of money simplifies life and removes a number of complications, but is that the right short term goal? The amount of time that you spend searching for venture capital, may be better utilized working with customers, building a product, figuring out how to get to revenues and getting your business closer to your next big productive milestone.

I say this because I have two different experiences. My first involved spending more than two years looking for elusive VC cash, ignoring real customers who could have supported and carried the business further. End result - death by business plan rewrites and the search for a better valuation.

My second experience involved building a business from scratch with no VC funding at all. In the same amount of time it took the first one to fail, the second supported 12 employees and became cash flow positive from its 6th month. Today the businesses grosses 250,000 dollars in revenues in a country where the average per capita income is less 800 dollars a year. Yes it is small but it is ours.

If you run a small profitable business or would like to run one and are not the sharing kind, venture capital is not a good fit for your future plans. Venture capital is expensive risky debt with very onerous terms. The terms make sense when you have pre-established credibility, need to hit key milestones quickly, grow to a certain size inorganically, change the world in a short span of time AND are indifferent to who ends up with the business you have built with your hands.

I would take a look at what I want to achieve and if the four conditions mentioned above don’t apply, see if I can find some way of getting there without VC funding. It will be a slower, more painful journey but at least I will get somewhere.

Jawwad Ahmed Farid,

Desi Startup, Blue Screen of Death,

Alchemy

http://bluescreen.alchemya.com

http://alchemya.com/blog/DesiStartup/desi.html

http://alchemya.com

Article Source: http://EzineArticles.com/?expert=Jawwad_Farid

Mike Beitler

As a management consultant, I have seen some poorly conceived retention policies at otherwise well-run companies. The philosophies underlying these policies lack some basic knowledge of two things:

1. human nature, and

2. the changing world around us

Human Nature

Let’s start with human nature. The practice of management requires an understanding of how people work. Successful managers can be forgiven if they do not know how a particular machine works, or how to debit and credit the general ledger, or how to write HTML code. But, managers must know how people work. Specifically, they need to know how people work well.

People are motivated by goals. their own! Organizations that help individuals achieve their goals and career aspirations have less trouble with retention. Are you helping your best employees achieve their goals?

I recently read some research findings that were just plain silly. The findings you ask: Workers leave organizations for two reasons:

1. they feel mistreated or unappreciated

2. they can get more money/compensation from another organization

The researchers went on to say, most workers are unaware of more money at other organizations until they feel mistreated or unappreciated. Did you catch that? If not, re-read the “two” findings.

Here’s my interpretation: If you treat your workers well and make them feel appreciated they will stay with your organization; money is not the primary driver for workers leaving. Help you workers achieve their goals. I believe “appreciative” workers are more motivated than “happy” workers.

Before you think this is more “soft” management talk, let’s look at some “hard” facts. The average cost of hiring a new worker is one-and-a-half times the worker’s annual salary. And, the average worker will need a year to master his/her job skills.

The Changing World Around Us

As the world changes around us, we must change the way we think about retention (and everything else). Gone are the days of the homogeneous workforce. The world is being changed by unstoppable trends: globalization and an aging workforce.

Future work teams will include three generations of workers (a 23-year-old worker, a 48-year-old worker, and a 73-year-old worker), workers with different religions and nationalities, and workers with dramatically different life experiences.

The brain drain in developed countries can be slowed by retaining older, highly skilled workers. But, that is not nearly enough. Companies must compete globally for talent. (And remember what is necessary to retain these individuals. We must understand their individual goals and career aspirations.)

American companies that hope to depend on American talent exclusively will fail miserably. American knowledge workers are losing their competitive edge. Let’s look at some more “hard” facts:

1. In China, 42% of students earn undergraduate degrees in science or engineering. In the U.S., the figure is less than 5%.

2. Only 70% of U.S. high school students graduate. The U.S. public education system was recently ridiculed by a British news journal. When you consider that the British public school system is arguably the worst in Europe, Americans should hear this as a wake-up call.

3. Only 32% of U.S. students leaving high school qualify to attend a four-year college or university.

Add to this some alarming facts about off-shoring. One organization recently said it was off-shoring jobs to India not simply because the cost was lower, but because the quality of work was better. The off-shoring of high-level professional jobs (such as engineering and IT) is now a common practice.

Conclusion

Organizations must do two critical things:

1. develop retention policies that recognize the need to understand the individual workers’ goals and career aspirations, and

2. learn how to recruit and develop talent from around the world.

These are big changes for most organizations. Is your organization ready for these changes?

—
Dr. Mike Beitler is the author of “Strategic Organizational Change.” Get a free 7-part mini-course and learn more about the book at http://www.strategic-organizational-change.com

Deciding to incorporate was one of the most important business decisions youve had to make. You most likely chose the incorporation type that offered you the greatest limited liability protection and other advantages. But, did you know that courts can take away limited liability protection if it is determined you have not been operating your corporation properly? This is called piercing the corporate veil.

How strong is the veil of protection around your business? Not sure? Its not too late to protect your business. Here are some things you can do to get your corporate affairs in order.

1. Follow the rules and regulations closely. Adhere to state requirement regarding the organization and operating a corporation.

2. Hold regular corporate meetings with shareholders. Be sure to keep records of meeting activities, minutes and decisions made.

3. Keep good records in a corporate book. Use this book to keep incorporation records, maintain meeting minutes and shareholder information.

Protect the business advantages garnered through incorporation. Need a little help? Learn more about the corporate veil and protecting your corporate structure in the MaxFilings Incorporation Knowledge Center. Also, find out how MaxFilings Corporate Kits can help you secure your corporate status.

By ALEX PHILIPPIDIS

Eleven years after New York state first extended to startup business owners the liability protections of corporations, entrepreneurs are increasingly taking advantage of them, judging by five years worth of new-business filings.

The number of doing-business-as filings dipped 20 percent between 2000 and 2004, when 3,931 DBAs (doing business as) were recorded by the county clerk’s office.

No similar dip is evident, however, in the new corporate filings recorded by the state Department of State. During the same five-year period, the number of corporations, limited liability companies (L.L.C.s), limited partnerships and limited liability partnerships remained steady, a combined 4,947 filings processed last year - 27 more than in 2000.

Nationwide, the number of new businesses dipped less than 1 percent between 2000 and the most recent available year of 2003, when 572,900 new businesses were recorded.

John Tolomer, senior vice president and Westchester/Connecticut marketing manager for Commerce Bank, which operates five Westchester branches, said many entrepreneurs are wising up to the tax advantages of corporate filings. L.L.C.s and subchapter S corporations allow earnings to flow to owners and are taxed once at their personal income tax rate, versus the dual taxation of traditional corporations.

Read Complete Business Filing Article

Own Your Own Corporation - Why the Rich Own Their Own Companies and Everyone Else Works for Them

by Robert T. Kiyosaki (Foreword), Garrett Sutton

Summary from

Creating the right type of corporate entity for a business can create enormous advantages for the savvy business-person. In this comprehensive guide, a corporate attorney explains the history and rationale of corporations and all the considerations and decisions that go into starting one. Forming a corporation, selecting board members, administering it within the law, creating tax advantages, hiring, protecting ownership of names and corporate assets, insurance, record-keeping–every part of the process is covered. The program is a listening pleasure in spite of all the technical material and, except for not having a written guide on the package, is a perfect reference audio for the kind of audience targeted by the Rich Dad’s Advisors series. T.W

Pondering a corporate name change? Don’t modify those articles of incorporation just yet. There’s another way to change the name of your business without a corporate name change. This alternative is often overlooked and is as simple as modifying or renewing your business license.

Depending on the rules of your state incorporation office and those of the licensing city or county, changing the operational name of your business may be as simple as using a DBA, alternative business name. Take a look at your business license application or business license. If you see a line for DBA or Doing Business As following the line for Business Name, you may be able to place your DBA under your corporate veil. Contact your local business licensing office to find out if you can use a DBA and about other documentation that may be required. MaxFilings can also help you save time and money by filing your DBA for you.

Dont forget to visit the MaxFilings Knowledge Center for more incorporation information online.

Corporation

A corporation is a separate legal entity that exists independently from its owners. A corporation is created and comes into existence when articles of incorporation (charter or certificate of incorporation in certain states) are filed with the proscribed fees, and accepted by the proper state authority

S Corporation

An S Corporation is merely a corporation which has elected a special tax status with the federal government. It was created for smaller business owners. The special tax treatment permits the income of the corporation to be treated like the income of a partnership or sole proprietorship in that the income is “passed through” to the shareholders.

In order to be considered an S Corporation, the stockholders of a properly filed corporation must elect such status within 75 days of formation for the current tax year, or at any time during the preceding tax year. This election is made by filing Form 2553 with the IRS. To qualify for S Corporation status:

• Must be a domestic corporation.
  Only one class of stock.
  Not more than 35 stockholders.
  Stockholders must be individuals, estates or certain trusts.
  Except for the above characteristics, an S Corporation follows the same guidelines as a regular “C” Corporation.

Limited Liability Company

A Limited Liability Company (”LLC”) is a separate legal entity that offers an alternative to partnerships and corporations by combining the corporate advantages of limited liability with the partnership advantage of pass-through taxation. An LLC is created and comes into existence when articles of organization are filed with the proscribed fees, and accepted by the proper state authority

STRUCTURE OF EACH

Corporation

A corporation is owned by stockholders. While stockholders do not directly manage the corporation, they influence corporate decisions through indirect actions such as electing and removing directors, approving or disapproving amendments to the articles of incorporation and voting on important corporate decisions.

The members of the Board of Directors are responsible for managing the affairs of the corporation. Usually, directors make only major business decisions, however they supervise and appoint officers who make the
day-to-day business decisions of the corporation.

Officers are responsible for the everyday management of the corporation.

Typically, officers are appointed directly by the Board of Directors.

A stockholder may serve on the Board of Directors and also be an officer of the corporation. In fact, in most states one person is enough to form a corporation, and that person can be the sole officer, director and stockholder

S Corporation ( See DESCRIPTION of S corporation and Corporation above)

An S Corporation follows the same structure as a regular corporation. However, an S Corporation is usually owned and run by a small number of individuals or family members (one or more). Thus, while the above structure applies, the same person or related persons or a small number of persons MAY control all positions.

Limited Liability Company

An LLC is owned by its members. The members of an LLC are like partners in a partnership or shareholders of a corporation. A member will more closely resemble a shareholder if the LLC utilizes a manager or managers, because under that situation the members will not participate in the management of the LLC. However, if the LLC does not utilize managers, then the members will more closely resemble partners because they will have decision making powers in the LLC.

The member’s ownership in the LLC is represented by their respective “membership interest”, in the same manner as a partner has an “interest” in a partnership or a shareholder has stock in corporation.

Number of Members: Most states require LLC’s to have at least two members. The states which allow one member LLC’s are: DE, ID, MO, MN, NY, TX and VT.

Read more Incorporating your Business

FormACorp.com: Online Incorporation Services

Are you considering changing the name of your business? Be sure to the check the corporate name change rules and regulations in your state. In many states, a corporate name change requires the submission of new/revised articles of incorporation, a copy of meeting minutes and the board vote and additional fees.

Additionally, you may be required to publish notification of your corporate name change in your countys legal organ (newspaper). State corporate name change requirements may dictate that the notification run in the newspapers legal section from two weeks to a month. Your county newspaper also may require a modest fee for publishing your notification of corporate name change.

You can learn more about the rules and regulations of operating a corporation in the MaxFilings Incorporation Knowledge Center.

A business owner IS NOT required to incorporate in the state where the company resides. Selecting the proper state to incorporate is one of the important decisions a business owner makes. Business can choose to incorporate or form an LLC in any of the 50 states or the District of Columbia. There are benefits to incorporating your business in certain states. One of the most important benefits is “tax benefits”. Some of the major states that receive a large number of incorporation are:

– Nevada
– Florida
– Delaware

Factors To Consider When Choosing the State to Incorporate In

– Location of your company
– A cost analysis comparing the cost of incorporating in the state of operation versus the costs of qualifying to do business as a foreign corporation in the state under consideration.
– The advantages and disadvantages of each state corporate laws and tax structure.