Online Incorporation MaxBlog

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.

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.

Read Three Steps to Evaluating a Franchise for 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.

Online marketing, specifically blogs and other forms of social media marketing, are becoming the primary vehicle for small business owners to advertise their products and services. As the recession keeps dragging on, consumers are more meticulous when it comes to their shopping…and they’re turning to online sources more and more to carefully research products and see what others are saying about particular products or services before making a purchasing decision.

Therefore, blogs and other social media sites like Facebook and Twitter have become powerful marketing engines and have helped many businesses maintain their position in this rough economy.

But the Internet has hardly any regulation – consumers have to judge for themselves whether the reviews they see are legitimate, which is usually gauged through the quality of the site.

In an anticipated move Monday, the U.S. Federal Trade Commission voted 4-0 to issue new rules to update the longstanding principle of disclosing “material connections” between advertisers and endorsers. Decisions will be reached on a case-by-case basis according to the new rules. But now, the FTC will consider the payment a blogger may receive from a company for writing about a product an endorsement.

So, bloggers will now have to disclose any “material connections” (i.e. payment or free product) they have with the seller or face up to an $11,000 fine by the FTC.

This new rule will certainly affect fledgling new businesses such as yours but it’s nothing too major. Complying shouldn’t be a big deal but to think the FTC is going to monitor 133 million plus blogs and growing is almost laughable. These new rules will go into effect December 1st.

Nevertheless being honest about your products and services is good business anyway no matter the regulation. Operating with integrity will build your long-term business much better.

If you’re running into roadblocks in trying to figure out how to market your small business online, we invite you to take a look at our sister company SEO Advantage. This premier search engine optimization firm helps businesses grow their revenues by reaching more customers through online searches.

And it’s easy to incorporate online with MaxFilings’ online incorporation system where you can easily incorporate a business online in all 50 states in 10 minutes or less.

Many folks in today’s economy who have been laid off or have unstable jobs consider starting a business as their next career move.

We can tell you here that entrepreneurship has many advantages – the ability to be your own boss, make your own hours more or less and the opportunity to do something truly innovative.

If you think forming a corporation and embarking on a small business career may be an option for you, consider the following 5 steps to help make your venture a success.

1.    Be sure you thoroughly enjoy what you do

It’s important to like what you do right? Well it’s much more important when owning a small business. You will be required to do many different things as a small business owner – things like a salesperson, boss, customer service rep and money manager. Some of these tasks will not be your cup of tea so passion for the business in general will need to be strong to get you through the things you don’t particularly enjoy.

2.    Choose the most appropriate legal structure for your business.

One of the first steps to incorporating online is choosing the legal structure of your business. Incorporation options include sole proprietorships, partnerships, corporations and limited liability companies (LLC). Check out our business incorporation knowledge center at MaxFilings for comparisons and pros/cons of each.

3.    Any good business person sets goals

Set measurable goals and track your progress regularly. Successful businesses have a marketing plan and general business plan to guide their growth and development.

4.    Develop a business plan based on your goals

From the goals you develop in step 3, develop your business, financial and marketing plan. Many lenders and investors will not want to deal with you without them.

5.    Continue to seek advice from other professionals after you’re established

You will rely on many different people to help run your business – attorneys, accountants, marketing professionals and others. But it’s also important to maintain a network of other small business owners and professionals in similar businesses. Don’t think for a minute that you’re alone – other business owners can empathize with your frustrations and offer helpful advice.

These 5 steps won’t guarantee your success but they are a good guide to get you off to a strong start. When you’re ready, you can easily incorporate online in 10 minutes or less at MaxFilings.com. And check out our knowledge center for all sorts of informative articles on incorporating and running your business.

Starting a business in the current economic climate may defy logic. Why would I be crazy enough to give up my secure job to take the entrepreneurial plunge right now?

Experts will tell you that a recession is one of the best times to start a business – several well-known successful companies today got their start during major economic turmoil in the U.S.  These companies succeeded because they found a niche market that wasn’t being filled by anyone else. Identifying a market need is vital for any business startup, regardless of the economic climate.

But risks of failure are greater in a recession so you need to keep expenses as low as possible. Businesses that start and survive a recession though are in a unique position to profit and benefit from the inevitable economic upturn. But if you wait to form a corporation until after the recession, you will be that much more behind.

Keep startup costs low by:

1.    Keeping you day job – If you’re fortunate enough to still be employed, start your business during your free time. You will still have steady income from your day job which allows you to focus on making your business profitable with less risk.

2.    Not buying, leasing or renting office space – Launch your business from a simple home office to save on this expense. Many ventures can be easily managed from the home, eliminating the need to spend money on office space.

3.    Not hiring employees – If you need help from others, consider hiring them as contractors rather than  employees.

4.    Advertising by word-of-mouth – There are many ways to advertise your products and services without spending money. If you can’t sell it yourself, no one can.

There are many recession proof industries you can launch a successful business in. These include:

•    Food
•    Healthcare (including psychology and substance abuse)
•    Computers and IT – people tend to fix broken machines rather than buying new ones during a recession
•    Security
•    Education services (many people go back to school in hard economic times)
•    International business – the economy in other countries may be better

One challenge to starting a business is finding your niche – something that distinguishes you from other related things currently available. One of the best ways to find your niche is to create a business that offers something you needed but couldn’t find.

Read this article from Entrepreneur.com for more insights. And when you’re ready to launch your business, turn to the online incorporation experts at MaxFIlings.com to form a corporation online easily in just minutes.

While perusing online the other day in my daily ritual to find out what’s happening in the world, I came across this article in Foreign Policy about a topic we recently wrote extensively about in the online incorporation knowledge center at MaxFilings.com regarding microloans.

President Barack Obama recently awarded the Presidential Medal of Freedom, the nation’s highest civilian honor, to the pioneer of microloans Muhammad Yunus. In the ceremony at the White House, the president commended Yunus for “[unleashing] new avenues of creativity and [inspiring] millions worldwide to imagine their own potential.”

Establishing a micro-bank in Bangladesh, Yunus demonstrated how very small loans to the poor can not only be repaid, but generate new entrepreneurial ventures and create jobs, etc.

But critically looking at Yunus indicates some shortcomings with his ideas…not that they are bad, but they do not deliver the results, as is often claimed, to lift the world’s poorest out of poverty.

First, implementing something this massive would be tremendous. Approximately 4 billion people in the world live in poverty – $17 billion was loaned through microfinance in 2004, which is peanuts when considering how to end poverty.

Another problem is that microfinance is generally heavily subsidized – private micro-banks and finance organizations generally charge very high rates of interest. A micro-bank in Mexico charges 100% for example, which makes it not feasible for the poor.

The article goes on to suggest other ways to alleviate poverty and provide the financing for someone with limited means to form a corporation. The author’s uses the best of both Yunus’ and economist Hernando deSoto, who proposed in his book “Mystery of Capital” that poor people across the world have close to $9 trillion in frozen assets.

Read a $9 Trillion Question at Foreign Policy for more.

Are you a new entrepreneur who anticipates forming a corporation?

Do you know what different terms mean when thinking about incorporating a business?

A Glossary of Business Terms found in the online incorporation knowledge center at MaxFilings.com can help you easily learn these terms – or simply a resource to reference when you hear a business term you’re not familiar with.

For example, what does “aggregate par value” mean?

Well, a quick look in the glossary tells us that it is “the number of authorized shares multiplied by their par value is a corporation’s aggregate par value.”

This raises another question – what does “par value” mean?

Again, another quick look in the business terms glossary tells us that it is “the assigned value of a share of a corporation’s stock.”

The glossary contains many different terms organized alphabetically. Know what you’re looking for already? Simply click on the first letter in the term.

Quickly reviewing the glossary means you will know the lingo of forming a corporation so when you do, you are aware of all of its parts.