Online Incorporation MaxBlog

The ability to raise capital is an important issue that you must consider as an entrepreneur. In fact, the decision of which type of entity to form when incorporating your business can be determined by this point alone in some cases. It is also vitally important to consider your cash flow needs to start out so you are able to grow your business later on.

There are basically two types of financing, debt and equity.

Debt financing is where you borrow money to be repaid over a period of time with interest. Full repayment is required within1 year or less for a short-term note and more than a year for long-term debt. Also, the lender does not gain any ownership in the company but may require a personal guarantee for the loan, especially for small businesses.

Equity financing is described as an exchange of money for ownership in the company, usually though common stock. This type of financing basically allows you to raise capital without incurring debt. The inherent disadvantage however is that by issuing stock in the company, your ownership interest is diluted and loss of control is possible.

When it comes time to incorporate your business, you’ll need to consider the different characteristics regarding raising capital associated with each type of business entity. The main point of difference is whether stock can be issued to the general public or not. Online incorporation services at MaxFilings provide an easy way to incorporate your business once you choose the type of entity you will be forming.

Only a C or S corporation can issue stock to the general public. Stocks can make it easier to raise investment capital and transfer ownership, and the ability to offer stock options can assist the company in recruiting and retaining good talent. All stock issued is subject to various state and federal securities laws.

A Limited Liability Company (LLC) cannot issue common stock to the general public, but the benefit of raising capital is replaced by the relative simplicity and ease of operating an LLC. Capital is generally raised through the companies’ partners and debt financing.

Both corporations and LLCs, however, must maintain the ratio between debt and equity financing at an acceptable rate. Too much or too little of each may make it more difficult to attract investors and obtain debt financing from a lender, who may question the ability of the note to be paid back.

In the end, this decision cannot be made lightly and must involve the counsel of an attorney and accountant. However, the two main points to consider in regard to raising capital boils down to growth needs of the company and the administrative requirements of a C corporation, S corporation, or LLC.

If you will be conducting business outside your state of incorporation, you must apply for and receive foreign qualification from each state your business will operate in.

A new article, What is Foreign Qualification?, posted in the Knowledge Center at MaxFilings provides a good overview of the process of applying for foreign qualification.

The foreign qualification process involves paying filing fees and submitting the proper paperwork, which includes:  

• A name availability search
• Appointment of a registered agent
• Certificate of Authority registration

Read the article for a good overview of foreign qualification and who needs it. It’s easy to file for foreign qualification online at MaxFilings.

MaxFilings now has available the Business Forms CD, which contains over 50 customizable forms that virtually every business needs. Now, whether you are starting a new business or trying to instill more administrative order in your current one, having easy access to a wide variety of business forms will be a tremendous convenience.

The CD includes 26 common business forms that provide an outline for hiring employess, collecting payments, and other common legal documents used in business such as a contractor agreement and power of attorney.

All forms are formatted in Microsoft Word and can easily be manipulated specifically for your business.

The Business Forms CD also includes 24 additional forms specific to corporations such as a proxy, stock purchase agreement, and certificate of corporate vote to name a few.

Along with online incorporation and business services, the Business Forms CD available now at MaxFilings is an additional tool in helping you effectively manage your company.

A foreign company is not one from another country but rather a business operating in another state. Foreign qualification, available online at MaxFilings, is the process by which a company becomes qualified to conduct business in another state besides the one it is based in. This is especially common among larger companies.

The first part of this process involves a name availability search that must be conducted in each state the company will be doing business in to ensure the name is not being used by another foreign or domestic corporation/LLC. If there is a duplicate or one too similar, an assumed name must be used in that state.

Next, a registered agent in the other state needs to be selected to serve as the company’s in-state liaison. Then, you must register for a Certificate of Authority in that state. The company must be in good standing in its home state so be sure annual statements are filed and the proper fees and taxes are paid.

Avoid the hassle and let MaxFilings take care of all your foreign qualification and registered agent needs. Each state has different requirements and processing times, which can be expedited for a fee. And with easy online ordering, you can save your work and return later to finish.

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

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

Why should you form an LLC in Florida?

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.

Forming a Florida Limited Liability Company (LLC)

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.

Detailed Information on Forming a Florida LLC

FORM A FLORIDA LLC NOW