Banks can pretty much be divided into two categories – small community banks that serve a specific city, region or state and large commercial banks that have branches in many states or across the entire country. Each has its own advantages and disadvantages and which one you choose depends a lot on how many places your business operates.

There are over 7500 community banks in the United States and typically have under $1 billion in assets. It is easier to establish a relationship with a branch manager or loan officer at a community bank. These relationships may allow you to deposit checks into your account without a hold or get a quick loan with little trouble.

Large banks on the other hand operate in several states. And while it’s harder to establish a personal relationship with a large bank, they generally have more capital to loan out. Also, if you operate in different states, it may be worth looking into a large bank so you can better manage your business.

Check out the video below for more tips on how to choose the right bank for your business.

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It really depends on how you structure it as to whether there should be one or two founders or five or more as expressed in the video below.

Simply having several people who come together and say – “We want to start a company that will be successful in the future” – isn’t enough. In this case, having more than one or two founders could be huge mistake. Progress will be elusive and chances are, the venture won’t succeed.

On the other hand though, if each person has their own area of responsibility like one in charge of marketing, another in charge of development and another in charge of fundraising for example, several founders for a company could be a plus.

Watch this quick interview of venture capitalist David Hornik for more. And if you’re ready to incorporate a business, turn to the online incorporation experts at MaxFilings to quick and reliable service.

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One highlight of this year – the estate tax is supposed to go to 0% for this year. President Obama though is opposed to this move and is pushing for the rates to be set to levels comparable to recent years.

The American Recovery and Reinvestment Act provided some great tax breaks for small businesses in 2009 such as larger first-year and bonus depreciation tax write-offs. Expect some of these to be extended into 2010.

Bonnie Lee, a tax expert with Entrepreneur.com says “who knows what’s going to happen” but added that taxes are likely to rise, especially if the proposed healthcare legislation passes.

In spite of the uncertainty, Lee suggests a few prudent steps you can take to minimize your tax bill. These include:

• Do what you can to reduce taxable income – contribute to a health savings account or make charitable donations. Contribute the maximum allowance into your IRA or 401k.
• Develop better strategies to track your expenses. Buy a mileage log and develop company-wide strategies to track all expenses. You’ll need all the deductions you can get.
• As stay on top of all the changes that go on from year to year so if you haven’t used one in the past, consider hiring one.
• Set aside money each month for your tax bill that will be due in 2011. You can probably bet your 2010 taxes will be higher than 2009 so be prepared.

Taxes for small businesses are unfortunately a fact of life so we need to stay proactive so we don’t end up paying more than we should.

Learn more about some of the federal taxes small businesses are subject to in our online incorporation knowledge center article on the subject. And if you’re thinking about making the switch to entrepreneurship in 2010, consider incorporating your small business online with MaxFilings.

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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.

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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.

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But especially in multi-partner firms, the operating agreement can help reduce or eliminate future misunderstandings and disputes by pre-addressing management and money issues.

Corporations have specific rules from the state of incorporation – limited liability companies on the other hand have much more flexibility in their management, etc. This is why an operating agreement is important, even if your state doesn’t require you have one.

So what should I include in my LLC operating agreement? Some of the issues an operating agreement should address include:

• Ownership percentages
• Management
• Voting
• Allocation of profits and losses
• Distributions
• Rights and responsibilities of LLC members
• Ownership changes
• Amendments and dissolution

These are just a few of the general things your LLC operating agreement needs to address. We invite you to read the article LLC Operating Agreement – What Should Be Included in MaxFilings’ online incorporation knowledge center to learn more.

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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.

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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.

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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.

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Each has its own pros and cons but to find out which route is more suitable, you must first ask yourself why you want to be in business in the first place.

You Want to Be Your Own Boss

If your primary motivation for wanting to venture into owning a business is to be your own boss, franchising is definitely not for you. Corporations often have strong conditions and dictate what is to be done and how. If you incorporate a business on your own, you will have complete control of these things.

You Have an Idea and Want to Expand On It

If you have an original idea for a business then a franchise is definitely NOT for you. Ideas like this require you to be in complete control of the situation. Franchises come with strings attached so the opportunities to experiment on your own are minimal.

You Want to Make Lots of $$$

If your ambition is lots of greenbacks, then franchising may be the way to go. Not that franchises make more money than stand-alone businesses, but they do have a higher success rate. But you will have to pay fees to the franchisor for your success…franchising is also a good option if you do not have much hands-on business experience.

You Already Have Money but you’re looking for something to keep you Busy

Franchises are ideal for folks in this category…you have money and are looking for something to pass time. It’s even more ideal if you lack hands-on business experience. The franchisor will assist you in many things – hiring practices, site selection, inventory and more.

Whatever course you decide, you will need to incorporate your business. Incorporate online easily in 10 minutes or less at MaxFilings.com. No matter if you’re in Alaska, Florida or the District of Columbia, incorporation experts at MaxFilings can help you get your business off the ground and running.

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