If your business is a corporation, you're already aware that March 15th is the most critical tax deadline of the year. But March 15th is an important deadline for another reason...it's the deadline for electing S Corporation status.
Ask any small business owner or self-employed person to name their least favorite tasks, and bookkeeping, money management, and paying taxes will all make the list. While these chores may not be popular, they’re absolutely critical.
In recent years, various new legal structures have emerged, including the LLC (Limited Liability Company). That’s good news for small businesses—because let’s face it, not all businesses are the same, and the same corporation structure isn’t right for everyone. Yet more options bring new questions about which business structure to use. For many entrepreneurs, the process of picking a business structure is uncharted territory. If you’re a small business owner or service professional, here’s a quick primer on two important legal structures: the LLC and the LLP (Limited Liability Partnership). We’ll explore the key differences and details to help you determine which is better for your business.
Are you considering VC funding? Want to apply for a business loan? Did you know that your legal business structure impacts the type of capital and financing you can access for your business? Determining which kind of legal structure is right for your business will depend on what kind of financing you want to seek as listed in this post.
If you’re running a small business, here’s a ‘back-to-school’ checklist to help you stay on top of the legal aspects of your business.
Make sure your offline marketing ties in to what you're doing online on your website, blogs, and social media.
The most important things you need to know about one of the most popular business enitities: the S Corporation. What exactly is the S Corporation (or S Corp) and is it right for your business?
While equity can be a great tool for compensating early on, the drawbacks are significant. For starters, people tend to grossly underestimate just how much record keeping is involved. Speed is often of the essence early on in the startup lifecycle, and that often means rushing into casual arrangements. The lack of proper paperwork can lead to issues down the road. And perhaps most importantly, equity is a business’ most precious resource, and the amount you give a contractor in stock can end up being worth many, many times more in a few years. Not to mention the fact that every time you compensate with equity, you dilute your own ownership of the business. For these reasons, experts often counsel startups to only give stock to contractors, vendors, and service providers as a last resort.
Is forming a corporation right for you? Learn about the advantages it can offer.
Ever since I decided to quit my job and start a business as a full-time freelance writer, I've discovered a whole new outlook on life. I’m constantly adapting, learning, growing, and changing - finding new customers, finding new partners, finding an ever-shifting assortment of new "gigs" and projects. I work with people worldwide. I help solve problems for all kinds of organizations and all kinds of situations. I have created my own job, and it’s the best job I’ve ever had. Is it "easy" to do this? No. Is it scary? Sometimes. But there's nothing scarier than a false sense of "job security.” If you have an urge to start a business, the biggest risk you can take is to not take one. Start today. Create your own job. Be a job creator.
Now more than ever, small businesses need to band together in order to compete with their larger counterparts. It’s only by joining forces that small businesses can achieve economies of scale and have a voice that can compete with larger corporations. There is power in the collective, and businesses can harness the power of community to move forward. So what does this mean? If you’re a small business, seek out symbiotic and collaborative relationships with other small businesses whenever possible. Whether formally or informally, build a collective co-op of like-minded businesses and individuals. Small businesses need to look at each other as partners, not competitors. IN this post, i discuss a few tangible examples of how to join forces in the small business market.
Whether you’re the next big thing in social gaming or organic knitwear, each startup eventually faces the same gnawing questions: How should I legally structure my business? Should I form an LLC or an S-Corp? What about an S-Corp vs. a C-Corp? These questions are only natural. After all, the legal and financial ramifications are significant. And your passion might be designing iPhone apps or analyzing Twitter data, but I’m pretty confident it’s not tax law. While circumstances vary among individuals and individual businesses, here are some general guidelines to help you jump-start your decision on business structures. [...]
Incorporating your business has many advantages that will make it easier for you to operate and maintain your company, without being personally liable for any losses.
Each business entity (LLC, C Corporation, S Corporation) has its own tax consequences, so you want to choose the structure that best meets your financial and business needs. To jump start your selection process, I’ve assembled some of the key factors to consider in selecting the right business structure for your particular business and its impact on your taxes.
Now more than ever small businesses need to band together in order to compete with their larger counterparts. It’s only by joining forces that small businesses can achieve economies of scale and share of voice that can near that of the large corporation. There is power in the collective, and businesses can harness the power of community to move forward. So what does this mean? If you’re a small business, seek out symbiotic and collaborative relationships with other small businesses whenever possible.
Tax-related activities take on a new sense of urgency as April 15 looms near and while tax time can seem overwhelming for the time-pressed small business owner, there are many online tools and forums available to make the process a little easier and stress-free. Get the Top Online Resources for Preparing Your Small Business Taxes in this post.