Solo, Partner, Corporation. What’s The Difference?

i2f contracts storyAccording to the Small Business Chronicle, A sole proprietorship is a business that has a single owner who is responsible for making decisions for the company. A partnership consists of two or more individuals who share the responsibility of running the company. A corporation is one of the most recognizable business structures and has a separate identity from the owners of the company. One or more owners may participate as shareholders of a corporation.

Have you thought about how you would like to proceed? Some businesses are perfect for a sole proprietorship. A Sole Proprietor makes all the decisions and pays for all income tax on their personal taxes. Business plans that include growth, especially at a fast rate may want to consider having a partner to help make decisions when you are unavailable. They generally also invest their personal funds and bring a great deal of knowledge to the table. Partners are also liable for income tax on their personal taxes.

Businesses are required to file articles of incorporation, also known as a certificate of formation, to legally form a corporation in any state. Corporations provide owners of the company with limited liability protection against business losses and obligations. This means owners of a corporation will not lose their home, if the company goes bankrupt. Owners of a corporation are liable for company debts and obligations up to the extent of their investment in the company.

Deep research and understanding are a must when going into business. Every decision you make from the very beginning may impact (a) how you do business (b) how fast your business will grow (c) who will be responsible for raising capital and paying off debt. Some businesses require hiring an attorney to help sort out the legal details.

When in doubt, always consult a professional.

Do Women Entrepreneurs Have An Edge?

i2f business womenStarting your own business can be an amazing and rewarding venture.  Business has been male dominated for centuries. In the recent times, women have been making a name for themselves in the business world.
Women have several advantages over men when it comes to starting a business and keeping that business alive. Advantages include, but are not limited to;

1. Women know what women want: According to Harvard Business Review, “Women feel vastly underserved. Despite the remarkable strides in market power and social position that they have made in the past century, they still appear to be undervalued in the marketplace and underestimated in the workplace. They have too many demands on their time and constantly juggle conflicting priorities—work, home, and family. Few companies have responded to their need for time-saving solutions or for products and services designed specifically for them.”

2. Women are natural social networkers: Women talk approximately three times more than men. Therefore, the ability to make a connection other people who may be interested in the product they are selling becomes higher.

3. Women are multi-taskers: A woman has many demands on her time, attention, and finances. Mike Michalowicz states on Americanexpress.com, “Women are known for juggling many tasks at the same time and still being able to produce excellent results. Conversely, the guys are masters at focusing on one thing. Still, the advantage in today’s distracting environment goes to women.”

So you are a woman on a mission? Your mission, should you choose to embrace it, is to break into the world of business. Whether the business is started in the back bedroom of your home or a large corporation with a 20 story building, you need money to make your business a reality. The first question you ask yourself is, “Where am I going to find the money I need?”  Www.forbes.com states “Women entrepreneurs start their businesses with median startup cash of $8,000, compared to $30,000 for men. Interestingly, most of the funding used by the entrepreneurs in this survey came from their own savings, friends and family–but men were more likely to get business loans. Lack of funding was the number one cause of business failure cited by entrepreneurs in the survey, so this is a real problem. Women in the survey had a 5.3% rate of discontinuing their businesses, vs. 3.6% for men.” $8000 seems like an overwhelming amount of money to raise when you start with $0.

A new way to raise the capital to start your own business is crowdfunding. Crowdfunding, simply defined, is a large number of people giving small sums of money until a goal is met.Input2funding is a crowdfunding website that uses connections and platforms, to connect both the business and investment community with crowdfunding projects. Through a wealth of contacts developed over a combined 40 years of business relationships, Input2funding’s Rolodex has grown to a comprehensive database of contacts from the worlds of finance and investment. Visit www.input2funding.com for more information and to get started crowdfunding for your new business.

 

LLC vs INC

blankblank LLCAs a new business owner, you have been busy laying out the foundation, acquiring funding, and reading local, state, and federal laws related to your business. We understand there have been many a sleepless night followed by excitement and anticipation. Now you must decide if your business is sole proprietorship, incorporated or a limited liability company. We are here to help you sort out the confusion.

Determining whether you should incorporate (INC) your business or go the Limited Liability (LLC) route can prove to be a daunting and confusing task for many small business owners. The first thing you need to know is to determine what  INC is and what determines  LLC. There are two common types of corporations; an S-corp and a C-corp. To make an informed decision, one needs to know some basic differences between Continue reading

The Business Plan

Owning your own business is a dream for many and can launch you into great success. The first step to making your vision a reality is to create a business plan.

The purpose of a business plan is to help you understand the mission of the company, the financial needs of your potential business and even the structure of your new business. You may think you do not need a business plan but understand that assumption is incorrect, many legal services, financial advisers, investors and possible business mentors will want to see a business plan.

You may ask yourself, “ What is a business plan exactly?”  This a valid and valuable question.  A business plan is basically a description Continue reading

Community Gardens, It’s A Good Thing

According to a report by the U.S. Department of Agriculture, 49 million people in the United States lived in households that barely have enough to eat and around 16 million are children. While yes, most of us are obese, others do not know where their next meal may come from. 

There is real trend climbing higher and higher to help those in need. They are called Community Gardens and crowdfunding plays an extremely big role in financing these much needed gardens. Imagine sitting at the table with nothing more than a mere piece a bread, possibly some peanut butter, and not much else.

The worst part may be not knowing where the next piece of bread is coming from. Sound extreme? It is not as so many families today struggle to make it day to day. Where are the fresh fruits and vegetables that our bodies need so badly to stay healthy? Sure, there are government funded programs available but Continue reading

Crowdfunding Drug Research?

i2f test tubeHot off the press from The Wall Street Journal, Can Crowdfunding Jumpstart Early Stage Drug Research? Movie stars and musicians have used crowd funding to finance projects. So have any number of start-up businesses and non-profit organizations. But can crowd funding become a successful tool for underwriting very early-stage research for new drugs or diagnostic tests? This is a good read by Ed Silverman

A new study suggests that researchers should Continue reading

Crowdfunding 101

photo credit Google+ CommunityCrowdfunding is the financial support from backers or the “crowd” in order to help fund a new initiative. The initiative that needs supporting can be from a vast array of areas. Typically, these initiatives are: non-profit organizations, political campaigns, charitable causes, helping to commercialize a new product or simply to help start-up a new business or company. There are many different types of crowdfunding, but the two most commonly used are: Continue reading