Business/ Affiliates/ Education and Motivational Word,: Feb 28, 2009

Saturday, February 28, 2009

Choosing The Right Business Type

Creating a new online business is not unlike creating a new stand alone e-commerce business. When you do this you will need to create a business entity. You will need to decide what type of business structure or entity you are going to create. This is important and depends on the overall goal of the company. Tthe four initial options are listed below along with a brief description to help you decide which type to choose. It is important that you understand that this is in no way legal advice and we suggest you contact a small business lawyer to help you finalize your decision.
Sole Proprietor: A Sole Proprietor business entity is just what it sounds like: there is a single owner/operator. This person will be responsible for all of the functions of the business. You can operate as a Sole Proprietor under your own Social Security or a separate employee identification number (EIN). Either way this is registered just like any other business. The downside to the sole proprietor business entity is that it does not offer any substantial tax benefits and you are held personally liable for anything your business does. That means that if your business gets sued they can attempt to take personal property or funds.
Partnership: A partnership is similar to the sole proprietor business entity with one exception -- there is more than one person operating the business. This is good in that it allows for two or more decision makers, however it has severe drawbacks. Just as in a sole proprietor business, the owners are held liable for the actions of the company. This means both of the owners are liable even if one of the owners was at fault. Tthis is not necessarily the best business structure for a high risk company.
Limited Liability Corporations (LLC): An LLC is a sound business structure for small businesses. It offers protection against lawsuits by separating the business and the person. If the business is sued, personal possessions or funds taken can not be taken.
To do this, funds cannot co-mingle. However, that is a small price to pay for added security. You can pay yourself a salary and take dividends as needed however they must be proportionately reasonable to the amount of money the company is taking in. This can be operated by one or more people but the owner does pay self-employment tax.
Corporation: There are two types of corporations, an "S" corporation and a "C" corporation. The s corporation has been around for quite a while. The rules and the laws regarding an s corporation are very clear and refined. The s corporation has more tax advantages for smaller businesses than the c corporation. A c corporation is for large scale publicly traded companies. For the most part an LLC will suffice for a startup business. The advantage to starting as an s corporation is that you can easily move from an s corporation to a c corporation with little to no difficulty. To move from an LLC to a c corporation you have to first dissolve the LLC. The move from s to c corporation is fairly easy.
Two government websites will help you through this process. They are the SBA Website and the IRS Website. You should visit these pages and browse around to get comfortable with them. We also have a training video that will help you navigate the SBA website to apply for a small business loan and a video for the IRS website to help you apply for an EIN. Both of these videos are very helpful. Just click on the link below and you will be taken directly to the video.

posted by Arch Bishop, Dr J. O Faola @ 2:13 PM 0 comments

Business Licensing

To operate your business, you will need to be licensed. This can be completed at your local courthouse and is nothing more than a nominal fee and a couple of forms. The process may be different in every town, however they are all designed to ensure that the area you plan on conducting the business is zoned for that. You can also get signed up for certain programs such as the Chamber of Commerce. After registering you will be given your ID numbers that are used for business identification and tax purposes.

posted by Arch Bishop, Dr J. O Faola @ 2:10 PM 0 comments

Business Financing

Even though you are starting an online business that could, in theory, start very easily with little to no money at all, some people find they need some startup capital. In this case you may want to consider the information below:
The initial financing is obviously a very important piece to the puzzle. It's always a good idea to build the business on your own funds. You can do this by living on a lean budget. Cut personal costs as much as possible. Try and save up enough to keep the business going at least long enough to start showing you a return on your investment.
Obviously, this is not an option for everyone so you may have to look into other funding options. Other options include but are not limited to:
SBA: The Small Business Administration is a good place to go for funding. They provide government backed loans specifically designed for small businesses.
Credit Cards: Many businesses have been built on personal and business credit cards. This can be a slippery road if you do not manage the funds carefully. Use your best judgment when dealing with credit cards.
Terms: Many of your suppliers may offer you a credit line or terms for services or products. An example of this would be an office supply warehouse that bills you for the products you buy and allows you 30 days to pay the balance.
Sweat Equity: Trade services to help get whatever it is you need.
Family and Friends: The people you have strong personal relationships with may not have any problem loaning you money. They usually have a good idea about how trustworthy you are and may be more inclined to loan you the money than a bank would.
There is one final school of thought when it comes to funding for a new business and that is to start small. By starting small, you can manage funding on your own and as the company and the profits grow, increase the size of your business. This eliminates the need of having to pay back anyone as you start making money.

Have a Blessed Day

posted by Arch Bishop, Dr J. O Faola @ 2:01 PM 0 comments

INCREASE YOUR VALUE

Hello, Good friends this another good time for us to have a tête-à-tête discussion. But today I will like to share my opinion on “VALUE”. Your values in life determine your success, your height, your income and your well being in all ramifications. May I ask you now that what is your value? You can’t grow more than what you value in life. What did you value? Is it Money, Car, Cloth, House, Property etc. what ever you value, you ran after. For your life to have value I want to introduce this few things to you for you to value them.
1) God
2) His word
3) His Servant
4) Information
5) Education
So your life will be a (V) Very, (A) Adequate, (L ) Life, with (U) Unbeatable, (E) End. (VALUE).
Have a blessed day.
Your friend John Faola

posted by Arch Bishop, Dr J. O Faola @ 1:55 PM 0 comments

About Me

Name: Arch Bishop, Dr J. O Faola
Home: Shibiri Ekunpa Oto-Awori LGDA, Lagos, Nigeria
About Me: His Grace Prof. Prince J. Faola (JP)., He is the Senior Pastor of the Shield Of Faith Gospel Mission Int. and the founder of the “Joel International Ministerial and Theological Academy”. He is an international Bible teacher and a passionate author and bible expositor, he is a patron and adviser for Christ Believers Ministry. He is a member of BSN and IMCGBN, the President of JECAL CLUB, The founder of the PARLEY CLUB INT, Chairman of I.M.A.T.E.B. Chairman Board of Regents Christ’s College of Theology, a well known Radio Pastor and most sought after aggressive motivational speaker.
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