Small Business Made Simple™ » Starting A Business

Recessions Create Millionaires

Matt — Fri, 30 Sep 2011 19:06:44 +0000

“From 2012-2018, more new millionaires will be created than in the last 20 years. While the economy has most people paralyzed, the great ones are reloading, re-strategizing, and taping their creative power to dream up solutions to a host of brand new problems. While the middle class is job hunting, the world class is idea hunting. If you’ve ever dreamed of being rich, get excited and get busy. Your family fortune awaits you.”

-Steve Siebold

Small Business Can Save America

Matt — Tue, 16 Aug 2011 22:51:40 +0000

Bad news is all around us and only seems to be getting worse each day. Our nation’s leaders are deadlocked about how to solve our problems while the president runs amok with promise and rhetoric that don’t translate to his ability. Unemployment is soaring and the deficit has reached the stratosphere. China is taking the lead as a global power while the USA falters…and our younger generations don’t seem to care that our nation is getting worse, not better.

In a great article from USA Today, a plan is proposed that it’s time for small business to come to America’s rescue—and it can be done. Just as it’s been done before. More than 20 million new jobs—many from startups that grew into billion dollar companies like Amazon.com and Starbucks—were created during the great boom of the Clinton administration. During Reagan’s presidency, great economic progress was fueled by the sentiment that small businesses and entrepreneurs could account for almost all of that growth.

It’s a fact that small business helps America. According to the Small Business Administration, an astonishing 99% of companies with payroll are small businesses—and those companies employ more than 50% of the working public and create an impressive 80% of new job growth.

Small business propels the country forward—and if our stubborn political leaders want to get our country moving again and reclaim our spot as the greatest nation on earth, they need to start putting forth the policies that help small businesses and entrepreneurs do their job. According to the World Entrepreneurship Forum, a global think tank dedicated to small business, some top methods for promoting entrepreneurship include:

Reform tax and regulatory environments so as to make it easier, faster, and less costly for entrepreneurs to set up enterprises.
Create entrepreneurship-friendly support institutions that provide technological knowledge, market information, business know-how, certification services, access to capital, and other essential business support.
Understand entrepreneurship by making it known that entrepreneurs are positive agents of social change, wealth creation, transparency, sustainability, and innovation.

If we had a comprehensive 21st Century Entrepreneurship Act it would include tax reform and regulatory ease. It would include immigration reform to woo the best and brightest entrepreneurs and engineers to our country. It would increase access to capital and help more startups actually start up.

Now Washington just needs to wake up and give small business a chance to save America. Write or call your congressperson and tell THEM to get to work!

How to File a DBA or Fictitious Business Name

Matt — Sat, 06 Aug 2011 00:30:32 +0000

A DBA, also known as a sole proprietorship, “doing business as” or a Fictitious Business Name (FBN), is a business that is not separate from its owner and simply operates under a different name than the owner’s name. If your new business will be a sole proprietorship (or a partnership if your company has more than one owner), you will need to file a DBA so that you can “do business as” a name other than your personal name. You also need a DBA to open a bank account in your business name (so you can be paid with checks payable to your business name).

You will also need to file a DBA if your company is already set up as a corporation or an LLC and you want to do business under a different name. For example, if your company name is Platinum Consulting LLC and you also want to operate as Platinum Consultants, you will need to file a DBA. Please note that in this instance, a DBA is not a way to form a corporation or LLC for less money. You must complete the formation of your corporation or LLC before filing for the DBA if you want to operate under a different name.

Start the DBA filing process by choosing your fictitious business name. DBA’s are usually filed at the County Clerk’s office or at the state level, so you will need to know which applies to your location. Once you know who handles DBA filings in your area, you can usually perform a name search with that office. Then you will need to file the DBA paperwork to register your business name, pay the necessary filing fee and satisfy any additional requirements of your county or state before your DBA filing is complete. Many counties, for instance, require that you publish a newspaper announcement to notify the public of your intent to “do business as” another name.

Don’t get bogged down with trying to figure out the DBA requirements of your county or state (there are over 19,000 counties in the USA!). MyNewCompany.com offers a complete DBA filing service including name verification and step-by-step instructions for any after-formation requirements.

Special – Save 15% off Incorporating or Forming an LLC!

Matt — Fri, 08 Apr 2011 22:41:34 +0000

Incorporate, Form an LLC or File a DBA and save 15% NOW!

To receive this discount:

Place an order for a Corporation or an LLC.
On the final step of checkout, click the “Offer Code” link, enter offer code 15NOW.
Make sure to click “Apply” and 15% will automatically be deducted from your total.
Submit your order.

This is a one-time tax-season special so please act now!

IMPORTANT: the offer code must be applied before submitting an order and is not applicable to orders after they are submitted.

Rwanda Has A Faster Business Registration System than Most US States

Matt — Wed, 09 Jun 2010 22:19:56 +0000

In news that should be terrifying to most US states’ technology administrators, Rwanda (yes, that Rwanda) now has an online business registration system that is faster and easier than most US states. This system allows a person to form a company in Rwanda in 1 hour.

Compare this to the standard processing time of select US Secretary of States (as of June 2010):

California Secretary of State: 70 Days
Maryland Department of State: 75 Days
Nevada Secretary of State: 45 Days
New York Secretary of State: 20 Days
Washington D.C. DCRA: 40 Days

So if you want to file a DBA, incorporate a business or form an LLC in the United States, you will almost certainly have to wait longer than your entrepreneurial equivalent in Rwanda. This should be a wake up call to each US Secretary of State’s filing office: in the largest, most powerful economy in the world, we are now falling behind 3rd world countries (recovering from a brutal civil war) in the time it takes to register a business.

The number of new business registrations is an important indicator of the overall health of an economy and US State governments should make upgrading their systems a priority not only to make business startups faster, but to improve and streamline the internal operations of their own offices.

How Venture Capitalists Want Your Company to be Formed

Matt — Thu, 25 Mar 2010 17:21:58 +0000

Many entrepreneurs and startups are very concerned when they go to start their company because they’re not sure what type of business entity (Corporation, S-Corporation, LLC, etc.) a venture capitalist (VC) would want their company to be formed as, which state they should incorporate in and the types and number of shares.

However, many entrepreneurs and startup advisors believe that this should not be the primary concern. For example, if you incorporate in California when you start out, you can then “re-incorporate” in Delaware later should your investors require this. Or if you don’t authorize enough shares, then you can amend your original articles of incorporation later to reflect more shares, or different classes of shares (common shares vs. preferred shares).

There may be an exception in regards to the LLC – sometimes this entity is more difficult to modify for a venture capitalists needs – VC’s almost always prefer to work with the C-Corporation.

So, in essence, many companies start out in one structure, based in one state and eventually end up being changed considerably later. Instead, it might be advisable to work on working on your product or service, getting the company going in whatever form and then worry about these corporate formalities later – if you are at the point where they are modifying your company, you will probably receiving significant funding and these formalities will be handled by seasoned lawyers.

If you want to do the Delaware option at startup, see how a lawyer would set up a Delaware company now if were a startup. Almost always this is a Delaware C-Corporation.

If you’d like to see some of the typical venture capital agreements or how they typically modify the articles of incorporation, then view these “Model Series Seed Agreements“. This includes documents like Investors Rights and a “Term Sheet”.

Long story short, it’s ultimately up to you how you want to structure your company in the beginning, but the links mentioned above will show how a VC or startup lawyer might eventually structure your corporation.

How to Start a Company

Matt — Thu, 11 Mar 2010 23:51:35 +0000

If you’ve thought of a business idea and want to start a company, but aren’t sure how to begin, the good news is you’re already on your way. The first step to starting a company is having an idea. Your idea might come from a personal interest or an activity you’re particularly good at, such as opening your own bakery if your cupcakes are the best in town. Your idea might be the solution to a common problem that a lot of people need help with. Maybe you’re thinking about buying a business that’s for sale to put your own effort into improving an existing product or service. The most important thing is that you feel passionate about your idea and have the determination to see it grow from a start-up to a working business.

Once you’re certain that your idea is one you will want to follow through with, and is realistic for you as an individual—someone who doesn’t like children would not want to open a daycare, for instance—you will need to prepare a business plan. A business plan will help you figure out a step-by-step process for growing your business from a simple idea to a successful enterprise. A business plan might sound complicated but doesn’t have to be. You can start a company with a simple business plan that you’ve outlined yourself on a piece of paper. However, if you plan to apply for a business loan to start a company, you will need a more comprehensive business plan to satisfy the requirements of your lender. There are many books and online services available to help you create a comprehensive business plan.

In addition to outlining the structure of your business and your business goals, your business plan should determine the costs involved in starting a company. Many small business owners start a company with very little capital and rely on credit cards or the help of friends and family. Some small business owners will also seek investors to help them finance the company during the start-up phase. If your business will require a large amount of money to lease office space or buy special equipment, you will probably need to apply for a small business loan or a bank loan. You can learn more about your loan options by visiting the website of the Small Business Administration or visiting your bank.

In addition to writing your business plan and working out how to finance your business, you will need to follow the required legal process to start a company. Choose a name for your company and select the legal structure that will work best for your business, such as a incorporating as corporation or an LLC. You will need to obtain a Federal Tax I.D. Number, also known as a FEIN or EIN, which is a company’s identification number much like an individual’s Social Security Number. A FEIN can be obtained through the Internal Revenue Service or through an online incorporation service when you start a company. An online incorporation service will also help you start a company by guiding you through the official formation process and assisting with the necessary paperwork.

Twitter Updates January 4 2010

Matt — Mon, 04 Jan 2010 18:09:00 +0000

About what I expect: IRS Has 70% Error Rate in Issuance of Taxpayer ID Numbers, Resulting in Fraudulent Tax Refunds http://ow.ly/P6rq #

Twitter Updates – December 2009

Matt — Mon, 28 Dec 2009 18:09:00 +0000

RT @dja2law: Out-House General Counsel: 25 Free Legal Resources for Start Ups: http://bit.ly/5qoLDr via @addthis #
Create a Call to Action on Your Web Pages http://ow.ly/OFQJ #
Join our incorporation and LLC formation Affiliate Program | $25-35/sale: http://www.mynewcompany.com/affiliates.htm #
RT @BizStart: Small Business Tax Management Essential to Business Success http://trcb.us/W6c #
Free Incorporation and LLC Formation Guidebook: http://www.mynewcompany.com/startcompany.htm#1-6 #
RT @SmallBizChamps: Delegating can bring relief from small-business stress http://bit.ly/8Vah2Y #

Twitter – Mid December 2009

Matt — Mon, 21 Dec 2009 18:09:00 +0000

@CJAnyasor we can help you with your LLC if you want: http://www.mynewcompany.com/startcompany.htm in reply to CJAnyasor #
10 Ways to Make Your Web Site Answer Customer Phone Calls http://ow.ly/Nd9p #
Another Entrepreneurial Myth Busted – The Entrepreneurial Mind http://ow.ly/Nc72 #
Catching the Seasonal Wave Part 1 – E-Myth Worldwide http://ow.ly/MOih #
How to Stay Productive During the Winter Holidays – Stepcase Lifehack http://ow.ly/MsUQ #
10 Tips for Saving Your Life From Your Business http://ow.ly/Mn2J #
It’s All About Selling for Survival http://ow.ly/MrFz #
Ask for the sale when they are most interested in you http://ow.ly/M5K4 #