In the future, I plan to open my own business. This business will be a Limited Liability Company. The reason I chose this type of format is because my personal assets will be protected if I am sued. I will be charged more in taxes than other formats, but I will not be double taxed. The business I plan on opening will be a health food store. This store will cater to people who are athletic and health conscious. In order for me to start this company, I will have to seek capital. This means applying for a business loan to get the company going. All business must have enough money in order to sustain itself for at least five years (Morgan, 2006). My vision is to create a company that will start small and grow as time goes on in a variety of locations. …show more content…
My objective is to make sure I do not go over budget and have to cut costs down the road. I will also use my personal assets as collateral to keep the company going. This collateral is my savings of 100,000. I know opening my own business will not be easy, but I am willing to take the chance. Opening a business is a big risk. There are many factors that it will take make the business a success. This is marketing, promotion, advertising, using social media, and making sure all aspects of the company is protected from liability if it is sued in the future. The limited liability is a good format to use to start up a company. Members of the LLC business get to determine how they would like their business to be taxed. The profit and losses from an LLC are not taxed directly, but instead could be taxed through the personal business tax of the business owner. An LLC company is very easy to create due to less paper work and can keep a good legal …show more content…
I feel that a Limited liability company will be a perfect format for the company I plan on creating. I know I will have a lot of work to do to create this company. It will take a lot to not only open the company, but maintain it. All businesses must attain insurance, have good record keeping and have a staff that will be willing to put in the time and effort to attain success for the company, and a business format that will fit the company that a potential owner is trying to create (Judge, 1998). All business owners must make sure they have all the proper paperwork done in order to open a new business. The permits attained for a company must be done through the county and state in which the business will be located. All businesses must be approved by the planning and zoning committee of the county the business will be located in as well as make sure the business is insured. These are important factors for any potential business owner (Mahajan.
LLCs must typically pay more fees to file as LLCs compared to some other business entities or sole proprietorships. Additionally, many states require yearly renewal fees. However, these fees are usually less than what some other corporations have to pay. Because of the protections afforded to LLCs, some types of businesses are ineligible to file as LLCs. Banks, insurance companies, and medical service companies are examples of businesses that can not be a LLC. Another big disadvantage is taxes. Although LLC’s allow owners to avoid federal taxes, you may actually end up paying more than it would with a different corporation, depending upon the nature of the business. Working with an accountant and/or tax lawyer is a really good idea when planning your business and forming your LLC but can also be quite expensive. The LLC business form is a relatively new concept. As a result, not a lot of cases have been decided surrounding LLCs. Case law is important because of predictability. If you know a court has ruled a certain way, you can act in a specific way to protect yourself. But if not many laws have been established yet, there is a certain vulnerability with your corporations that could expose you to greater
Capital is a major factor for decision making. Since the business involves a group then the three forms of business exposes the group to a greater capital availability. The liability of members is also an important factor. The partnership offers unlimited liability to the members of the partnership while the corporation and Limited Liability Company allows the members limited liability and thus their personal assets cannot be interfered with in the event of a liability. The decision making process is for the business associations but the input of all members results to the making of good and informed decisions. Finally, the taxation practices for various forms of associations informs the decision. Corporations are often taxed twice whereas the LLC and partnership business is taxed
Most of the established businesses are searching for commercial finance companies to get financial support for their business sustainability. Most times banks refuse to pass the loan applications of the SMEs and irritate applicants with too many regulations. These lending agencies are popular for their flexibility options. If you are wishing for starting a commercial finance company then this is the perfect time and the following tips and tricks will help you in starting your business in less time.
Opening a restaurant can be expensive with the current average start costs coming in around half a million dollars. We can expect to reach or exceed those start-up costs due to the higher-than-average cost of living in the Northern Virginia area. The causal environment we seek to portray will mitigate some of these costs, but top notch talent is expensive. We already have some funding, and a few investors, but we will need to get a large amount of financing from other sources. Being a Military veteran, and my wife being a female minority, we are optimistic about getting the small business loans
We’re a pretty small company, we’ve bought some equipment to get started such as microphones, cameras, website, and programs. We we’re once registered with the state of Florida as business under Melvin’s Photography but we haven’t yet chanced. At this point, we’re saving up to re-invest to purchase more equipment since we’re being requested for bigger projects.
In the world we live in today lawsuits are prevalent and being sued by someone could cause the business to fold. It would be wise for one to obtain all the knowledge before starting a business and it is a reason why people use the term “knowledge is power” (Clarkson & Miller, 2012). As individuals, when we lack knowledge we perform practices unknowingly which could lead to major lawsuits. Ownership of a business can be formed as sole proprietorship, partnership, or corporation. Potential great profit is the reason most people want to start and some do start corporations. One must have knowledge, and understand business law in order to have a positive outcome with operating an organization (Clarkson & Miller, 2012).
People all around the world have dreams of opening a business by creating a service, or product that is consumed by customers. Opening a new business requires a lot of hard work, patience, and extensive planning in order to operate a successful and legal business. However, before a person attempts to open a business, they must be sure they are up for the challenge, and they must be guaranteed that they have the right tools, personality, and experience to be a successful entrepreneur. Pick a mentor that owns a business who can give you advice. They can advise you of things you never knew, or things you should be aware of. Having this kind of person can save you a lot of trouble, and encourage you on the way. When opening a business you must have motivated, strong-minded, and goal oriented people that will provide the proper effort, planning, organization, funding, and structure of the entire business. To begin, creating a business plan for your company is essential for the future of your company, and how it intends to create revenue 3-5 years down the line. It is the most important step, and the first step of beginning your business. A business plan is an essential roadmap for business success; it is a formal statement of a set of goals for your business, the reasons they should be completed, and how you plan on reaching those goals for further success. Your business plan should contain an executive summary. An executive summary includes what you want out of your business, where you plan on taking it, and why it will be successful. Also, if you are seeking financing to get a loan, an executive summary is a great way to grab the investor’s interest. It shows the investor your intensions with your business, the structured guidelines...
The biggest hurdle for most small businesses is accessing money to start or expand, and it can make the difference between success and failure. Of course, great personal credit will make funding your business easier, but there are business loans available from many different places; you just need to know where to look.
Loans are provided for most legal business activities such as, manufacturing, retailing and service oriented type businesses. Once loan is
Five advantages for owning your own business are: 1) The owner receives all profits, meaning that all earnings go to the sole proprietor, or the owner, and isn’t shared with anyone else. The profit is not split among partners, or split among a corporation. So when you own your own business, you’re the first and only one that receives all earnings and profit. So if a person has a successful firm, he/she is the first to reap the success and rewards. 2) Another advantage of owning your own business is that you’re your own boss. You can set your own hours, decide what you want to do with the company, no manager to answer to. Basically, you’re in charge of everything. The owner solely makes all decisions. Or in other words, you’re running the show. 3) An additional advantage is that a sole proprietorship can be easily organized. It’s easy to start your own business. First of all, it costs very little money to start your own business. As a sole proprietor, you have minimal legal requirements. The owner doesn’t have to establish a separate legal entity. All that is needed is to register the company with the state and apply for an occupational license and any additional licenses required for the state. ...
The venture to be the owner of an accounting and tax service provider is not a small task, and you have realized the challenges that many experience in starting their own business. Fortunately, you have taken steps early within the life of your new business in an attempt to correct any problems and learn from past mistakes in order to be successful in the future. In our previous communications you mention that you started your own business because you wanted to work in your own community, have the flexibility of owning your own business, while also being able to make a good living, and these are all worthy motivators for a fledgling business owner. You have earned your degree and your certified public accountant (CPA) designation, which has allowed you to realize success as an employee of a popular accounting firm. While employed at the firm, you were able to progressively take on greater responsibilities during your tenure and gain much needed experience; however, starting and managing a business requires some additional skillsets. Regina, you have proven that you are a bright individual with the necessary resourcefulness and skills to be a certified professional accountant and open your own business, and I am confident that you will be able to gain the skills needed to be successful with your business, and to become an effective leader.
Before a partnership formation is imminent, the business needs to decide on which type of partnership to form. There are three types of partnerships: (1) general partnerships, (2) limited partnerships, and (3) joint ventures. All three partnerships contain two or more owners, but all partners assume equal division of ownership, liabilities, and profits in a general partnership. Limited partnerships offer limited liability protection based on each partner’s contribution percentage. Joint ventures are classified as general partnerships with limited existence periods. Once a type of partnership has been determined, the business fulfills a series of requirements before the partnership can be successfully formed. The first step is to register
Not too many kids decide that they want to start their own business before even making it to high school. While I was in Middle School I realized that If I wished to get the things I want, then I’d need a job. However, being too young to drive and too young to get a job at a store, I decided to begin mowing lawns. It was a simple answer that was right in front of my eyes. So I began to mow neighbors lawns. Then as I got older and had the ability to transport myself and my tools, my business began to evolve into something much bigger. Now Ethan Lord Lawncare is a business that mows lawns, does spring and fall clean-ups, cuts trees, and any other odd job within reason. Starting my own business was the biggest period of personal growth in my life
Business has been a large part of my family, and has started to grow on me. My dad worked in sales for many years, and is now the President of a company in Staples. My mom started her own cleaning business, and now works for herself, as well as my uncle owns a golf course, and a pump and well business. My other uncle has his own handy man business, while one of my aunts operates a redimix and construction company . So I guess it could be said, business is kind of in by blood.
As we start our business, and even our business moves along, we will constantly need to concern ourselves with financing our business. Financing concerns begin with the start-up costs and then continue with business expansion and new product development. When we look for outside financing, one of the first things the investor will want to see is our business plan. Private investor, banks or any other lending institution will want to see how our plan on running our business, what our expense and revenue projections are whether or not our plans for the future are attainable with the business we have created. All of this can be answered by a well-written and thorough business plan.