Categories Business

What Is An LLC And How To Start One

A limited liability company (LLC) is a business entity that is created by filing articles of organization with a state, usually with the secretary of state’s office. This form of ownership is very advantageous for the small business owner because it provides the owners with limited liability and is easier to set up then a corporation.

Although many services will charge you a few hundred dollars to create an LLC the process is relatively simple and can be done without the assistance of a service.

Articles of Incorporation

The articles of incorporation are the formation documents for the LLC and are filed as a document available to the public to tell the state and anyone else who wants to know, what the company is about. The most frequently requested information for the articles of incorporation are:

  • The name of the company
  • How many members the company has at the time of organization
  • The physical address and mailing address of the company
  • The name of the organizer (can be someone other than the owners)
  • If the company will continue indefinitely (perpetual) or end on a specific date
  • The purpose or business the company will conduct and what powers it has

Every state has different requirements for what must be included in the articles of organization, but these examples are very typical of what is required. Some states will create the articles of organization for you online, all you have to do is enter the information and pay the fee. The amount of the filing fee depends on the state but are typically around $50-$150.

Most states also require you to designate a registered agent for your company. This is a person or entity that resides or has a place of business in the state and agrees to accept service of process for the company. If you do not live in the state there are companies that will act as your registered agent and perform the requirements as the registered agent according to the laws of the state for a yearly fee.

Operating Agreement

The other requirement for an LLC is to have an operating agreement. Although you don’t usually have to file this document with the state, it is necessary for things such as opening business bank accounts and obtaining loans. This agreement basically covers getting into business, operating the business, and getting out of the business. This is the document you use to determine what interest each person will have in the company, the powers of the company, and the share of profits and losses of each member is set forth.

One of the benefits of the LLC entity is that profits and losses do not have to be shared evenly. A member who puts in work instead of money, for example, may be entitled to only 30% of the profits but still remain liable for an equal share of the losses. This gives members flexibility to bring in members as investors who may have less liability, but share equally in the profits.

Limited Liability

The LLC has limited liability for the members meaning they annot be held personally liable for the company’s debts. Many businesses will require members to sign a personal guaranty where a member agrees to be personally liable for the debt of the company, especially if the company is new in business.

Members may also be held individually liable for their own intentional torts. To maintain the LLC as a separate entity, members should always have separate bank accounts for the LLC and sign company documents as members of the LLC and not as individuals. An LLC is treated as a separate entity from its owners under the law therefore it’s important to make that distinction in record keeping.

Record Keeping

LLC’s are not required to keep minutes or have annual meetings; however it’s never a bad idea to keep these kinds of records to show that the company is separate from its members. The operating agreement and state laws will provide the requirements for what records members must keep. Most states require that LLC’s file a report on its earnings on a biannual basis in order to keep the company active.

Failure to file the reports will result in the company being administratively dissolved by the state. If this occurs and members continue to do business under the LLC they risk being personally liable for the company’s debts.

LLC’s do not have stocks, but may issue member interest certificates to members representing the members interest in the LLC. LLC’s may also prepare resolutions, like corporations, for official actions such as opening bank accounts, securing loans or the buying/selling of membership interests.


By completing a form 8832 an LLC elects how it will be taxed. Most LLC’s choose to be taxed as a partnership which means the tax flows through the entity to the individual members. The individual members pay taxes on their share of the company’s profits or losses in accordance with the operating agreement. An LLC also has the option to be taxed as a corporation, or in the case of a single member LLC the entity may be disregarded altogether for tax purposes. For more information you can go online to the IRS’s website.

Disadvantages of LLC

An LLC is a very flexible entity that can be used by almost any type of business. LLC’s do have limitations, however and the laws surrounding LLC’s have been subject to a great deal of changes in the last few years. It’s difficult to go public with an LLC and to obtain venture capital because of the business structure. Many investors may be more comfortable with the option to purchase stock, because it’s a more familiar instrument.

Whatever entity you choose for your business, make sure to take advantage of professionals who can answer your questions such as attorneys and accountants. Small business incubators and associations are also excellent sources of information for new business ventures.


Categories Business

Family Business

If you are thinking about starting a family business, there are many things you need to consider. All of those involved must have an understanding that business must come first in order to be successful. Each role must be defined so there is no question about boundaries and responsibilities. Everyone should be placed in a position within the company that best utilizes their special talent and abilities.

There are many training and retail software programs to use as a tool to get your business off to a solid start. With each family member knowing their responsibility and being adequately trained to fulfill that part of the workload, you are well on your way to being successful. There are financial training packages and software to keep you in control of purchasing and handling the cash flow.

Family Business Is Healthy Business

If you are already an established family business and need to increase the productivity level, why not check out the latest retail software to take the stress out of everyday activities. You can streamline the day-to-day routine and add new vitality to your business environment. Let the technology that is available be the boost you need to take you to the next level.

The Internet is full of great software ideas for either starting a business or improving the one that has been in existence for a long time. Do your research and then decide which program is right for you. There is no need to struggle on your own when there is so much to choose from that will make life easier for you and increase your profit margin at the same time. Don’t delay. Do your online shopping today and have a better tomorrow

Categories Business

Internet Businesses For Sale

If you are tired of your current job and want to try something new, you may want to look at internet businesses for sale. Purchasing an internet business will allow you to have more control over your work environment and to work from the comfort of your home. It may take a lot of work, but you will never have to answer to a boss again when you are running your own internet business.


Options of Internet Businesses for Sale

There are many available internet businesses for sale and most of them are listed all over the Internet. You should choose a business that interests you and that you can run effectively. You may want to search through categories of businesses that relate to you and your talents. For instance, if you have experience in retail, you can purchase a business dedicated to internet shopping.

When searching for internet businesses for sale, you should carefully view the websites that are designed for each business. Good websites will look clean and professional and will be easy to read and understand. The colors and design should be attractive and appropriate to the type of business being promoted. The message associated with the business should also be clear on the home page of the website.

Speed is another important factor for a good website. If a website is slow, visitors may get frustrated and will likely leave the site quickly. The graphics and layout should be eye-catching and enticing to viewers as well. A website that is bold, easy to understand, and has a quick pace is great for a new internet business. Purchasing pre-established businesses and websites will help you to get started quickly on a new internet business.

Categories Business

Ways To Protect Your Financial Credit Score

Your financial credit score is an important score which shows the percentage of risk involved if you are offered a loan. It dictates how likely you are to repay your loan on time which affects whether you will get loans, mortgages, or credit cards. It is very important to have a healthy credit score
During these challenging times it is important to get your finances in order. There are different ways to protect your financial credit scores through your credit cards, mortgage loans, home equity lines of credit and debt management.

  • Credit Card: Banks are also becoming cautious and have slashed the credit card limits to reduce their lending risks. There are many individual limits that are slashed to almost a thousand dollar that is coinciding with the existing outstanding balances. There are some individuals whose limits are slashed even below existing balances. These actions not only reduce the available credit but also have a negative impact on the credit score. Read more on Credit Card.

You can protect your credit score by

  • Knowing your credit card limits and not crossing these limits.
  • Charge your card only to the amount that you can pay off full in one month and never resort to paying only the   minimum balance.
  • Check your credit card charges and balances regularly online or by phone to avoid going over the limits and possibly going into default.
  • Do not close the account
  • Mortgage Loans: A person’s home is his biggest asset and often his biggest liability, if he has taken loan for its payments. Furthermore the payment history on a mortgage has a major impact on the credit score of the person. You can protect the mortgage loan credit score by staying on top of payments. You should be able to make timely payments and never default in any payment. If you are unable to pay regularly, it is advised that you contact the lender immediately. If you feel that you are in very tight situation and would be no more able to pay off the mortgage loans on time it is suggested that you sell of the property. Selling of the property is also a time consuming process as there are not many people who can afford to buy homes during such challenging times. It is suggested that you should not wait till the foreclosure as it will have a negative impact on your credit score. Read more on Mortgage Loans
  • Home equity lines of credit.( HELOC): These days when banks are short on credit reserves, they do not influence people to draw thousands of dollars especially if they are being drawn from emergency funds that might not be repaid. Mortgage lenders are reducing HELOC and even sending notices to many individuals that they are closing their HELOCs to keep themselves protected.

In the earlier days there were many people who counted on HELOCs for their house renovation or maintenance but the same is no more possible as the HELOCs have come with stringent policies.
To compensate for the lack of HELOC as an emergency resource you should start building your own emergency fund by saving at least a dollar a day. However HELOCs unavailability should not have a significant effect on a credit score.

When you are in debt and do not know where to move you can take help from experts who would offer credit counseling, debt management and even how to handle bankruptcy.

If you are in debts and need to protect your credit scores you can try calling lenders to explain the situation, they might consider renegotiating terms and interest rates depending upon one situation to another.
If you feel that you are in grave debts and can no longer afford to pay off the debts and bankruptcy is the only option that lies ahead. You can consider debt settlements. They help to resolve large balances at reduced payoffs amounts while avoiding bankruptcy. However this would have a negative effect on your credit scores.

Bankruptcy is the last resort for people who are in serious difficulty. This offers a severe impact on the credit score. Before considering bankruptcy it is advised that you discuss with an attorney to determine suitability and qualification.

It is suggested that you should carefully check your credit statements and analyze your financial score. You can educate yourself on various options that are available and make smart decision to reduce your debts and protect your credit at the same time.

Categories Business

Toll Free Business Numbers

Toll free business numbers are a great way to bring in business. No matter whether you are running a small business or a large corporation, toll free business numbers are a wonderful asset. Best of all, toll free business numbers are quite affordable.


Choosing Toll Free Business Numbers Intelligently

When choosing toll free business numbers, you’ll want to make sure you’re getting the best deal. Sometimes, business numbers can be twice the price of residential numbers. For this reason, you’ll want to shop around for the best deal.

Internet vendors can give you the best prices for toll free business numbers. This is because they have lower overhead than most companies, and are able to pass savings along to you. For the best deals on toll free business numbers, look online today.

Finally, when you choose your toll free number, you’ll want to make sure it captures your business purpose. Talk to friends and customers and find out what your business symbolizes in their eyes. Then think of words that will be appropriate and catchy, and begin to seek out your vanity toll free business numbers.

Categories Business

Business Performance Management

To be successful, organizations need to meet, and possibly exceed, customer requirements. They will need to examine employee engagement and productivity. They will need to monitor and measure the performance of vendors and suppliers. A business performance management system will accomplish all of this.

Business Performance Management

The goal of every company is to see its value rise. Publicly traded companies will experience this through rising share prices. What drives a rising share price? The answer is simple, consistent “real” earnings. What I mean by real earnings is true profit growth. True profit growth is the result of sustainable growth; not creative accounting practices. The market is quick to notice when a company’s earnings are starting to become suspicious. For proof, just take a look at a chart of Enron’s stock price history. The stock started its downward spiral years before any of its faulty accounting practices came public.

Sustainable growth is that which is basically organic to the company: increased revenue. Some organizations try to manipulate revenue growth through various techniques–buying a competitor, opening many new stores, and slashing prices. These techniques do create short term revenue spikes but not necessarily long term revenue growth.

To achieve sustainable growth a company must engage its customers. Bringing customers back to your organization is the biggest driver of organic growth. Successful and satisfied employees are critical in retaining customers. Proper training, placement, and compensation are all factors in having a satisfied employee. Employees are where business performance management systems will start. After that, a system will go down the line to ensure the success of the company.

Categories Business

Small Business Inventory Management

There are small business inventory management tools available that will take the guesswork out of your hands. The efficiency of your inventory and purchasing department can be greatly enhanced by taking advantage of the latest training and software programs that have been developed for inventory management.

You will have the greatest chance of keeping your business out of bankruptcy if you are able to accurately make financial projections that are based on precise data. With the proper training and software, it is possible to follow trends across the nation and wisely predict your inventory needs for the coming months.

Find Small Business Inventory Management Tools Today

It is vital to the financial success of a company to have a healthy inventory and cash flow balance. This is made possible by having an effective small business inventory management system in place. There is no need to leave your buying to chance. Make your purchases based on solid facts and projections and increase your profit margin with good inventory. Give your employees the tools they need to make the choices that are going to be the most benefit to you and your company.

Let the Internet be your guide to the very latest in programs to help get your small business on solid ground. The profits will begin to show when you have the right kind of inventory. You can comparison shop online for the best programs to meet your needs and then make your purchase safely and securely. Make that move today that will take your profit margin up a notch or two. You will not regret getting the help you need.

Categories Business

Home Security

Is all your family members planning to continue holiday? So that indicates your residence is going to be empty for two days. This would be a great chance for burglars to get involved with the picture. A home without any one inside is a good prospect for breaking-in. This really is one cause the reason why some properties to not have electronic gadgets or little appliances due to the fact these issues are easy to carry just within scenario prospective thefts break-in. Like a homeowner, you ought to become considering you skill in order to reduce the probability or far better, avoid burglars in order to even get close to your residence.

There is a lot of ways to keep the residence risk-free. You can commit lots of funds to secure your house, or you may also select to utilize less costly options. A quantity of property owners use canine woofing alarms and many of them are in truth satisfied at exactly how it performs for his or her properties. The effectiveness of the pet barking alarm however depends on how realistic the actual barking sound is actually.

GE Simon XTi Wireless Home security system

Finding the best security alarm system for your own personel home could be a difficult task, if you don’t know what to consider or what is best to your requirements. One of probably the most relied upon kinds of home security systems may be the wireless security program, and one from the brands that people appear to trust with regards to their home protection needs is GE. GE, or even General Electric, has a number of home security systems that you should choose from and locating the best one to your requirements from this specific brand can depart you confused.

There are lots of types of the actual wireless security items available online that you should choose from. To help you select a particular system which you can use in your house, we will discuss a product that numerous consumers have found to become rather effective to keep their homes secure. This particular wireless security alarm system is the actual GE Simon XTi Wireless Home security system. This wireless alarm system has a control panel, movement detector, keyfob and power. It also has a rechargeable back-up battery that may run every day and night, monitoring stickers, doorway and window connections, a quick set up guide, and a good owner’s manual. This alarm system enables you to add around forty sensors, has a instead loud siren as well as multiple functions for the various kinds of security threats your house may come in contact with.

Categories Business

Companies, Conduct IPO Research Before Making An IPO!

Hey all you first timers! Thinking of making an IPO (I know making an IPO is your dream. But just wait; experienced commercial experts say that for your IPO to be successful, you need to set right certain factors that might influence your success. Before you venture just heed these points, otherwise you are going to experience high speed breakers in your path to success.

  • Win the trust of public: Have you ever wondered why someone should invest in your company? There are scores of companies in the market making initial public offerings (IPOs). How do you think you’re going to win over all of them? Obviously by winning the confidence of your potential investors that they’ll gain by investing in your company. Answer these basic questions:
    • How was your profitability graph in the last few years? Was it ascending, descending or parallel to the horizontal axis? Also were there more waves in your graphs? I mean more ups and downs? If you have a steady ascending profitability curve, then think of making an IPO, otherwise simply forget your dream for the present and attempt once more.


  • Did you have a successful business model? If you did go ahead, but otherwise hold your desire for sometime and set right your ailing business model first. I know investors to be very scrutinizing when it comes to the efficiency and long term survival of your business.
  • What impression does your management create on the public? Do they think your managerial human resources are efficient? If your answer is yes, then I’m giving you the green signal to proceed ahead. Otherwise first correct the flaw and then proceed further.

Dealing with the public is not easy as they are very aware and they have a lot of choices. It’s for you to clean up your system and make it impeccable. Never offer an IPO to draw money for purposes other than what it’s meant for. Here’s a list of dos and don’ts for you :

  • Never push an IPO to meet crisis: If you think you’re clever and your customers cannot make out any tricks you play on them, better watch out! See how Vonage, advertising and internet telephony providing company, has blundered by making such a silly attempt in June 2006. The shareholders who bought the company stocks prior to its public offer filed a lawsuit against the company for wrongly motivating general  public into buying their shares as the company was losing money and the IPO was a strategy to overcome the problem. The lawsuit alleges that institutional investors who were aware of the decline of the company would be reluctant to buy the shares and hence the offer was made to the public. You can go through a detailed report of this at ZDNet.
  • Don’t make an IPO in anticipation of success: Assess the market pulse for your consumer response before you start expanding your business and don’t make an IPO in anticipation of success, if the response is not all that encouraging. Try to make an accurate market forecast before you make investments. Take the example of revolutionary online grocers Webvan, who had to close down as it was not able to meet the financial challenges of its own rapid progress. The $ 375 million that it raised flopped. Read the detailed report at The Industry Standard.
  • Never offer IPO on a fake a market: Assess your market worth accurately and then announce your IPO. Don’t create a false demand by using publicity tactics and win investors. eToys is one such company. An online toys selling store, it really never had any market. It created an impression of high demand through word of mouth that generated a huge IPO of $ 166 million. But the idea flopped shortly as it had no real market. You can read about it in the Red Herring report.
  • A flawed business model can ruin your business: Correct all lacunae in your business operations if you want a successful business., the online pet store was a favorite with many people but the company realized that that did not help in bringing back huge profits. The main reason for its failure was delayed delivery of pet food and medicines. Though it tried to make up for this operational defect in other ways, by giving discounts etc. it did not help in roping in enough customers. The business was almost closed before it raised $ 82.5 million on IPOs. Get a detailed picture of the failure here.  Another gaping example of a flawed business model is that of Kozmo which could not run the show as keeping up with the promise of delivering consumer items like DVDs, snacks etc. at a cheap rate for free. The company ran out of profits and succumbed to the losses. Its planned IPO never materialized. You can read about the Kozmo downfall here
  • New technologies are not always profitable: Nowadays, a lot of new technologies are coming in the market claiming to be the best to harness natural resources. But after the initial boom, they just fade out. Take China’s ReneSola for example. Its solar wafers created a sensation in the market and generated an IPO of $200 million. But the stock prices for this company dropped before a year of the IPO launch. You can read about the ReneSola failure at Street Insider.
  • Unattractive IPO’s are not profitable: Your company may be efficient. But when you need to sell an IPO, it should be able to attract public from the market. The target public should also be willing to invest. It’s not always the fault of the company offering the IPO if the public is not receptive. Take the case of ArcSight which no doubt raised a $50 million IPO which is less by $ 25 million than the planned IPO but it had to wind up immediately. Here’s a report on ArcSight .
  • Investments not made in low predicted IPOs: Financial updates on some companies predict the rise or fall in the expected IPO amount depending upon the value of the share prices. Investors always go through these reports to make an assessment of their profitability in investing in a particular company. Mako Surgical is a company that lost out to the negative predictions made by financial reports. You can read about it at Ventura Beat .
  • Low demand for category products: It’s not that always a company is at fault if it fails in the market. It might be just that its products or services may not be having any demand because they belong to a specific category. Take ATA for instance. The company was expected to flourish, but because Chinese products were out of the market in general, the company had to suffer. You can visit The Motley Fool for a detailed review.
  • Actual forecasts fall continually from the predicted forecasts: Some companies start with high share prices which continually fall over a period of time. This results in failed IPOs. British water company Cascal N.V expected to sell 16 million shares at a price of $17-$19 but actually sold them at $12. Later it dropped further down to $8. You can visit The Motley Fool for a detailed report.
  • Investor Expectations and Adverse Market Conditions: The Boise Idaho, was one of the companies with a good IPO. But it had to withdraw its IPOs due to adverse market conditions and investor expectations. The investors suspected this paper and wood products manufacturing company for using the money collected through IPOs for paying back debts rather than for the growth of the company. You can go through the Boise Idaho report here.
  • Just a good name wont do: Good reputation can help in attracting investors to a certain extent, but the company records are more important. If a company is in bad form, no investor will invest even if the company has a good reputation. Take Hertz Global Holding Inc. for example, though it had a good reputation, investors did not want to risk their money on a company drowned in debts. Hertz hardly saw any growth from its $15 per share price. You can read about the Hertz report here.
  • Small technology companies don’t attract investors: Even if the profit margins are good and the business is without flaws, small technology companies fail to attract investor attention. is one such. You can check out the story of GoDaddy here.

Now since you’re aware of the different types of pitfalls for your company, don’t venture into it without checking out with these conditions. Set them right and carefully predict the course your IPO’s going to take before making that offer.

Categories Business

Secure Stability In The Unsecured Markets

The most stable thing in today’s economy is the instability. The whole world is leading in the direction of instability. Despite of many reforms and also the stimulus packages offered by various Governments the situation still is not under any control of us. People are not finding any ways to come out of the vicious circle of recession. There is no liquidity of money in the economy, the dollar prices have gone down steeply, the fuel prices are creeping highly, cost of living has rose to the highest level, buying power has gone down steeply, personnel loans and also the over all loans per person is being increased rapidly. So, there are numerous problems in the economy, no solution is working and also the situation is worsening dynamically.

In such markets, still there are ways of getting stability. Despite of all the negative scenarios, there are some steps which can make you safer in all the unsafe measures. Where there is will, there is a way. Let’s see the ways of getting financial equilibrium and also the safeguards of the economy.

Psychological support

Most of the people have lost their faith in themselves as they also can make their way out of this Recession. All the news papers and media is hammering the Recessional news on and on and making a brain wash of ours. Everyone is living in the inferiority complex and has lost all the hopes for the betterment of the economy.

But, every tough situation has an end. Even if there is a darkest night outside, we can enlighten our home even by a match box!! So, nothing matters for the success if we desire to. Make a stronger support of your own, change some habits of yours and you are sure to earn the stability in all the unstable economy.

Monthly Budget

A monthly budget is the collection of all the incoming and outgoing forces. First of all, make two parts of your expenses. First one would be of the required expenses and the other one would be of those that are not at all required by you. The required expenses are the must, so do nothing with it but with the non required expenses, you need to keep a track and also to make a cut off in the same wisely. Read more about personal household budgeting.

Budget the funds and also decide the directions in which you want your incomes to get driven. Budgeting therefore can be defined as the process of driving your financial car in the desired direction of yours. Keep all the payments of bills intact and also pay the essential expenses as it is and never compromise with them. So, creating monthly budgeting will give you a feeling of confidence that you can make a stable living even in this unstable market!!

Check the extra income source

Now, after making a budget, you need to have a source of income which can offer you an extra income for the future stability. This is the most important factor as people make the monthly budget and if there is no loss and some what savings, they are just satisfied and they stop thinking further. Don’t do that.

There are so many sources for the extra income and make the way for the extra income. There are two ways. Firstly, you can start a new job with better income; even you can have a part time job in the extra time you get after your primary job is done. Second option is to create money from the unwanted expenses of yours. As said earlier, there are so many expenses of us that are just waste and should be avoided for the betterment of future.

Buy a property

If you have some amount to keep aside or a good amount of disposable income you are having, then just invest it in the property. Property rates are at the bottom of last many years. Have a property bought and lend it for the lease. Rent them to someone and earn from the rent. This rent is also a good side income and it has no risk, also you’ll have a huge benefit when you’ll sell the property at the highest rates.

Pay off all the bad debts

This will help you a lot. If there are any of the debts which are rendering nothing for you, they are absolutely bad debts. Good debts are the debts which earn you more than what you pay for the interest. For example, if you don’t have enough money for buying a property and suppose you take a loan and buy it. Then you charge a rent to the person living in it, and if that rent is more than your interest payable on the loans, then that debt can be considered as good debts. If you have any other debts beside them, just pay off them earliest as they earn nothing for you and worsening your credit situation. More details on how to get out of debt

So, follow these steps and see the miracle of stability.