In my business life, I have only created two types of business entities: A sole proprietorship and a corporation. In a sole proprietorship, you are not allowed to use the Inc. behind your name. It is also considered a "doing business as" name, i.e. Brian Satterlee doing business as Satterlee Marketing. This means that you personally are responsible for any liability resulting from the operation of your business. You typically register a sole proprietorship with your county agency, run a announcement in the newspaper, then get paperwork from the county so you can open a bank account. A sole proprietorship is reasonably inexpensive to start and you fill out a schedule C on your tax returns for profit and loss.
A corporation, on the other hand, allows you to put the Inc. behind your name, such as Satterlee Marketing, Inc., and is treated like a separate person. You register for an EIN with the IRS and file its taxes separately from yours. Since a corporation is separate from you, it also shelters you from liability provided you follow the rules for a corporation. I used MyCorporation to set up my corporate name and it was around $100. Corporations are usually set up with the state rather than a county. Follow the link below to learn more.
MyCorporation.com
Because I have not dealt as much with LLC's and other business entities I am not going to try to write about them. Check out this link from the IRS though:
IRS.gov Business Structures
In starting a new business, I would be concerned with liability and professionalism. This is why I chose a corporation as my new business. Corporations look much more professional than sole proprietorships and, because they act as a separate entity, they force more responsible behavior with personal versus corporate assets. There might be other entities that are more fitting for your situation so you might want to chat with an attorney to come up with the right one.
Showing posts with label Starting A Business. Show all posts
Showing posts with label Starting A Business. Show all posts
Monday, December 21, 2009
Sunday, December 20, 2009
Step By Step Startup Plan
So you have just joined a new multi-level marketing program? What should you do now to help you be successful?
1. Become a business. Being in business has a better image than being an MLM representative. You don't work for the MLM company do you? You work for your own business so you should have a business name.
2. Get business cards. Exchange them with other people that you meet for their business card so you can stay in touch.
3. Announce your business to your family and friends. Let them know that you are going to sell your products at cost to the people you know and ask if they would like samples. Along with the samples make sure to get them a product brochure or catalog. Note that your family will give you free PR to their friends, who you can give samples to also but sell at full cost or at a minor discount.
4. Begin networking your business. Ask people you know for referrals of others who would like the products or might be interested in a business opportunity.
5. Get a web presence and a twitter account. Facebook, twitter, and other social networking sites are nice places to promote your business. You may or may not get orders but you can give it a try. You may also be able to use an affiliate web site set up by your MLM company or an upline distributor to promote your MLM business.
6. Set up a web site, if you can afford it. Having a web site name will improve the image of your business, especially a .com site. Having a web site name can cost you as little as $10 a year, you can either forward it to an affiliate web site for about $10 additional per year, or you can buy web space for about $120 or so per year.
7. Learn by reading books. Marketing, Sales, and Business Management are areas you want to concentrate in. You may also want to read MLM or Network Marketing specific books. Use the library because most books you can buy will also be found there.
8. Remember that you want to market and sell, but don't forget about the management of your business. You will need to be able to fulfill orders, take telephone calls, and various other support functions for your business. Your business policies will assist in your success or failure of your business.
Make sure to have fun with your business and avoid spending money when you don't absolutely need to. Good luck to you!
1. Become a business. Being in business has a better image than being an MLM representative. You don't work for the MLM company do you? You work for your own business so you should have a business name.
2. Get business cards. Exchange them with other people that you meet for their business card so you can stay in touch.
3. Announce your business to your family and friends. Let them know that you are going to sell your products at cost to the people you know and ask if they would like samples. Along with the samples make sure to get them a product brochure or catalog. Note that your family will give you free PR to their friends, who you can give samples to also but sell at full cost or at a minor discount.
4. Begin networking your business. Ask people you know for referrals of others who would like the products or might be interested in a business opportunity.
5. Get a web presence and a twitter account. Facebook, twitter, and other social networking sites are nice places to promote your business. You may or may not get orders but you can give it a try. You may also be able to use an affiliate web site set up by your MLM company or an upline distributor to promote your MLM business.
6. Set up a web site, if you can afford it. Having a web site name will improve the image of your business, especially a .com site. Having a web site name can cost you as little as $10 a year, you can either forward it to an affiliate web site for about $10 additional per year, or you can buy web space for about $120 or so per year.
7. Learn by reading books. Marketing, Sales, and Business Management are areas you want to concentrate in. You may also want to read MLM or Network Marketing specific books. Use the library because most books you can buy will also be found there.
8. Remember that you want to market and sell, but don't forget about the management of your business. You will need to be able to fulfill orders, take telephone calls, and various other support functions for your business. Your business policies will assist in your success or failure of your business.
Make sure to have fun with your business and avoid spending money when you don't absolutely need to. Good luck to you!
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