Business Entities – A Quick Guide

Business entities comes in so many types that business owners can easily get confused. Here’s a quick guide that will hopefully shed a little light on business entities for you.

Business Entities

“C” Corporation: A corporation whose shares are held by shareholders. The entity stands apart from the shareholders for legal and tax purposes. The shares of the corporation may be “taken public” and traded on stock markets. Google is an example of a publicly traded “C” corporation.

Foreign Corporation: A corporation doing business in a jurisdiction beyond where it was formed. Microsoft is a Washington corporation. When it does business in New York, it is considered a “foreign corporation.”

General Partnership: A business effort involving two or more people, known as partners. Each partner is liable for all partnership debts and obligations regardless participation and contribution amounts. Put another way, a general partnership provides no protection against lawsuits.

Holding Company: Part of a double incorporation strategy. The sole purpose of a holding company is to own or control other companies. Said other companies typically are exposed to significant liability threats. For instance, many insurance companies use holding companies to suck off profits and limit lawsuit risks.

Joint Venture: A cooperative business effort between two or more parties. It is usually limited to a single business purpose and involves a sharing of responsibilities and revenues. For instance, a database programmer and web site designer might enter a joint venture to provide e-commerce solutions to businesses.

“LLC” – Limited Liability Company: A creation of state law in which one or more individuals form an entity providing the liability protection of a corporation, but the tax benefits of a partnership.

Limited Partnership: A partnership in which the business is managed by a general partner with limited partners supplying capital investment. The limited partners are prohibited from actively participating in the management of the partnership. In exchange, the limited partners liability is limited to the amount of their investment. In pursuing this business entity, the general partner is almost always a corporation.

Partnership by Estoppel: A partnership created by operation of law when two or more people pursue a business goal and hold themselves out to the public as such. This business entity is prevalent as it is the automatic designation for two people doing business who fail to take any steps to designate a business entity. In this entity, each partner is completely exposed to liability risks.

“S” Corporation: Similar to a “C” corporation, this entity provides solid asset protection for shareholders from business liabilities and debts. The primary difference is the entity can be taxed as a pass through entity and is limited to 75 shareholders.

Sole Proprietorship: A business owned and controlled by one person. The designation provides no protection from business liabilities. It is taxed on the person’s personal tax returns on schedule “C”.

Each of the above entities provides certain advantages to a business owner. If you consider the particulars of your efforts, you should be able to get an idea of which one is best for you.

Personal Income Increased 0.4 Percent in March

Originally posted on U.S. Bureau of Economic Analysis:

Personal income in the United States increased 0.4 percent in March after increasing 0.3 percent in February. Wages and salaries rose 0.3 percent in March after rising 0.4 percent in February.

Current-dollar disposable personal income (DPI)—income after taxes—increased 0.4 percent in March after increasing 0.2 percent in February.

Real DPI—income adjusted for taxes and inflation—increased 0.2 percent in March after decreasing 0.1 percent in February.

Real consumer spending—spending adjusted for price changes—rose 0.1 percent in March after rising 0.5 percent in February, reflecting a decrease in durable goods spending that was more than accounted for by motor vehicles and parts.

Prices increased 0.2 percent in March after increasing 0.3 percent in February. Excluding food and energy, prices increased 0.2 percent in March after increasing 0.1 percent in February.

Personal saving as a percent of DPI was 3.8 percent in March, compared with 3.7 percent in February.

To learn more about…

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Harnessing the Power of Nature; Harnessing the Benefits of Exporting

Originally posted on Tradeology, the ITA Blog:

This post contains external links. Please review our external linking policy.

Lighting Eliminators products protect everything from industrial complexes to cell phone towers.

Lighting Eliminators’ products are used to protect everything from industrial complexes to cell phone towers.

Doug Barry is a Senior International Trade Specialist in the International Trade Administration’s Global Knowledge Center. 

Lightning Eliminators is a Boulder, Colorado company that does what its name says, according to chief executive Avrum Saunders. Saunders points to his many satisfied customers around the world who have purchased the hardware and related services to protect their oil drilling rigs, airports, schools, and many other kinds of infrastructure.

The company was highlighted in the Washington Post, in an article highlighting global success for American small businesses. As the article points out, many small businesses are getting export help from government agencies like the International Trade Administration, the Export-Import Bank, and the Small Business Administration.

In business since 1971, Lightning Eliminators…

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Blogging – Is It Worth The Effort For The Home Business Entrepreneur?

Blogging – Is It Worth The Effort For The Home Business Entrepreneur?

Blogging – Is It Worth The Effort For The Home Business Entrepreneur?
A few years ago all the gurus were screaming “You’ve got to have a web site” and they were right. Now we are being told “you have got to have a blog”. But is this true and are they really worth the effort?

At least blogs are easier and cheaper to set up than web sites thanks to the likes of Blogger.com and WordPress. But is it worth the time and effort writing the posts and keeping them updated ? My answer to this question produces a typical fence sitters reply. They can be.

Sure if you just want to let the world know what an exciting life you lead or let the world know your views on the burning issues that is fine. You should not really expect to make much profit from your blog. It is a hobby, something you are just doing for fun but if you want to make it a marketing tool of your business then you must adopt a professional attitude regarding your blogs.

Before you post anything you must decide exactly what you hope to achieve with each blog you post. So what are the options?

You might want to sell something either your own or an affiliate product.
In which case you might consider a review or an explanation of how to use the product and or the benefits a buyer would receive. Your one purpose with this type of blog is to pre sell the product and get the prospect to click the link to the full sales page and hopefully make a purchase.

A blog can also be a great way to establish you within your specialized niche.
It can help you get your name known and increase your credibility. But this will only work if you write fresh thought provoking copy. A rehash of others work or hackneyed ideas will do little for your standing especially if your niche is small and close knit.
Blogging – Is It Worth The Effort For The Home Business Entrepreneur?
Another option is to write a series of “how to” blogs giving your readers information on specific aspects of your niche. This can often be a good introduction to offering them a complete “How to” e-book or program. I look on these as very similar to the e-courses that many Internet marketers offer.
Instead of setting them up on your auto responder you post them to your blog at regular intervals.
Since most blogs are about the authors and their personal development,Almost all blogs start out as a personal development entrepreneur business

The bottom line is that if you are to make posting blogs a worthwhile option then you need to have clear in your mind exactly what you want to achieve with your blog before you even write one word.
You can also watch this video for more info