Business and Small Business

After deciding what type of products or services you are going to offer, the most important decision you will make in start a new business is the type of business structure to form. You will be faced with deciding whether to form a General Partnership, S-Corporation, C-Corporation, Venture Capital or Limited Liability Company. If you are starting a small or home business a Limited Liability Company or LLC is your best choice hands down.

A Limited Liability Company (LLC) provides you best of all Worlds, in that it is a type of business ownership combining several features of corporation and partnership structures. Unlike a general partnership, owners of an Limited Liability (LLC) have limited liability. Which mean an owner of LLC can not lose more than the amount he or she has invested in the company. Thus, the owner is not personally responsible for the debts and obligations of the company in the event they are not fulfilled. And, unlike a limited partnership, owners of a Limited Liability Company (LLC) do not lose their limited liability by actively participating in management of the business.

A Limited Liability Company (LLC) also have many advantages over the most popular business structure, the Corporation. The Limited Liability Company (LLC) and the S Corporation both have the benefit of pass-through taxation. This means that owners in the company report their share of profits and losses on each owner’s individual tax return. The IRS assesses no separate tax on the company itself. However, in the C Corporation “double taxation” occurs when the C corporation first pays taxes on its own earnings and then the shareholders or owners pay income taxes on the dividends they receive. Even though the tax status of a Limited Liability Company and a S Corp are almost identical, the Limited Liability( LLC) can offer small and home business owners many advantages over a Corporation.

A Limited Liability Company (LLC) is much easier to form. Requirements for forming a corporation and filing the necessary documents with the IRS to have it be taxed as an S corporation is a complex and time-consuming process. With a LLC you simply file a Certificate of Formation or Articles of Organization with proper state agency, in most states it is the Secretary of States. Unless you choice to do otherwise, single-member Limited Liability Companies are automatically taxed as sole proprietors by the IRS. Limited Liability with multiple owners are automatically taxed as partnerships. Which is much different from the Corporation which must file IRS Form 2553, “Election by a Small Business Corporation,” within 75 days of the corporation’s formation to obtain pass-through status a! s an S corporation.

Other attractive benefits of Limited Liabilities Companies (LLC). In contrasted to Corporations, LLCs are not required to hold annual meetings or keep formal meeting minutes. Owners of a Limited Liability Companies do not have to issue stocks to the owners. There is no limit to the number of members who may have an ownership interest in the company.

There are some draw backs to an LLC but as it relates to small or home business owner they are so insignificant they are no worth mentioning. It clear that an Limited Liability Company is a small business owner’s dream. It provide the protection of corporation, while maintaining the simplicity of a partnership. With LLC you will have more time to focus on the important details of your business and not spending precious time pushing useless paper. For more information on LLCs or other business issues visit www.wizatbiz.com

Home/Business Inventory Small Business

This type of home based business can be quite profitable. This business benefits those who are detail orientated and can work with a camera. In today’s world insurance coverage is a must for those who run businesses and own homes. In order for items to be financially covered, records of those items will have to be submitted to insurance companies. That is where the role of the inventory specialist comes into play.

One wonderful aspect about this business is that it has not been fully penetrated. (To view others that have not been penetrated see www.quickhomebasedbusiness.com) The odds for success and profitability can be quite high. This business does not have to be complex and it is quite easy to run a one-man-show or hire a team of employees. In this business, you are simply taking inventory for residential homes and businesses. Once the inventory is complete the list is submitted to the insurance company of the client. If you are a go-getter this type of business can generate a handsome income. Some inventory specialists command a 250.00 to 500.00 fee depending on the size of the home/establishment and the amount of inventory. For follow up calls some are charging 100.00. This type of business is great for residual income because there will always be new items to log and submit to the insurance companies.

The supplies for this venture can be minimal, a camera, inventory checklists (you can create your own), and bar scanning equipment. If inexpensive supplies are purchased, this business can be started with less than 500.00.

There are inventory databases out there on the market that selling for affordable prices. If you are computer programming savvy, you can develop your own. A few companies can help you to get started in this business. One really great company is K C Home Inventory.

For more information on this topic, log onto www.quickhomebasedbusiness.com.