Monthly Archives: February 2011

Five Ways to Keep Your Business Out of Court

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Starting a business is fun and exciting for most entrepreneurs. However this feeling of euphoria will quickly retreat if your business is sued. The court room is the obvious enemy of the small business owner. However, fear not! By following these five simple rules you can avoid facing the courtroom so you can focus on the success of your business.

1. Be very cognizant of your business image. Owners and employees should avoid making any public announcements or conducting any business that might be considered questionable. Avoid things such as making slanderous statements or having unnecessary contact with customers. This includes limiting possible conflicts of interest. Situations such as these can damage the integrity of your business and land you in legal turmoil. To avoid legal action, do the job your business was created to do in a professional and neutral manner.

2. Hire a competent attorney. While not always necessary, business owners should have a ready legal contact in the event the business is sued. Business owners should attempt to secure an attorney that is familiar with local laws and customs and the type of business in which you engage. Finding an attorney is simple with resources such as the yellow pages and Google. Even if your business is never sued, many business owners need different forms of legal advice. Securing competent counsel is a good idea.

3. Separate yourself from your business. This can be achieved by incorporating your business. Operating your business as a sole proprietorship leaves the owner’s individual assets open to attack by creditors. Incorporating your business separates your company’s finances from your own. Make sure that you do not mix personal and business expenses. Do not pay for business related expenses out of a personal checking account. Create a business account that is used solely for your company. This will clearly define the line between you and your business.

4. Insure yourself. All businesses should obtain liability insurance in the event that, if you own a retail business, a customer was to slip and fall in your place of business. In addition to purchasing insurance, another way to insure yourself against liability is to build protection into your contracts. If an act of nature, a specific supplier or some other uncontrollable act can make it impossible for you to fulfill a contract (and thus open yourself up to legal action) then you should be putting to ink that you are not liable for incomplete work due to these factors. Discussing the possible clauses and legal phrases needed in your work contracts is one of the best ways to employ your lawyer’s time and it will reduce your need for a lawyer later on in your business venture.

5. Protect your business files. First, make sure that your business has updated antivirus and other types of security software loaded and activated on their systems. If a computer system were to go down because of a virus, the business may be at risk of not being able to perform certain contracted work. Also make sure that you keep record of email communication with your customers. In the event of a lawsuit, it is often your customer’s word versus your own. Recording communication will provide all the evidence necessary to defend your business.

Separating your assets from that of your business is crucial. Retaining competent legal counsel, protecting your business files and communication as well as insuring your business will hopefully keep your business out of the court room for good! Learn more about ways to maintain your business, or how to incorporate HERE!

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Tips for Newly Incorporated Business Owners

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Congratulations! You incorporated your business! Now comes the dreaded question: now what? One of the most common obstacles encountered by new businesses is their own fear or self-doubt. With confidence and a good network of other entrepreneurs, starting and growing a business can happen quite easily. It takes persistence and focus, but it can be done. Having good resources – other entrepreneurs, experienced business owners – who can serve as a sounding board is extremely important.

Aside from establishing confidence, many other obstacles exist that new business owners should avoid. New businesses often risk shooting themselves in the foot as they’re getting started. It’s not easy to be an entrepreneur. Not only are you getting your business up and running, your operations solidified, and your marketing strategy off the ground, but you are also trying to make sure you’re managing your business properly and minimizing liability.

First, make sure you incorporate before doing business. For liability reasons, it’s wise to make sure you incorporate or form an LLC before the business takes off. Incorporating or forming an LLC can help protect personal assets by separating the business from your personal affairs. If anything were to go wrong with the business, it’s wise to make sure your house, car and personal effects are properly protected.

Next, consult a tax professional. If the type of business entity you should form is not clear to you, it’s wise to speak with a CPA. CPAs can help you understand tax implications and how the different structures can help you protect your assets as well as save money on taxes.

Learn your market. It’s wise to know your market. Understand who your customers are and target them. One of the best ways to do that is to emulate a business in your industry that you believe is doing a good job. Take the items that are successful and combine them with that which makes your business unique. You don’t have to reinvent the wheel entirely. If your business idea is novel, leverage the expertise of other entrepreneurs and business owners within the same genre as your offering. Getting out there and talking with people can be one of your greatest assets early on. Plus, you may generate customers in the process.

Be creative. No matter what industry you’re in, don’t be stagnant. Stay ahead of the curve and constantly be on the cutting edge. Communicate with the youth to see what’s up and coming in terms of marketing and social networking. Check out social media such as Facebook and Twitter to get the word out about your business. Don’t rest on your laurels, and make sure you’re on top of the next steps for your business.

Finally, spend your funds wisely. Many small businesses make the mistake of spending too quickly. Either they spend what others have invested in their business, or they spend everything that comes in the door. That can be helpful in the initial growth stages, but it may not be the recipe for long-term success. Make sure to invest more heavily in areas in which you get a higher return, and take smart risks otherwise.

Now is a great time to incorporate your business. Using the tools mentioned above, you are setting your business on the path for success. Learn more about maintaining your business and other tips to stay on the right track HERE!

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MyCorporation How To: Branding Your Small Business

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Separating your small business from its competitors is crucial, especially in the current economy. Learning how to successfully brand your business will help you achieve this goal. However, with so many new forms of social media, creating a strategy can be difficult. Consider the following questions and answers to learn branding tips that will help you navigate the sea of online communication and effectively develop a branding strategy.

How do I separate my business from the competition? Have a clear business plan. Have a direct answer to the question, “what is your business about?” Figure out who you are and what your business represents. From that point, create a logo that represents the image you wish to portray. Investing $750-$1000 in a company that will help you develop a logo is a great idea. These companies know what is already on the market. They can help you create a logo and an image that is new to the small business world and unique to your company.

What is the best way to spread the word about my business? Social media is the easy answer. Facebook, Twitter and Linked In, to name a few, provide the perfect platform to get the news out about your business. If you are unfamiliar with using these sites, ask a younger employee. These websites are second nature to the younger generations and they can help you out. Also, creating your own profile is free, thus sweetening the deal. Using these sites can also help you research your competition and learn your market.

To blog or not to blog? BLOG! If you are reading this, you are proof that blogging works! Your business website provides customers with general information; however a blog will help give your business a voice. Aside from the services and prices, what is going on within your market? Have you developed certain strategies you would like to share with others? Relevant issues within your business community also provide great topics to use for a blog. Creating a voice for your company will make your business relatable to customers while also increasing your online presence.

What else can I do? Keep in mind that you need to stay relevant to your customers. Implement new strategies such as updating your Facebook profile or tweeting about current events pertinent to your market to ensure you are up to date. Understand how technology is changing in order to keep your business up to speed. For example, add comments on the blogs of your competitors linking back to your site. Generating web content surrounding your market and your business will not only increate traffic on your site, but will also ensure you are keeping up with your competitors.

Get out there and make your online presence known! Create a strong logo and develop a clear and simple business plan. Use social media websites to generate content relevant to your business, and don’t forget to check up on the progress of your competitors! Learn about other ways to maintain your business using MyCorporation HERE!

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FREE Corporation or LLC on Valentines Day!!!

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Before the clock strikes midnight today, February 14th, there is one thing you should accomplish: incorporate your company for FREE.

There’s no better time to save on taxes, protect assets and add legitimacy to your business. Tell your friends, family and colleagues. Tell business owners who need to show their business some love that today is the day to finally get it done. Incorporate or form an LLC an LLC for free today only.

Click HERE to learn more & to take advantage of this limited time special offer!!

ENTER COUPON CODE: LOVEMYBIZ

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Trend Watch: Up and Coming Industries

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The months from February to April can be some of the slowest of the year. After the excitement of the holidays, winter can feel endless while waiting for summer. Spice up those short winter days with a new business venture or by taking your business to the next level of success. To give you some inspired ideas, here are some of the newest industries that are taking off this year.

1. Go Green. This is one of the biggest growing trends in 2011. “Green” is everywhere and in every industry right now. Companies are focusing their efforts on natural resources whenever possible and are encouraging their customers to do the same. Conversely, customers are going green themselves and demanding of the companies they frequent to keep up. One great way to appeal to your customers who are eco-friendly is to use recycled products whenever possible and cut down on paper use. In a similar vein, customers are deliberately purchasing their products from stores that promote local products. Grocery stores with produce from local growers are especially popular right now but it goes beyond that to local designers and manufacturers. If you can find some way to take advantage of this niche and work it in to your business model, all the better for your business.

2. Health and Fitness. Along with being good to the environment, consumers are focusing more and more on healthy living for themselves and their families. Organic eating and focused workouts are taking center stage in the consumers’ minds. Parents are even bringing their children into the action with family exercise and totally organic meals. This new spotlight on health and fitness has brought specialty food and drink stores to the forefront of the market as customers are choosing to spend their money on fit living. If you make any type of product, it might be a good idea to market your product or modify it to appeal to this specific type of consumer. This will expand your customer base immensely and allow you to satisfy this desire of people for healthy living, especially since a common New Year’s resolution among people is eat better and exercise more.

3. Search Engine Optimization. The Internet. Has there been any bigger game changer to the business sector in the last ten years? The introduction of the internet has been huge for businesses both big and small and has shifted the way businesses present themselves to their customers. Now, consumers turn to the internet for information about the companies in their area, and online shopping has become almost a hobby for the young and old. A company that takes advantage of this is very smart. All companies, regardless of size, should have a website; however a website alone can only do so much. The key to internet presence is search engine optimization (commonly called SEO). SEO is basically the use of key terms within the text or coding of your website to bring it up higher in the search results. Since many consumers only look at the first page of hits after searching, this means the higher you are in the search results, the more customers will see your business.

4. Technology Security Consulting. With the increasing use of the internet, thieves have found better and less obvious ways to steal from unsuspecting consumers. Identity theft is a big threat to consumers that shop online and in order to keep their customers from leaving, companies are always looking for bigger and better ways to protect the online realm. Even a one-time incident of stolen credit card information can deter customers from coming back to your site forever. Improving the security precautions of your website and computer systems says to customers that you care about their protection, encouraging them to feel safe shopping with you, and safe shopping can lead to frequent shopping.

Think about how you can incorporate some of these industry trends into your current business plan. Maybe you can market yourself better to certain consumers or run a recycling campaign in your community. There is always a way to expand your business somehow, whether through advertising, customer base, or products offered. Don’t let 2011 pass you by without taking advantage of some of the hot trends!

Have a great idea? Let us help you incorporate your business! Learn more HERE!

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Roozt.com: Helping Inner-City Students Become Social Entrepreneurs

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One of MyCorporation’s partners, Roozt.com, teamed up with the Network for Teaching Entrepreneurship (NFTE) to create an exciting opportunity for a group of 35 students in a 10th grade class at Downtown Magnets High School; The students are out to change the world through business!

Specially selected to take part in the first ever Social Venture Competition, this inspiring group of 14- and 15-year-olds are learning the fundamentals of starting their own business, through the lens of social entrepreneurship.

As part of the year-long curriculum, each student will write a business plan about their social venture, from concept statement to financial projections, and pitch their plan to a panel of experienced social entrepreneurs and investors from the Greater Los Angeles community.
The students are working on creative business plans from their unique perspectives – ones that have a positive impact on the community with a wide range of inspiring projects, including everything from channeling artistic talents of graffiti artists to eliminating abuse towards women and girls.

The winner of the competition will receive a Social Venture Launch Kit – courtesy of Roozt.com and its corporate partner, MyCorporation.com. The Launch Kit includes Free LLC or incorporation filing, TAX ID number, business consultation, customized business documents, and a free domain website. Roozt.com and MyCorporation.com created the Social Venture Launch Kit with the intent to help the Grand Prize winner eliminate the primary barriers in launching their business.

Learn more about the contest HERE!

Learn how to start YOUR own business with MyCorporation HERE! Check out our partners Roozt.com HERE!

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Common Tax Deductions Part 2!

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In case the first five tax deductions weren’t enough (and let’s face it, you can never have too many tax deductions!), here are five more deductions that can save you a lot of money come tax time.

6. Professional Fees and Classes Deductions. You may have already known that you can deduct certain office equipment, your home office supplies, and health insurance, but did you know that you can also deduct many of the other costs of having a job? Any professional fees that you pay to continue in your career are deductible on your tax return, as well as much of the costs of attending classes, seminars, and training sessions. Subscriptions to professional journals, newspapers, and books are also included as tax deductions. Finally, don’t forget any membership fees you pay to trade organizations, professional groups, or chambers of commerce! All of these things will earn you quite a large deduction on your tax return as long as you keep track of what you spend and save your receipts.

7. Charitable Non-Cash Contributions. Charitable contributions are the ultimate win-win situation. Giving to charity is good for the world and good for your wallet because the charity gets your money and you get your money back on a tax return. If you don’t have the money to make a donation this year, you can always charge the donation. Tax deductions are usually taken when the purchase is made, not when the charge is paid off so it will still apply for this year. Taking the deduction on a monetary contribution though isn’t too difficult, but remember, you can also take a deduction on almost anything donated to charity. Things like old clothes, used books, furniture that no longer fits the motif of your home, almost anything. The only qualification for the deduction is that for items like clothes and household goods, the items need to be in good or better shape. In the case of an audit, you must have the written receipt to get the deduction so be sure you get a receipt for all your donations before you leave.

8. Energy Savings Home Improvement Credit. If over the last year you built a new home, remodeled your current home, or replaced anything within your home, check out the IRS’s list of home improvement credits that are available to you. One main credit offered is for putting in new energy saving appliances, windows, doors, roofs, or basically anything that is identified as energy saving. The energy saving home improvement credit is particularly helpful because it allows for a dollar-for-dollar reduction in tax, although it does have a maximum limit of $1500. Still, if you spend less than that on the improvements, the credit cuts down the amount you’ll owe in April by more than the usual tax credit or deduction can.

9. Investment and Tax Expenses. One of the most easily forgotten tax deductions is for the money spent on investments and tax preparation. Drafted your will this year? Money spent on tax preparation when planning out your estate counts as a tax preparation fee and is deductible. In general, things like fees for planning out your taxes by a lawyer and/or an accountant qualify as tax preparation fees and are deductible, as well as the usual tax costs you have. Almost anything spent on investments counts too as a deduction in this category. Fees paid to your broker and IRA, subscriptions to investment magazines, long distance phone calls to your broker and/or investment advisors, even mileage to go see them all qualify as deductible investment expenses. The only restriction for this deduction is that the total of all these expenses must be greater than 2% of your adjusted gross income before the deduction can be used.

10. Retirement Tax Credit. This credit actually has two great benefits. First, any contributions in to your retirement account aren’t taxed as of now so it’s a great idea to get a jumpstart in building your retirement account while this lasts. Second, you get a credit on the first $2,000 you invest, resulting in a reduction on your taxes. Contributions to retirement accounts aren’t the only things that qualify here either. IRAs and Roth IRAs, Employee Pension plans, and 401k’s all qualify for the deduction when a contribution is made.

As the April 15th deadline creeps ever near, remember it’s never too early to start organizing your taxes! Tax preparation can be difficult, even for the seasoned tax filer, but using this list to guide you through some common deductions can help you start this year off right!

Let MyCorporation’s Partner CPAdirectory help you find a CPA today! Check it out HERE.

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Love Your Business this Valentines Day!

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As Valentine’s Day approaches, let MyCorporation help you give your business the love and attention it deserves. Let Mycorp help you love your business! On February 14th, MyCorp is offering a FREE corporation or LLC from 7am to 7pm in honor of “Love Your Business Day.” In addition, MyCorporation also offers all the products your business needs – free Quickbooks, business cards and a domain name!

On February 14th, love your business by incorporating or forming an LLC to save on taxes and protect your personal assets. As a sole proprietor, your liability for business debt is unlimited. Personal assets such as your home, personal bank accounts, and other valued assets may be at risk. What does this mean? It means that if your business experiences severe financial difficulties, creditors can take away your personal property such as your home, retirement savings, or any other asset you or your spouse own.

In our increasingly litigious society, it is becoming ever more important to limit your exposure and protect yourself from liability. Incorporating your business draws a firm line between your personal and business assets, helping protect your personal assets from risks or debts associated with running your business.

Incorporation is also a great way to save money on taxes! If you are operating as a sole proprietor, you will be required to pay self-employment tax on your profit, currently at 15.3%. If you incorporate your business, only the salary you pay yourself is subject to self-employment tax. Depending on your situation, you may be able to save as much as 50% on your tax bill!

Incorporating also decreases the likelihood of a tax audit. Sole proprietors tend to be more likely to file incorrect returns (many are self-prepared), and tend to underreport revenue or over report deductions. For these reasons, the IRS has audited a much higher percentage of sole proprietor tax filings than corporate filings in recent years. In tax year 2006, a Schedule C filer stood a 1 in 32 chance of being audited. For nonbusiness filers, the odds were around 1 in 124. Let MyCorporation help you lessen the chance of a tax audit!

This year, make Valentine’s Day a special day – not only for your loved ones, but also for your business. Let MyCorporation help you love your business. Make sure to take advantage of our FREE LLC or Corporation offer on February 14th! Lean more HERE!

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