What’s the Best Business Structure for you?

business structure

So, now you know what type of business you would like to run but how do you start?  The first step is to determine what form of business organization you would like.  Forms of businesses are based on types of ownership structure and taxes.  Each have their advantages and disadvantages so it is important to research and consider all options.  Once you have declared and opened a business, it can become tricky to change the form later on.

These are the basic forms of business ownership:

  1. Sole Proprietorship

A sole proprietorship is a business owned by only one person. It is easy to set-up and is the least costly among all forms of ownership.  The owner faces unlimited liability; meaning, creditors of the business may go after the personal assets of the owner if the business cannot pay them. The sole proprietorship form is usually adopted by small business entities.

  1. Partnership

A partnership is a business owned by two or more persons who contribute resources into the entity. The partners divide the profits of the business among themselves.  In general partnerships, all partners have unlimited liability. In limited partnerships, creditors cannot go after the personal assets of the limited partners.

  1. Corporation

A corporation is a business organization that has a separate legal personality from its owners. Ownership in a stock corporation is represented by shares of stock. The owners (stockholders) enjoy limited liability but have limited involvement in the company’s operations. The board of directors, an elected group from the stockholders, controls the activities of the corporation.

In addition to those basic forms of business ownership, these are some other types of organizations that are common today:

  1. Limited Liability Company

Limited liability companies (LLCs) in the USA, are hybrid forms of business that have characteristics of both a corporation and a partnership. An LLC is not incorporated; hence, it is not considered a corporation.  Nonetheless, the owners enjoy limited liability like in a corporation and it has a little more tax freedom. An LLC may elect to be taxed as a sole proprietorship, a partnership, or a corporation.

All information gathered from: http://www.accountingverse.com/accounting-basics/types-of-businesses.html

 

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Want to Be Your Own Boss?

like a boss photo

Thinking of ways to make more money? Consider starting your own business.  It is the American Dream. All it takes is a unique or novelty item or service that is valuable.  It doesn’t even have to be the next “new” thing.  It can just be an improvement upon a service or item that already exists.

So, if you have figured out what you want to do, which is the hardest part, here are some guidelines to help you define what type of business to start.

Businesses come in all different types and forms of ownership. There are 3 major types of businesses:

  1. Service Business – a service business provides intangible products (products without physical form). Service type business provide professional skills, expertise, advice, and labor. Examples are a salon, law firm, accounting firm, gym memberships, repair shops, schools and banks.
  2. Merchandising Business – this type of business buys product at wholesale or lower costs and then sells the same product at an increased price. They are considered “buy and sale” businesses. They make money in the difference gained from the purchased price to the sold at price. These businesses sale product without changing the products form. Examples are book stores, grocery stores, and boutique shops.
  3. Manufacturing Business – this type of business buys product with the intent to modify it or to use it in the process of creating a new product. Manufacturing combines raw material, labor and factory overhead in the production process. The manufactured goods are then sold to customers.
  4. Hybrid Business – these are businesses that combine several of the above options such as a restaurant that manufactures new entrees from raw materials, merchandizes wines and serves the customer by filling their orders. A gym membership sales a service to use the equipment and train individuals but they may also merchandize t-shirts, snacks and water bottles.

Most times, businesses will be classified by their major business interest.

Information gathered from: http://www.accountingverse.com/accounting-basics/types-of-businesses.html

 

 

Avoid Stress during the Holidays

holiday pic

Tis’ the season of peace but you might feel like the most wonderful time of the year happens to be the most stressful. Gratefully, there are fun ways to keep the Joy present!

  • Enjoy a cup or two of tea.  Tea has the amazing ability to make things better.

cup of tea

  • Go for a walk.  Whether around the office or around the block, take a moment to stretch those legs.
  • Call a friend or family member. A quick call is all it takes to not only brighten your day but someone else’s also.
  •  Go to bed a little early.  You’ll get a little extra sleep and wake up more refreshed.
  • Cut yourself some diet slack.  With all the parties and sweet treats, keep things balanced but don’t beat yourself up for enjoying that peppermint brownie.
  • Volunteer for a day.  You will be amazed at how good you feel when you are able to help someone in need.
  •   Shut off your devices.  No need to worry, it is temporary but take some time out of every day to just be in the moment without the distractions of your phone.
  • Crank up the music.  No matter your preference, enjoy listening to your favorite tunes.  It might even prompt some dancing which is sure to put a smile on your face.
  •  Smile! The very act of smiling can lift the mood and relieve stress.
  • Go for a drive to check out the neighborhood lights. It is fun and festive.
  • Stick to your budget whether for gifts or entertainment.  Be smart with your funds.
  • Don’t forget to stretch.  Stretching is often forgotten or skipped yet it helps release toxins in the body.
  • Feed your soul.  Make sure you are keeping everything in perspective, giving thanks for what you have and remembering to keep believing and praying. 

Budgeting When Cash is Tight

budget pic

“I can’t seem to get ahead.” “My job does not pay enough.” “If I had a higher paying job, I would be able to budget and pay off debt.”

Do any of these sound like you? Sometimes we all feel this way so if this is you, I have a few helpful tips that can make budgeting a reality even for the cash strapped individual.

Rules:

1.       Write it down – Start by writing down all your expenses, assets, and liabilities. What are all of your expenses each week and month?Liabilities are what you owe. How much do you owe? What’s the minimum payment and interest you owe? Assets are things you own such as a car, jewelry, valuables.  Think of it as anything that can be sold if you needed cash quick. Next write down who has your money? Are you receiving interest on it?

2.       Prioritize – Now that you know what you “owe,” and what you “own,” create a list of monthly expenses.  Put your expenses in order from “must haves” such as your rent or mortgage and food to “maybe I can adjust this expense,” such as things that are nice but are not mandatory such as eating out, entertainment, cable, etc.  For example, list your living expenses first, credit card and medical bills second, and third list cell phone, eating out, and entertainment.

3.       Slash some expenses – Let’s be honest, if you really look at all your expenses, you’ll quickly be able to identify where to cut cost. If not, let me help you: how much are you spending on your clothing, eating out and entertainment? Clothing expenses should be a bare minimum and you should budget a small amount for entertainment.  Search for “cheap” and “free” options for entertainment in your area.  “Charlotte On The Cheap” is a good website for free events in Charlotte, NC https://www.charlotteonthecheap.com/.

4.       Plan and execute – Plan, Execute, and Stick to it! You can only cut your expenses so much. If you are still struggling after you’ve slashed some expenses, start thinking of ways to generate more income. Can you get a second job? Online income opportunities? There are many ways to generate extra income. Everyone has a talent, or a skill set; sell your services and throw the extra money on your debt.

Budgeting when cash is tight can be done; it just takes discipline, creativity, commitment, and keeping a positive mindset.  STOP wondering how to budget with no money and START believing in yourself and acting in faith.