BUSINESS OFFERS
Incorporation
Incorporation means the formation of a new corporation - there are mainly 3
types of business entities namely “LLC” Limited Liability Company, “C”
Corporation and “S” Corporation. Main advantages of incorporating are tax
benefits, low risk, low capital and high profit. The following table shows the
characteristics of each business entity.
| Entities Characteristics |
Different Forms of Business Entities |
| |
LLC (Limited Liability Company) |
C Corporation |
S Corporation |
| Ownership Rules |
Unlimited number of members allowed |
Unlimited number of shareholders, unlimited stock classes |
Up to 100 shareholders, only one class of stock allowed |
| Personal Liability of the Owners |
No personal liability |
No personal liability |
No personal liability |
| Tax Treatment |
The entity is not taxed, profits and losses are passed through to the members |
Corporation taxed on its earnings at a corporate level and shareholders are taxed on any distributed dividends |
a C Corporation becomes a S Corporation, where the profits and losses are passed through to the shareholders |
| Key Documents Needed for Formation |
Articles of Organization / Certificate of Formation, Operating Agreement |
Articles of Incorporation, Bylaws, Organizational Board Resolutions, Stock Certificates, Stock Ledger |
Articles of Incorporation, Bylaws, Organizational Board Resolutions, Stock Certificates, Stock Ledger, IRS & State S Corporation election |
| Business Management |
A Member (owner) or Manager can be designated to manage the business |
Board of Directors has overall management responsibility, Officers have day-to-day responsibility |
Board of Directors has overall management responsibility, Officers have day-to-day responsibility |
| Capital Contributions |
The members typically contribute money or services to the LLC and receive an interest in profits and losses |
Shareholders typically purchase stock in the corporation, either common or preferred |
Shareholders typically purchase stock in the corporation, but only one class of stock is allowed |
Merchant Accounts
A merchant account allows a business to accept credit
cards, debit cards, gift cards and other forms of
payment cards and is a business bank account established
by contractual agreement between a merchant bank or msp
and a payment gateway.
Merchant accounts provide bill collection, payment
processing and settlement for businesses – they also
virtual terminal for credit card processing. A portion
of the payments processed are collected as fees, usually
about 5% of the transaction in a 3-tier pricing, the
Merchant account provider groups transaction into 3
groups and assigns rate to each tier - numerous other
rights, warranties and duties are applicable.
Benefits of using Merchant Account -
- Increased purchase power
- Ease of purchase
- Credibility
- Impulse buying
- Virtual terminal
- Bill collection service
It can take anywhere between 30 minutes to 3 days to get
approval on your Merchant account application.
Domain Investing
A domain name is the unique text name corresponding to the numeric IP address of a computer on the Internet which helps users to access a website. Now domain name purchasing is considering as a good business idea. There is high demand for domain names which are associated with business, gambling, and other commercially profitable fields, and have got people are competing to get them. This increases the resale value of domain names. You can purchase domain names for investment in two ways; in the form of new registrations or on the secondary resale market. It’s important to recognize how you're going to make money from your collection of domains.
You have to do some research about this field before start ‘investing’. If your domain name is not generating traffic or sales inquiries, it’s worthless paying money to renew its registration. If you have a decent domain name, you don’t have to do any marketing or advertising. You can normally sit back and wait for the buyers to come to you. Nowadays, you need to be much more practical in your approach if you want to effectively sell your domain names. You can sell domain names by your own efforts or through domain name broker. Brokers help webmasters buy and sell names for a percentage of the sale price.
Invention
An invention is a process, object or technique of coming up
with a new idea. Most inventions come from an intension of
create something new/ better or for competitive or commercial
reasons, however, a new invention may sometimes be based on
earlier invention, alliances or ideas. It requires the knowledge
that an existing concept or method that can be modified or
changed into a new invention. Getting patent is the legal way to
give protection to an invention.
Inventors have the intense wish to commercialize their inventions, but the lack
of enough funding and support prevent them from that, another headache is
finding a proper market place for the new product.
Entrepreneurship and awareness of the demands of a changing marketplace are
typical characteristics of a successful inventor. Many associations, clubs and
business incubators are coming with helping hands to inventors to make their
dream alive. They provide the commercial skills, mentoring, and economic
resources to the inventors.
|
