What Type of Company Are We?
For those just starting to read about our adventures. Her is a recap of our business venture. My friend and partner Terry and I have started down the path of developing a new company. Working on concepts which are technological cutting-edge, serving the needs of consumers, while bringing success.
There are lots of questions to be answered. Here are but just a few things we need to think about.
Which type of company to file?
LLC, S-Corp, C-Corp, Partnership. Each have their own structure for managing and running a business. Some are structured for growth with issuance of stocks. Others are focused on retaining sole ownership.
What are the PROS and CONS of each type of corporation? This is an area which will take lots of research. Planning for how we see the business growing.
What State to file a new company in?
Where is the best place to file incorporation papers? Florida, Delaware, New York, California? With 50 states, which makes best business sense for our type of business. What are their filing requirements. Some states seem better structure for LLC, while others S-CORP. Incorporation papers are different from state-to-state. Some require a resident, or resident agent in the state. Others allow for easy online filing. We will need to narrow down the selection. Then can look at the requirements for filing in our chosen state.
Another consideration is, when starting a business, and looking at which state to consider. Are they “business-friendly” and friendly to minority business owner. Some states focus on big business and unions. Others look at small businesses as a vital resource to state economic growth.
What are the Financial Requirements?
With running a business. There will always be financial and business reporting requirements at both the federal and state level. How does the state we chose handle the filing of required forms and tax payments.
Taxation, this is always an interesting subject. What are state employment taxes. Some states are “tax-free” as relates to employee taxes. That is not to say the business does not pay taxes. Just the employees have no income taxes. This can be a benefit to recruiting top talent.
Look at support options. Does the state offer economic development resources to help grow a business? When I searched the internet. Looked at the Small Business Administration. Understand the SBA partner with SCORE.org. This is an organization offering free mentoring services. Volunteers who have started business, or helped businesses get a start, volunteer to help others. Their focus is to help businesses start off right with the best chance for success. Through mentorships, online resources, and seminars both online and in person. Their mission “to foster vibrant small business communities through mentoring and education” aligns with both Terry and my core values. “Take your eyes off yourself, help others succeed and you will be successful”. I contacted them, and we have started initial conversations with a SCORE mentor.
This person has started several businesses and even teaches entrepreneurship at a university. Look forward to working with him. To understand the ins and outs of starting a new business.
Conclusion
Each week I want to continue to give you some insight into our adventure. The ups and downs. Success and failure along the way. Continue to follow along with us, as we “climb the mountain” in this “Next Great Adventure”.
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