Tag: Small Business

There are 17 posts tagged as Small Business.

Incorporating-Making Your Home Business Legal

Here in part 3 of Making Your Home Business Legal I’ll explain the differences between a “S corporation” and a “C Corporation”. Make sure you check out  Part 1 to understand the many state & federal regulations for legalizing your business and Part 2 for the pros and cons of the different types of ownership.

If you decide to classify your home business as a corporation you can go the traditional route of a C corporation; or you can classify your home business as a S corporation. Small businesses usually chose the S corp.

Whats the difference between a S corporation and a C corp?

They are very similar except in the way of taxation. With the S corp the profits and losses are passed through the corporation onto you, the owner.   You in turn report the profits or losses on your income tax returns.

With the C corp the Corporation will pay taxes on its profits and then the owners or shareholders (you) will report money received from the corporation (in the form of salary or dividends) on your income tax returns.

So which is better for your home business, an S corp or a C corp?

That depends. Some states don’t recognize S corps and some states will tax an S corp just like a C corp. So you must do your homework.

And get advice from a business law attorney. And preferably one who has experience dealing with small businesses. (I always tell my clients to niche themselves and here is a perfect example beneficial that could be for you. People with a small niche seem to know more about their clients needs.)

In what state should you incorporate?

Since the 1920’s Delaware has been a popular state to incorporate.  I remember with my first incorporated business I choose Delaware.  I didn’t know why or how it benefited me. Duh! It didn’t. It’s best to incorporate your business in your home state.  The reason that Delaware has been so popular as an incorporating state is:

  • It often revises it’s corporate laws.
  • The legal system is very attentive to corporations. Delaware has a special court, called the Court of Chancery. On the benches sit judges who were former corporate lawyers. Their expertise tends to be beneficial for the corporations that find themselves in a lawsuit.
  • There is no income tax on corporations that are organized in Delaware but do business in another state.

All 3 of these points are advantageous for large corporations, not home business. Incorporate in your own state.

(Now Nevada and Wyoming are becoming popular places to incorporate because they have no corporate or personal income tax and they don’t share information with the IRS.)

Do You Hate Your Job?

Are you stressed working a job and want to work from home? Part 1 of a series to help you determine how to work from home.

How To Overcome Challenges

Traci KnoppeToday I interviewed Traci Knoppe. She is another homeschooling work at home mom, who has gone after her dreams to make her home-base business work for her and her family. Today she is owner of an American website managment service company called Your Web Tech Team. It is “growing at a rate of 100% a month!”  Yes, she is doing what so many WAHMs are trying to do, and on this interview she tells us how she got there.

Traci gives specific tips on how to overcome your challenges but you’ll also glean  insights as she tells about her own personal challenges of depression, attempted suicide, divorce, and obesity. Click in now!

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Selling Your Services and Products

Selling your stuff!This is part 3 on the selling your services and products series. If you’ve missed it click here for part 1 and click here for part 2. Also, down the page and just to the right you can enter your email address to have my lastest blog posts sent directly to your email!

When it comes to selling your services or products remember that people make decisions about what they want or need long before they make a purchase. They may not have publicly announced it and some people are so out of tune with their own inner voice that they haven’t even announced it to themselves. But they’ve made a definite decision about what they want.

They (you) then go about the days,weeks, months, unconsciously gathering data, justification and support for their (your) decision. We all do this. It’s part of our human make-up.

What does that have to do with you selling your services and products?

You want to make sure that your first impression is the best it can be. That includes your website, your business card and other marketing materials, your speeches and (as previously discussed) yourself.

Follow up on all calls. You know how frustrating it is when you’re ready to buy and the person doesn’t return your call.

Be personable. Make a human connection with your potential client. To many “professionals” get caught in their role and group people in mental boxes of “potential client” or not.

A GREAT STORY TO SUMMARIZE ALL POINTS:

When we needed a piano tuner to come to our house my son’s piano teacher highly recommended this one guy-GuyA-who was fairly inexpensive. I called, left a message and waited for him to return the call.

While waiting for his call I called another guy-GuyB-who answered but said he wouldn’t be able to make it out to us for another 3 weeks. He was also very expensive.

Finally,  GuyA called back- 4 days later! He wasn’t to friendly -he was driving around lost, therefore distracted. Then he asked me to call back and leave all of the information that we had just discussed on his voice mail! I did. We were desperate for a tuner.

A few days later GuyB called back and said he would be able to come in 4 weeks. I explained to the confused GuyB that he had already talked with me and we were scheduled for a visit in 3 weeks. He apologized and made a few self-depreciating jokes and talked briefly about his business. He was funny. He separated himself from his business and talked as a human as opposed to a “busy, serious, professional”.  A small connection was made.

2 days later, GuyA called back and said he could come out immediately. I told him never mind.

Both guys made a professional mistake which didn’t do much for first impressions. But I chose to wait 3 weeks and go with the guy that was much more expensive because he was personable.

There are people looking for your products or services, they’ve already decided and justified the need. Once you come into their presence-professionally, personable and with great follow-up- all you have to do is push them into your pocket!

What are your thoughts?