On Playfeed: E3 2008: Xbox Media Briefing: Gears of War 2, Lips, Guitar Hero Tunes, Final Fantasy XIII announced

Incorporation: Right For Your Business?

Posted by Andru Edwards
Categories: Features, Legal, Planning

For anyone starting up his or her own business, an understanding of business incorporation is must. While there are both pros and cons in taking this step for your business, you want to be sure that whichever side you fall down on, you are making an informed decision that will ultimately result in the flourishing of your endeavors.

The first stage in establishing any business entity is to decide the legal structure this will take. These structures range from sole proprietorship to several types of corporation, and the form you select will depend largely on your business intentions. A small business, owned by a single person, is generally run as a sole proprietorship, and though there are few tax benefits to operating in this way, there is also far less paperwork involved in establishing operations. Incorporation is most suited to larger operation, owned by two people or more, who wish to protect their personal assets, enjoy a multitude of tax benefits and find new ways to raise capital in the future.

Click to continue reading Incorporation: Right For Your Business?


Advertisement

EFF: Legal Guide for Bloggers

Posted by Andru Edwards
Categories: Blogging, Legal

If you are a blogger, or plan on getting into blogging, check out this guide recently put out by the Electronic Frontier Foundation. It details all of the legal aspects of blogging, and gives you an idea of how to go about posting certain information or stories.

The difference between you and the reporter at your local newspaper is that in many cases, you may not have the benefit of training or resources to help you determine whether what you’re doing is legal. And on top of that, sometimes knowing the law doesn’t help - in many cases it was written for traditional journalists, and the courts haven’t yet decided how it applies to bloggers.

They have information on all sorts of different aspects of blogging as journalism - from securing press passes, to printing information deemed as confidential. It is definitely worth a look.

Read More | EFF Legal Guide for Bloggers


Advertisement

Business Formation: Partnership

Posted by Andru Edwards
Categories: Legal, Planning

A partnership is ideal when two or more parties want to go into business together. Using the online business model as an example, you may have the knowledge about running a business and managing its finances, but not a clue about web design, marketing, or advertising. If you happened to know someone with strong design and marketing skills, you may choose to start a company together. It is great to enter into this kind of relationship with someone you trust and can bounce ideas off of. There are a few things to look out for when forming a partnership. Each member pays taxes based on the percentage of the company that they own. This should be clearly explained and identified before starting up. A Partnership Agreement should be drawn up and signed by all parties. This should lay the foundation for the dividing of all assets and liabilities. If no agreement is in place, then all members will be considered equally liable and/or entitled to all assets and liabilities regardless of how much more or less one person works than another.


Advertisement

Business Formation: Sole Proprietorship

Posted by Andru Edwards
Categories: Legal, Planning

The simplest and easiest legal formation of a company would be the Sole Proprietorship. Usually an accountant is not required, and all that one needs to do is file a simple form. The sole proprietor is the boss, the owner, and the company all in one. While this is a simple and straightforward way of doing things, you will not have the benefit of having your personal assets protected separately from those of the business. For example, if someone were to sue the business, for all intents and purposes they would be suing you.


Advertisement

Business Formation: Incorporation

Posted by Andru Edwards
Categories: Legal, Planning

Why would you want to go through the hassle of incorporation when a sole proprietorship is so much simpler to form and manage? It is certainly a loftier task to incorporate, and there are plenty of additional laws and regulations set by the government that you would have to adhere to. Then there is the issue of having to pay both personal and corporate taxes. At first glance, it may not sound like the preferred method of doing things – until you consider some of the advantages:

Health insurance premiums can be considered a business expense, and thusly are a deduction.

The assets of the company are owned by the company rather than an individual. This provides substantial personal protection, as the business should only lose its assets in the event of bankruptcy. Your personal assets remain intact. This is especially relevant if you plan to offer services which may be susceptible to lawsuits.

Capital can be raised by selling shares of the company.

If you believe that incorporation is the way to go for your business then you have two options. You can form a C corporation, or a subchapter S corporation. Most small businesses which choose to incorporate will go with subchapter S route.


Advertisement

Legal Business Formation

Posted by Andru Edwards
Categories: Legal, Planning

When deciding to start a business of any type, it is key to determine how you plan on legally choosing the type of infrastructure you plan to go with. A business needs to be legally forms in one of a few ways in order to be recognized by local, state, and federal entities. Today we are going to take a closer look at the options that are available to you, and what they all mean. From becoming a sole proprietor, a limited liability company, or a full on corporation, each one has its own benefits and drawbacks.


Advertisement

Advertisement