Internet Bussiness Online

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The Right Entity for the Original Company 1

The Right Entity for the Original Company

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One of the first decisions any entrepreneur must make is the choice of entity for a new business. Should it be a corporation, partnership, limited partnership, limited liability company (LLC), or sole proprietorship?

There are also limited liability partnerships, limited liability limited partnerships, and professional corporations. Professionals such as architects and doctors are restricted by state laws to certain types of entities for practicing their professions. They are usually the only ones to use these last three types of entities.

The Small-Business Advantage Online

How to get money from the internet?

The Small-Business Advantage Online

In the online world, for the first time ever the “little guy” like you actually has advantages over the big corporations, Harvard MBAs, and technology wizards. Here are three reasons why:

1.       Lower costs mean higher profits for you. Big companies must do things BIG—they have lots of employees making generic products that appeal to general audiences. Because you are smaller with less overhead and personnel costs to cover, you can afford to specialize your products to directly meet the needs of your target market. Specialty products usually mean higher profit margins, too.

the reasons why today’s Internet offers unprecedented opportunities

How to Get Money from the Internet ?
Here are just a few of the reasons why today’s Internet offers unprecedented opportunities for entrepreneurs like you:

•  With virtually no capital you can launch a business and reach customers with your product information and advertising.

•  Because the Internet is global, you can reach a worldwide audience like never before, including people in places you’ve never been.

Corporate Advantages and Disanvantages

Corporate Advantages

There are many advantages to doing business as a corporation. If a corporation is properly organized and maintained, shareholders have no liability for corporate debts and lawsuits, and officers and directors usually have no personal liability for their corporate acts. The existence of a corporation may be perpetual, unlike a sole proprietorship or partnership. There are also tax advantages allowed only to corporations.

The Professional Corporation and The Nonprofit Corporation

The Professional Corporation

A professional corporation is a corporation formed by a professional such as a doctor or an accountant. State laws have special rules for professional service corporations which differ slightly from those of other corporations. Professional corporations can be either C or S corporations.

The S and C Corporation

1.   The S Corporation

An S corporation is a corporation that has filed IRS Form 2553, choosing to have all profits taxed to the shareholders rather than to the corporation. Not all corporations are eligible for S corporation status. The S corporation can have no more than 75 shareholders. These shareholders must be individuals or certain types of trusts, estates or tax-exempt organizations. The company may only have one class of stock, or more than one class if the only differences are voting differences. All shareholders must be “natural” persons (this means an actual human being, rather than a legal “person” like a corporation). They cannot be non-resident aliens.