Business Formation
Success of Small Biz Doing Business and Taxes in This Economy – Town Hall Forums
We at The WIN Companies are pleased that our “Small Business Town Hall Open Forums” have brought about solutions for owners, entrepreneurs, and CEOs of small business about which they were previously unaware. Many of the participants were concerned with increasing current sales, the rising costs of doing business (especially health insurance), effective use of resources, business structure for tax purposes, increasing the value of their business for future sale and more.
It was a pleasure to be able to introduce successful strategies to help these professional get solutions. One solution that has been well received is WINs Business Acceleration program. WIN Business Acceleration, Inc. (found under our Services tab) offers premium, affordable and comprehensive payroll, workers’ compensation, medical, dental, vision, supplemental and commercial insurance coverage to those employers of one or more who have previously been able to only obtain the poorest coverage at the highest rates. By working collaborative to mitigate the risk for insurers and negotiating economies of scale with large volume and premium partners WIN has been able to create this program to level the playing field for small businesses with their larger competitors.
If you have already attended a Town Hall and would like more information, a downloadable .pdf, or to learn about the affiliates program, visit us at WINcompanies.com/Services/WIN Business Accelerator or call us at 949.502.4200. If you would like to attend a Town Hall and find solutions for your business, register at WINcompanies.com or eventbrite.com. Due to popular demand, additional dates will be added at lunchtime and specifically for referral partners.
Business Formation Type
Are you considering forming a new business entity and are unsure as to what type of entity to create? The following chart summarizes the basics of each entity type, its benefits and limitations.
| Benefits/Limitations | C Corporation | Sub-chapter S Corporation |
Limited Liability Company | General Partnership | Sole Proprietor |
| Owners have limited liability for business debts and obligations | X | X | X | ||
| Created by a state-level registration that usually protects the company name | X | X | X | ||
| Business duration can be perpetual | X | X | X | ||
| May have an unlimited number of owners | X | X | X | ||
| Owner need not be U.S. citizens or residents | X | X | X | X | |
| May be owned by another business, rather then individuals | X | X | |||
| May issue shares of stock that attract investors | X | X | |||
| Owners can report business profit and loss on their personal tax returns | X | X | X | X | |
| Owners can split profit and loss with the business for a lower overall tax rate | X | ||||
| Permitted to distribute allocations, under certain guidelines | X | X | |||
| Not required to hold annual meetings or record meeting minutes | X | X |
This was presented at Rainmaker BNI on Tuesday, June 14th, 2011 by Wendi D. Coley, CPA of Coley Accountancy. I felt that this was extremely relevant to my audience and I wanted to pass it on. Please check out Wendi’s web site at www.ColeyAccountancy.com.
Guaranteeing Success in Starting a Business
According to the Small Business Association, “7 out of 10 small businesses will succeed for 2 years, about half of which will survive for more than 5 years” (that means 15% survive greater than 5 years). Conversely, according to Wikipedia, “historically, 87% of business incubator graduates stay in business.”
Meanwhile, Answers.com provides some of the advantages of joining a business incubtor including:
- Shared operating costs.
- Consulting and administrative services.
- Access to capital.
- Legitimacy in the community.
- Universality of the incubator concept.
- Comradeship of fellow entrepreneurs.
But, is incubation the only co-operative entrepreneurial concept on the market in 2011? The answer is NO! At WINcompanies.com, we offer professional service and high tech firms the ability to conglomerate with other highly talented firms under our Business Accelerator allowing for the following additional benefits:
- Corporate legal counsel.
- Liability coverages.
- CPA and volume discounts.
- Corporate perks.
- Access to large group health insurance.
- CFO services including analysis of: corporate financial package, business plan, cash flow (or burn), forecasting.
- Support of strong management team.
This conglomeration allows a business with several employees, to enjoy all of the benefits of being a business with more than 100 employees. At the same time, it enables the business owner to focus on their product or service and not the business’ overwhelming daily infrastructure needs that detract from the owners primary focus; selling and serving clients. The savings in both dollars and time spent (opportunity costs) are priceless.
Acceptance to the WIN Business Acceleration program is by interview and invitation only. For more information, contact us at info@WINopp.com.
Virginia Lorimor, CPA*
Chief Excellence Officer
The WIN Companies
entrepreneurship, starting a business, business incubation
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