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How to Transfer Ownership of an LLC

Date: 09/21/2018 | Category: | Author: Jakub Vele

How to Transfer Ownership of an LLC

There are a lot of limited liability companies that change the ownership at some point during the company’s life time. The most common kind of transfer is the transfer of ownership of an LLC. The changes in ownership usually takes due to many reasons and some of them are:

  • You decide to sell the business.
  • A member divorces, becomes disabled or dies.
  • The existing members decide to get a new member in their team.
  • A person chooses to exit from the business.

The main process to transfer ownership of an LLC is based entirely on if you are transferring the complete company or just changing the percentage and names of ownership of the members. This includes getting a new member or even buying out an old member.

Transferring a Partial Interest in the LLC

You might already know, but the owners in an LLC is called the members and each member have a percentage of the company that is also called the membership interest. In case you want to add more members or change the percentage of ownership of any any member, you would have to transfer parts of your membership interests of the LLC.

The main document that would help you always take the right steps and know exactly how you can transfer the ownership of an LLC is the LLC operating agreement that should be made at the beginning itself.

During the setup process of the LLC, you normally have to sign the operating agreement. It is a contract that if for all the members of the LLC which specifies the exact way in which the LLC would run.

In case the agreement includes the buyout or buy-sell provisions, they would be the ones would behave as the rules that would govern the way the transfer ownership of an LLC is done. Conversely, it is also possible where your LLC can have an entirely different buy-sell agreement and a different LLC operating agreement.

The buy-sell provisions would normally specify the way in which the business would have its valuation done and how the value of the membership interests are found. Other than this, there can also be restrictions regarding which person can be a member of the LLC, how the LLC would buy the shares back from a member who is departing, or also on what has to be done for the approval of the transfer of ownership of an LLC.

In case your LLC operating agreement does not have the buy-sell agreement in it, you would have to check with your state’s statutes for guidance on how you can easily transfer the ownership of an LLC. You would then be able to easily negotiate a written agreement or a buy-sell agreement to transfer ownership of an LLC.

In a few states, it is important to have the ways to transfer ownership of an LLC in the operating agreement. In case you do not have it, you might have to dissolve your company. These actions could have long-term consequences for your company. Hence, it is better to consult with a lawyer and ensure that all the agreements are prepared as per your state’s laws.

It is also a great time to review your operating agreement and ensure that all the points added in the beginning are relevant and actually meet with yours and your business needs since your membership is changing. For instance, you might have prepared the operating agreement for a single-member LLC and since the number of members are increasing now, you would have to add the missing provisions that are needed for a multi-member LLC.

On the other hand, in case your old operating agreement is inadequate, it is important that you prepare and even sign a new agreement that would reflect the new ownership structure. And if a new agreement is not needed, you could also create an amendment that would list the new members.

You normally do not have to file any document or otherwise with the state for finalizing the transfer of ownership of an LLC. But still, to be on the safe side, it is better to list the current members in the annual reports that you would make to the state later in the year.

Selling an LLC

Even though the name of a buy-sell agreement might say that it has the details and guidance to help you understand how to sell your complete company to a third party, it does not have any such things. It only dictates how the members will work out the transfer of ownership of an LLC among themselves and the new members.

If you are thinking about selling an LLC, you would need to search for a buyer at first and agree to a specific price for which you would be selling your company. And for finding the price, you would need to value your business. This would need a business valuation expert who would work towards getting your company’s value.

You would also have to share your company’s books and records, along with all the details for the assets that your company holds. With all this, you would have your company valuation done accurately. Moreover, you also have to be open towards selling the whole company or just a part of it, since the buyer can want any one of the two.

For instance, the buyer might just want the company’s assets and not the other parts of the company. This is also why you need have the valuation done in such a way where you have the value of various things separately. Moreover, selling an LLC does just include things where you easily transfer ownership of an LLC. It has a lot of complex, tax, legal, and financial implications. Hence, it is advised to take the help of lawyer for the process of the selling and buying of the LLCs.

With the help of the lawyer, you would be able to prepare the sale contract properly. The terms of the sale might be memorialized concerning the memorandum or sheet of understanding, followed by a more formal contract.

It is the best thing to always plan ahead of the process of transfer of ownership of an LLC which also includes the buy-sell provisions which has to be stated in the operating agreement so that you do not have to dissolve your business as per the state’s laws. These provisions would help you to have the transfer completed smoothly. You would be able to avoid any disruptions that might come between your business.

All-in-all, if you do not have a buy-sell agreement or you are looking to sell off your complete company, you need to take the help of a professional lawyer. This would help you avoid any complications and loss of company, money or even both.

How can IncParadise help you?

If you have your business plan ready and have not set up your business and need some help with it, IncParadise can assist you. Head over to Incparadise.net to check out the packages available along with the services that we provide. Have your company registered and incorporated. Along with that, remember to prepare the operation agreement that states all about the transfer ownership of an LLC.

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Small Business Funding – Options & Tips

Date: 09/20/2018 | Category: | Author: Jakub Vele

Small Business Funding – Options & Tips

Now that you are all ready with your business idea and have even registered your business, let us talk about the funding. Prior to the process where you search for funding for your startup, it is important that you prioritize your small business funding needs. For instance, are the financials needs short-term or long-term? Are you searching for a way to cover the operating expenses or do you want to invest in your future assets like property?

The reason that these things are important to know is since you are about to find funding and you would obviously need the funding that is appropriate to your needs and goals. In case you go after the small business funding that is wrong, it would not only be a waste of time, and potentially a lot of money, it would also result in you transferring your ownership and company into someone else’s hands.

Many options for small business funding is available in the market, but you would need to carefully research and have a clear business plan in your mind before you would find the right one for your business as well as for yourself. This article would share the common resources for small business funding, so keep reading.

Almost all the small business funding options come under two categories:

  • Debt financing – It is when you take loans from a financer, or banks and pay them bank in a set installment plan with a specific interest rate for the total amount taken as loan. This payment has to be made as per discussed and planned, even if your business has not become successful and you have not made any earnings. But if your business succeeds and you pay all the loan amount along with the interest, you would be able to retain all the profits and even have the control of the company at the end of the day.
  • Equity financing – In this kind of small business funding, you would have to sell shares (ownership) of your company in exchange for cash. And if you business fails, you would not owe any amount to the person who you took the funding from. But if the company succeeds, you would not get all the profits of the company. This is because a part of the company has gone to the investors or part owners.

Now that you know about these two types, there are many places from where you can get either one of the small business funding. You would be able to get any sized loan from many places like:

  • Angel Investors: These are people who can help you in financing your project. But if you have a project that is very large and you need a lot of small business funding, a venture capitalist is the investor you need. Venture capitalists usually do not look at anything that is below $1 million.
    To find out about any of these investors, you would have to get into a network where crowdfunding takes place or otherwise. That is when you would be able to connect with one.
  • Banks: Bank is another great resource for obtaining the small business funding. Banks offer loans that are from a hundreds of dollars to about a maximum of a six figure loan. You also have the chance to open a line of credit where you would not have to pay any interest in the starting till you reach your maximum.
    The only thing here is that it is easy to get small business funding from the bank only if you have a good relationship with the bank. Another thing you would need for getting the loan is a third party guarantor or assets that would back up the loan amount. Moreover, banks also ask you for a lot of documentation and proofs of your financial responsibility, and it can take long for you to get a loan approved by a bank.
  • Credit Cards: This options works well for the financing that is short term. But for the credit card loans, you need to learn how to manage them well and pay them off quickly since they normally turn into huge debts if not handled well. Moreover, it is advised to keep an extra card in case of emergencies with the small business funding.
  • Family & Friends: They are the one-time source for any small loans that you are looking for as your small business funding. They are also called personal loans and it allows you to get the money much faster as compared to the other methods on the list.
    Moreover, you would not not many contractual strings attached in this case. The only risk here is that you would be putting a strain on your relationship with your relative, family or friend if your business fails and you are not able to pay back. It is better to keep a Promissory Note that would make the terms clear about the loan and its repayment for both the parties.
  • Grants: These are usually an option for the tech companies and are a good source of small business funding if you are able to get them. It should be kept in mind that the grants are very competitive and there are many strict guidelines that you would have to follow for using the money. To know about the grants in your area, you would have to check with the government agencies.

Other than these, to get the approval for the small business funding from most of the above mentioned options, you would need a personal resumes of owners, personal financial statements of owners, projected income/expenses, the amount invested in the business by the owners, lease details, projected opening-day balance sheets, a history of the business, and the statement of purpose for the loan.

There are many other documents that could be asked for, and it is advised to be ready to be rejected. And when you do get rejected, do not stop looking. At some point, you would get the small business funding you are searching for.

Conclusion

In the end, even if you take time to get the right financer or small business funding option, it is better to stay persistent and keep asking around. Other than this, it is advised that you have someone who would motivate our and help you to not lose hope. You need to believe in your business model. And in the end someone would say yes to you and would help you with the small business funding.

If you have not yet started your business and have your plan ready, IncParadise can assist you with incorporating and registering your business. Check out our packages that are customizable, and contact to have your company registered now or to know more!

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How to Open an LLC Bank Account

Date: | Category: | Author: Jakub Vele

How to Open an LLC Bank Account

Now that you have set up your Limited Liability Company (LLC), and you have begun to get orders. Along with the orders, you are also getting the bills for the services and the supplies that you business needs. Even if it is to deposit the check of the customer or even just for paying for the business expenses, you would need to open an LLC bank account that would be under the name of your LLC.

Why Not Use the Personal Account?

Well, this might feel like a trouble. This mostly happens during the initial stages in a company where things are hectic and you are doing your best to keep your both feet on the ground as you follow all the demands that your business is bringing to you. And with all this, surely the personal bank account that you have would help a bit.

Sorry, but it does not work like this. When you were setting up your company, you selected to open an LLC, where you had established a separate business entity. And the reason you did this was so that you can be protected with the limited liability protection. Since your LLC is a separate entity from you, you need to put the finances of the LLC separate from your personal finances. Which is why you need to open an LLC bank account.

Even though it might be tempting to mix your personal and company funds together in the beginning, or you might be thinking that who would find out about this one thing, it is something that you should avoid. Since doing so risks jeopardizing this limited liability protection that you have at the moment.

Beside the legal requirement where you would need to have to open an LLC bank account and keep it separate from the personal one, there are other practical reasons as well. With the business account, you would not mistakenly mix the business finances with the personal one, and this would make it easy for you to calculate the taxes that you need to pay to the IRS.

Moreover, if you hire an accountant for taking care of the finances, you would not have to pay them to separate your business expenses from the personal one. This would help you save money instead.

Another reason why it is good to open an LLC bank account is the credibility issues. When you are entering into a new business relationship with a supplier or another company, it is not professional to give them your personal account. This would make them feel that you are not a genuine company. With the business account, you would show professionalism and this would get you trust and respect from the suppliers and the vendors.

In the end, as soon as you open an LLC bank account, you would have the opportunity to maintain it responsibly and consistently. This would assist you in developing your relationship with your bank that would be highly valuable if you need a business loan in the future. Now that this has become clear, let us understand how to open an LLC bank account in the next part.

How to Open an LLC Bank Account?

Even though it is not very easy to open an LLC bank account as compared to opening a personal bank account, it should not take a lot of your time. The only way you can have all done in time and in the right way is by doing a proper research first. At the end of the day, you would need to get the right papers to the bank so that you can easily open an LLC bank account without much hassle.

Research your options

Each and every business bank account is not the same and does not have the same features. And that is not it; there are millions of banks to choose from. But to reach to the right bank to open an LLC bank account for your business, you would need to put in efforts and do enough of research to see which one would meet your needs best.

There would be many different services and fee structures available, and would have to choose the one more suitable for you. Moreover, it is also important to see things like overdraft protection, the debit card availability and limit, or the ability to write the checks from your account. Other than this, you might also have to ask yourself if you would need more than one account for your business.

Additional questions that you need to ask yourself that would help you in choosing the right bank are:

  • What is the minimum balance requirement that would work for you and your business?
  • What are the maintenance charges and are you comfortable with it?
  • Is the bank a good one where you know you would not have to suffer from any security issues ever?

These questions would help you make a better decision while choosing the bank where you would open an LLC bank account for your company.

What documentation do you need?

As you as you decide on the right bank where you would want to open an LLC bank account for your business, you can call the bank to find out about the documentation that you would need for the process to open the account. Most of the banks usually need you to bring the following documents:

  • A copy of your LLC certificate of formation, the articles of organization of the LLC or any other equivalent document, as per the state in which you have incorporated your LLC in.
  • Your Employer Identification Number (EIN) or federal taxpayer identification number of your LLC.
  • The operating agreement of your LLC or any other documentation that states who is the authorized person that would sign on behalf of the LLC.

Other than these requirements, you bank would also need some other additional documentation. Hence, it is vital to call them before you go to open an LLC bank account for your business. It might end up being a wasted trip.

Process to Open an LLC bank account

As soon as you have gathered all the documentation that you need to give to the bank so that you can open an LLC bank account for your company, you would then have to meet the banker for initiating the process. By doing your research before visiting the bank, you would be able to make the final step an easy one when you take all the required documentation all at once.

Having a separate bank account for your company is not just a requirement for your LLC, it would also assist you in many other practical aspects of operating a business like the depositing customer payments, paying your business bills, and accounting for expenses.

In addition to this, utilizing the bank account properly would help you build a great relationship with your bank. This relationship would be of value and help when you want to raise funding for your LLC through bank loan. Hence, ensure that you follow the methods and open an LLC bank account for your business to avoid any trouble.

Now that you are clear with the idea, and why you need to open an LLC bank account for your business and keep all the finances separate from your personal funds, you can now begin to look for a bank in which you want to open a bank account in. In case you have not yet registered your business as an LLC, head to Inc Paradise now to have your company incorporated and registered with the government, before you can move ahead to open an LLC bank account.

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Online Business Ideas for Digital Nomads

Date: | Category: | Author: Jakub Vele

Online Business Ideas for Digital Nomads

Are you searching for a flexible way to earn money? If your ideal work space is somewhere near the coast, at a farmhouse of some exotic beach that also has a good WiFi system, you can easily sit there and start a digital nomad business. By choosing from the million online business ideas and adding some actionable information, you would be able to begin building a perfect dream business.

Not sure which ideas you could use? Well, below shares are the top Online Business Ideas that you might like to open as a business.

#1 Internet Security Business

Do you have an antivirus program installed in your system? Well, everyone does and there is a lot of struggle online where people are looking more reliable software at cheap rates. This is one of the best Online Business Ideas that you can choose since the internet security is a software that everyone downloads at some point of the year due to the growing threats online.

Startup Costs

For this business, you would need at least $400,000 as the starting capital so that you can make a proper attempt in launching the business. The payroll of this business would be your largest upfront cost for getting the software developers who would build the products you would be selling.

Legal Considerations

With this business you would need a EULA, which is an End User License Agreement. It is a legal agreement that would state all the privileges and the rights that the customers have for using the software. Other than that, you might have to add many other statements on your website which would depend entirely on how the customers interact with your business online. For creating the right Terms of Use/Service and Privacy Policy statement, it is advised to take the help of a professional.

Earning Potential

As mentioned above, everyone needs Internet Security making this one of the best online business ideas. Moreover, this industry is a $137.85 billion dollar as of 2018. This means that even a small internet security company that is successful would easily make millions.

#2 Online Courses Business

It is obvious that you might have come across at least one course online while you normally surf the internet. Well, online courses are very famous for hobbies, learning foreign languages, self-improvement, continuing education purposes, corporate training, and “how-to” instructions for a variety of projects. Whatever be the choice this is another one of the great online business ideas that you can choose.

Startup Costs

The initial costs depends entirely on the kind of courses you want to offer. In case you want to just give simple classes that has material for which the students have to pay online, and that is available for the all the students to access at any time, here are the expenses that you would have to take care:

  • Website: $5,000
  • Creation of course materials: $10,000
  • Internet marketing: $500 per month

Moreover, if you decide to offer a much more advanced class with live chat support, it would cost more. The costs for a 24/7 live chat would be about $200 monthly.

Legal Considerations

The main law that comes in for the online courses is the copyrights one for the education materials. You would need the help of a professional lawyer to be safe so that your non-tangible materials are not copied.

Earning Potential

An online instructor’s fees vary depending on the course, skills and experience. There are a few instructors would might charge a flat fee of maybe $10 to $500 per student. While there are some who can even charge in thousands. Other instructors usually charge as per the hour like $10 or $30 per hour. So, you can choose the one you find more suitable for you to put up as your price to earn from.

#3 Online Magazine Business

Starting an online magazine is another one of the greatest online business ideas. The online magazine is also called digital magazines or e-zines that features typography, graphic layout design, photography, and articles just like the normal print magazines. There are some blogs which are published and also run as the e-zines, that have advertising support and guest post writers.

Startup Costs

If you are planning to start an online magazine, the startup costs are very low, the more money you add in the business, the more returns you get. For putting up a website and getting the domain and hosting, the initial charges are $50 normally and the monthly charges are $25. A new domain comes for $15, while an existing domain comes for some hundreds or thousands. Depending on your plan and domain name, you can choose the one you want.

Legal Considerations

Normally with an online magazine, you would need to register it as a trademark as it is an intellectual property and can be copied, or claimed by someone else. By having the trademark, you would be able to prevent the brand materials like the logos, and names from being used by any other person.

Moreover, ensure that you check all the state and local requirements before you apply to open an online magazine business as there are many other online business ideas you can choose from.

Earning Potential

You can opt to have a paid subscription for your magazine. This would assist you in earning cash from it. Moreover, you can increase your revenue by partnering with affiliates and/or hosting advertisements.

#4 Blogging Business

Another one of the best online business ideas is the blogging one. A lot of people are running blogs on the Internet and thanks to their blogs, people get information easily online. And since the technology has become very advanced, people tend to look for everything online where many spend their time in reading the blogs on various topics online daily.

If you want to do something like this, you can choose a specific topic for starting a blog and keep updating the blog with content that would inform, entertain and even educate people on the topic.

Startup Costs

This business idea is one that has a startup cost that is the lowest, just that you need to have a computer and an internet connection already. Normally, you would need to buy a domain name ($15 a year) and the hosting ($15 a month). And if you do not have a computer, you would spend about $500 to get one with an internet connection of $40 monthly. With all this, you would be able to run a blog easily.

Legal Considerations

Depending on the content, the blog might be regulated by the FTC. And if you ensure that you are up to date with these regulations, you would not be violating any laws. Also, it is advised to check with any local or state regulations that you might have to follow for the blogging business.

Earning Potential

There are few bloggers who earn from their blog by asking people to join a private blog, or by selling products. But these blogs are limited by the number of followers and the prices. Other than this, there is another way to earn money – which is by hosting advertisements.

The type of blog and also the number of visitors impacts the rate that the advertisers are ready to pay. There are a few advertisers who pay about $0.05 and $1.50 for a click on the ads. There are many advertisers that you can choose from depending on their offer rates and their compatibility with your blog topic.

#5 Voice-Over Service

Voice over businesses is another one of the great online business ideas that many can opt to earn a lot of money. It basically permits the customers to record and even purchase recordings that can be used for animation, commercials, etc. Even though this kind of recording can be done in a studio, many companies give the ease of recording at your home via your computers or even on the phones.

Startup Costs

For this business, you would have to buy a entry-level but high-quality equipment for the audio recording and the software to get it started. This would cost you about $2000 or even above. The basic equipment would include the editing software, XLR cables, computer and obviously a microphone.

Legal Considerations

To reduce any kind of legal risks, it is better to have a strong service contract. This documentation would also serve as an outline to the scope of your projects and also the means of the payment.

Earning Potential

Any contracts that include the simple voice-over work can help you to earn about $250 to even $500 in an hour. And there is not where it ends; you can even earn about $1000 and above in much more advanced projects, which includes recording for some academic presentations or business.

#6 Live Streaming Business

You already know about the online platforms for live streaming like YouTube and Twitch. With the help if these platforms, you can easily start a live streaming business. By getting a lot of followers, you can become a live streamer and partner with a live streaming site. This is one of the most popular online business ideas that is in trend right now.

Startup Costs

The set up costs for the live streamer business is normally about $650 to even $1500. This involves the powerful gaming machine that would have the ability to run the video games at a high capacity. You would also need a good speed internet connection. Other than this, you would might also need video games and the subscription would also cost you for the business.

Legal Considerations

Unlike the other online business ideas, a live streaming business does not have any specific laws to follow. Nonetheless, a streamer who becomes a successful one might have to sign the partnership contract with the streaming companies that are larger. And this contract might come with the Non-Disclosure Agreement, which is legally binding.

Earning Potential

If you get a viewer base of about 6000 or above on a Twitch streamer account, you would be able to earn $18,000 in a month. Moreover, with every other site that streams the Twitch streaming, you would be able to get a revenue of about $250 to $1500 monthly. Also, you get $3 for each subscriber on Twitch.

#7 Custom Phone Case Business

Each and every one today uses a phone case, and it has even become a necessity to keep the surface of the phone protected and safe if it falls or otherwise. So, if you choose to offer custom designs out of all the online business ideas, it would be a great business venture.

As soon as you get the needed equipment, you would be able to make as many phone cases as you wish. But for this, you can sell the covers online easily without the need to open a shop. Also, if you allow the customers to select the specific design and order online, you can then make it and ship it to them.

Startup Costs

For starting a business like this, you would need the amount of up to $3,500. In this, you would also get a startup kit that holds all the important materials for you to make the phone cases. In case you want to mass produce the cases, you would have to spend about $30,000 on the materials and equipment.

Legal Considerations

Again, unlike the other online business ideas, there isn’t any particular law for this business. Nonetheless, it is better to check with your local and state ordinances for any thing that you might have to do so that you can be on the safe side.

Earning Potential

You can easily sell a custom phone case for about $20 to even a hundred bucks. The price would depend on how complex the case design is. For instance, a phone case that is plain would just cost about $20, while the case that is made with premium materials and is a completely customized case would cost above $100.

#8 Proofreading Business

Do you have language skills or editing skills? Well, there are many people mostly students and businesses that look for proofreading services. And once you get one project, you would keep getting many projects from the same clients and even references from them. And since the editing or proofreading is done on the computer, all you need is an internet connection to connect with the client and a computer, with the skills for proofreading and editing.

Startup Costs

It is very easy to begin your own proofreading company with just $500 or at max $1500. The cost would not be much if you already have a computer, an internet connection and transportation to meet clients (or a way to get projects online).

Legal Considerations

It is advisable to have a powerful and colid service contract that you would have the client sign before you begin the project. This would assist you in avoiding any legal exposure. This would also help you in initiating your business relationship at the right foot.

Earning Potential

The earnings that you get from this can start from about $3 per page, and $25 per hour to whatever you feel is worth your skills. Moreover, the amount also depends on the type of proofreading and the client’s budget as well.

#9 Ebay Entrepreneur

Another one of the great online business ideas is being an Ebay entrepreneur. It is very easy to set up this business and it helps you get started faster. Moreover, being an Ebay entrepreneur, you are free to specialize in those products that you love to make or have, and sell them at a reasonable price online in the niche market.

Startup Costs

In this business idea, the startup costs would depend on the product you want to sell. In case you do not have internet and a computer (which is the main thing needed), you would have to ge one and start your internet subscription for under $500.

In case you have the idea of reselling products, you would need a storage place that would also cost you about $75 monthly. And with this, there is cost of the actual item that you want to sell. Moreover, eBay charges a per-item listing fee. But if you sell more than 50 items in a month, you can choose to pay a monthly subscription.

The ebay monthly subscription is about $19.95 per month if you choose the yearly subscription. And if you chose a monthly one, you would have to pay $24.95 for month-to-month. The highest package has the cost of about $299.95 per month for a yearly subscription, and $349.95 for month-to-month payments.

Legal Considerations

eBay doesn’t allow you to sell some items on it, and you can look for the list on the website. It is better to have a read about the privacy policy so that you do not make a mistake and end up in a legal case. Moreover, if you are an entrepreneur on eBay, you would need to have a resale certificate, that permits you to sell the secondhand items.

Earning Potential

There isn’t any set amount that is earned by an eBay entrepreneur. The amount depends on the price of the profits earned by selling the items on the website.

#10 Data Entry Business

If you want a great way to earn money easily, you can choose the data entry business idea from the online business ideas. But this would only work if you are a person who is good with numbers and has experience in this task. If you can get projects online via platforms like Freelancer, fiverr, and Upwork, you business would be an online one. You can also ask the direct clients to send the information online where you can work at home and provide the work to them then.

Startup Costs

The cost for starting a business like this is very less where all you need is a computer and an internet connection. To get the both, if you do not have, would cost you about $400 to $1000.

Legal Considerations

Even though this business has no federal laws that you have to follow, it is still advised to research to see if there are any local or state laws for this business.

Earning Potential

Normally, the people who offer data entry service charge a “Full-Time Equivalent” fee or an hourly fee. The Full-Time Equivalent (FTF) fee is the flat fee for a month. Depending on the services that are offered, the hourly charges are usually $7 to $10 per hour. On the other hand, the FTE rates begin from $1,000 and can reach to $6,000.

#11 Online T-Shirt Business

This is another one of the online business ideas that is now a popular one where you allow the customers to customize and design a t-shirt to place an order for it then. This can then be printed, sold and shipped to the customer. These designs are displayed on the websites where the audience sees them and purchases them.

Startup Costs

It takes just $100 to start designing and selling shirts. But if you want to directly market your work, it would need more. If you choose to work through websites like the Design by Humans, you would be able to design your shirts and leave the rest on platform to take care of.

Legal Considerations

Just like many of the other creative online business ideas mentioned above, this one too needs the careful use of copyrighted designs or artwork. It is advised to get the permissions before you use any graphics or logos which you did not make on your own. Other than that, it is also good if you get a copyright or trademark to protect your own work.

Earning Potential

The profits that you might make per shirt can range from $3 to $18 per t-shirt. Moreover, the amount of earnings would also depend on the business model that you adopt.

In case you opt to keep your own inventory, and produce the t-shirts with your own equipment, the profit margin would be higher for each shirt sold. Nonetheless, it is a great relief not to worry about the inventory that would would not be able to sell. And this can be easily avoided by using the platforms to sell your designs that would handle all form the shipping to you getting the payment.

Is an online business right for you?

Now that you know about the various online business ideas, do you think launching an online business is what you want or is it right for you? Well, if you are not sure, you need to know that there are many plus points to owning a digital nomad business. Launching the online business is much more easier as compared to the normal company formation.

By choosing one of the online business ideas and opening a company with it, you would save a lot of energy, time and a high amount of overhead costs due to rent, bills and management. Furthermore, your customer reach would not just be in a locality, but can be world-wide since the Internet helps you connect with customers all over the globe.

In short, why limit yourself to serving people around you when you can offer your products or services to people all over the world. As a matter of fact, you would be able to work anywhere and anytime as you want. It can be in a coffee shop, in the Caribbean or even at home, and you would easily be able to keep up with your clients. All you need is a proper management and great tools that would help you in managing your inventory and getting things done with your team.

What makes an ideal online business idea?

A little part that appeals people to begin an online business is the flexibility. Many people love the idea where they can easily set their own schedules and work from the comfort of their home or as they want. But that is not all that makes these online business ideas worth a try. The benefits mentioned above lets us understand the difference between a traditional business and an online one. And it is obvious that the online business is a great idea.

So, select the one that you like from the online business ideas mentioned above and open your way into the freedom of working on your own terms. And when you are ready with everything and want your business incorporated in Nevada or Delaware, contact IncParadise to register your company and begin your entrepreneurial journey.

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Michigan Business License

Date: | Category: | Author: Jakub Vele

Michigan Business License

If you have incorporated a business in Michigan or planning to form a small business in the state then it’s time to apply for a business license. In order to operate your business in Michigan, business licenses, permit, and other professional licenses have to be obtained. Absence of license or permit to operate a specific business can lead to heavy penalties and in some cases, closure of the business.

There are several types of businesses that require a permit or business license in Michigan to become operational and at the same time, all businesses don’t require licenses issued by the state. There are certain licenses or permits that are handled at the city, county, or town level. The information regarding various types of license or permits issued in Michigan is available with State Licensing Division of the Michigan Government.

How to Get a Business License in Michigan

Where and how do you apply for Michigan company license? Are permits required for my business entity? Does the business entity require a single license or multiple permits or licenses? Who is the issuing authority for these licenses or permits? The only way to answer these questions is by understanding the process of business licensing.

Here is a step-by-step approach towards acquiring a business license in the state of Michigan.

Step#1: The Industry or Business Type

How would you know what type of business or professional license is required to operate in Michigan? The type of industry or the activities of a business entity helps in identifying the type of business license required.

There is a long list of permits or licenses issued mostly by the state of Michigan but some of the important categories according to industry segment are:

  • Accountancy
  • Agrichemical Bulk Storage Facility Registration
  • Different classes of Hotels
  • Clothing Manufacturer and store
  • Clubs and Coffee shops
  • Continuing Care Communities
  • Drug Rehabilitation Counseling Centers
  • Environmental Testing
  • Fish Breeder
  • Food Establishment and Food Cart
  • Gaming Business
  • Grocery Stores
  • Alcohol Buyer or Seller
  • Loan Company
  • Pharmacy

These are some of the categories for which statewide licenses are issued. Click here to check other licenses and permits issued by Michigan State.

Step#2: Licenses issued by City/County

If your business or industry type doesn’t fall under a statewide license then you will have to check with the local city or county office. A business license in Michigan can also be issued by local counties or cities in which the business is located.

Let’s take a look at an example to understand this better.

If you establish a business in the City of Detroit, which is an Amusement Park that has 5 devices (games) or more then the Michigan company license will be issued by City of Detroit, Business License Center.

The fee for the license or permit is $690. If you were to establish a carnival within the premises then you would be required to pay an additional fee of $58 and if it is an outdoor circus then the fee would be an extra $400.

There is a single application that covers all categories of licenses in the City of Detroit. You can check fee and download application to get an insight into the process.

Step#3: Requirements for Business License

How is a business license in Michigan issued? Is there a process? What documentation is required? The following example will help you to understand how the process works:

Type of Business

  • Type of Food Service Establishment – A food service establishment consists of restaurants, delicatessens, cafeterias, temporary food service establishments, retail establishments, vending machines, mobile units, and special transitory food units.
  • License Issuing Authority – Michigan Department of Agriculture and Rural Development (MDARD)
  • Cost of procuring a license or permit – The business license fee for a Retail Food Establishment is $186 and this includes grocery store, retail bakery, convenience store, and fish market among others. If you want to establish a fixed restaurant, cafeteria, coffee shop, luncheonette, tearoom or any other eating or drinking establishment then you will be required to contact the local health department to know the license fee applicable. Download Application

If you have any questions regarding registration of your business or require information regarding business license in Michigan, feel free to call us at 702-871-8678.

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Advantages of Incorporating a Business in Michigan

Date: 09/19/2018 | Category: | Author: Jakub Vele

Advantages of Incorporating a Business in Michigan

Is there any advantage for a startup company Michigan? The state with 64,980 inland lakes is considered to be the center of the U.S. automotive industry with three major automobile companies headquartered within the Detroit metropolitan area. Today, Michigan is ranked among the top 10 states that offer excellent business climate to start-ups and new businesses. The leading industry in terms of growth, expansion, and payroll jobs is the Manufacturing sector followed closely by the financial activities sector, Information, Construction, and Other services sector (nonprofit organization, and personal services).

Business Growth Incentive for New Businesses

As one of the top registered agents in the state, we can help you to register a new business in Michigan as this will ensure you are able to take advantage of the business climate and leverage state provided incentives and grants. Let’s take a quick look at why Michigan is the right destination for establishing a business:

Advantage#1: The benefits of Incorporation or LLC formation

Corporation

  • Michigan Corporate Income Tax (CIT) Credit: It is also known as MBT certificated credits and corporations can derive tax credits under this program on their corporate income tax. There are a variety of credits applicable under this including federal contracts credit, brownfield redevelopment credit, and hybrid technology research and development credit among others.
  • Independent life: When you register a new business in Michigan as a Corporation, it will enjoy an independent life. This means that the incapacity or death of a stockholder will not have a negative impact on the business operations.
  • Changes in Ownership: One of the advantages of a startup company Michigan is that changes in ownership are made possible through sale, purchase, and gifting of stock. This can take place without disturbing the ability of the corporation to conduct its business.

LLC

  • Industrial and Hi-Tech Tax Abatement (PA 198): If you register a new business in Michigan as an LLC then you can qualify for several tax abatement and credit programs including the “Industrial and Hi-Tech Tax Abatement” program. As a part of these programs, tax incentives are available to LLC firms that enable renovation as well as expansion of aging facilities and build new facilities.
  • Limited Liability: As an owner of a Michigan LLC, you will be able to enjoy limited liability protection quite similar to what a corporation enjoys.
  • Flexible Profit Distribution: A startup company Michigan LLC has the benefit of being able to select different ways of distribution of profits unlike a partnership where the distribution is 50-50.

Advantage#2: Business Incentive Programs

Once you register a new company in Michigan, the business entity will be able to qualify for several incentive programs that include loans, funds, grants, tax credits and much more. Some of the top incentive programs include:

  • Michigan Development Corporation Renaissance Zone: This is a Business Incentive Program where business entities certified as an Eligible Next Michigan Business (ENMB) will be able to benefit from tax exemptions on real property taxes, local corporate income tax, personal property taxes, and utility users tax for a period of 10 years.
  • Brownfield Redevelopment: This is a business incentive program that aims at promoting the revitalization of environmentally distressed areas in a city. You can qualify for this program after you register a new business in Michigan. This program promotes “Tax Increment Financing” for environmental as well as non-environmental activities.
  • New Personal Property Tax Exemption: As a part of this business incentive program, a business entity involved in research and development, manufacturing, wholesale trade, mining, and operations can be eligible for tax abatement on personal property taxes in specifically targeted areas.

Once you register a new company in Michigan, there are several other programs that you can benefit from and this includes Neighborhood Enterprise Zone, MEDC Business Development Program-BDP, Private Sector Gap Financing Tools, Community Ventures Program, New Markets Tax Credits, Small Business Alternative Credit, and Michigan Pre-Seed Capi​​​tal Fund​​​​​ among others.

Are there any Disadvantages of Incorporating in Michigan?

Michigan provides a very good business climate and plenty of opportunities for small and medium sized businesses. This is not all; there are several state, city/county, and federal incentives that a startup company Michigan can benefit from but are there any disadvantages that can hamper business growth? There are a few disadvantages and they vary according to the type of business entity you plan to form like the processing of a corporation requires more documentation as compared to an LLC. The disadvantages are almost inconsequential as compared to the advantages the state offers.

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