Madison Heights, MI (PressExposure) April 10, 2009 -- Mark Maupin, a real estate investor, internet marketer and instructor at Wayne County Community College met with entrepreneur Susan Carter to talk about how to help Michigan residents that are trying to get their small businesses off the ground. Mark began their discussion by stating that every new business owner would like to learn how to doing everything ârightâ the first time. He has started several business ventures himself as a real estate investor and he wished he had known about the âbigâ mistakes too. Susan stated that there are actually about 10 business credit mistakes that are the most costly. She chose the two that were the most important and had the greatest impact financially on a new business owner. 1) Choosing the wrong business name and not registering it properly; and 2) choosing the wrong business structure. These mistakes can prevent any business owner from obtaining business credit lines, business credit cards, vendor credit, business financing, unsecured credit cards, etc. #1 â Business Name Before you even set up your business structure, you must name it. Most states will let you register your company online. LLCâs in Michigan can be set up directly with the State for only $50.00. Corporations (S or C) are more costly and generally are not set up by individuals, but rather by companies that specialize in setting up corporations for new businesses. Susan pointed out that the most critical point is that you plan your business name carefully. You want to present yourself in the future to lending institutions and other vendors as a serious business, and not a hobby. Remember the name should always be registered within the State you are doing business. #2 â Business Structure Susan stated that there are a number of business structures you can use when you are creating a company. Each one comes with different benefits and liabilities. She gave a quick overview: â¢ Sole Proprietorship âThis is the least desirable form of business structure because the owner, or sole proprietor, is putting his or her personal assets at risk if the company were to have serious financial difficulties.
â¢ Partnership â In a partnership, two or more people are the owners of the business. They also incur debt for the company and can be held personally liable if the company were to fail or be sued for debts.
â¢ Limited Liability Company (LLC) â This is the most flexible business structure and one of the easiest to set up. It is a good entity for a small or large business because it provides personal asset protection.
â¢ C-Corporation - The C-Corp is the most structured form and the profits are taxed at both the corporate level and the stockholder level. The S-Corp is also a corporation but one of the advantages of this business structure is that the profits are not double taxed like they are in a C-Corp. This structure is a âflow throughâ entity, which means the profits and losses flow through to the personal tax return of the stockholders and are taxed on their individual tax return.
Susan recognizes there are hundreds of men and women that want to find out more about setting up their business structure correctly. They are seeking a way to avoid all of the big mistakes made by entrepreneurs. They want to establish business credit, obtain working capital and get new business loans. Because of this need Susan has written an e-Book named âBasics of Business Creditâ that is a complete resource for these types of questions, and many more. Her website is: http://www.SusansBooks.com. As an added bonus, Susan is also giving away to the first 500 people who purchase her e-Book a Free Credit Restoration Guide to assist individuals in cleaning up their personal credit. This e-Book normally sells for $39.97 each.
This article was submitted by: Start With The Basics, LLC P.O. Box 71481 Madison Heights, MI 48071 Email: email@example.com