Once you've chosen the type of corporation you want for your business, most entrepreneurs are ready to stop worrying about the details and move onto more pressing matters, like developing your product or service, however, there are a few more corporate formalities that must be addressed before proceeding. As a corporation, you'll be required to hold annual meetings with your shareholders which must be documented. Also, while this isn't required for LLC's, it's still a good idea; if you ever do run into trouble with your business (IRS audit, legal matters, etc) the more documentation you have, the better. With corporations, neglecting to properly document these annual meetings can lead to what is commonly referred to as "piercing the corporate veil" which can lead to you, your partners and shareholders being held personally responsible for the debts and liabilities of the business, rather than being shielded by the corporation. Although this is uncommon, it is a definite possibly when a corporation is mis-managed.
At this point, the high-D, super driver, entrepreneurial leader in you may want to check-out or simply hire someone to take care of all of these details, and that's really a great idea. A board of directors is responsible for overseeing the activities of the corporation, but this typically does not mean that they can overrule you when it comes to product decisions. Giving up the decision making power can be a scary proposition for an entrepreneur, but hopefully if you are able to choose the right team and setup the bylaws appropriately, you'll be able to continually innovate and drive the company while the board of directors watches your back, weighs in on important decisions and protects the company and its shareholders from additional liability. Additionally, pursuant to the Sarbanes-Oxley act (SOX), many corporations will also employ internal auditors who will ensure that the company is completely above board with all of it's legal and financial actions, this is more important now than before SOX because now board members can face large fines and prison time in the case of accounting crimes.
Coming up with a great idea for a new business and actually launching it is a great achievement, and continuing to develop and innovate is what entrepreneurs live for. The corporate minutia shouldn't grind your business or corporation to a halt and that's where finding and employing the right people that you can trust will make your business more effective and more importantly, keep you, your partners and your shareholders safe.
Mon, 04/2/2012 - 01:56 AM | viewed 422 times
In February, 2012, Facebook held its 'fMC Conference' which introduced upcoming features and changes to the site, including Timeline for Pages. All of these changes impact the way an entrepreneur or smb can best utilize their Facebook presence to increase traffic, interact with fans, and ultimately, convert these fans into customers. Here we'll take a closer look at the changes to Facebook, how you can use the new features to your advantage as part of your business plan, and some helpful tips on creating a successful Facebook promotion.
Sat, 03/10/2012 - 05:35 PM | viewed 492 times
In the initial stages of a business startup, most entrepreneurs recognize that they'll need the expertise of an accountant at various times, but few realize that they'll no doubt need the help of another professional, an attorney. Their logic would be that they don't plan on breaking the law or getting sued, so legal services aren't necessary. The truth is quite the contrary, however.
Sun, 03/4/2012 - 01:54 PM | viewed 531 times
Now that you've developed a great startup concept, and you're in the business plan development stage, the time has arrived to come up with the right name for your new endeavor. There are a number of differing theories on what makes a great business name, but one thing is certain, choosing the right name can play a big part in how your business is perceived by your customers, and it can make or break your image.
Sat, 03/3/2012 - 12:55 PM | viewed 411 times
On average, roughly 600,000 Americans start new businesses each year. If you're one of the millions more contemplating taking that giant step into business ownership, don't let fear of the unknown stop you. Some of the stumbling blocks for would-be entrepreneurs include indecision about the right kind of business, a fear of putting their money and time into a business that fails, or they may simply have no idea where to start. Generating an idea for a small business isn't always easy, but with some good advice and common sense, you can learn how to choose a viable concept.
Thu, 03/1/2012 - 12:16 PM | viewed 618 times
If you're a small business owner or an entrepreneur involved in your first startup, you're well aware of the impact that successful Facebook marketing can have on your bottom line. Finding your way through the maze of available apps and tools is time-consuming, tedious work. If you're on the hunt for the latest and greatest ways to reach a larger audience and build your business, check out our recommended Facebook tools and apps that are specifically geared toward taking full advantage of your fan page.
Latest Small Business News
So many shoes are dropping out there that reality is starting to look and sound like the tap-line in a Busby Berkeley production number. The meme-scape, too, is humming with viral transmissions of dire doings. Is JP Morgan unwinding like a 1911 knitted wo...
I wish I could have been a fly on the wall at the G8 summit at Camp David this weekend. The final communiqué from the global big shots talks about keeping Greece in the Euro and a shift away from austerity and a move towards growth oriented policies. Forget the Happy ...
It was a rough week for global financial markets with serious meltdowns in every corner of the world.
Did they claim that it showed a permanent tradeoff between inflation and unemployment.
James Forder says no.
Is the intellectual history and self image of modern macro based entirely on the critique of the legend to a figure which can be read out of context deliberately ?...
But he does get me thinking. I’ve spent several days re-reading and pondering his Identity Economics post and (his) related others, which post begins [my brackets]:
