Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Blattfg.com    BUSINESS 101Starting Your Own Business from Soup to Nuts     PRESENTED FOR SCORE PALM BEACH         BY PETE...
Blattfg.comCORPORATE FILINGSLLC vs. S Corporation – Similarities Both are pass-through entities Liability protection No...
Blattfg.comCORPORATE FILINGSThe Limited Liability Company (LLC) Tax simplicity   • Single - IRS form 1040 and Schedule   ...
Blattfg.comCORPORATE FILINGSThe Limited Liability Company (LLC) Simplistic governance   • Articles of Organization   • Pa...
Blattfg.comCORPORATE FILINGSThe Limited Liability Company (LLC) Flexible Structure   • Profits/ownership   • Unlimited me...
Blattfg.comCORPORATE FILINGSThe Limited Liability Company (LLC) Limitations   • Members are self-employed; must make     ...
Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) Most popular structure in Florida A C-Corporatio...
Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) Tax advantages   • SS and Medicare taxed on wages...
Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) Structural advantages   • Separate and perpetual ...
Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) Limitations   • Strict corporate governance   • L...
Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) Limitations   • Potential for loss of Subchapter-...
Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) IRS/State Forms   • Form 1120S – S-Corp Income Ta...
Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) IRS/State Forms   • Form 1040 – Individual Tax Re...
Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) IRS/State Forms   • Form 2553, 940, and 941   • S...
Blattfg.comCORPORATE FILINGSSunbiz.org
Blattfg.comCORPORATE FILINGSSunbiz.org
Blattfg.comCORPORATE FILINGSSunbiz.org
Blattfg.comCORPORATE FILINGSSunbiz.org
Blattfg.comCORPORATE FILINGSSunbiz.org
Blattfg.comCORPORATE FILINGSLegal Agreements In Detail - LLC Articles of Organization   • Creates public, legal notice of...
Blattfg.comCORPORATE FILINGSLegal Agreements In Detail - LLC Operating Agreements   • Specifies rights and responsibiliti...
Blattfg.comCORPORATE FILINGSLegal Agreements In Detail – S-Corp Articles of Incorporation   • Creates public, legal notic...
Blattfg.comCORPORATE FILINGSLegal Agreements In Detail – S-Corp Shareholder Agreement   • Specifies rights and responsibi...
Blattfg.comCORPORATE FILINGSIntellectual Property Laws and Protection Copyrights – protects original works of  authorship...
Blattfg.comCORPORATE FILINGSIntellectual Property Laws - Copyrights Exclusive right under U.S. law to protect  original w...
Blattfg.comCORPORATE FILINGSIntellectual Property Laws - Patents Offers protection from unsanctioned “theft”  of inventio...
Blattfg.comCORPORATE FILINGSApple vs. GoogleSamsung pays $1Bin settlement…Aug 2012!LARGE         Patent infringement lawsu...
Blattfg.comCORPORATE FILINGSIntellectual Property Laws - Trademarks Identifies the source of a distinguishable  product ...
Blattfg.comCORPORATE FILINGSResources   Florida Dept. of State (Sunbiz.org)   Local Tax Collector (county, city)   Fede...
Blattfg.comCORPORATE FILINGSOpen Discussion
Blattfg.com       BEST IDEASBusiness Plan Serves as a “roadmap” for your business Provides investors with insight Refin...
Blattfg.com        BEST IDEASContents – Business Plan Mission Statement  • Brief, powerful, definitive  • “To refresh the...
Blattfg.com       BEST IDEASContents – Business Plan Executive Summary Company Description Target Market Organization...
Blattfg.com       BEST IDEASContents – Business Plan Executive Summary snapshot of your  company? Company Description wh...
Blattfg.com       BEST IDEASRaising Capital – Business Plan Debt, Equity, or Combination   • Debt – pay with interest   •...
Blattfg.com       BEST IDEASSources of Capital – Business Plan Debt   • Banks/traditional institutions   • Capital market...
Blattfg.com        BEST IDEASSources of Capital – Business Plan Greatest sources for capital in the U.S.?
Blattfg.com        BEST IDEASSources of Capital – Business Plan Greatest sources for capital in the U.S.?         1. your...
Blattfg.com          EMPLOYEESPayroll Taxes (*Florida only – may differ in other states) Employees pay FICA   • Social Se...
Blattfg.com          EMPLOYEESPayroll Taxes (*Florida only – may differ in other states) Employer Compliance   • Withhold...
Blattfg.com       EMPLOYEESPayroll Taxes Employer collects W-4 and I-9 FICA – 6.25% to $113.7k Medicare – 1.45% Federa...
Blattfg.com       EMPLOYEESPayroll Taxes File tax liability (monthly) Payroll form 941 (quarterly) Payroll form 940 (an...
Blattfg.com       EMPLOYEESFair Labor Standards Act (FLSA) Minimum Wage (FL) - $7.25/hour Overtime – 1.5x regular wage ...
Blattfg.com       EMPLOYEESEmployee Filings
Blattfg.com      EMPLOYEESRecruitment and Hiring THINK like a Fortune 500 company…   • Job descriptions – specific and   ...
Blattfg.com       EMPLOYEESRecruitment and Hiring THINK like a Fortune 500 company…   • Personnel files and performance  ...
Blattfg.com       EMPLOYEESResources   US Small Business Assoc. (SBA.gov)   US Dept. of Labor (DOL.gov)   IRS Tax Info ...
Blattfg.com      EMPLOYEESOpen Discussion
Blattfg.com            OFFICESRent vs. Own Expense versus investment Small commitment versus large capital  outlay Unin...
Blattfg.com          OFFICESLocation, location, location… Spend time on market and consumer data   • Demographics and soc...
Blattfg.com            OFFICESCommon Issues with Leases Have competent counsel review lease Perform public records searc...
Blattfg.com      ACCOUNTINGSoftware
Blattfg.com     ACCOUNTINGCommon Reports Profit & Loss Income Tax Summary Balance Sheet Accounts Receivable/Accounts P...
Blattfg.com      ACCOUNTINGTax Prep Software
Blattfg.com      ACCOUNTINGTurbo-Tax (preferred) First, important to have a competent CPA Prepares returns for C-Corp, S...
Blattfg.com     ACCOUNTINGOpen Discussion
Blattfg.com      CONTRACTSReview and Implement Sales contracts Vendor contracts Partnership agreements Lease agreement...
Blattfg.com       CONTRACTSLook for… Specific language of responsibilities of  parties Compare to compliance issues in y...
Blattfg.com       CONTRACTSResources   Peter Blatt, J.D. LL.M. and Blatt Legal (561) 625-     0900   Uniform Commercial ...
Blattfg.com      CONTRACTSOpen Discussion
Blattfg.com       MARKETING         METHODSWebsite and Online Promotion Website as a resource Active user engagement Gu...
Blattfg.com       MARKETING         METHODSWebsite as a resource You are your representation on the web    Self-managed ...
Blattfg.com        MARKETING          METHODSActive user engagement (AUE) Content is king – blogs, articles,  authorship...
Blattfg.com         MARKETING           METHODSGuerrilla marketing and PR DIY Marketing   • Add events to community calen...
Blattfg.com       MARKETINGMailing METHODS Hard mailing – still effective!   • Providers include RME, InfoUSA   • Promote...
Blattfg.com        MARKETINGReferrals METHODS Build referrals by doing good business Join and attend networking groups ...
Blattfg.com       MARKETING         METHODSCompliance Industry and trade specific Join your industry’s trade group to st...
Blattfg.com       MARKETING         METHODSOpen Discussion
Upcoming SlideShare
Loading in …5
×

Palm Beach SCORE Presentation - Business 101: Starting Your Own Company

427 views

Published on

  • Be the first to comment

  • Be the first to like this

Palm Beach SCORE Presentation - Business 101: Starting Your Own Company

  1. 1. Blattfg.com BUSINESS 101Starting Your Own Business from Soup to Nuts PRESENTED FOR SCORE PALM BEACH BY PETER BLATT, J.D. LL.M.
  2. 2. Blattfg.comCORPORATE FILINGSLLC vs. S Corporation – Similarities Both are pass-through entities Liability protection No shield from torts or accidents Operational ease and profit-sharing
  3. 3. Blattfg.comCORPORATE FILINGSThe Limited Liability Company (LLC) Tax simplicity • Single - IRS form 1040 and Schedule C • Partners – 1065 partnership
  4. 4. Blattfg.comCORPORATE FILINGSThe Limited Liability Company (LLC) Simplistic governance • Articles of Organization • Partnership Agreement • No board meeting
  5. 5. Blattfg.comCORPORATE FILINGSThe Limited Liability Company (LLC) Flexible Structure • Profits/ownership • Unlimited members • File as S-Corporation
  6. 6. Blattfg.comCORPORATE FILINGSThe Limited Liability Company (LLC) Limitations • Members are self-employed; must make contributions to SS and Medicare on net income • Dissolved on death or bankruptcy of partner
  7. 7. Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) Most popular structure in Florida A C-Corporation that offers tax benefits Limited financial liability for shareholders (owners) Avoids double-taxation
  8. 8. Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) Tax advantages • SS and Medicare taxed on wages only • Distributions taxed at Cap Gains rate • Profits/losses pass through to shareholders
  9. 9. Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) Structural advantages • Separate and perpetual entity • Shareholders are protected from liabilities
  10. 10. Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) Limitations • Strict corporate governance • Limited to 100 shareholders; one class of stock • Profits/losses allocated based on ownership
  11. 11. Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) Limitations • Potential for loss of Subchapter-S status • Beneficial employee must take pay
  12. 12. Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) IRS/State Forms • Form 1120S – S-Corp Income Tax Return • Form 1120S-K1 – Individual Shareholders • Form 4625 – Depreciation • UCT-6 – Employer’s Quarterly Report
  13. 13. Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) IRS/State Forms • Form 1040 – Individual Tax Return • Schedule E – Suppl. Income/Loss • Schedule SE – Self-Employment Tax • Form 1040-ES – Individual Estimated Tax
  14. 14. Blattfg.comCORPORATE FILINGSThe S-Corporation (Subchapter S of IRSCode) IRS/State Forms • Form 2553, 940, and 941 • State of Florida Annual Report (Whew…)
  15. 15. Blattfg.comCORPORATE FILINGSSunbiz.org
  16. 16. Blattfg.comCORPORATE FILINGSSunbiz.org
  17. 17. Blattfg.comCORPORATE FILINGSSunbiz.org
  18. 18. Blattfg.comCORPORATE FILINGSSunbiz.org
  19. 19. Blattfg.comCORPORATE FILINGSSunbiz.org
  20. 20. Blattfg.comCORPORATE FILINGSLegal Agreements In Detail - LLC Articles of Organization • Creates public, legal notice of active organization • Specifies member and managing member’s name, address, and registered agent • Corrections are recorded with amendments
  21. 21. Blattfg.comCORPORATE FILINGSLegal Agreements In Detail - LLC Operating Agreements • Specifies rights and responsibilities of members • Creates enforceable agreement between members • Succession planning • Not required; highly advisable to hire counsel
  22. 22. Blattfg.comCORPORATE FILINGSLegal Agreements In Detail – S-Corp Articles of Incorporation • Creates public, legal notice of active incorporation • Specifies principle officers and purpose of company, share structure, and registered agent • Corrections are made with Articles of Correction
  23. 23. Blattfg.comCORPORATE FILINGSLegal Agreements In Detail – S-Corp Shareholder Agreement • Specifies rights and responsibilities of shareholders • Protects shareholder’s equity and interests • Plans for the future (succession, M&A) • Private document; highly advisable to hire counsel
  24. 24. Blattfg.comCORPORATE FILINGSIntellectual Property Laws and Protection Copyrights – protects original works of authorship (literature, music, artistic, intellectual works) Patents –protections for novel inventions Trademarks – protection for distinguishable marks
  25. 25. Blattfg.comCORPORATE FILINGSIntellectual Property Laws - Copyrights Exclusive right under U.S. law to protect original works of authorship from being reproduced Granted to created when created General terms: author’s life plus 70 years Work for Hire terms: author’s life plus 95 years
  26. 26. Blattfg.comCORPORATE FILINGSIntellectual Property Laws - Patents Offers protection from unsanctioned “theft” of inventions in exchange for public disclosure Must be novel and “non-obvious” Patent granted through the USPTO Extremely important for inventive companies or individuals
  27. 27. Blattfg.comCORPORATE FILINGSApple vs. GoogleSamsung pays $1Bin settlement…Aug 2012!LARGE Patent infringement lawsuitever…ST
  28. 28. Blattfg.comCORPORATE FILINGSIntellectual Property Laws - Trademarks Identifies the source of a distinguishable product Service mark identifies that of services Can be a symbol, phrase, design, or combination
  29. 29. Blattfg.comCORPORATE FILINGSResources  Florida Dept. of State (Sunbiz.org)  Local Tax Collector (county, city)  Federal Income Tax Filing (IRS.gov)  State Income Tax Filing (N/A for Florida)  USPTO (uspto.gov)  U.S. Copyright Office (Copyright.org)
  30. 30. Blattfg.comCORPORATE FILINGSOpen Discussion
  31. 31. Blattfg.com BEST IDEASBusiness Plan Serves as a “roadmap” for your business Provides investors with insight Refines and defines what you set out to accomplish Demonstrate purpose and commitment
  32. 32. Blattfg.com BEST IDEASContents – Business Plan Mission Statement • Brief, powerful, definitive • “To refresh the world.” – Coca-Cola Company Core Values • What drives you and your company? • “Integrity, knowledge, and fiduciary” - BFG
  33. 33. Blattfg.com BEST IDEASContents – Business Plan Executive Summary Company Description Target Market Organization Service/Product Marketing/Sales Financial Analysis
  34. 34. Blattfg.com BEST IDEASContents – Business Plan Executive Summary snapshot of your company? Company Description what do you do? Target Market who do you do it for? Organization how are you structured? Service/Product what do you make money? Marketing/Sales how do you sell yourself? Financial Analysis how do you stay in business?
  35. 35. Blattfg.com BEST IDEASRaising Capital – Business Plan Debt, Equity, or Combination • Debt – pay with interest • Equity – pay with share of ownership • Combination – convertible debt instruments
  36. 36. Blattfg.com BEST IDEASSources of Capital – Business Plan Debt • Banks/traditional institutions • Capital marketplaces (bond market) Equity • Private/public investment (C-Corp!) • Swaps, mergers, acquisitions
  37. 37. Blattfg.com BEST IDEASSources of Capital – Business Plan Greatest sources for capital in the U.S.?
  38. 38. Blattfg.com BEST IDEASSources of Capital – Business Plan Greatest sources for capital in the U.S.? 1. your savings 2. Your family’s savings 3. Your friend’s savings
  39. 39. Blattfg.com EMPLOYEESPayroll Taxes (*Florida only – may differ in other states) Employees pay FICA • Social Security • Medicare Employers pay FICA plus • Unemployment tax
  40. 40. Blattfg.com EMPLOYEESPayroll Taxes (*Florida only – may differ in other states) Employer Compliance • Withhold employee FICA • ADA, discrimination laws, Fair Pay Act, minimum wage If applicable… • Wage garnishment • Worker’s compensation
  41. 41. Blattfg.com EMPLOYEESPayroll Taxes Employer collects W-4 and I-9 FICA – 6.25% to $113.7k Medicare – 1.45% Federal withholding
  42. 42. Blattfg.com EMPLOYEESPayroll Taxes File tax liability (monthly) Payroll form 941 (quarterly) Payroll form 940 (annually) UCT-6 (unemployment) Annual state reporting Occupational licensing
  43. 43. Blattfg.com EMPLOYEESFair Labor Standards Act (FLSA) Minimum Wage (FL) - $7.25/hour Overtime – 1.5x regular wage Defines “hours worked” FLSA poster required to be hung Employee recordkeeping Child labor prohibited
  44. 44. Blattfg.com EMPLOYEESEmployee Filings
  45. 45. Blattfg.com EMPLOYEESRecruitment and Hiring THINK like a Fortune 500 company… • Job descriptions – specific and detailed • Employee handbook – policies and procedures • Definitions of Exempt/Non-exempt • Probationary period • Equal Employment Opportunity (EEO) • Non-disclosure agreement (NDA)
  46. 46. Blattfg.com EMPLOYEESRecruitment and Hiring THINK like a Fortune 500 company… • Personnel files and performance reviews • Standards of conduct (dress, behavior) • Typical work day (lunch, breaks, activates) • Benefits and Services (PTO, military leave) • Wage, salary, and pay procedures • At-will employment termination
  47. 47. Blattfg.com EMPLOYEESResources  US Small Business Assoc. (SBA.gov)  US Dept. of Labor (DOL.gov)  IRS Tax Info (IRS.gov/Businesses)  Florida Dept. of Revenue (DOR.MyFlorida.com)
  48. 48. Blattfg.com EMPLOYEESOpen Discussion
  49. 49. Blattfg.com OFFICESRent vs. Own Expense versus investment Small commitment versus large capital outlay Uninterrupted operations versus maintenanceIn short, it’s all about your situation andyour needs.
  50. 50. Blattfg.com OFFICESLocation, location, location… Spend time on market and consumer data • Demographics and socio-economics • Distance from competitors and to value-added Parking, space, and lease requirements Commercial vs. residential zoning
  51. 51. Blattfg.com OFFICESCommon Issues with Leases Have competent counsel review lease Perform public records searches Pay attention to tenant responsibilities Negotiation favorable assignment provisions
  52. 52. Blattfg.com ACCOUNTINGSoftware
  53. 53. Blattfg.com ACCOUNTINGCommon Reports Profit & Loss Income Tax Summary Balance Sheet Accounts Receivable/Accounts Payable Full Income Statement Cash Flow Statement
  54. 54. Blattfg.com ACCOUNTINGTax Prep Software
  55. 55. Blattfg.com ACCOUNTINGTurbo-Tax (preferred) First, important to have a competent CPA Prepares returns for C-Corp, S-Corp, LLC, PA, Sole Props and virtually every other entity Web-based Files forms with the IRS and state online
  56. 56. Blattfg.com ACCOUNTINGOpen Discussion
  57. 57. Blattfg.com CONTRACTSReview and Implement Sales contracts Vendor contracts Partnership agreements Lease agreements Employment contracts
  58. 58. Blattfg.com CONTRACTSLook for… Specific language of responsibilities of parties Compare to compliance issues in your industry Consideration between parties Beware of obvious duplicate contracts Read your whole contract Hire competent counsel to review your contracts!
  59. 59. Blattfg.com CONTRACTSResources  Peter Blatt, J.D. LL.M. and Blatt Legal (561) 625- 0900  Uniform Commercial Code (FloridaUCC)  Dunn & Bradsheet (MyCredit.DNB.com)  Better Business Bureau (BBB.com)  Personal Credit Reporting (Equifax.com)
  60. 60. Blattfg.com CONTRACTSOpen Discussion
  61. 61. Blattfg.com MARKETING METHODSWebsite and Online Promotion Website as a resource Active user engagement Guerilla marketing and PR Mailings Referrals Compliance
  62. 62. Blattfg.com MARKETING METHODSWebsite as a resource You are your representation on the web  Self-managed  Third-party provider  Combination of both Resources: WordPress, Freelance.com, referral
  63. 63. Blattfg.com MARKETING METHODSActive user engagement (AUE) Content is king – blogs, articles, authorship Social Media – LinkedIn, Facebook, Twitter SEO – bookmarking, link building, fresh content Videos and media – YouTube, VimeoBest Tip: hire a professional!
  64. 64. Blattfg.com MARKETING METHODSGuerrilla marketing and PR DIY Marketing • Add events to community calendars, etc. • Submit to business directories (Google, Yelp) PR – written as a news story, submitted via wire • Providers include PRNewsWire and MarketWire • Free directories and providers not as effective • Must be written well and be news-
  65. 65. Blattfg.com MARKETINGMailing METHODS Hard mailing – still effective! • Providers include RME, InfoUSA • Promote events, entice and inspire Email marketing  Consistent, promotional message  Message of expertise  Providers include MailChimp
  66. 66. Blattfg.com MARKETINGReferrals METHODS Build referrals by doing good business Join and attend networking groups Consider “referral-required” events ASK for referrals!
  67. 67. Blattfg.com MARKETING METHODSCompliance Industry and trade specific Join your industry’s trade group to stay up to date Be aware of Federal, State and Local levels Big fines and penalties for indiscretion Hire competent counsel!
  68. 68. Blattfg.com MARKETING METHODSOpen Discussion

×