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Business Incorporation

What to do Before You Start Your Business

July 15, 2018 by Admin

Are you interested in starting a new business? Make sure you do plenty of research and have a firm business plan ready before you take the plunge.

Making the Transition

If you have signed a noncompete or confidentiality agreement with your current employer, review it carefully to make sure it won’t hamper your startup efforts. If your new venture is in the same industry, be careful not to burn any bridges when you leave your current job. Scout out your opportunities. Buying a franchise or an existing business is much different than building a new business from the ground up.

Growing Your Business

Where will your customers come from? You may have one or two great prospects, but that may not be enough. Can you count on referrals from current business associates? Take a good hard look at opportunities for expansion that exist.

Figure Out Financing

Even with great prospects, it may take some time until cash starts coming in on a regular basis. Do you have enough of a financial cushion to get you through? If your spouse has an outside job, your spouse’s earnings and benefits may help provide stability during the startup period. If you need funding, where will it come from? Have you considered looking for a partner or investor?

Getting the Word Out

How much marketing and advertising will be required? Put together a comprehensive plan along with cost estimates. And, unless you’re familiar with the less traditional marketing and communication opportunities that today’s new media offer, you may want to enlist the help of someone who is.

Make a Budget

List every expense you can think of: rent, payroll (if any), phone and Internet service, computer equipment, website design, insurance, transportation costs, self-employment tax, etc. Then draw up a budget. Once your venture is up and running, you can use the budget as a guide in managing your finances.

Call our Fort Smith, AR Accounting Firm* today at 479-242-1236 for more tips on how to ensure you’re following business best practices, and let us help you keep your company in the black. We can assist with new business advisory services you can count on.

Filed Under: Business Incorporation

10 Things to Know about an LLC

December 13, 2017 by Admin

A Limited Liability Company or LLC is a legal entity that allows you to protect your personal assets from the company’s liabilities. If your business is structured this way the “members” or owners will have no personal responsibility for the financial obligations of the business. With an LLC, the business itself does not report taxes on its profits but uses “pass-through” taxation where the income and deductions are reported on the personal income tax returns of the members.

At ValueMetrik CFO, we offer business advisory services and advice that you can count on.

You probably know of several businesses whose formal names end with the acronym LLC. And you probably already knew that LLC stands for limited liability company. But, here are ten things you may not know.

10 Things You Might Not Know About an LLC

1. An LLC generally protects its owners from personal liability for business obligations in much the same way a corporation does, but an LLC is not a corporate entity.*

2. Like a corporation, an LLC can do business in multiple states, although an LLC must be organized in a specific state.

3. The owners of an LLC are called “members.” There is no limit on the number of members an LLC can have, and members don’t necessarily have to be individuals. Members’ management roles are typically spelled out in an operating agreement.

4. Upon formation of an LLC, the members contribute cash, property, or services to the LLC in exchange for LLC shares or units.

5. An LLC may borrow money in its own name and is responsible for repayment of the debt.

6. An LLC is usually treated as a partnership for federal income tax purposes. (The remaining four points assume partnership treatment.)

7. Like partners, LLC members are not considered employees of the company. However, an LLC can have non-member employees.

8. LLC members are taxed directly on company income. The LLC itself doesn’t pay federal income taxes.

9. If an LLC has a loss, its members generally can deduct their share of the loss on their own tax returns.

10. For tax purposes, an LLC’s income and losses are divided among its members according to the terms of their agreement. Tax allocations must correspond to economic allocations of profit and loss.

An LLC is but one structure you might consider using for a business venture. We can help you determine which type of arrangement will best meet your objectives. Whether you need individual or business tax advice, give us a call at our Fort Smith, AR Accounting Firm* at 479-242-1236. We’ve got the answers you’re looking for, so don’t wait, request a FREE initial consultation today.


*ValueMetrik, LLC is not registered with the Arkansas State Board of Public Accountancy.

* Each state has its own laws governing LLCs. Consult with an attorney before establishing an LLC.

Filed Under: Business Incorporation

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*ValueMetrik, LLC is not registered with the Arkansas State Board of Public Accountancy.

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