December 2017 Blog Posts

  • Ultimate Cheat Sheet On Business Entity

    December 30, 2017

     Choosing the right business structure is key to making the most out of your small business. It can be difficult to decide what type of entity to register as. The most common types of entities include sole proprietorships, partnerships, corporations and limited liability companies. Read up on our cheat sheets to decide what the best type of business entity is right for your business.

    1. Sole Proprietorships

    A sole proprietor owns  an unincorporated business by him or herself.

    Advantages:

    Easy and least expensive to establish

    Owner can deduct net business loss from personal income taxes


    Disadvantages:

    Owner is liable for any debt, judgements or other liabilities

    Harder to raise capital


         2. Partnership

    A partnership is a relationship existing between two or more people who come together to create or carry on a business. Each individual contributes property, labor, money or skill and has a share in the profits or losses.


    Advantages:

    Greater possible capital

    Easy to form and operate


    Disadvantages:

    All owners are personally liable

    Divided authority amongst owners


         3.   S-Corporations

    S-corporations are corporations that elect to pass corporate income, losses and deductions to their shareholders for federal taxes.


    Advantages:

    Limited liability to stockholders

    Lifespan, the business is a legal entity and can grow

    Disadvantages:

    Expensive with more paperwork

    Interest of owners determines their incomes from business profits

    4. C-Corporation

    In a corporation, shareholders exchange money and property and can take special tax deductions. A corporation distributes profits to shareholders and recognizes net income or loss.


    Advantages:

    Unlimited number of shareholders

    Some benefits can be deducted as business expenses


    Disadvantages:

    Must pay its own taxes as a separate tax entity

    Extensive paperwork must be filled out to start a corporation

    5. Limited Liability Corporation (LLC)

    This is a business structure where owners are called members and allowed by state statute.


    Advantages:

    Owners can choose how the entity should be taxed

    Allows great flexibility on business structure


    Disadvantages:

    Most expensive to establish

    Some states only allow one member in the LLC

    No matter what type of business entity you are interested in or that is the best fit, our experienced team here at BIG can help you get started.


  • 5 Signs You Should Invest In A Business Mentor

    December 15, 2017

     Business mentoring provides companies of any size number benefits that range from boosting company morale to providing industry expertise. Many businesses don’t see the need for business mentors however, these signs will tell you if you should invest in one.

    1. New Management

    Often times, when someone new comes on in the sole leadership position, they try to be exactly like the person before. A business mentor can help bridge the gap between the old and new leader. They can discuss new ways to manage the company or business while keeping the same values.

    1. No Business Growth

    An obvious sign of needing a business mentor is if you aren’t seeing any real growth within the business such as revenue, clients, etc.

    1. High Turnover

    Business often struggle to retain employees and lose talented workers. If you are noticing a high turnover rate, it may be time to invest in a business mentor. Mentors have reduced turnover rates by helping you create an inviting atmosphere for employees. Mentors suggest ways for you to better support and empower employees.

    1. Need for Change

    The more a business grows, change is inevitable. Whether it is bringing on more employees or internal structure changes, a business mentor can help guide you. They can talk you through the necessary steps to get you to where you want to be and give realistic advice to help you reach your business goals.

    1. Employee motivation and morale are low

    The morale and motivation of company employees is crucial to success. Business mentors can suggest ways to increase internal comradery to motivate employees to put their best foot forward day in and day out. Through this, business leaders will gain support and personal motivation as well.

    Business mentoring can guide your business to success. From basic morale suggestions to ways to reduce turnover rates. Contact us for your business mentor needs at http://www.bizimprove.com/contact/.