Forming a limited liability company for your small business -- or any-sized business -- endeavor can offer a number of benefits. One of the biggest benefits of the LLC formation is that it buffers you personally from the business's liabilities, so your personal assets aren't always on the line. While every situation is unique, there are some common steps to forming an LLC.
In our last post, we highlighted the importance of having proper documents in place to protect one’s business from the scourge of divorce. Specifically, a postnuptial agreement can help guard against the difficulties that can arise when a business was formed long after the marriage began. We also highlighted the issues that can arise in valuing a business.
Partnering with someone else to start a business has its perks. You don't feel so alone in the process, and you have another person to be excited with regarding the venture. You also have someone who can take on a share of the stress and responsibility, which is a major benefit when starting a business. However, if you aren't careful, a joint venture can become a terrible relationship and a business mistake.
If you're considering creating a start-up company, one of the things you'll need to get is funding. Normally, a start-up company will cost around $15,000 to launch, and then get another $200,000 in investments a few months later. After that, the goal is to get another $2 million from other funding sources six months later. That's how it should work, but that's not always how it does.
If you're planning to start a business, you may be wondering if you should be a sole proprietor or form a corporation. What is a C Corporation, though, and will it work to your benefit?
A business plan serves numerous purposes when you are forming and growing your business. It serves as a formal document that you can present to investors and partners, but it also provides you with the chance to really delve into your own plans. By writing a formal plan, you work out some of the internal questions you might have for the business and force yourself to consider serious issues such as the right organizational choices and whether the market will support your product.
The Willow River site, formerly the location of a Ford Motor Company WWII bomber plant and later a GM powertrain plant could become a center for testing driverless cars, with the hope of making Detroit and Michigan a center for the development of this new technology.
Many businesses in Michigan operate as a sole proprietorship. This makes sense for many small or part-time businesses. You may have limited capital and you may be the owner-boss-employee all wrapped in one. The danger, even in these types of situations, is that legally you and your business are the same.
It's business; it isn't personal. And like so many other aspects of running a business, succession planning leaves little place for emotions. In order to plan and orchestrate a transition of leadership in your small business, it pays to start well in advance. Before you plan to retire, it won't hurt to get more than a decade's jump on these decisions and then anticipate the need to revisit them as things may change over the course of that time.
With the start of the New Year, the business climate in Michigan is looking better than it has for many years. The auto industry may experience at another great year of performance, due to improved productivity and the industry always benefits from low gasoline prices.