Many company owners that are currently going through a financial problems, such as multiple debts, realize that the problem definitely cannot be fixed or faced without the help of a business consolidation debt information company. These businesses have teams of people that take each case separately and analyze it in order to define which solution or method to apply to them, that is why the business consolidation debt information process is so necessary because the information gathered in every business is different and so the solution.
James Morrison, current client at Commercial Debt Counseling is the owner and manager of his own business and is going trough the process of business consolidation debt information where the professional counselors take a close look at his business and they sketch up a settlement and payment plan his specific case. This method is highly successful but it takes a lot from the combined effort of both, the client and the creditor that communicate through our team of specialist in order to maintain a healthy relationship. We make the deals with the creditors and after that we let the client know which offers are good enough to be considered, that is what the clients get with business consolidation debt information.
James Morrison: The business consolidation debt information process will save me from bankruptcy?
James Banks: For sure, bankruptcy although it may be known by people as a way out of debt problems it is also known for bringing some interesting secondary effects, such as high interest rates, the entry for bankruptcy will remain for as long as 7 years and your company will not be well seen under the lenders eyes.
James Morrison: What should I have in mind when choosing a business consolidation debt information company?
James Banks: Out there, meaning the internet and the current market, there are lots of business consolidation debt information programs to choose from, you could confused along the way of seeking a program that will fulfill all your demands. But remember, that is worth the effort because after choosing well you will be assuring your future. Specially given that there are many scams that promise one thing and do not accomplish it, remember that many of these companies are merely garage businesses that hire all of the services with a third company that lends all of the services. Ask for advice with the business consolidation debt information counselor and you will know what to look for.
The business consolidation debt information program, must: - Sketch a payment plan that will fit your business needs - Lower your interest rates - Help you find ways to make up a budget that will help free your business from debt - Be sure that the company provides business consolidation debt information counseling
James Morrison: How can I start the business consolidation debt information program?
James Banks: Simply, but filling out the online form on our site you will get signed in the business consolidation debt information program, after that you will receive a call from one of our counselors and he will explain how our program works, the benefits and the damages that will bring. Also the counselor will explain how your business situation can be improved and how to stop that the situation gets worse.
Business debt is not something to take lightly, it is a serious matter that can bring your company to bankruptcy, so take it in your hands but let professional people deal with the debt matter. After applying for the business consolidation debt information program you can also use it to learn from the counselors in order to avoid future debt situation and stay free, although it may no be an easy task but with an organized budget and proper decisions you can maintain your business as a profitable one and avoid as much as possible.
We have different articles on interesting topics and current and former clients' experiences with our programs. Take a look at the different situations on Business Consolidation Debt Information and related topics that people can fall into and how to keep yourself a debt free person. Check these links to learn more:
http://www.commercialdebtcounseling.com/useful-resources.shtml
http://www.commercialdebtcounseling.com/testimonials.shtml
About the Author
James Banks is a contributing writer to http://www.commercialdebtcounseling.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free Information on Business Consolidation Debt Information and Debt Help Consultation, call toll-free 1-877-850-3328
Thursday, April 12, 2007
Your Business Is Incorporated - But Are Your Personal Assets Safe?
Many small business owners understand the benefit of incorporating, but they don't realize how easy it is to lose their "corporate status" if they get sued or end up in bankruptcy. This is dangerous because then the court can come after their PERSONAL assets (like their house, car, savings, etc)!
Today, I will review a little bit of why incorporating is so important for small business owners, and then tell you five simple steps you can follow to protect your personal assets, even if your business gets sued or goes through bankruptcy.
It makes sense to incorporate for a couple of reasons. First, because it protects you from personal liability, and second, because it offers you some great tax advantages. For today, we're going to just focus on the personal liability part.
When you incorporate, your business becomes like another person. This other person has it's own bank account, it can own things like property, and it can take risks. Even if that "other person" (your business) goes completely bankrupt or gets sued, YOU are safe (assuming you do everything correctly).
This is important because many new businesses fail, but you as the entrepreneur don't want to fail. You want to pick yourself back up and start your NEXT business which will be even more successful. Failure is a necessary way to learn, so we want it to be as painless as possible.
When everything works like it should, then yes, you PERSONALLY are protected. But there are certain situations where your corporate status doesn't help you out, and every business owner should be aware of them!
You see, setting up a company gives you so much protection from liability, that unethical people in the past have tried to take advantage of it. They have created "shell corporations", or businesses just for the purpose of liability protection, to help them get away with various crimes.
Of course, the law had to be modified to weed out these people and make sure they were appropriately prosecuted. But in the process, the requirements for honest small business owners became TOUGHER. Some extra steps are now required to make sure your corporate status stays intact.
By the way, whenever a court decides to waive the corporate protection and actually prosecute the owners behind the company PERSONALLY, they call it "piercing the corporate veil". (Lawyers always like to come up with fancy names for things.)
Following are the top five ways to protect you personal assets then starting a business. Make sure you do these correctly, and you can be sure that even if your business experiences a colossal failure, or gets sued out of existence, at least your personal assets are safe and you can start over.
1. Never Engage in Fraud or any Criminal Act
This sounds simple, but many small businesses owners unknowingly break the law. Never sell a product you know is defective or doesn't work, misrepresent something in your advertising, forge any signatures, or pull a bait and switch (offer a great deal to get people in the door only to tell them it is out of stock so you can sell a substitute.) Run your business HONESTLY and with INTEGRITY every day, and it will pay off in the long run.
2. Never Misrepresent Your Corporate Officers or Members
Don't ever lie about who is involved in your company. When it comes time to ask for investors, or get people to support you, you may be templed to exaggerate about who is actually working with you. If they haven't actually SIGNED your operating agreement, then they aren't your partner.
3. Make Sure Your Follow All Corporate Formalities
If you are going to claim you are a company, then you'd better act like a company. That means you have to file all important documents and keep them on file (your operating agreement, articles of incorporation, and DBA for example). You also have to keep detailed financial records. In Breaking Free, I provide samples of these documents and show you exactly how to create them yourself. This will literally save you thousands of dollars in legal expense because you won't have to pay a lawyer to create them for you. (Read more below)
4. Keep Your Business and Personal Assets Separate
The business has to have it's own bank account. The money in that bank account is not YOUR money. It belongs to the business. In fact, if you decide one day come along and take some money out to buy yourself a Hawaiian vacation, that is called embezzlement (a crime)! Many first time business owners (especially if they are the sole owner) don't understand this concept. The money in the company is not theirs. The company is like a separate person, and all assets must be treated as such.
5. Never Treat the Business' Assets as if They Were Your Own
Don't deposit your personal checks into the corporate account. Don't use company money to finance your personal life and hobbies. Don't lend the company car to your buddy for a weekend excursion. Don't set up a cot in the back of the office and start living there! Again, the business and yourself are two separate people. Treat them accordingly.
With these five basic steps, you will be well on your way to protecting your personal assets in the event your business goes under.
Many successful business people, from Donald Trump to John D. Rockefeller, went through periods of ups and downs in their life. Not every company they bet on was a success. But they managed to survive and lived to fight another day because they where smart enough to INCORPORATE correctly. They followed the above five steps to make sure they wouldn't lose their corporate status in the event of a lawsuit. They made sure that their PERSONAL assets were safe, even if the COMPANY went bankrupt.
About the Author
Brian Armstrong is the author of Breaking Free, and is an authority on How to Start a Business. Learn how to incorporate the easy way and protect your assets in our FREE Online Course. Click Now!
Today, I will review a little bit of why incorporating is so important for small business owners, and then tell you five simple steps you can follow to protect your personal assets, even if your business gets sued or goes through bankruptcy.
It makes sense to incorporate for a couple of reasons. First, because it protects you from personal liability, and second, because it offers you some great tax advantages. For today, we're going to just focus on the personal liability part.
When you incorporate, your business becomes like another person. This other person has it's own bank account, it can own things like property, and it can take risks. Even if that "other person" (your business) goes completely bankrupt or gets sued, YOU are safe (assuming you do everything correctly).
This is important because many new businesses fail, but you as the entrepreneur don't want to fail. You want to pick yourself back up and start your NEXT business which will be even more successful. Failure is a necessary way to learn, so we want it to be as painless as possible.
When everything works like it should, then yes, you PERSONALLY are protected. But there are certain situations where your corporate status doesn't help you out, and every business owner should be aware of them!
You see, setting up a company gives you so much protection from liability, that unethical people in the past have tried to take advantage of it. They have created "shell corporations", or businesses just for the purpose of liability protection, to help them get away with various crimes.
Of course, the law had to be modified to weed out these people and make sure they were appropriately prosecuted. But in the process, the requirements for honest small business owners became TOUGHER. Some extra steps are now required to make sure your corporate status stays intact.
By the way, whenever a court decides to waive the corporate protection and actually prosecute the owners behind the company PERSONALLY, they call it "piercing the corporate veil". (Lawyers always like to come up with fancy names for things.)
Following are the top five ways to protect you personal assets then starting a business. Make sure you do these correctly, and you can be sure that even if your business experiences a colossal failure, or gets sued out of existence, at least your personal assets are safe and you can start over.
1. Never Engage in Fraud or any Criminal Act
This sounds simple, but many small businesses owners unknowingly break the law. Never sell a product you know is defective or doesn't work, misrepresent something in your advertising, forge any signatures, or pull a bait and switch (offer a great deal to get people in the door only to tell them it is out of stock so you can sell a substitute.) Run your business HONESTLY and with INTEGRITY every day, and it will pay off in the long run.
2. Never Misrepresent Your Corporate Officers or Members
Don't ever lie about who is involved in your company. When it comes time to ask for investors, or get people to support you, you may be templed to exaggerate about who is actually working with you. If they haven't actually SIGNED your operating agreement, then they aren't your partner.
3. Make Sure Your Follow All Corporate Formalities
If you are going to claim you are a company, then you'd better act like a company. That means you have to file all important documents and keep them on file (your operating agreement, articles of incorporation, and DBA for example). You also have to keep detailed financial records. In Breaking Free, I provide samples of these documents and show you exactly how to create them yourself. This will literally save you thousands of dollars in legal expense because you won't have to pay a lawyer to create them for you. (Read more below)
4. Keep Your Business and Personal Assets Separate
The business has to have it's own bank account. The money in that bank account is not YOUR money. It belongs to the business. In fact, if you decide one day come along and take some money out to buy yourself a Hawaiian vacation, that is called embezzlement (a crime)! Many first time business owners (especially if they are the sole owner) don't understand this concept. The money in the company is not theirs. The company is like a separate person, and all assets must be treated as such.
5. Never Treat the Business' Assets as if They Were Your Own
Don't deposit your personal checks into the corporate account. Don't use company money to finance your personal life and hobbies. Don't lend the company car to your buddy for a weekend excursion. Don't set up a cot in the back of the office and start living there! Again, the business and yourself are two separate people. Treat them accordingly.
With these five basic steps, you will be well on your way to protecting your personal assets in the event your business goes under.
Many successful business people, from Donald Trump to John D. Rockefeller, went through periods of ups and downs in their life. Not every company they bet on was a success. But they managed to survive and lived to fight another day because they where smart enough to INCORPORATE correctly. They followed the above five steps to make sure they wouldn't lose their corporate status in the event of a lawsuit. They made sure that their PERSONAL assets were safe, even if the COMPANY went bankrupt.
About the Author
Brian Armstrong is the author of Breaking Free, and is an authority on How to Start a Business. Learn how to incorporate the easy way and protect your assets in our FREE Online Course. Click Now!
Business Debt Negotiation. Settling Your Business Debts
Business debt Negotiation has become more and more a popular option in recent years like the most successful debt solution in the market for any financial difficulties. People can apply for business debt negotiation or personal debt negotiation but one of the main problems nowadays is that the internet has lots of misinformation about these processes, causing people to distrust these programs, due to the huge amount of scams on the net.
- What is business debt negotiation?-
Business debt negotiation is a process by which businesses negotiate with their creditors to reduce the balance of their total amount of debt. Depending on the client's circumstances, the creditors will decide what percentage the debt will be reduced to, the reduction can be as low as 40 to 50 percent. Once the creditor receives the funds the account will be zeroed out and your business will be debt free again.
- How does business debt negotiation affect the credit score? -
If you have been paying your debt on time and you are used to having your accounts current your credit score will surely be affected, and the business debt negotiation program will have a negative impact on your account, but there is one detail worth mentioning, before you attempt to apply for the business debt negotiation program, you see, before a creditor decides to see the possibility of accepting less than the complete balance as payment, your account must be in a delinquent state meaning that at least your business will have to be behind 3 months on monthly payments.
After your business has settled or negotiated every account and every deal has been paid then the account is closed and is reported as paid in full and the credit report will reflect a zero balance on each account. After that, each account of the credit report will begin to return to a number that is acceptable and eventually you will be able to obtain a mortgage, a car loan, or any other type of credit, once again. This happens generally a few months after finishing the whole process of the business debt negotiation.
- Is there any tax liability after applying the business debt negotiation program? -
When the creditor has already agreed to settle your account for less than the full amount, they are required by the IRS to report the canceled debt, if the amount of the forgiven debt is $550 or greater you may have to pay some taxes, although there is a possibility that you may not be required to do so if you can prove that you were "insolvent" at the time you finished settling your debts.
Here is some advice for those businesses that are suffering from debt and are thinking about applying for the business debt negotiation program:
Do not wait until your business has gone bankrupt, because there are several ways of helping you with your debts, although bankruptcy may seem very useful, it is at first, but like any radical solution it also brings lots of side effects that you will have to carry for several years to come. It is not easy to make decisions being a business entrepreneur, that is why you should always look out for the professional counseling that the business debt negotiation program offers. After successfully finishing the program you can enjoy of the learning programs that the business debt negotiation program has that will help you make decisions regarding your business financial future and will guide you both through the debt free road.
We have different articles on interesting topics and experiences from current and former clients with our programs. Take a look at related topics of different situations on Business Debt Negotiation that people can fall into and how to keep yourself a debt free person.
Check these links to learn more:
http://www.curadebt.com/settlement/business-debt-negotiation/business-debt-settlement-negotiation.asp
http://www.curadebt.com/about.asp
About the Author
Debbie White is a contributing writer to http://www.curadebt.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free Information on Business Debt Negotiation and Debt Help Consultation, call toll-free 1-877-850-3328
- What is business debt negotiation?-
Business debt negotiation is a process by which businesses negotiate with their creditors to reduce the balance of their total amount of debt. Depending on the client's circumstances, the creditors will decide what percentage the debt will be reduced to, the reduction can be as low as 40 to 50 percent. Once the creditor receives the funds the account will be zeroed out and your business will be debt free again.
- How does business debt negotiation affect the credit score? -
If you have been paying your debt on time and you are used to having your accounts current your credit score will surely be affected, and the business debt negotiation program will have a negative impact on your account, but there is one detail worth mentioning, before you attempt to apply for the business debt negotiation program, you see, before a creditor decides to see the possibility of accepting less than the complete balance as payment, your account must be in a delinquent state meaning that at least your business will have to be behind 3 months on monthly payments.
After your business has settled or negotiated every account and every deal has been paid then the account is closed and is reported as paid in full and the credit report will reflect a zero balance on each account. After that, each account of the credit report will begin to return to a number that is acceptable and eventually you will be able to obtain a mortgage, a car loan, or any other type of credit, once again. This happens generally a few months after finishing the whole process of the business debt negotiation.
- Is there any tax liability after applying the business debt negotiation program? -
When the creditor has already agreed to settle your account for less than the full amount, they are required by the IRS to report the canceled debt, if the amount of the forgiven debt is $550 or greater you may have to pay some taxes, although there is a possibility that you may not be required to do so if you can prove that you were "insolvent" at the time you finished settling your debts.
Here is some advice for those businesses that are suffering from debt and are thinking about applying for the business debt negotiation program:
Do not wait until your business has gone bankrupt, because there are several ways of helping you with your debts, although bankruptcy may seem very useful, it is at first, but like any radical solution it also brings lots of side effects that you will have to carry for several years to come. It is not easy to make decisions being a business entrepreneur, that is why you should always look out for the professional counseling that the business debt negotiation program offers. After successfully finishing the program you can enjoy of the learning programs that the business debt negotiation program has that will help you make decisions regarding your business financial future and will guide you both through the debt free road.
We have different articles on interesting topics and experiences from current and former clients with our programs. Take a look at related topics of different situations on Business Debt Negotiation that people can fall into and how to keep yourself a debt free person.
Check these links to learn more:
http://www.curadebt.com/settlement/business-debt-negotiation/business-debt-settlement-negotiation.asp
http://www.curadebt.com/about.asp
About the Author
Debbie White is a contributing writer to http://www.curadebt.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free Information on Business Debt Negotiation and Debt Help Consultation, call toll-free 1-877-850-3328
Business Growth - Examining Five Killer Strategies For Trouncing the Competition
Winners in business play rough and don't apologize for it.
Toyota has steadily attacked the Big Three where their will to defend was weakest, moving up the line from compact cars to mid- and full-size vehicles and on to Detroit's last remaining profit centers, light trucks and SUVs. All the while, Toyota has dared its rivals to duplicate a production system that gives the company unmatchable productivity and quality.
Dell is similarly relentless, and ruthless, in dealing with competitors. Last summer, the day after Hewlett-Packard announced weak results because of price competition in PCs, Dell announced a further across-the-board cut - delivering a swift kick to a tough rival when it was down.
Wal-Mart is well known for its uncompromising stance toward suppliers. In 1996, Rubbermaid, a $2 billion business that a few years earlier had been Fortune's most admired company, ventured to contest Wal-Mart's pressure on suppliers to lower their prices - and Wal-Mart simply cut Rubbermaid off. (Newell acquired a struggling Rubbermaid in 1999.) Wal-Mart doesn't pull punches with competitors, either. In recent years, as Kmart floundered in bankruptcy proceedings, Wal-Mart rolled out a knockoff of Kmart's Martha Stewart product line, putting pressure on one of the tottering retailer's few areas of success.
Hardly anyone would dispute that Toyota, Dell, and Wal-Mart have epitomized corporate success over the past decade. But the raised eyebrows they provoke - recent BusinessWeek cover articles have included "Can Anything Stop Toyota?" "Is Wal-Mart Too Powerful?" and "What You Don't Know About Dell" - suggest there's something not quite kosher about the way they achieve that success.
That's because Toyota, Dell, and Wal-Mart play hardball. What do we mean by this? Hardball players pursue with a single-minded focus competitive advantage and the benefits it offers - leading market share, great margins, rapid growth, and all the intangibles of being in command. They pick their shots, seek out competitive encounters, set the pace of innovation, test the edges of the possible. They play to win. And they do.
Softball players, by contrast, may look good - they may report decent earnings and even get favorable ink in the business press - but they aren't intensely serious about winning. They don't accept that you sometimes must hurt your rivals, and risk being hurt yourself, to get what you want. Instead of running smart and hard, they seem almost to be standing around and watching. They play to play. And though they may not end up out-and-out losers, they certainly don't win.
This may reflect the recent emphasis of management science, which itself has gone soft. Indeed, the discourse around a constellation of squishy issues - leadership, corporate culture, customer care, knowledge management, talent management, employee empowerment, and the like - has encouraged the making of softball players.
"Hardball", George Stalk, Jr. and Rob Lachenauer, Harvard Business Review, April 2004.
About the Author
Melih ("may-lee") Oztalay, CEO SmartFinds Internet Marketing Web: www.cjps-enterprises.com EMail: melih@hsfideas.com At CJPS Enterprises, we specialize in execution. Getting things done. Our approach is designed to give your company an unfair advantage.
Toyota has steadily attacked the Big Three where their will to defend was weakest, moving up the line from compact cars to mid- and full-size vehicles and on to Detroit's last remaining profit centers, light trucks and SUVs. All the while, Toyota has dared its rivals to duplicate a production system that gives the company unmatchable productivity and quality.
Dell is similarly relentless, and ruthless, in dealing with competitors. Last summer, the day after Hewlett-Packard announced weak results because of price competition in PCs, Dell announced a further across-the-board cut - delivering a swift kick to a tough rival when it was down.
Wal-Mart is well known for its uncompromising stance toward suppliers. In 1996, Rubbermaid, a $2 billion business that a few years earlier had been Fortune's most admired company, ventured to contest Wal-Mart's pressure on suppliers to lower their prices - and Wal-Mart simply cut Rubbermaid off. (Newell acquired a struggling Rubbermaid in 1999.) Wal-Mart doesn't pull punches with competitors, either. In recent years, as Kmart floundered in bankruptcy proceedings, Wal-Mart rolled out a knockoff of Kmart's Martha Stewart product line, putting pressure on one of the tottering retailer's few areas of success.
Hardly anyone would dispute that Toyota, Dell, and Wal-Mart have epitomized corporate success over the past decade. But the raised eyebrows they provoke - recent BusinessWeek cover articles have included "Can Anything Stop Toyota?" "Is Wal-Mart Too Powerful?" and "What You Don't Know About Dell" - suggest there's something not quite kosher about the way they achieve that success.
That's because Toyota, Dell, and Wal-Mart play hardball. What do we mean by this? Hardball players pursue with a single-minded focus competitive advantage and the benefits it offers - leading market share, great margins, rapid growth, and all the intangibles of being in command. They pick their shots, seek out competitive encounters, set the pace of innovation, test the edges of the possible. They play to win. And they do.
Softball players, by contrast, may look good - they may report decent earnings and even get favorable ink in the business press - but they aren't intensely serious about winning. They don't accept that you sometimes must hurt your rivals, and risk being hurt yourself, to get what you want. Instead of running smart and hard, they seem almost to be standing around and watching. They play to play. And though they may not end up out-and-out losers, they certainly don't win.
This may reflect the recent emphasis of management science, which itself has gone soft. Indeed, the discourse around a constellation of squishy issues - leadership, corporate culture, customer care, knowledge management, talent management, employee empowerment, and the like - has encouraged the making of softball players.
"Hardball", George Stalk, Jr. and Rob Lachenauer, Harvard Business Review, April 2004.
About the Author
Melih ("may-lee") Oztalay, CEO SmartFinds Internet Marketing Web: www.cjps-enterprises.com EMail: melih@hsfideas.com At CJPS Enterprises, we specialize in execution. Getting things done. Our approach is designed to give your company an unfair advantage.
Subscribe to:
Posts (Atom)