Your bank can help you build your empire. Image by DavidDMuir

Today in the United States the economy sucks.

The term “credit squeeze” has been floating around lately and refers to the fact that banks are in so much trouble themselves that they have tightened their lending policies almost to the point where credit scores don’t matter.

Cash is king, yes, but there is a “queen” out there that is almost as good as cash.

What is it?

Trust.

Being that I deal a little in real estate, people sometimes ask me questions about how to improve their credit scores or what’s the best way to obtain a line of credit.

My answer has always been you need to build trust with a bank, preferably one you can physically walk into and meet with someone face-to-face. If you already have great credit with an out of state bank that’s ok too, continue building that credit and trust, but nothing beats being able to walk into a bank and getting to know the staff.

No one with any sense advertently forms a general partnership these days, yet I hear over and over again new entrepreneurs looking to start a business with a partner mention how they want to form one.

As any smart business person should do, you need to first research your options available and listen to those who know.

The worst way to hold any assets or to do business as a partner is a General Partnership.  In my opinion, it’s all negative and there’s absolutely no advantage whatsoever.

Ok, what is a general partnership?

Here’s the definition: A general partnership is one in which all partners are general partners.

More specifically when a group of individuals (two or more persons) agree to collectively act as a business, a general partnership is formed. The emphasis here is on general. Most people have found that you can sue not only the partnership for all the assets it has, but if it doesn’t have enough, you can go after the individual partners and reach their personal estates. Ouch!

Article by Theresa Hoff

One of the hardest things for new business owners to figure out when forming a new corporation or partnership is how to split profits.

Often times 2 or more entrepreneurs will enter a business venture with the notion of sharing profits 50/50. But what happens when one person does 90% of the work while the other only contributes 10%?

Is this still a fair split?

To complicate things even further, what if your business partner was a family member or close friend? If you’re the one doing 90% of the work but only receiving 50% of the profits, how do you go about approaching your partner with a request that you take home more of the profits?

Here’s one possible solution.

Do You Have The Right Business Structure?

This is where so many people who try to save a dollar and incorporate themselves without really understanding the different business structures can do more harm than the pros of saving a few bucks.

Gas. Most of us need it. Some of us have it. Not everyone can afford it.

Hey, focus - this is a business blog, not a gastrointestinal blog. I’m talk’n the liquid stuff our cars run on

Seriously though, lately every community here in the states have been experiencing rising gas prices which in turn causes the price of products to rise. Trust me, truckers aren’t going to take all the hit. If it costs $1000 more to get that product to your local grocery store, the freight company is going to pass that cost to the store who will in turn pass that cost on to you, the consumer.

But do increases in your paycheck work the same?

Uh no, they most certainly do not.

This means you make the same amount of money but have to spend a whole hell of a lot more to drive, eat, drink, and well, live.

An interesting thing happens here.

A real estate mentor of mine once said, “If you choose to pursue wealth, do so wisely, and with good planning. Because once you begin accumulating wealth, there will be no shortage of unscrupulous people who will try to take it from you.”

In my article, The Different Types of Corporations, LLCs, Partnerships, & More, I discuss the different business structures available to business owners in the United States (sole proprietor, partnerships, corporations, limited liability companies, and living trusts).

If you’re only in the beginning stages of starting a business and don’t own many assets or other businesses, simply setting up one business structure, such as an LLC, is usually sufficient.

But what do you do as your business flourishes and you begin to acquire assets? Is owning only one business structure providing you with nearly 100% asset protection?

The answer is no.

The best method for asset protection is to combine the power of different business structures.

Example

What’s the difference between an S Corporation and LLC?

When setting up a business structure with partners, which business entity should I form and what are the pros and cons of each?

In this article we will discuss the typical business formations you see in the United States. We will discuss which business entity is best for you and the pros and cons of each.

These business structures can provide you, your family, and your business both tax benefits and protection from legal issues.

To set one up, contact us here at eVentureBiz, we can do this for you inexpensively and our work is superb.

Note: Choose your entity carefully. Setting up the wrong business structure for your business can cost you in many ways: taxes, regulatory restrictions, legal, and finance (stock) considerations are among a few. Give the design and structure of your business as much thought and consideration as you did your initial preparations.

The Different Business Structures

• Sole Proprietor

How would it make you feel if you knew after you passed away everything you ever owned ended up in court for years locked in a heated family debate.

Your children have children and still everything you wanted to pass along to your heirs after your death is still locked up in court. Is there a workaround so this doesn’t happen?

Yes! It’s called a Living Trust.

Exactly what is a Revocable Living Trust?

A living trust is a legal document which allows an individual to transfer ownership of titled and personal property from their name to what’s called a trust.

Once property is transferred to the trust, the trust becomes the legal owner. Even though the individual no longer “legally” owns the property, they can remain in control of all assets in the trust as long as they are alive. That is why it is called a “living” trust as it is created during one’s lifetime and “revocable” because it can be changed or rewritten as often as desired and could be revoked entirely at any time before one’s death.