In order to form an LLC, an individual must file articles of organization with the secretary of state. Form an LLC with tips from a certified adviser on small business in this free instructional video on starting a business.
Expert: Paula Roberts
Bio: Paula Roberts is the executive director of the Tennessee State University Small Business Development Center.
Filmmaker: Dimitri LaBarge
Duration : 0:2:10
Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 4 – Business Organization
Question:
“What kind of company structure is right for a home based business?”
Robert O’Dell
E-Information Strategies
Topics covered in this video:
Starting a business, home based business, business organization, researching company structures, sole proprietorship, partnership, forming a corporation, LLC and S-Corporations, getting advice from business professionals such as accountants and business lawyers
Duration : 0:1:44
Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 4 – Business Organization
Question:
“What are some of the most common mistakes you see with people going into small business?”
Stan Henslee
Certified Public Accountant (C.P.A.)
Topics covered in this video:
Business mistakes, capital, planning, separation, bank accounts, organization
Transcript:
Basically I think there are three. The first one is that they’re going into the business under-capitalized. They put everything they’ve got into the business at the very start and they don’t have anything to fall back on. If they just had some high limit credit cards that were fairly clean to have something to fall back on to pay the bills when the business takes off a little slower than expected.
The second problem I see is co-mingling funds: paying personal expenses out of the business bank account and paying the business bills out of the personal bank account. You have to keep them separate and you have to treat the business as a separate entity and let it stand on its own.
The third biggest mistake I see, and this cripples most young businesses, is that owners take too much money out of the business in the early stages; where they leave the business under capitalized and no longer have the money needed to replace the product on the shelf or to expand into new areas. That is the kiss of death to a young business.
Duration : 0:1:32
Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 2 – The Business Plan
Question:
“From the standpoint of business organization, what mistakes do you see people making most often?”
John Powers
Attorney-at-Law
Topics covered in this video:
Starting a business, capital, funding
Transcript:
In working with businesses of all sizes I find that people often under estimate the amount of capital that they need to start the business and also to have in reserve for times of struggle and getting the business up and running. So I would say inadequate capitalization would be the primary problem that I run into.
Duration : 0:0:47
Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 4 – Business Organization
Question:
“Do you have any recommendations on how one should go about evaluating the pros and cons of taking on a partner?”
John Powers
Attorney-at-Law
Topics covered in this video:
Business organization, partnership, finding a business partner, limited liability
Transcript:
Partnership is a very popular form of operating entity. And I think what is most important is to think in terms of a business marriage. You’re going to be living and working with this person on a daily basis, so you want to have somebody you’re compatible with and someone who compliments and perhaps strengthens any weaknesses you have in order to better fulfill the goals of the business. If you have certain strengths but know that you have certain other areas you’re not good at, and you have a proposed partner that maybe strong in those areas, that would be something to consider if you’re able to get along and work out the other issues. I also recommend that with regard to partnerships you investigate whether there are limited liability protections available in your state and also give some thought to what would happened if in fact the partnership fails. Keep in mind that it is just like a business divorce. And you want to have given some thought to that; perhaps have an agreement in writing as to what would happen in that circumstance before you get started.
Duration : 0:1:44