In Colorado, creating a new business entity is simple. It costs $50 and takes fifteen to twenty minutes to set up online. But just because it’s simple doesn’t mean people don’t get it wrong. In fact, many thousands of people get it wrong every year. In Colorado, every Limited Liability Company is required to include … Read More
According to the IRS, there are five types of business entities: Sole Proprietorships, Partnerships, Corporations, S Corporations, and Limited Liability Companies. Many state statutes allow for additional entities, such as Limited Liability Partnerships and L3Cs (You can register in Colorado as the former, not the latter). For the majority of entrepreneurs, the only real choices … Read More
When I think of businesses that incorporate in any state other than their home state or Delaware, the expression that comes to mind is “too clever by half.” Unless there is a law prohibiting your business from operating in your home state or Delaware (for example, Amazon refuses to allow companies incorporated in certain states … Read More
Well-run businesses have processes that work. Those who run the company have put thought into the processes. They’ve studied them, documented them, and formalized them. They leave no doubt about who made each decision and when. They leave a trail of evidence that supports the reasonableness of each decision and the methods that the company … Read More
Many small businesses that are on the fence of whether to form a corporation or an LLC decide to form an LLC because it’s easier and requires less upkeep. And while it is true that there are additional formalities associated with incorporation, they needn’t be overly burdensome for the small company without tremendous resources. One … Read More
Technically, to form a corporation, you only have to file articles of incorporation (or a corporate charter) with the secretary of state. But if you want to operate as a legitimate business that engages in regular transactions with customers to make money, you’re going to need a little more. Here are the basic documents that … Read More
The concept behind crowdfunding is simple and perfectly suited to the Internet. Rather than raise a lot of money from a few people, you raise a little from a lot of people. It’s easy and effective. Lots of new businesses have blossomed in catering to this market: Kickstarter, Indiegogo, and RocketHub, to name a few. … Read More