“Your SCORE listing needs to be taken down. SCORE does not recommend any specific services. Further, we have removed your link because we are only linking to free resources or to current alliances. Please cease and desist immediately” Signed, Christine Chirichella
Not very nice, is it? This was how we learned that, after more than a year as a recommended “Powerful Link,” one of our alliances had been terminated. A few days ago, the SCORE website listed Active Filings as a power link under Legal & Tax services http://www.score.org/small_biz_power_links.html#a_6).
We appeared there for more than a year because our website provides valuable free resources to our visitors and because we were one of the few incorporating companies developing content in Spanish. SCORE is a non-profit organization linked to the Small Business Administration, a well-known governmental agency.
SCORE is supposed to help small business achieve success by providing free tools and resources. In early December 2006, we received an e-mail from SCORE informing us that our listing had been removed due to the business nature of our website. SCORE representative Christine Chirichella wrote, “You were removed because overall the goal of your site is selling services, not providing free resources.”
At the same time, they added links to The Company Corporation, Business Filings Incorporated, and two other firms that were later removed. The Company Corporation and Business Filings are probably number one and number two in our market. They both belong to large corporations and have near-universal presence. There is no doubt that these companies are even more business oriented than Active Filings.
As Nina Birnbach, Active Filings' VP told the SCORE representative, “I understand what you are telling us about your policy, but I am very confused. You have left Bizfilings and Incorporate.com on the Score site and they also meet the criteria that you stated in your e-mail. The overall goal of their sites are selling services as well and not providing free resources. They are the same type of companies as we are. I am certain that these sites could not exist without selling a product. CCH, the owner of Bizfilings, is very sales oriented and profit driven. As a CPA I get advertising from them all the time. If they were non-profit, in the business of providing free resources, I don't think I would hear from them as much and they wouldn't advertise on the search engines for business as much as they do.”
For a small and independent company like Active Filings, the exact type of company that SCORE wants to help, a link on the SCORE website was very important. Not only for the visitors brought to our site, but also for the “link popularity” assigned by Google and other search engines. This link contributed to our overall search engine positioning and high ranks we have achieved after five years of hard work.
There is no need to hide the fact that this unfair action taken by SCORE has hurt us.
Not only they were unable to support their policy about not linking with business-oriented websites (why does SCORE continue to list Bizfilings.com, Incorporate.com, and many others on their links page?), but also it seems they are favoring large corporations. As a small company without the resources of these big fish in our industry, we needed this link. Unfortunately, we have no other way to show our frustration other than to draw attention to what SCORE and the Small Business Administration have done.
Perhaps we are missing a part of the story. The lack of an explicit and comprehensible policy leaves us with many unanswered questions. Perhaps SCORE and the SBA would better serve America's small business community, and Hispanic businesses, by establishing clear, consistent, and easily understood rules about linking with other sites.
Who knows?
Robert Neuberger is founder of Active Filings LLC, (http://www.activefilings.com) a company that provides business incorporation and LLC formation services in all 50 states and Washington DC. You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included.
Sunday, December 17, 2006
Wednesday, December 6, 2006
9 Ways to Choose the Right Incorporation Company
So you have taken the first step to opening your business and you have decided to make it a Corporation or Limited Liability Company. There are many companies out there that offer incorporation services, so how do you know which one is the right one for you and your business? These nine steps will help you make an informed decision about the incorporation company you choose, so you can avoid the pitfalls of incorporating with the wrong one.
1) If you build it they will come
Just because an incorporation company has a web site doesn’t mean that it is a legitimate business entity. There are many “incorporate.com” companies online that are simply that, a web site. You should thoroughly research the company you are thinking about using to incorporate your business to make sure they are a formal business entity (corporation or LLC). You can investigate a company by contacting the Better Business Bureau and State Attorney’s Office where the business is physically located to find out if any complaints have been filed against them. You can even go as far as to look up their business license to verify that it is current. Business licenses can be verified with the state in which the business is operating.
2) Business affiliations
Businesses like to place their business affiliations and organization membership logos on their website and other marketing material. Often times this helps to relax potential customers because it makes customers feel like they are working with a legitimate company. It is very important that you take these memberships at face value and dig a little deeper to verify that this company is actually a member of these organizations.
For example, when you see the Better Business Bureau logo on a web site, you probably breathe a sigh of relief. Take a few minutes to contact the Better Business Bureau via phone or online to verify the company’s membership status and to make sure that there haven’t been any complaints filed against them. It will take only a few minutes of your time and can save you a huge headache in the long-run.
Many organizations have stringent guidelines that a company must adhere to in order to become a member. For example, the local chapter of the Chamber of Commerce may require that the company provide a copy of their business license and occupational license, in order to ensure the company is a legally operating entity. These types of procedures are for the protection of the consumer, so utilize the public information available to you and verify everything!
3) All American
Be sure to place your order with US companies. The US has security laws that protect the consumer from having their information distributed or used inappropriately. If you happen to deal with a company that looks like an American business, but actually operates from abroad then you could be putting you and your company at risk. The last thing you want is your credit card information to be sold in a foreign country.
4) Filing fees
Many incorporation companies advertise and promise you low fees, but they actually place a mark-up on the state filing fees in order to make a profit. Find out if the incorporation company will provide you with a receipt directly from the state. This way you will be able to verify that what you were charged for the state filing is actually what it cost. If the incorporation company will not provide this to you, then they probably have something to hide.
5) Identity theft:
With the growing concern of identity theft, it is important that you deal only with web sites and companies that provide you a strong guarantee about the way they are going to protect your personal information. Make sure that if you are providing credit card information online that you are providing it on a secure server that has a “Hacker Safe” certification. This is going far beyond a secure server. This is a system that monitors a server (not a web site only) 24 hours a day to check for potential vulnerabilities. The company should also comply with the FBI guidelines in terms of internet security.
Even if you are giving the credit card or personal information over the phone, inquire as to what the company will do with the information after your order is processed. Keeping your information on file could put you at risk. Make sure that they have some sort of policy that deletes your information after it has been used in filing your incorporation order.
6) Satisfaction guaranteed
What if something goes wrong with your transaction? Verify that the company provides you with some sort of satisfaction guarantee, or money back guarantee. This way if something is to go wrong, you won’t find yourself out of money and without your business incorporation documents properly filed.
7) Avoid the middleman
Be sure to do business with companies that deal directly with the state where you are going to incorporate your business and not through other incorporating companies. Intermediaries will not give you the timely response that you deserve. Again, just because a company has set up a web site to provide incorporation services, it doesn’t mean they have the expertise to perform professionally.
8) Customer support
Before placing you order, send an email or make a phone call to the company you are thinking about using. See how long it takes for them to respond to your inquiry. This will give you an idea of how responsive they are to your needs and it also allows you to indirectly gage the overall professionalism of the company.
9) Look at the whole picture
Make a list of all of the services that you wish to receive and compare the prices for these services on 3 or 4 different companies. Try not to let yourself be lured into using a company because they offer a low fee on one service. By totaling all of the services you will need, you will be able to see what the total cost to you will be and choose the one that is most cost effective.
Follow these nine steps carefully in choosing your incorporation company and you will be well on your way to success. Happy incorporating and good luck with your new business!
* Robert Neuberger is founder and President of Active Filings LLC
1) If you build it they will come
Just because an incorporation company has a web site doesn’t mean that it is a legitimate business entity. There are many “incorporate.com” companies online that are simply that, a web site. You should thoroughly research the company you are thinking about using to incorporate your business to make sure they are a formal business entity (corporation or LLC). You can investigate a company by contacting the Better Business Bureau and State Attorney’s Office where the business is physically located to find out if any complaints have been filed against them. You can even go as far as to look up their business license to verify that it is current. Business licenses can be verified with the state in which the business is operating.
2) Business affiliations
Businesses like to place their business affiliations and organization membership logos on their website and other marketing material. Often times this helps to relax potential customers because it makes customers feel like they are working with a legitimate company. It is very important that you take these memberships at face value and dig a little deeper to verify that this company is actually a member of these organizations.
For example, when you see the Better Business Bureau logo on a web site, you probably breathe a sigh of relief. Take a few minutes to contact the Better Business Bureau via phone or online to verify the company’s membership status and to make sure that there haven’t been any complaints filed against them. It will take only a few minutes of your time and can save you a huge headache in the long-run.
Many organizations have stringent guidelines that a company must adhere to in order to become a member. For example, the local chapter of the Chamber of Commerce may require that the company provide a copy of their business license and occupational license, in order to ensure the company is a legally operating entity. These types of procedures are for the protection of the consumer, so utilize the public information available to you and verify everything!
3) All American
Be sure to place your order with US companies. The US has security laws that protect the consumer from having their information distributed or used inappropriately. If you happen to deal with a company that looks like an American business, but actually operates from abroad then you could be putting you and your company at risk. The last thing you want is your credit card information to be sold in a foreign country.
4) Filing fees
Many incorporation companies advertise and promise you low fees, but they actually place a mark-up on the state filing fees in order to make a profit. Find out if the incorporation company will provide you with a receipt directly from the state. This way you will be able to verify that what you were charged for the state filing is actually what it cost. If the incorporation company will not provide this to you, then they probably have something to hide.
5) Identity theft:
With the growing concern of identity theft, it is important that you deal only with web sites and companies that provide you a strong guarantee about the way they are going to protect your personal information. Make sure that if you are providing credit card information online that you are providing it on a secure server that has a “Hacker Safe” certification. This is going far beyond a secure server. This is a system that monitors a server (not a web site only) 24 hours a day to check for potential vulnerabilities. The company should also comply with the FBI guidelines in terms of internet security.
Even if you are giving the credit card or personal information over the phone, inquire as to what the company will do with the information after your order is processed. Keeping your information on file could put you at risk. Make sure that they have some sort of policy that deletes your information after it has been used in filing your incorporation order.
6) Satisfaction guaranteed
What if something goes wrong with your transaction? Verify that the company provides you with some sort of satisfaction guarantee, or money back guarantee. This way if something is to go wrong, you won’t find yourself out of money and without your business incorporation documents properly filed.
7) Avoid the middleman
Be sure to do business with companies that deal directly with the state where you are going to incorporate your business and not through other incorporating companies. Intermediaries will not give you the timely response that you deserve. Again, just because a company has set up a web site to provide incorporation services, it doesn’t mean they have the expertise to perform professionally.
8) Customer support
Before placing you order, send an email or make a phone call to the company you are thinking about using. See how long it takes for them to respond to your inquiry. This will give you an idea of how responsive they are to your needs and it also allows you to indirectly gage the overall professionalism of the company.
9) Look at the whole picture
Make a list of all of the services that you wish to receive and compare the prices for these services on 3 or 4 different companies. Try not to let yourself be lured into using a company because they offer a low fee on one service. By totaling all of the services you will need, you will be able to see what the total cost to you will be and choose the one that is most cost effective.
Follow these nine steps carefully in choosing your incorporation company and you will be well on your way to success. Happy incorporating and good luck with your new business!
* Robert Neuberger is founder and President of Active Filings LLC
7 Advantages to Incorporating
There's no question that hard work and a little luck is what it takes to BE successful. But a little knowledge, especially when it comes to setting up your business, will help you STAY successful.
While many business owners give a lot of thought to location, store décor, customer service, hiring employees and management issues (and rightly so); choosing the proper business structure (such as sole proprietor, partnership, corporation, limited liability company) doesn't get the attention it deserves.
Many entrepreneurs don't realize this, but the business form they choose can often times be the difference between success and failure, especially in today's competitive and litigious marketplace. If you want to succeed, you need all the advantages you can get. High on the list of safe bets is the corporate form of business.
Incorporating, while definitely not for everybody, offers several distinct and money-saving advantages over the other types of entities. Here are seven of those advantages:
Asset Protection - If you operate as a sole proprietor or partnership, there is virtually unlimited personal liability for business debts or lawsuits. In other words should you go out of business or be a defendant in a lawsuit, your personal assets such as homes, jewelry, vehicles, savings, etc. are up for grabs. This is generally NOT the case when you incorporate. When you incorporate you are only responsible for your investment in the corporation. The limited liability feature of a corporation, while not a guarantee, is DEFINITELY one of the most attractive reasons for incorporating.
Easier To Sell - Corporations are generally much easier to sell and are usually more attractive to buyers than either a sole proprietorship or partnership. The reason for this is because a new buyer will not be personally liable for any wrongdoings on the part of the previous owners. If someone buys a sole proprietorship, for example, the new owner can be held personally liable for any mistakes or illegalities on the part of the prior owner…even if the new owner had NOTHING to do with the situation! This is usually NOT the case with a corporation.
Tax Savings - When you incorporate there are numerous tax advantages at your disposal that are virtually impossible to accomplish with other business entities. When you incorporate you create a separate and distinct legal entity. Because of this, there are many transactions that you can structure between you and your corporation to save big money on taxes. For instance, if you own a building you can rent office facilities to your corporation and claim depreciation and other deductions for it. Your corporation can then claim the rental expense. You are prohibited from doing this if you are a sole proprietor or a partner in a partnership.
Privacy and Confidentiality - The corporate form of business is a great way to keep your identity and business affairs private and confidential. If you want to start a business, but would like to remain anonymous, a corporation is the best way to accomplish this. States such as Nevada offer even more privacy protection for corporations and their shareholders.
Easier to Raise Capital - When you're looking to raise money through investment or borrowing, a corporation can actually make finding and getting the money you need easier. If you want to take on investors you simply sell shares of stock. If you want to borrow, a corporation can add clout when dealing with banks or other lending institutions.
Perpetuity - As I mentioned in #3, when you incorporate you create a separate and distinct legal entity. This separate and distinct entity (the corporation) can endure almost forever irrespective of what happens to the shareholders, directors, or officers. This is NOT the case with sole proprietorships, partnerships or even limited liability companies. For example, if an owner, partner, or member dies the business AUTOMATICALLY ends or gets wrapped up in legal red tape. Corporations, on the other hand, have unlimited life.
Increases Credibility - Let's face it. Most people feel more secure and confident dealing with a corporation as opposed to a sole proprietorship. Having INC. or CORP. after your company's name adds a touch of professionalism and credibility to your business dealings.
As always, be sure to consult with your attorney or business advisor before undertaking any important legal or financial decision. While there are many advantages and money-saving reasons to incorporate, as I've said before, it's not for everybody. However, you do owe it to yourself to find out more.
Alex Goumakos is a CPA, business advisor and guest consultant of Active Filings LLC, a professional incorporating company that provides services in all US. (http://www.activefilings.com).
You have permission to publish this article electronically or in print, free of charge, as long as the resource box at bottom is included.
While many business owners give a lot of thought to location, store décor, customer service, hiring employees and management issues (and rightly so); choosing the proper business structure (such as sole proprietor, partnership, corporation, limited liability company) doesn't get the attention it deserves.
Many entrepreneurs don't realize this, but the business form they choose can often times be the difference between success and failure, especially in today's competitive and litigious marketplace. If you want to succeed, you need all the advantages you can get. High on the list of safe bets is the corporate form of business.
Incorporating, while definitely not for everybody, offers several distinct and money-saving advantages over the other types of entities. Here are seven of those advantages:
Asset Protection - If you operate as a sole proprietor or partnership, there is virtually unlimited personal liability for business debts or lawsuits. In other words should you go out of business or be a defendant in a lawsuit, your personal assets such as homes, jewelry, vehicles, savings, etc. are up for grabs. This is generally NOT the case when you incorporate. When you incorporate you are only responsible for your investment in the corporation. The limited liability feature of a corporation, while not a guarantee, is DEFINITELY one of the most attractive reasons for incorporating.
Easier To Sell - Corporations are generally much easier to sell and are usually more attractive to buyers than either a sole proprietorship or partnership. The reason for this is because a new buyer will not be personally liable for any wrongdoings on the part of the previous owners. If someone buys a sole proprietorship, for example, the new owner can be held personally liable for any mistakes or illegalities on the part of the prior owner…even if the new owner had NOTHING to do with the situation! This is usually NOT the case with a corporation.
Tax Savings - When you incorporate there are numerous tax advantages at your disposal that are virtually impossible to accomplish with other business entities. When you incorporate you create a separate and distinct legal entity. Because of this, there are many transactions that you can structure between you and your corporation to save big money on taxes. For instance, if you own a building you can rent office facilities to your corporation and claim depreciation and other deductions for it. Your corporation can then claim the rental expense. You are prohibited from doing this if you are a sole proprietor or a partner in a partnership.
Privacy and Confidentiality - The corporate form of business is a great way to keep your identity and business affairs private and confidential. If you want to start a business, but would like to remain anonymous, a corporation is the best way to accomplish this. States such as Nevada offer even more privacy protection for corporations and their shareholders.
Easier to Raise Capital - When you're looking to raise money through investment or borrowing, a corporation can actually make finding and getting the money you need easier. If you want to take on investors you simply sell shares of stock. If you want to borrow, a corporation can add clout when dealing with banks or other lending institutions.
Perpetuity - As I mentioned in #3, when you incorporate you create a separate and distinct legal entity. This separate and distinct entity (the corporation) can endure almost forever irrespective of what happens to the shareholders, directors, or officers. This is NOT the case with sole proprietorships, partnerships or even limited liability companies. For example, if an owner, partner, or member dies the business AUTOMATICALLY ends or gets wrapped up in legal red tape. Corporations, on the other hand, have unlimited life.
Increases Credibility - Let's face it. Most people feel more secure and confident dealing with a corporation as opposed to a sole proprietorship. Having INC. or CORP. after your company's name adds a touch of professionalism and credibility to your business dealings.
As always, be sure to consult with your attorney or business advisor before undertaking any important legal or financial decision. While there are many advantages and money-saving reasons to incorporate, as I've said before, it's not for everybody. However, you do owe it to yourself to find out more.
Alex Goumakos is a CPA, business advisor and guest consultant of Active Filings LLC, a professional incorporating company that provides services in all US. (http://www.activefilings.com).
You have permission to publish this article electronically or in print, free of charge, as long as the resource box at bottom is included.
Run your business safely!
If incorporating was your first step to a new and safe way to do business, compliance with the law is the easiest way to keep you safe from any liability associated with they way you manage your company. Let’s talk about this important topic.
Failure to follow corporate formalities may expose corporate officers, directors and shareholders to personal liability. Maintaining good records, including corporate minutes, on a timely basis goes a long way toward maintaining the limited liability benefit of a corporation.
If incorporating was your first step to a new and safe way to do business, compliance with the law is the easiest way to keep you safe from any liability associated with they way you manage your company.
There are many reasons to pay attention to the formalities associated with running a corporation: Business Corporation laws require that articles of incorporation and bylaws be filed. In addition, other events must be recorded in the company’s record books.Articles of incorporation and bylaws serve as a contract between the corporation and its shareholders, obligating the corporation to act in accordance with them.
Directors and officers owe the corporation and shareholders a fiduciary duty to use good faith, exercise due care, and act in the best interest of the corporation. Majority shareholders must act in good faith, in a manner not calculated to oppress the rights of minority shareholders. Corporate formality must be respected and observed to preserve the integrity of the corporation; as well as to shield officers, directors, and shareholders or related businesses from personal liability.
Don’t think that due to the fact that you could be the only person holding all the positions of a corporation you are safe from keeping your company in compliance. Small companies also have duties with State Agencies, providers and even customers.
Why Are Minutes So Important
It’s the law. There is nothing clearer than that. Minutes are legal records that serve to document actions and support business decisions, made by the principals of the business throughout the year. Minutes help you to separate your own affairs from the company’s actions. It is the way to protect you from liability.
During an IRS audit a privately held company may be required to produce the minutes of the company. If they do not, or can not give the minutes to the IRS agent, the problems stand as found. There is no negotiation with the IRS. State law requires corporations to prepare annual minutes and in many cases; failure to do so has contributed to piercing of the company veil resulting in exposure to the principals.
As mentioned, without current and complete minutes, corporate players could be held personally liable for the actions of the corporation.
Protect Yourself
Your legal protection could be in jeopardy if a creditor successfully pierces the corporate veil due to the corporation’s failure to keep minutes.
Good recordkeeping habits and paying attention to detail are necessary for any successful business. Now you know it.
* Robert Neuberger is founder and President of Active Filings LLC. Active Filings provides incorporation services in all 50 States and Washington DC.
You have permission to publish this article electronically or in print, free of charge, as long as the resource box at bottom is included.
Failure to follow corporate formalities may expose corporate officers, directors and shareholders to personal liability. Maintaining good records, including corporate minutes, on a timely basis goes a long way toward maintaining the limited liability benefit of a corporation.
If incorporating was your first step to a new and safe way to do business, compliance with the law is the easiest way to keep you safe from any liability associated with they way you manage your company.
There are many reasons to pay attention to the formalities associated with running a corporation: Business Corporation laws require that articles of incorporation and bylaws be filed. In addition, other events must be recorded in the company’s record books.Articles of incorporation and bylaws serve as a contract between the corporation and its shareholders, obligating the corporation to act in accordance with them.
Directors and officers owe the corporation and shareholders a fiduciary duty to use good faith, exercise due care, and act in the best interest of the corporation. Majority shareholders must act in good faith, in a manner not calculated to oppress the rights of minority shareholders. Corporate formality must be respected and observed to preserve the integrity of the corporation; as well as to shield officers, directors, and shareholders or related businesses from personal liability.
Don’t think that due to the fact that you could be the only person holding all the positions of a corporation you are safe from keeping your company in compliance. Small companies also have duties with State Agencies, providers and even customers.
Why Are Minutes So Important
It’s the law. There is nothing clearer than that. Minutes are legal records that serve to document actions and support business decisions, made by the principals of the business throughout the year. Minutes help you to separate your own affairs from the company’s actions. It is the way to protect you from liability.
During an IRS audit a privately held company may be required to produce the minutes of the company. If they do not, or can not give the minutes to the IRS agent, the problems stand as found. There is no negotiation with the IRS. State law requires corporations to prepare annual minutes and in many cases; failure to do so has contributed to piercing of the company veil resulting in exposure to the principals.
As mentioned, without current and complete minutes, corporate players could be held personally liable for the actions of the corporation.
Protect Yourself
Your legal protection could be in jeopardy if a creditor successfully pierces the corporate veil due to the corporation’s failure to keep minutes.
Good recordkeeping habits and paying attention to detail are necessary for any successful business. Now you know it.
* Robert Neuberger is founder and President of Active Filings LLC. Active Filings provides incorporation services in all 50 States and Washington DC.
You have permission to publish this article electronically or in print, free of charge, as long as the resource box at bottom is included.
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