Sunday, March 20, 2011

Introduction to Business-How it Works

     If you are an average person, you can now make extra money with one simple investment-your time.  There are over one hundred different spare-time (even full-time) money making opportunities that require only a small time investment. Yet, they can bring you a large sum of profit.

     Some of the opportunities will call for as little effort as picking up a telephone or holding and using a pencil. The work may be effortless but it calls for sincerity, honesty, and reliability. It may feel as if you are getting something for nothing, but you are investing your time. You should be compensated for your efforts, no matter how seemingly slight.

     Start out by telephoning your local County Clerk (look in the telephone book) and ask if there are any specific laws about operating a one-person home-based business. Because laws are different from state to state, you need to find out if any regulations apply in your own town:
     Meanwhile, here are three ways to set up your own home-based business.
     Very easy to set up. Ask your local County Clerk where to obtain the forms which you can easily fill out yourself. File one set with your County Clerk for a small fee. File another copy of the form with your bank and now you will have a checking account under any trade or assumed name you select.
     As a sole proprietor, you are fully responsible for any debts incurred in your business. If your business should fail, you are required to fulfill all obligations out of your pocket. All profits you make are subject to taxes as personal income.

     This arrangement is used if you have a partner in your home-based business. Ask your local County Clerk for the required forms to file. Do it at the very start to avoid later disagreements. On a sheet of paper, write down the full name of the venture, how much money each of you will invest, the obligation of each, how you will share the profits, and what are the conditions if either of you should want to leave or sell out the share in the venture. By writing all this down in the beginning, you will avoid problems at a later date.

     You may want to set up a corporation. As owner of the corporation you cannot be held personally responsible for any of the company's debts. A corporation is considered a seperate legal "person" in itself. You usually need the help of an attorney for creating a corporation. A corporation is helpful if you have more involved business deals and you require the umbrella-like safety of a separate entity. You may be cautious with your own monies and prefer a corporation to take the risk. Since a corporation is a seperate legal "person," it is taxed separately.
     Now that you are prepared, you are ready to enter into the world of many income opportunities. Good Luck!