One thing you should consider is what happens when you make so much money that investors won't let you authorize a buy-back of shares. One option is to make a charitable contribution! Why would you do that? Well, if you operate the non-for-profit-tax-free charity of choice, then you can write off the contribution and know the money is going to a good cause.
The process for formation is basically the same, except you're filing the non-for-profit articles. However, once all the typical steps are accomplished, you need to file for tax exempt status with the IRS.Like (0) Dislike (0) Comment (0)
The first thing you need is a business phone number. You can use the phone number you already have - it just helps that if from now on you answer using your business name. An even better measure would be to call your service provider and have the name on the bill changed! To do this, you will only need the TAX ID number, which you should have by this point - as well as a corporate credit card or bank account - which you also should have at this point.
Because we live in the age of information, having a website for your company will help legitimize it. Use an online domain registration service to register a .com or .org that represents your company or organization. We elected to use 1 and 1 for their $0.99/year ($9.99/year thereafter) domain deals to register a domain. From there, you need to actually build a web-page on a host. If you need help with a quick and dirty website, WirzBrothers can help set that up. We also have stock ledger, meeting minutes, and finance ledger tools for your company. Also, Wordpress.org has a quickly-rising website development tool.
Once your phone is a business phone it is time to list your business. You can use a free service like ListYourself.net or SuperPages.com to get your business a 411 listing. ListYourself.net seems to work better.
Another great way to advertise is to put a sign in your vehicle. I found the service at BuildASign.com was incredible and their solutions were very affordable. The one complication with making a sign is that the the file needs to be in vector format (.eps) and with as few colors as possible. I tend to utilize 5 colors: transparent, white, black, and two others that are usually derived from the corporate logo. I prefer physical advertisements because it makes your business look like something more than a flash-in-the-pan web startup - and it attracts local clients; plus, physical advertising lasts as long as the surface to which they are adhered.Like (0) Dislike (0) Comment (0)
To report on other companies, you need to update on six companies or more at once call 866-584-0283. You need to have the Data Universal Numbering System (D.U.N.S.) number - or the company name and address; after which Dun & Bradstreet will provide the D.U.N.S. number.
There are four disqualifiers for being a trade reference:
To allow companies to report on you, you need to add them to your self-monitor. The cost is $39/month. The smallest package uses 4 trade references. Additional trade references are 4 for $50/year and 12 per $100/year.
Dun & Bradstreet maintains a Paydex score (credit score) which ranges from 0 to 100. A Paydex score of 80 and above is very good. This is where the Net accounts are beneficial. A business that pays its accounts in full before the invoice is generated, receive the highest Paydex scores. It is possible to receive a Paydex score of 90 or above based on your payment history. You will need at least 5 accounts paid in full before the due date in order to establish a high Paydex score.
A Paydex score can be calculated by 3 or more trade references and any number of transactions.Like (0) Dislike (0) Comment (0)
The first card I would recommend getting, after a bank credit or debit card is American Express Blue for BusinessSM Card - which has no annual fees. The direct line to the business card department is 1-800-519-6736 (and keep hitting 0). After you apply, you can check your status at http://www.americanexpress.com/applicationstatus
The second card I would apply for would be a Discover Card. You can call Discover Card at 1-800-347-2683.
A visa or mastercard is helpful, and Citi credit cards offers these to small businesses.
In order to grow your Paydex score, look for vendors and lenders that will let you have business credit lines around $500 to $5,000 - anything that your business can pay back. Look for vendors who offer business credit for office supplies, computers or business furniture such as Office Depot.Credit bureaus use this early payment history to begin developing your corporate credit profile, so pay these vendors at least 10 days before the due date for a Paydex of 80 or better. By establishing good payment histories with these companies for the next six months, you can get bigger credit lines and loans. Gather at least six companies to report early payments to the credit bureaus on your corporate profile.
After six months of this, the company is eligible for larger credit lines of $5,000 to $50,000 and can apply for this type of funding. Repeat the same process for these companies and pay all bills ahead of schedule and the company can apply to lenders in the range of $50,000 to $250,000.Like (0) Dislike (0) Comment (0)
Once you have: