Sales vs. Promotions, Pricing Your Goods , Customer Relations, Price Points, Selling on Online Auctions, Selling From Websites, Selling At Craft Fairs, Selling At Home Shows, Selling To Stores, Attitude, No Money Down Advertising, Independent Sales Reps, Customer Referrals, Gift Certificates, Be Customer Driven, Keepers, Mail Campaigns, Payment Types, Packaging, Bargain Selling, Basics of Selling, Working With Non Profits, Start Up Fees, Start Up Inventory, Competing With Imports, Calling New Businesses, Preparing for Sales Appointments, Sales Appointments, Teaching, Selling On Consignment, Selling Gifts, Doing Business Online, Hello, Networking Meetings Retaining Customers, Alliances, Names and Tag Lines, Logo and Image, Marketing to Kids, Custom Work, Design Considerations, Renting Space, Standing Out, Email, Newsletter, Photo albums (Portfolios), Dealing with the Press, Writing a Press Release, Turnaround, Manage Your Business, Quarter Auctions, Corporate Clients, Getting Over Your Fears, Lists, Smile, Gift Shopping Service, Praise your Customers, 15 Second Elevator Talks, Master Mind Groups, Your Customer, Adult Kits, Trends, Product Sheets, Compiling Mailing Lists, Growing From Mistakes, Post Cards, No, Lost Customers, Surviving Difficult Times, Slow Winter Months , Online Craft Sites
|
Don't miss an issue of The Beading
Times.
Our mailing list is private. We will not sell it. ********************
Interested in advertising here for
less than .01 a reader?
|
Business Structures
Sandy Paluzzi
The USA recognizes 4 different types of business entities. Three of
these entities are commonly used by artists and crafts people.
1) Sole proprietorship. There is one owner. That owner is
responsible for everything that happens in their company even if s/he has
employees. That means the owner accepts complete personal liability for
all debts, awards and judgments. A creditor can take the owner's
personal property to settle debts.
2) A partnership. There is more than one owner.
In an unlimited partnership, any of the owners can bind the partnership to a
contract that is relevant to the normal day to day operations of the
partnership. For example, any one of the partners could sign the
partnership to rent a booth at a craft fair. The owners share
responsibility for everything that happens in their company. A creditor
can take the partners' personal property to settle debts. If
there are 2 people in a partnership and one does not have the money to handle
their business debt, the other partner is responsible for that debt.
If any one of the partners leave the partnership, the whole partnership is
dissolved. Remaining partners could then choose to form a new
partnership.
3) A LLC or limited liability corporation. There can be one of more
owners (members). The members of an LLC are NOT liable for the debts of
the business. Taxes and bookkeeping rules are similar to those for
a partnership or sole proprietorship. The members do not have to
participate in the running of the LLC, they can hire a manager.
4)S-Corporation. The S-Corp is a special provision of a corporation
that exists solely for small businesses. The owners are shareholders of
the corporation. Like in an LLC, shareholders are NOT liable for the
debits of the business. However, bookkeeping is more complex for a
corporation. Also, shareholders must hold annual meetings and keep
track of shares. Taxation is passed through to the shareholders just as
in a partnership, sole proprietership, or LLC. S-Corps were very
popular before LLCs became readily available. Today, most artists and
crafts people who want to protect themselves from liability elect to form a
LLC.
|
******************** Register to win 25.00 Worth of Beads and Beading Supplies Click here to visit The Bead PeddlerŽ Full line of
Wholesale prices available to
the public! ********************
- |
|||||||||
