Tuesday, August 2, 2011 8:03:55 AM
f you’re beginning a new business, then congratulations are in order for you. Starting a brand new company is an draining, although satisfying, adventure. Before you start selling your wares, you’ll want to register in the state you’re operating in some form or fashion.
Many new proprietors consider sole proprietorship, or possibly a limited partnership, when initially starting out. Incorporating your company does have its benefits and is fairly simple, particularly if you use an incorporate business online company. We will present several of the required steps you may want to think about abiding by so that you may get your company incorporated, which can be done by yourself by using corporate kits, however this may not be your best choice.
The primary, as well as apparent, thing your business needs would be a name for your company. Consider what you want your business name to be. Make it contain words which reflect the type of company you’re in or the service that you provide to help create name recognition as well as to make brandmarking easier.
If you will be operating throughout different regions, make a decision as to the states you prefer or might wish to expand in, beginning with the region you’re conducting your company in is the most painless. The filing of paperwork would be similar in every region. The difference will be you will have to file the business’s individual yearly accounting as well as additional requirements independently. The charges can vary and the charges will also need to be satisfied independently.
Before filing, you’ll need to decide which kind of a corporation you wish to create, e.g. either an S or C corp, and whether you will be using a incorporation companies solution. These have their advantages, so school yourself on the benefits as well as the flexibility of every one to help you when making a choice which will be right for you.
The last item of note will be you will want to be able to list yourself as well as an additional manager of your company, also known as a working officer. If you’re a small family company, then it may be your wife or husband that you list or maybe a next of kin which possesses a sharp business mind that is trustworthy.
Tuesday, August 2, 2011 7:49:29 AM
An investment can be one of two types. It is either an equity investment or a debt investment. These are the two broadest forms of investments. A debt investment is where you loan your money to someone else for an amount called interest. A debt investment is unique in that the borrower is obligated to the debtor to pay the money back. An equity investment is where you loan your money to someone else for a share of the profits they receive from the way they use the money. An equity investment differs from a debt investment in that there is no obligation on the part of the debtor to pay you back. Debt investments give you a lower return than equity investments. Debt investments are also lower in terms of risk than similar equity investments.
The broad categories of debt investments include: bonds of all types (corporate, municipal and government), Bank CD’s, personal loans and a special class of hybrid stock called preferred. Each of these investments are something you purchase or place your money into in return for the interest that is generated over time and paid back to your personally. All of these investments have some protection in the event of a bankruptcy and you are entitled to receiving something back from a liquidation of assets if that were to occur. All of these investments carry with them a low to minimal amount of risk and are thus appropriate for more conservative investors or for anyone only able to leave their money in the investment for a short period of time (up to about 3 years).
The broad categories of equity investments include mainly stocks and a more esoteric investment called an option. Stocks are essentially a share of ownership you receive in a corporation in return for letting them use your money. The stock will have a value in the open market should you decide to sell it and in some cases it will pay you dividends as well. Most people buy stocks in the hopes that they purchase it at a low price and are then able to sell it at a high price. This happens because the corporation has performed well and increased its value during the time period between the purchase and the sale of the stock. The reverse can also happen. You may buy the stock at a high price and then subsequently sell it at a lower price for a net loss. This is the risk associated with stocks.
Ideally an investment portfolio should have some of both of these investment types. Money that will not be needed for three years or more are most appropriate for investing in stocks while money that will be needed in three years or less are most appropriate for bonds. Using this guideline you can allocate your money as best fits your personal situation. It is always recommended that you deal with an investment professional for making investments. These are professionals that devote their entire lives to understanding and being aware of the intricacies of investments and thus they can help you make better decisions. It is best to choose an investment professional based upon the recommendation of someone you know.
Tuesday, August 2, 2011 7:43:52 AM
Current situation: What is your current net worth, monthly income and expenses? Where can you reduce your expenses? How much debt are you carrying? At what rate of interest? How much are you saving? How are you investing it? What are your returns?
Your Financial Goals: What are they? How much will you need to achieve them? Are you on the right track?
Risk Tolerance level: How much risk are you willing and able to accept? Risk tolerance is determined by your personality, age, job security, health, net worth, emergency fund, and the length of your investing horizon.
Sort Out your Finances
Before you even think about investing, know where your money goes each month. Track your spending habits. If you're carrying debt at a high rate of interest, especially credit card debt, you should unburden yourself before you begin investing. Amass enough to cover three to six months of expenses for emergencies.
Never invest in anything you don't understand.
Invest Long Term
Invest for the long term. Do not be influenced by short-term fluctuations. These are inevitable as all economies as well as businesses experience the boom and bust cycle. Don't try to time the market. Get in and stay in. Review your plan periodically, and whenever your needs or circumstances change. If you are not confident that your plan makes sense, talk to an investment advisor or someone you trust.
Investing in Stocks and Mutual Funds
A long term view helps you to safely invest in 'riskier' investments, such as stocks, which the market rewards in general. This requires patience and discipline, but it increases returns. This approach reduces your choices to two: stocks and stock mutual funds. In the long run, they're the winners. The additional risk is worth it due to the power of compounding. 10% a year for 20 years is 570%, but 7% a year for 20 years is only 280%.
Arm yourself with knowledge.
Always do your homework. Knowledge is power. Understand personal finance matters that could affect you. Understand your current investments and the risks associated with them. Be cautious when evaluating the advice of anyone with a vested interest.
If you're going to invest in stocks, research companies until you understand them. Consider joining an investment club. Examine historical data or participate in a stock market simulation. If you don't have the time, consider mutual funds, especially index funds.
Get Help If You Need It
The do-it-yourself approach may not be suitable for everyone. If you try it and it's not working, or you're afraid to try it at all, or you don't have the time or desire, then you should seek professional assistance.
If you want others to handle your financial affairs for you, remain involved to some degree, to make sure your money is being spent wisely.