I KNOW.. very strange title for a topic under the a little bout myself forumn. But, it works for me. What better way for everyone to get to know me than to get inside my head.
Now, some of ya know already i've decided to give it one more go at starting another business before i die. I've done several before.. some were successfull some not quite so well.
What i'm contemplating doing is chronicleing the steps i'm gonna be going thru here as i start up my last one. This one as i've mentioned before is gonna be another Sub chapter S corportation. Anyone else of ya that are starting up sole proprietorships, partnerships, or non-profits.. i'll be glad to help ya out with questions bout those as i go. I got strong opinions bout each and which is best for what purposes. But, as it is i'm gonna be talking mostly bout S corps.
Now, just for those of ya that don't already know.. S corps are different than C corporations in a couple of different ways. One they are limited to 35 shareholders, two the shareholders must all be individuals.. can't be other corporations. While S corps can own stock in C corps it dosen't work the other way around. And finally i guess the last big distinction between the two would be that S corps aren't taxed on the corporate level. The taxes are paid by the individual shareholders when they take profits out of it.
That's basically what i'm gonna be able to tell ya all that's important for now. The laws are quite simple.. The corp is required to have regular monthly meetings of it's board of directors, have yearly elections, and file an annual report to the government at the end of the fiscal year.
Now, that's basically what i've got to work with. It's my intention to set up an S corp by the first of January 09. Maybe a little beyond that when i file.. but it'll still be for a calendar year fiscal year. I figure this is the best choice for tax purposes, and for ease of recordkeeping. Since i'm not able to afford lawyers and accountants at this time i figure i'll be saddled with those tasks untill the company can afford it. I see no problem muddling thru the first year or so. I can handle the filing of articles of incorporation myself.
I will admit that my accounting skills aren't CPA caliber.. but i can handle stock issuances and a basic balance sheet till we can afford or really need an accountant.
Again.. i only took two years of accounting in college.. and i skipped most of those classes. I'm not gonna make excuses.. just state reasons.. it was cause i was working 10-12 hours/day as an electrician, going to college full time, trying to raise my 12 year old daughter, and running a non profit corporation at the same time. So, my accounting skills won't be adequate for the long run.. but till i can get another more qualified person to handle those responsiblities it's just one of the many hats i'll need to wear in the beginning.
I do believe that alot of my experience from being on the board of directors of that non-profit for bout ten years will be transferrable to what my new venture is gonna be. It'll be different i'm sure to try and run a seed company than it was to run a building corporation.. but if need be i'll learn how to change from contracts to purchase agreements or whatever seed companies need to operate. Again.. some things will be usefull from past experience.. some won't.
Now, i guess that'll be enough background info bout me. If i got any advice to anyone else wanting to start up a new business.. it would be to start with something ya got experience with. Learn as much as ya can bout doing whatever ya want to do before ya actually jump right into it.. and plan, plan, plan!
That'll be what i'll be talking bout in my next post most likely. It's the stage i'm at with this S corp. I've got bout two months to put together a business plan and a mission statement. And for anyone wanting to startup a company of any kind.. i can't stress strongly enough how important a business plan is. It's just one piece of the puzzle.. but it's a very usefull piece. Dosen't have ta be anything long and drawn out in the beginning.. just where ya want to go with your dreams, and how ya plan to get there. It's something ya can't really go back and do once you're well under way and ya won't have time to backtrack. So that's why i stress it. I've seen many companies get way ahead of themselves without one.. and before ya know it they have no idea what they're doing or where they're going. Just an observation..
Now i'm gonna get to work on one myself. I can use any and all constructive critisims in the next two months. I don't intend to include projected sales estimates or any other really technical financial details. For me.. it's more bout what i want to do and how to get there. So, i guess it'll be just an expansion of the mission statement to some degree. I don't figure it'll be anything fancy.
Well that's it for now.. i'm sure i'll be coming back regularly to post my ideas.. I'd hope ya all will help out with any comments and advice in the meantime. As ya can see i'll need lots of help.
Oh.. since i mentioned it.. that's one more important thing for anyone else starting out in any kind of business. Get all the help ya can. If i've learned anything in life.. it's that ya can't do it without help.
That's it for now..
Dave
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