Starting a business is tough. There are lots of things to think about—the industry landscape, your market, finding the startup cash you need—and which type of business is best for you is no less important a decision.

Let’s take an overview look at four of the most popular types of business—sole proprietorship, general partnership, llc, and corporation—so that you can get yourself off to the right start and select the best type of business for you!

Sole Proprietorship

A sole proprietorship is the simplest type of business you can form. Just as it sounds, it’s a business made up of just one person.

There are two main types of sole proprietorships that you’ll need to be aware of if you’re going this route. The first is ultra-simple: it’s just one person operating under his or her legal name. (You’ll need to use your social security number to report your earnings to the IRS, of course.) The other type of sole proprietorship is a DBA (“doing business as”—see?), in which you can use a name that isn’t your own legal name. For example, I could register a business called Sarah’s Writing and Editing Services, but since that isn’t my real name (my parents were not, in fact, Mr. and Mrs. Writing and Editing Services), I would need to formally register a DBA with my local authorities.

Why? There are many reasons, including public disclosure and regulatory issues, but one of the more practical reasons is that in order to cash a check with your bank, it has to have your name on it. If it doesn’t, you’ll need a bank account under the business name—and in order to do that, you’ll need to register your business!

The thing to remember with a sole proprietorship is that the business and the owner are one and the same; there is no legal separation protecting the owner from debts or obligations of the sole proprietorship.

[For information on other types of DBAs and the different terminology used around the country, take a look at the information on Trade Names by ClickAndInc.com.]

General Partnership

A general partnership (not to be confused with a limited partnership, which is a story for another time) is essentially a sole proprietorship, but with two (or more) proprietors rather than one.

Other than the difference in number of owners, much holds true for both: it is a very simple kind of business, one that is not legally separate from the owners, and formal registration is required in order to open a bank account.

Something to keep in mind with the general partnership is that each partner has equal control over the business—and both are equally liable for it. If one partner makes a decision that bankrupts the business, both partners are equally responsible for any debts or obligations.

[If a general partnership does not meet the owners' needs, you might look into a limited partnership, which has different "tiers" of partners; for more information, check out the great information on limited partnerships by NOLO.]

LLC (Limited Liability Company)

An LLC, which stands for Limited Liability Company, is a type of business that (as its name suggests) does provide limited liability protection to the owner or owners; if the LLC defaults on a loan, for instance, the owners’ personal assets are not seized to pay for them, provided they have acted within the scope of the law.

A limited liability company will be managed by members or managers—an important distinction. These managing members or managers are analogous to corporate officers, and they will make the decisions that dictate the day-to-day operations of the LLC.

[For more information on preventing the courts from seizing owners' personal assets to pay for debts and obligations of the business, check out our 8/24/11 post on Piercing the Corporate Veil.]

Corporation

A corporation, like a limited liability company, protects the owners against debts and obligations of the business. It also allows shares of stock to be sold to raise capital.

As mentioned above, a corporation is managed by its corporate officers, as well as a board of directors. It can choose between two different types: S Corporation or C Corporation.

[For more information on corporations and the different organizational structures, please visit our article on S Corporation vs. C Corporation.]

 

What about you? What type of business did you choose for your business structure—and why? Tell us about it in the comments!

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When Steve Jobs walked the iconic stage to reveal the first generation iPad two years ago, a light bulb went off in Boston Scientific CIO Rich Adduci’s head.

“Trying to show innovative therapies in a way that is easy to understand and see was challenging in the old world, particularly as health care professionals’ time was increasingly difficult to come by,” Adduci said. “When we saw the iPad, we all thought, ‘that’s it!’”

Immediately, the company scrapped all mobile development plans and zeroed in on the iPad. They purchased more than 2,000 devices and launched what would become their most ambitious outside sales plan yet. When asked today about the initiative, Adduci said it wasn’t the iPad that made the biggest difference in their sales afterwards. It was the strategy.

Below are several tips from experts for companies beginning their iPad implementation strategy:

• Monitor Usage—Specify utilization goals and performance indicators for measuring success. For example, if you launch a new product, mandate the team go through training videos, view competitive analyses, and download marketing materials. Then, watch which marketing assets (shown on the iPad) lead to the the most conversions and shift attention to those with the best success rate. This can be done with tools such as SAVO Mobile, Jive Mobile, or any other sales enablement software.
• Go Beyond PowerPoint—One of the iPad’s most powerful assets for sales is its vivid display. Sales and marketing leaders should work together to craft presentations that make full use of flip, swipe, pinch, and rotating maneuvers. Myriad companies now offer presentation generators specifically for tablets, such as MediaFly, Showpad, and Upsync. These solutions integrate interactivity, sharing buttons, video, HTML5, and other tools for dressing up your digital assets. They can also serve up material on the fly so presentations can be catered to a specific client.
• Think Big—Don’t just mobilize CRM or create one app for your team right out of the gate. Involve a mobile solutions developer that can create a platform specifically for your team. Too often companies just want to create something immediately and end up spending excessive time and money on disparate apps that frustrate more than enable sales. The best solutions to unify all of the sales processes into one portal.

When implemented into the selling process with careful planning, iPads can be a useful tool for any sales rep. But skimp on the proper strategizing and your investment could go to waste.

This post was contributed by guest author Ashley Furness. Furness is a Market Analyst and Blogger for research firm Software Advice, where she reports on CRM software, sales, marketing, and other business topics. Previously, she worked for six years as a business reporter for publications in Texas and California.

• Doing Business
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“Going green” is more than a passing fad. It’s a new way of life—a veritable green revolution—and businesses and consumers alike are jumping on board the green business train.

Now, you’re as earth-conscious as the next person, but as a small business owner, you just don’t have the funds yet to make the “green business” leap. Right?

Wrong.

In fact, thinking about adopting a green business model in terms of “making a leap” is a fallacy. Sure, there are steps you can take that do require upfront investment, if you’ve been bitten hard by the green business bug and you’re up to the challenge—but there are smaller steps, steps that you could implement this very afternoon, that can reduce your small business’s carbon footprint while simultaneously improving your bottom line.

Don’t believe me? Try implementing one, two, or even all three of the steps below today. Keep an eye on your shrinking electric bill, and just try not to do a happy dance in your office as you watch your expenses shrink!

You can thank me later.

1. Take a look at your waste.

Even in 2012, it’s not unusual to find company offices that use styrofoam coffee cups, plastic silverware, and paper towels, which can add up to some serious waste.

How to cut down?

But the kitchen isn’t the only place that could benefit from a commitment to reducing waste—how’s your packing department?

Using green packing supplies that are biodegradable and made of post-consumer recycled products (rather than those ubiquitous styrofoam packing peanuts—which contain toxins that are horrible for the earth, not to mention being annoying to deal with as a recipient) does a few things. Obviously, it reduces the amount of toxic chemicals from styrofoam you’d otherwise be throwing out somewhere. But when you take steps to reduce your carbon footprint and energy consumption, you’re allowed to brag a little.

Unless you’ve been living under a rock for the last few years, you’re aware that going green is a hot trend with consumers. People are paying more attention to what they’re putting into their bodies, cars, and homes, where the raw materials are coming from, and what they’re giving off into the environment than ever before. And there are consumers out there (myself included) who will not place a second order at a company that sent the last item in a too-large box filled with toxic chemicals styrofoam.

2. Encourage working from home.

I used to live 9.3 miles from my office. Not the longest commute in the world, but consider how it can add up: for a typical 40-hour-a-week job, that’s a total of 93 miles per week.

But I don’t drive 93 miles per week for my job. By working from home part of the week and ultimately moving closer to my job, I’m now spending gas on my commute for only about 17 miles every week. Savings for me, savings for my carbon emissions—and (I know you were waiting for this) savings for my employer, who enjoys lower costs because it doesn’t have to pay for my computer and lights to be on all day when I’m not there.

Of course, not all forms of employment lend themselves well to working from home: construction, for instance, or any other sort of hands-on group-effort kind of job. And not all employers are completely comfortable with giving their employees free reign to control their own work environment. What if they slack off? What if they aren’t working when they’re supposed to?

Here’s a better question: do you think that you’re the type of person who wouldn’t notice if your employees sat at home doing nothing but watching Star Wars all day? Wouldn’t their output drop dramatically? And . . . aren’t you in a position to do something about that if it does happen?

If it’s that difficult to trust your employees, it sounds like you could either use more trust, or more trustworthy employees. I’m writing this in my home office right now, and I’m publishing it on time—without anyone but my dog looking over my shoulder.

3. Turn things off when they aren’t being used.

Until renewable energy is cost-effective for everyone, there’s a simple way you can reduce your company’s power consumption and lower costs—turn lights, computers, and other unnecessary items off before you use them.

And you can forget everything you’ve ever heard about leaving your computer on at night because it uses more power booting it up than it does just leaving it on. Computers these days use vastly less energy than those big hulky CRT monitors of the past  (Wait—you mean you’re still using one of those? Get with the program!), and that’s no longer a valid excuse for leaving your appliances and electronics running unused for long periods of time.

And if you’re still not convinced, ask yourself this—Why do you think your mother always used to nag you about turning the lights off if you weren’t using them? She knew what many small business owners tend to forget: energy costs money.

Of course, despite how easy it is to start making a difference, for some people, saving money on energy consumption isn’t enough. For some business owners, the main question is: Why should I care enough to change?

This is, of course, a valid point. You started a business to make money, not to change the world.

But the thing is, going green is compatible with your financial goals. In fact, there are many financial incentives in the form of government kickbacks. Some green initiatives do require an investment upfront (solar panels, for example), but these are things that do pay for themselves a few years down the line, and with greater efficiency than ever before. Additionally, since more and more consumers are turning into advocates of clean energy and reduced waste, you can’t afford not to pay attention, or you’ll be left in the dust.

And you know what? As it turns out, a business can make money and change the world. Isn’t that lovely?

 

Tell us what your business has done to reduce its impact on the environment. Has the investment saved you ongoing costs?

 

• Doing Business
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No matter how many things you’re doing right, there are a few things that you could potentially be doing wrong—and that could be causing you to lose your creativity, your sense of honor, or even your reputation.

Take a few words of advice from these fine sources to fine-tune your day-to-day business dealings and keep yourself on the straight and narrow. Ditch the bad business habits today and help grow your business the right way!

• How to Make Amends for Bad Behavior by Penelope Trunk

Regardless of what you’ve done—or failed to do—the old cliche is true: actions do speak louder than words. In business and in life, Penelope Trunk shares her experiences with making amends and moving forward. (Spoiler alert: beating yourself up over past transgressions is not on the list.)

• Link With Love by Ameena Falchetto

There’s a lot of pressure on small business owners to be original, create unique content, and be “new” and “fresh.” Of course, you do not live in a microcosm. Ideas flow, influence other ideas, and are built off of other ideas. This is fine—even expected. What’s not fine is leaning heavily on one person’s idea without giving credit where credit is due—or, even worse, shamelessly stealing it and calling it your own. Ameena Falchetto tells us how this once happened to her, what you can do about it if it happens to you, and how to avoid doing it to someone else.

• 12 Bad Habits That Could Kill Your Business by Business Tips

Full of tips for how to be a better businessperson—and a better person in general, for that matter—Victorio Abrugar lays out a set of bad habits you should knock off, immediately. Among them are lying (to your customer, to your vendors, or to your employees—it’s all a no-no), disrespecting (the same set of people), and being greedy, impatient, or unprepared. Great advice any Zen master would be proud of.

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Heads up, Nevada business owners! If you’re doing business in southern Nevada, there’s an event going on in Las Vegas next weekend that you won’t want to miss—new and existing business owners alike.

You already know that SCORE brings you valuable free resources, including free local mentoring (don’t you?). Now, SCORE has partnered with the Clark County Department of Business License to put on “Doing Business In Southern Nevada,” a conference of business professionals and experts, on May 11th, 2012.

Among the topics that will be covered by expert panelists in this free conference are:

• jurisdictional business license requirements
• micro-loan programs
• state and federal tax requirements
• venture capital and angel investors
• business incubation programs
• free local resources for business advice

If you’d like, you can download the full schedule as a PDF.

While the 2012 “Doing Business in Southern Nevada” conference is free, registration is required. The conference is broken into three panel sessions; you can attend anywhere from one to all three panel sessions.

Make sure to visit the official website for more information on the 2012 “Doing Business In Southern Nevada” conference held in Clark County, Nevada. Don’t miss this great day of free business tips and advice from the experts!

 

• Doing Business,Start a Business
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Small businesses don’t always have the ability to hire a full staff to get things done—but with online business tools (many of which are free to use), you can organize your business, cut strategic corners, and take care of more day-to-day tasks than you ever thought possible.

Here are a few fantastic resources that can help you take control of your small business’s progress, brought to you by top leaders in the online business arena. Take a look at what these online business tools can do for you!

• “11 Tools & Resources to Help You Discover Content to Share Online“ by Blue Kite Marketing

If you haven’t heard of StrawberryJ.am, LinkedIn Today, or AllTop—what are you waiting for? You may think you’re trucking along just fine on your own, but consider how much time some of these shortcuts could save you—time that could be better spent running your business.

• “The Ultimate List Of Online Tools & Resources For Small Business“ by BizSugar

One of the most comprehensive lists we’ve seen. BizSugar provides an excellent list of tools—many of them free—to help give your business that forward momentum and keep it going!

• “How to Build a Billion-Dollar Startup” by Steve Blank

This post puts the movers and shakers in the social media arena in perspective. A mere decade ago, no one ever could have imagined how “social media” (whatever that is) would help launch businesses into the lives of their customers. But whatever the shifting format, the goals remain the same: value and connections.

• Doing Business,Social Media
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