Starting a Business

Types of Business

1. Consultant (Sole Proprietorship)

2. Mom and Pop shop (same family)

3. Corporation

FICA, Tax, Separate Tax,

Sell Stock, Limit Liability,

Separate you from company

4. Chapter S /LLC

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Starting a Business

Corporation

1. Officers (State)

Pres., Sec. Tres.

2. Board of Directors

Chairman of Board

3. Operational Officers

CEO, Accountant, CTO

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Starting a Business

Stock

1. Founders Stock

2. Preferred Stock

3. Common Stock

Rules can be different

Reason to have stock

Value, Dividend, Voting Power

Dividend / Growth

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Starting a Business

Business Plan

1. What are you going to do

2. Cost Analysis

3. Risk Analysis

4. Market Analysis

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Starting a Business

Getting Money Into a Business

1. Sale of Product

2. Sale of Services

3. Loans

4. Stock

Founders, Preferred, Common

5. Donations

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Starting a Business

Getting Money out of a Business

1. Salary

2. Dividends on Stock

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Starting a Business

Starting a Business

Have an idea

1. CTO – You, Sell your idea to the corp. for stock

2. Lawyer – Set up corp. file patents (in return for stock)

3. CEO – Experienced – work for stock - invest

4. Marketing Manager - Experienced – work for stock

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Founders

Starting a Business

Starting a Business

1. Write a Business Plan

2. Form a Board of Directors (Invest)

3. Raise Capital

4. Hire:

Other Technical People (Work for common stock)

Accountant

Director of Operations

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