From Sole Proprietorship to Something Bigger - Reasons Why You Should Incorporate

Incorporation makes a business, firm, or organization a legal entity that is separate or independent from its owners. To incorporate a business entails a lot of paperwork, particularly writing the company's bylaws or articles, and filing the application to the authorities. Thanks to the Internet and varying technologies, having to incorporate your business or organization has become convenient.

Why should I incorporate my business? What are the benefits?

A corporation has many benefits as compared to a partnership or sole proprietorship. As a corporation, your business will be entitled to tax benefits, be more effectively able to make revenue, and the liabilities and debts of the business is separated from you. In cases where you will need to sell your company, it can have a better value as compared to a partnership or sole proprietorship.

Incorporation provides protection because it limits your personal liability. If and when an unfortunate event happens, you will not find yourself having to sacrifice your hard earned assets just to pay off your company's liabilities and debts. A sole proprietorship or partnership, on the other hand, dictates that you and your business are one and the same, and all liabilities or assets you have are shared with your business. Provided you do not neglect your business, a corporation can raise its value by selling shares.

If you choose to incorporate at the right time, you will reap the benefits. Small to medium sized businesses and enterprises can benefit from tax breaks that otherwise may not be available if you run a home based business or sole proprietorship. Many people think starting and keeping a business as a sole proprietor is the easier way and more effective way to pay less tax. In reality, corporations benefit from many privileges not available to partnerships and home based businesses. Corporations are eligible for cheaper or discounted rates for various things like insurance.

For example, if you choose to incorporate, you can now hire your employees as full time workers and afford to get them health insurance.

Incorporation's value is easily assessed, thanks to its shareholders. Given the economic situation today, it is rather hard to predict whether your business will still be able to thrive in the future. Selling shares allows your company to raise money and increase its value. Come the time to sell your business, buyers can easily evaluate how much your business is worth from a standard. You can showcase your earnings, shares, and investment opportunities.

Today, businesses can incorporate online and have a trusted third party provider to file your documents for your convenience. Some online providers even offer trademark searches and applications, copyright registrations, and DBA registrations, to name a few.

Single proprietorship or partnership may be ideal as a startup. It is more convenient at first. Nevertheless, once your business commences to draw bigger clientele base and your manpower increases, turning your small to medium scale business to incorporation may very well benefit your company in different ways.

Virgil Ladner is an economics university student whose family owns a small home based business. The writer is currently researching on how to form llc and what it means for their business to expand and form a limited liability company.

Promotional Mugs Can Go The Distance By Jessah T Lopez

Advertising brands nowadays is already easy and affordable. Because of the fecundity of choices, it becomes daunting to obtain the best bang for your bucks. You would want to have something that is durable that can be used by people every day to maximize your brand's exposure. The requirement for longevity and quality makes promotional mugs the right solution. These mugs come in a variety of styles, colors and materials.

Glass Mugs

This type of mugs provides different elegant options, colors and styles to suit the requirement of your business. You can have these items imprinted or etched with your company or logo. These mugs provide you constant impression on your customers, allowing them to know their importance to your business. These mugs can be purchased inexpensively especially if you order them in bulk.

Ceramic Mugs

Built to last, ceramic mugs can do a lot of hard work for your company. When they are used daily, they will serve as reminders of your company to your customers who may have gotten them from your sales representative or at a trade show. These mugs will serve as attractive gifts for your top clients or customers especially if they are embossed with your brand in gold or metallic silver.

Stainless Steel Mugs

Travel mugs that are made from stainless steel are practical options to get your brand noticed. These mugs are intended for people who are always on the go which means that wherever these people will go, your mugs will advertise your brand at that distance. Stainless steel mugs can be obtained in various styles, sizes and colors, from classic designs to the most modern. From work to malls, home to school, these mugs serve as your legs. These high quality items carry your company to the public eye and enhance the market awareness of your product and services with each exposure the mugs did for you.

Promotional mugs are made affordable for everyone in an extensive price range. The cost for each mug depends on their size, material and style. You can expect the prices for each unit to have a dramatic fall as you increase the quantity of your order. Ordering these items in bulk can save you money and you can use a standard design for years. Promotional mugs are perfect giveaway items that will give worth to the money you spent because they will travel in as many and distant places your recipients will bring them along.

If you need high quality promotional mugs and other promotional items, visit us at http://www.promotionalproductssupplier.com

A unique liability insurance policy put together by experts in the dietary supplement and herbal industries was recently rolled out at the Nutrition Business Journal Summit Conference in Dana Point, CA. Although initially focusing on the dietary supplement/herbal product industries, the coverage can apply to any business. Of particular significance is coverage for Proposition 65 lawsuits, which have proliferated in California. Companies are experiencing the hurt of “bounty hunter” lawsuits including civil actions by various state or local authorities.

False Advertising Insurance

Before this policy was announced, there was no coverage to be had for "false advertising.” Sadly most people figure they have such insurance under the “Personal and Advertising Injury” division of their commercial general liability policy. The truth, typically discovered following a lawsuit for false advertising comes in the door, is that a standard commercial liability policy contains absolutely no insurance for allegations of false advertising. With the announcement of this recent policy, insurance is now obtainable. The new policy particularly defines what constitutes “false advertising” which will trigger the coverage.

Proposition 65 Coverage

Again, heretofore there has not been any insurance coverage around for the financial consequences of enforcement of the provisions of California's Proposition 65. As a practical matter, allegations of high levels of lead have been the largest single cause of litigation, which could be initiated by public enforcers such as state or local district attorneys or private plaintiffs suing “in the public interest.” Experts have said that there are perhaps thousands of merchandise sold in California with lead levels exceeding the legal threshold, and without the proper warning labeling mandatory on the packaging of such products. Companies selling these products without appropriate analytical testing or the warning are “at risk” according to Frank Jaksch, President of ChromaDex, an Irvine, CA-based testing laboratory (www.chromadex.com ).

Typical Proposition 65 settlement expenses, which some have labeled as “legalized extortion,” include defense costs, plaintiff's attorney costs, civil penalties, and payments in lieu of civil penalties. According to statistics gathered by a leading trade association the average Prop 65 settlement cost, including attorney fees, exceeds $100,000.

Availability of Coverage and Limitations

The Prop 65/false advertising insurance is an expansion of coverage under one of the policy modules called Content Liability for Media Companies and Advertisers. This module provides extensive coverage for perils arising through creating and distributing content for all forms of communications together with print, digital and audio media. Companies that heavily make use of diverse media to advertise might by now have this form of coverage. The Prop 65/false advertising insurance is an extension of insurance beneath this module and can not be purchased on a standalone basis.

The insurer is at the start limiting two elements of Prop 65 settlements, civil penalties and/or payments in lieu of civil penalties, to a $100,000 maximum sub-limit of insurance, which could be negotiable and amplified under specific conditions.

The new policy also contains a module for insuring first-party and third-party costs arising out of a breach of data security, as well as notification costs, data restoration, crisis management, credit monitoring, cyber investigation, cyber extortion, and civil fines and penalties.