How to Set-Up a Limited Liablity Company (LLC)

For a small solo-preneur business, operating as a sole proprietor is acceptable. It’s certainly easier since there is no paperwork and only requires a Schedule C for taxes. However, its also a riskier proposition. If sued, your personal assets (such as your house) are fair game.

In the 1970’s a new form of business structure called the Limited Liability Company (LLC) emerged that provided business owners with the protection and tax advantages not available to sole proprietorships, and yet are less complicated than corporations.

Because it is a legal entity, LLC’s should be set up by qualified professionals such as a lawyer or service that specializes in creating business entities. But it is possible to set up your own LLC.

Name your LLC making sure that the name is not in use or trademarked by another company. You can visit the US Patent and Trademark Office to do a name search. Contact your Secretary of State to see if the name is taken by another corporation, and check with your local area business office to find out if the name is being used in your area. You can use a non-trademarked name that is taken by another business if your business does not operate in the same area as the company already using the name. But you’re better off to choose something different and unique. Don’t forget to add LLC or limited liability company to your business name. To make it easier, you can use your given name. Unless your name is John Smith, odds are your name isn’t trademarked or in use by someone else.

Decide where to register your LLC business. Many people prefer to set up their LLC in Nevada or Delaware because they have liberal laws regarding corporations. If you go this route, you”l be setting up a foreign LLC (unless you live in Nevada or Delaware) and will need an address and an agent in that state. Most LLC services will provide this for you for a yearly fee. Or check with your state’s rules about setting up an LLC in your home state. You may find its just as easy and affordable.

File your Articles of Organization, which include the name of your company, its address and the purpose of the business. Some states may want a list of all the members of the business, as well as the registered agent of the company. In New York and Arizona you’ll need to put a notice in the local newspaper about your intention to form an LLC. You can find templates and forms online, in office stores or in books on LLCs. You may want to hire a lawyer to help you to make sure its done correctly.

Write and sign an operating agreement. The operating agreement gives the members’ interests in the business (percentage ownership), their rights and responsibilities and voting power, as well as how profits and losses are allocated, and how meetings are held. All of the business members should sign it. Some states may not require this, but it’s recommended to insure proper protection of the LLC.

Create a filing system to organize LLC documents and keep meeting notes, business changes and financial information. Even single person LLCs that don’t have meetings should keep accurate accounts of the money and business decisions.

Get needed business permits and licenses as required by your city or county. Also apply for an Employer Identification Number (EIN) which you’ll need for taxes. If you’re a single-person LLC you can operate under your Social Security number and file a Schedule C on your taxes, but then you’ll be missing out on some of the tax benefits that come with completely separating the business from you.

Open a business account at the bank. This should be in the LLC’s name and any money used from the account should be for business purposes only. Members can draw salaries from the LLC, but aren’t allowed to directly pay personal bills with LLC money.

WAHS Podcast #82 The Wealthy Freelancer with Steve Slaunwhite

This week I interview Steve Slaunwhite author of The Wealthy Freelancer

If you’d like to download any episode you’ll notice a new “Download MP3″ below the player. You can get the podcasts through iTunes as well.
Listen here:

You can also subscribe through iTunes.

Resources Mentioned On the Show

The Wealthy Freelancer: 12 Secrets to a Great Income and an Enviable Lifestyle

Steve Slaunwhite

How to Get Paying Customers

Organize Your Home Office Day

Today is Organize Your Home Office Day. I’m probably the last person to provide information on home office organization since I’m organizationally challenged. But having worked at home for many years, I can tell you that organization is a factor in achieving work-at-home success.

While you’ll find a ton of organizational books, tools, totes and more, I believe that organization is a personal thing. I have tried so many different systems and most never worked for me. My mind just doesn’t work the way the systems require one to think and act. In the end I’ve adapted existing or developed my own systems. Here are some tips and tools I like.

iGoogle – When I turn on my computer and go online, the first page I see is my iGoogle page. It has my whole day at a glance including my calender, to-do’s, Facebook, Gmail, weather, feed reader and more. It my whole life on one page!

Gmail - If you end up having more than one email account, Gmail is a great way to organize and manage them. I send ALL my email except my business mail to a single Gmail account. From there I can respond, label, delete or do whatever needs to be done. I can change my email from profile depending on who I’m writing. The labels make sorting and organizing emails easier than files.

Google Calendar – I used to use Agendus for my desktop and phone. But now that I have a Smart phone, I don’t want to have sync when I can just go online. I can SMS text an appointment to my calendar as well as view it from any computer. It works with iGoogle so I can have it on my start page when I view my day-at-a-glance.

Binder – While I use a lot of online apps, I’m not completely paperless. I haven’t yet found the perfect daily/weekly organizer online (or offline for that matter). So I created my own. I have a fancy full size planner binder in which I keep my schedule as well as sections for my projects. For example I’ll have a section for each blog or my writing work. The actual planner is one page with my weekly view and an opposite page where I keep my weekly writing tasks. The challenge for me was that so many planners were business or personal, but didn’t integrate both. Since I move from one to the other during the day, I needed everyone on one page. So I have my everyday tasks listed at the top along side with my project goals for the week and my home cleaning zone (I try to be like Flylady although I’m not so good at it). Below that I have a section for each day of the week Monday through Friday and the tasks that need to be done that day. For example Monday is grocery day and post all job on the blog for the week. There are blank lines for me to fill in other activities or appointments as well. I use a highlighter to highlight appointments and tasks that have to be done.

Organization is really about being able to access your information and materials when you need them and knowing what you need to be doing and at what time you need to do it. However you’re able to set up your home office to achieve that goal is going to be the best organizational system for you.

You might want to check out my blog Better Living on the Web where I post all sorts of great web-based organizational and make-life-easier tools.

Getting Listed in Search Engines 101

Getting listed in search engines has evolved into a science. The gurus recommend all sorts of tricks and gimmicks to optimize your website (SEO). But some of these tricks can work against you.

Search engines are an important part of your Internet marketing strategy, however you can’t rely on search engines alone to drive traffic to your site. In fact, one of the ways search engines rank sites are how well they market using other methods. So search engines should be one of several marketing tactics you use to help people find your site.

Here are some tips to get you ranked in the search engines.

Step One: Make the Site Ready for Search Engine Spiders

Meta Tags

The first step to search engine ranking is use of your meta tags. Meta tags are information about your site that is hidden behind the scenes (viewable in the HTML view of your site) that lets the engines know what your site is about. At the very least you should have meta tags for the title, description and keywords of all your pages. These tags are placed in the <head></head> section in the code of your site:

Sample Header Code

<meta http-equiv=”Description” content=”Alchemy Copywriting offers results oriented, persuasive copy for internet, non-profit organizations and small business.”>
<meta http-equiv=”keywords” content=”copywriting, copywriter, direct sales, fundraising, sales copy, sales letters, advertising, promotion”>
<title>Alchemy Copy – Internet, Non-Profit and Small Business Copywriting</title>

When using the meta tags, you want to include your site’s name as well as keywords. But don’t over do it. And be honest. Include only the keywords and descriptions that are relevant to the page. For example, I wouldn’t include “work at home job” on a page that is about “home business”.

Text Copy on the Page

Include a heading to lead into the information on the page. Ideally it needs to include a keyword and be placed in heading tags (i.e. <H1></H1>)

Your text copy on the page should also include keywords and variations of keywords. Search engines don’t like pages that are stuffed to the brim with keywords. It likes real pages that offer real content. So your page should provide meaning full content that use variations of keywords. For example, if you were writing about “customer service” and using it as one of your keywords, you might substitute “customer relations” in some places.

Step Two: Submitting to Search Engines

Search Engine Submission

Whether or not you submit your site to search engines, they’ll eventually find you if you provide frequent relevant content and use your keywords. But you might as well help them out by letting them know you exist.

Below are some top search engines and directories at which you can register your website. Once you are at the home page, click on “Add URL” or “Add Your Site” which can frequently be found at the bottom of the site’s homepage. Be sure to have your name, site URL and keywords developed before you apply to add your site to the search engines and directories. You should probably submit your site individually at the top search engines. 

• Google (many directories and engines pull from Google including Netscape and AOL)
• DMOZ Open Directory (AOL, Google, Netscape, Yahoo and others use Open Directory)
• MSN (many directories and engines pull from MSN including HotBot and Live Search)
• Yahoo

Sitemaps

Sitemaps are XML files that list your site’s pages that are ready to be crawled by search engines. If you use a content management platform such as WordPress, you can add plug-ins to create your sitemap and ping the search engines when they’re ready to be crawled.

If you’re not using a program that offers sitemap functions, here’s a free online sitemap generator from XML Sitemaps to create your sitemap file. It has some instructions on what to do with it when its done as well.

If you’re creating your own sitemap, you can submit the pages directly:

• Google http://www.google.com/webmasters/tools/ping?sitemap=
• Yahoo http://search.yahooapis.com/SiteExplorerService/V1/updateNotification?appid=SitemapWriter&url=  and http://search.yahooapis.com/SiteExplorerService/V1/ping?sitemap=
• Ask.com http://submissions.ask.com/ping?sitemap=
• Bing http://www.bing.com/webmaster/ping.aspx?siteMap=

Step Three: Getting Ranked

Meta tags and sitemaps will get your site crawled, but not necessarily ranked on the first page of search engines. For each of your keywords your site is competing with thousands if not millions of other pages. So the search engines use other criteria to determine who gets the top spots. Below are the criteria and how to improve your chances of a good ranking.

Content – Your site content should fit the keywords provided, but also search engines like sites that have new content on a regular basis. That is why you find so many results from blogs and new/info sites that have new information posted several times a week or day. The important thing to remember is that quality of the content not the number of times a keyword is used is important.

Backlinks – Search engines also judge the quality of your site by how many other sites deem your information worthy of a link to your site. There are several ways to create backlinks to your site. The easiest ways include writing articles and submitting them to article directories, posting comments on other people’s sites/blogs, and negotiating link exchanges with other sites.

Search Engine Optimization Tools

A great tool to help with search engine optimization including evaluating your site for ranking as well as ways to improve SEO, check out WebCeo.

Turn Interests Into Income on the Internet

The number of people earning a living online is exploding. Every day people are turning their skills, interests, passions, and even rants into an income. You can too, even if you’re not tech savvy or don’t have a lot of money.

I’m doing a live 3-hour seminar on “Turn Interests Into Income on the Internet” March 6, 2010, 9 am to Noon at Piedmont Virginia Community College. In the course you’ll learn how to:

• Identify the assets you have that are potential money-makers
• Determine the best way to make money from your idea
• Use free and low cost online tools to turn your idea into income
• Develop a plan of action to turn the dream into a reality.
• And more!

To learn more or to register, visit Piedmont Virginia Community College online or call 434-961-5354.

No Cost Work-At-Home Jobs

Here is a response to a question I get all the time about work-at-home jobs.

Question

Dear Leslie,

ARE THERE REALLY NO COST HIRING? I want to either do data entry online simple ad placing or answer in bound calls. Where can I find the real thing with out paying for information?

Linda A.

Answer

Hi Linda,

The fast answer to your question is yes; there is no cost hiring. In fact, the only legitimate hiring is at no cost. However, you may have some trouble finding the work you indicated unless you have experience. Most legitimate data entry jobs I find (which is very rare) require a typing test and sometimes special equipment. I’d scratch ad placing off the list of options as I haven’t ever seen this offered as a legitimate job. In bound calls and customer service is probably your best bet but again, companies that are hiring for these jobs are looking for people with skills and possibly special equipment.

The reality of telecommuting is that you aren’t just going to sign up to work at home. Legitimate employers with home based jobs hire the same way traditional employers do. There will be an application process and possibly an interview or test. Therefore, you need to have a resume that outlines your skills and experiences in data entry and customer service. Plus it will help to have any necessary equipment such as high speed Internet, a second phone line, and phone headset.

When searching for these or any other type of telecommuting job, you need to search on job related sites. Use search terms such as “telecommute” or “work at home”. Watch out for biz ops and scams as these do get posted on job sites as well. The best way to avoid a scam or biz op is to remember that you NEVER, EVER pay to get hired.

There are some good work-at-home job databases that can be accessed for a fee. Note that you aren’t paying to get hired when you use one of these services. Instead, you are paying to access their list of job announcements. It’s like buying the newspaper to read the want ads. These services search the Internet for jobs or jobs are submitted to them for posting. The great thing about these sites is that they usually weed out the duds and list only jobs that can be done from home. But not all services are the same. Avoid places that say they have a list of companies that hire home workers. These lists are worthless because these companies may not actually be hiring. Instead the service must indicate it posts actual job announcements. Also stay away from resources that say they offer assembly work or envelope stuffing. These are known scams and any service that says they can get you job in these areas should be suspect.

To see a list of sites I like to use visit Work At Home Success’ Job Search page.

To learn how to screen for jobs and avoid scams, visit Work At Home Success Scam Alert page.

Good luck Linda!

~ Leslie Truex

WAHS Podcast #80 Telecommuting Myths and Misconceptions

This week I cover telecommuting myths and misconceptions, and what’s true about work-at-home jobs.

If you’d like to download any episode you’ll notice a new “Download MP3″ below the player. You can get the podcasts through iTunes as well.
Listen here:

You can also subscribe through iTunes.

Resources Mentioned On the Show

Free Jobs Online Teleseminar

I’ll be hosting a FREE teleseminar on how and where to find and get legitimate work at home jobs on March 10, 2010. The Jobs Online Teleseminar will be free and will cover:

• What work-at-home jobs are and aren’t so you can weed out the duds.
• The most common work-at-home jobs.
• How to find the best work-at-home jobs for you.
• How to make your resume stand out from the crowd so you can get hired.
• How to avoid job scams.
• And more!

The Jobs Online Teleseminar is free, but requires registration. You can learn more and register  for  Jobs Online Teleseminar here.

Asking Your Boss to Work At Home

Many people start their work-at-home job search by jumping online to search for work. But the fastest and easiest way to work at home is to turn your current job into a telecommuting situation. But before you step into your boss’ office and ask to work at home, you need to do a little research and prepare a plan.

The first step in the proposal process is to evaluate your job and company for conduciveness to telecommuting. Make a complete list of all duties and activities related to your job. Divide this list into “Can be done outside of the office” (such as typing, researching, planning etc.) and “Must be done in the office” (such as meetings and direct service).

Next, do some undercover research on your company’s openness to alternative work schedules. Do they allow flextime or part-time work? Do research into your industry. Do other companies in a similar industry allow employees to work from home? If your company and other companies like it, don’t offer alternative work schedules, it doesn’t necessarily mean you won’t be able to work from home.

If you think you have a job that would allow you to work from home, prepare a Work At Home Proposal. The Work-At-Home Proposal must be written and must outline your plans as well as benefits to the company your new work arrangement will provide. Here is an outline to help.

Writing a Work At Home Proposal

Introduction:
Educate your employer on the contributions you have made to the company. If you have earned special recognition, increased productivity or improved the company in anyway, be sure to highlight it. Don’t brag but be sure that your company understands that you are a valuable asset that they can’t afford to lose. Without giving details of the hassles experienced each morning preparing to go to work, give a statement of why you are proposing an alternative work arrangement.
Benefits to Your Employer:
Educate your employer on the benefits of telecommuting including increased productivity and moral and decreased absenteeism and burnout. Detail any cost savings your arrangement may provide your employer. This may come in the form of office space or reduced benefits.
Proposed Work Schedule:
Describe the days and hours per week you plan to work at home. Indicate when you plan to start your new schedule and how long the arrangement will last.
Availability:
Establish the work hours you will be available for contact. Provide the methods (phone, fax, etc.) that can be used to contact you. Include information on how you will deal with meetings, deadlines, office activities, and emergencies.
Job Description
Outline the tasks you will be responsible for while working at home. Outline the duties you will be handling while in the office. Highlight any changes from your current work situation to the telecommuting arrangement.
Equipment
List any equipment or resources you currently have available such as second phone line, computer, manuals etc. List any equipment you would need and indicated whether or not you or the company will be providing it.
Salary and Benefits
If there is a change in your hours or duties, take these into consideration. Your company may already have a policy or you can suggest a pro-rated pay and benefits. If there is no change in your hours or duties, be sure to indicate it.
Performance Evaluation:
If your duties aren’t changing your method of evaluation shouldn’t either. Be sure to indicate how your supervisor will know of your work such as weekly reports. If your duties are different, propose how you will be evaluated. Be sure you are evaluated on easily measurable tasks such as number of reports completed. It is easy for employers to think you aren’t working if they don’t see you. Be sure they are aware of the work you complete.
Trial Period:
Supervisors may be more willing to grant your work at home proposal if you suggest a trial period. Be sure it is long enough to for everyone to adjust to the schedule and fix the kinks. Develop a method for evaluating the success of the work-at-home arrangement. Use easily measurable tasks such as increased sales or productivity.
Supporting Information:
Show your supervisor how working at home has been successful in other companies. Include statistics or articles on telecommuting. The appendix lists resources you can use to back up your claims.

Presenting the Work-At-Home Proposal

You have determined that your job may be suited to telecommuting. You have researched aspects of telecommuting and prepared a work-at-home proposal suited to your company and position. Now what? Most telecommuting expert agree, that work-at-home proposals are more likely to be considered if an in-person presentation is made. Here are some guidelines to presenting your work-at-home proposal to your boss:

• Before the meeting, try to anticipate the kinds of resistance you may receive. Be sure these are addressed in your written proposal, and be prepared to respond to them in the meeting.
• During the meeting use your proposal as an outline to your presentation. Focus on benefits to the company, not to your morning schedule, that your work-at-home arrangement will provide.
• Be sure you can convey to your boss how valuable you are. Don’t brag or insinuate quitting but, let him know that replacing you would be costly because of your hard work ethic, knowledge and experience.
• Be professional. Your boss may have lots reasons why telecommuting won’t work, let him know the research shows that it does work.
• Be willing to negotiate. Maybe your boss doesn’t want you to work as indicated in your proposal but, would be willing to allow a different arrangement. By negotiating, you may be able get what you want later, after you have shown how well telecommuting works.
• If your boss has concerns, begin to find a way to alleviate them.
  If you boss says “no”, don’t lose hope. There are many jobs suited to telecommuting. Begin researching to find a job that will meet your needs. If your boss says “yes”, congratulations! Be sure to meet your end of the agreement and pave the way for other telecommuters!

The important thing to remember is that employers don’t offer telecommuting out of the goodness of their hearts, they do it because it benefits the company and more specifically the bottom line. So always focus your proposal on what it can do to help the company, not how it will help you.

Next Page »