A Cheat Sheet on Selecting the Best Structure For Your Business


Limited Liability Company, C-Corporation, and S-Corporation are the three types of business organizations today. All three have similarities and differences that can significantly affect ownership, operations, and tax rates.

A corporation, whether classified as subtype-C or subtype-S, is a legal business form which consists of individuals acknowledged by law to act as a separate entity. A limited liability company (LLC) meanwhile is different from a corporation. It signifies a sole proprietorship or a partnership with limited responsibilities in many aspects.

We have listed some points that can help any aspirant business owner get an understanding before deciding which company structure to choose.

1. Owners

C-Corp has no restrictions, which means that even its employees can own stocks. What’s more, this unlimited ruling makes the business more attractive to investors knowing that it has the potential to grow into larger proportions. The same applies to LLC. However, LLC is more suited for single owners because of its flexibility. S-Corp, on the other hand, has a 100-shareholder limit. Family owned businesses, for this matter, can benefit from this subtype. All shareholders though need to be US citizens or resident aliens.

2. Ownership Type

Shareholders in S-Corp and C-Corp have ownerships termed “Stocks.” S-Corp can have nonvoting and voting in one class. C-Corp has different levels. LLC members own small percentages of the business and various types of membership interests.

3. Transfer of Ownership

C-Corp shareholders can widely and freely transfer their shares, taking note that they have no restrictions over selecting eligible owners. S-Corp shareholders can only transfer shares to eligible S-Corporation shareholders, given their 100-limit. LLC transfers need further agreement review as variable rulings depend on which state they are established.

4. Declaring Profit and Loss

C-Corp shareholders can distribute loss and profit among themselves benefiting from a lower tax rate. S-Corp shareholders and LLC members, on the other hand, are unable to do this as they have certain quantities allotment for each. On the brighter side, their personal tax returns can account for their profits and losses.

Deciding which one applies best to your company is essential to your success as a business. If you’re a corporation and can’t decide yet if you’ll enlist as subtype-S, remember you have seventy-five days from enlistment to decide.


What You Need To Know About Business Life Cycles Consultants Won’t Tell For Free


There are so many things and factors to consider in putting up a business. While most business consultants immediately delve into topics of capital, investment, and other strategies, we firmly believe that anyone should know the basics.  Here’s what you need to set expectations of having a business and the struggles or challenges of transition from one phase to another.

1. Start-Up

The start-up phase means you’ve passed the preliminaries of having a business set up. Wake up. Your firm is now more than a dream or an idea. At this point, your organization should have been legally listed, with its name and logos. Your products or services are now available to your customers.

Hurdle 1: If your business is still at this stage, you may have had some overlooked your budget and needs. Make sure you don’t spend what you currently have. There are more needs to arise in the future. Also, check your progress as frequent as possible.

2. Growth

Reaching this phase means more customers are bringing higher revenues and more opportunities for development and concerns. You may feel a tag between profit and competition.

Hurdle 2: While your company undergoes this stage, you may have to review your strategies and general business model, with a focus on bookkeeping and a more extensive financial management.

3. Maturity

While sales and profit imply success, growing competition could also arise. You may end up doing all means possible to keep your products and services in the market, through the social media and other markets.

Hurdle 3: Plateau in profits and sales which can include negative cash flow without proper management and strategies.

4. Exit

This phase is make-or-break of your hard work, or lack thereof. Your business is now either up for sale or closure.

Hurdle 4: Selling your firm under a practical market value that meets current prices. This stage feels like binary options. It’s either you win or lose.

That concludes the business life cycle in four stages. Some say there are seven to account for those areas in between. Prepare yourself for these, especially the last one.



3 Ways to Rekindle Your Firm’s Development During A Plateau Before It’s Too Late


An organizational success comes in three forms – getting out of the hurdles, going through obstacles, and facing future risks. While there are external factors that may affect your tenure as a firm, your company’s success relies on how businesses usually work and develop.

If you think your growth stalls, we’ve listed four effective ways to spark that growth again during an unwanted success plateau.

1. Identification And Assignment Of Roles And Performance Indicators


Let’s face it. No matter big or small business is, it undergoes a life cycle where it either develops or dies. While we do not want our organizations to end without thriving, proper identification of roles in each critical process is a must. We also need to talk about our metrics regarding our employees and the company in general. Learning where our staff excels and needs improvement will help us make well-informed decisions. Spell: Human Resource Optimization.

This phase also helps in knowing who to promote as needs arise. After all, the management needs powerful leverage.

2.  Embrace Process Change


A successful firm is not limited to having enough funds to run the business; it also requires a strong financial leadership that allows an active and strategic role in the core processes. Necessary financial and process changes should also meet a company’s requirement to strong external ties with other key players in the community, i.e., logistics, supplies, marketing, etc.

3. Build A Data-Focused Environment


While we would like to focus on the satisfaction of our clients, our success as a business also relies on our capacity to use data rather than personal experiences or intuition in making any decisions. Using an efficient mix of technology, the right human talent, and methods can drive success in the vertical and horizontal markets.
Don’t wait for your business to fall before you use these steps. If you’re currently doing these three, try reinforcing your methods. Watch your business go active again.