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| Jul 31, 2007 2:40 pm |
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re: re: Creating a company run from home |
Laura Wheeler
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We have a corporation, and it is run from home. We did hire a lawyer to incorporate, but other than writing up some very generic bylaws, he did not do anything that we could not have done ourselves - and even then, we had to write our own policy to support the bylaws (they were too non-specific). I don't regret paying him the first time, but if I were to do it again, knowing what I now know, I'd go it alone.
We have a home business, and the biggest issue with that is that many companies that we deal with will ask whether we are a home business or not. If you are a home business, you are not given the credibility that you have if you are not, in SOME arenas, not all. It is an increasingly common question on credit apps, and other forms that you fill out. And many won't come back to ask you later whether you are STILL a home business (we intend to grow, and our current growth pattern indicates that we will have to move out of the house or get a bigger house in about 6 months to a year).
Our address of record is our home address, and a post office box. Out here there is no street delivery, so a post office box is a necessity. Some people will use a different "registered agent" address. I advise that you do not if you want any credibility. You should have "transparent" contact information for good credibility.
There are advantages and disadvantages to having a corporation. I'm glad we do, but it does add a layer of expenses to our operations that we did not have before. It does make us better able to get work in our field, because it indicates that we are a serious company, and not a fly-by-night scammer. I dislike though, that our corporate contact info is now on corporate lists, and we are a target for all sorts of solicitors, legit, and otherwise.
As to the issue of a secretary, yes, you need to have one. But it can be the same person as holds other positions. The company secretary has specific duties in most states, and is the one to whom much of the record keeping duties fall. We have a President, a Vice-President/Treasurer, and a Secretary, consisting of myself, my husband, and our third son. We incorporated as a Wyoming Close Corporation (limit of 40 shareholders - we have nine), but we did NOT elect S-Corp status with the Federal government (people always look at us over that combination, like we just don't understand what S status means, but we do, and we did this so that our income would be designated as employment income, not as self-employment income). Close Corporation status allows us to be more informal about notification and meeting procedures, as befits a family operated business.
I recommend you research thoroughly before you choose a corporate structure, and that you talk to people who have done it along with seeking legal assistance if that is what you choose to do. Think about what your corporate policies will be for "checks and balances" also, even if you ARE small - if you put them into place when your company is small, you'll avoid a lot of growing pains later if you've created smart policy that is scalable.
Laura
Mom to Eight
Firelight Business Enterprises, Inc.
http://www.firelightwebstudio.com - No one knows more about high value, low cost web services than we do!
http://www.westernhillsinstitute.com - MicroBusiness Service Provider Training teaches how to provide low cost, high value services at a healthy profit.Private Reply to Laura Wheeler (new win) |
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