A limited liability company (LLC) electing S corporation status for tax purposes could lessen a business’ tax bill by thousands of dollars. An LLC pays a 15% self-employment tax on profits, while an S-corp only pays 15% on the owner’s salary, not the entire profit. You can file IRS Form 2553 to elect as an…
What Is an LLC & How to Register
An LLC stands for limited liability company. It protects a business owner’s personal assets in the event that legal action is taken against the business. LLCs have the tax advantages of partnerships combined with the limited protection of C-corporations. State fees to register an LLC vary, ranging from $40 in Kentucky to $520 in Massachusetts….
What Is a Convertible Note? Examples & How It Works
A convertible note is a short-term debt that has an interest or discount rate, a valuation cap, and a maturity date. Investors use convertible notes to invest in startups in the early stages of development. Investors can choose to convert convertible notes into preferred shares on a specific date or event. What Is a Convertible…
14 Tech Startup Ideas For Entrepreneurs
Tech startup ideas cover a wide range of businesses, from software or physical tech sales to businesses that completely rely on technology like independent livestream reporting. All tech businesses can be profitable, with the most successful ones earning millions of dollars per year. Some have an edge with proprietary information, while others are more innovative….
32 Easy Businesses to Start
Many people want to start their first business but struggle with deciding what type of business to start. Easy businesses to start usually have fewer licensing requirements, training certifications, flexibility, and a lower overall cost. Marketplace websites like Care.com make it easy for businesses in certain industries, like childcare, to connect with paying customers. Here…
Series A, B, C & D Funding Rounds Explained
Series A, B, C & D investments represent the first funding rounds that startups receive from investors. Each round involves the issuance of preferred stock sold to investors by a startup, with subsequent letters representing subsequent rounds. Startups use these funding rounds to hire staff, launch products, and market to customers. What Series A, B,…
18 Elon Musk Quotes on Business, Success & Life
Elon Musk is a business magnate, co-founder of the electric car company Tesla, and founder of the space exploration firm SpaceX. The entrepreneur also co-founded the payments company PayPal. Musk has a net worth of more than $20 billion. These Elon Musk quotes may be a source of inspiration to aspiring entrepreneurs. Here are the…
How to Open a Bakery in 6 Steps
To learn how to open a bakery, you should start by writing a business plan, researching equipment costs, and finding a location. A bakery can be operated at home, in a shared kitchen, food truck, or cafe. Costs range from $5,000 for an at-home bakery to over $500,000 for a bakery cafe. Every bakery that…
21 Startup Costs Every Business Owner Should Know
Startup costs are expenses for new businesses. Almost all new businesses will have at least a few expenses, such as legal entity registration (around $150), software, and marketing. Some businesses have costs that are not required but are helpful, such as business plan software ($20 per month), professional consultants, and a website ($20 monthly). Tips…
Startup Business Loans 2020: The 12 Best Ways to Fund Your Startup
Qualifying for a business loan as a startup can be difficult. Entrepreneurs often need to utilize multiple financing sources to get their new startup off the ground. Startup business loans can take many forms, including SBA loans, angel investment, or Rollovers for Business Startups (ROBS), and each is unique in what they offer to startups….
How to Get a Loan to Buy a Business
Most people need a loan to buy a business. Borrowers should expect a down payment starting at 10%, interest between 5% and 10%, and terms between three and 25 years. Most loans have underwriting or closing costs, and borrowers should expect to pay on average 2% to 3% of the total loan amount at closing….
How to Crowdfund Your Small Business
To successfully crowdfund your small business you will need to select the type of crowdfunding that best suits your needs as well as a platform to host your campaign. When you set up the campaign you will need to tell a compelling story and adequately describe how your product or business can benefit potential backers….