Resources
This section addresses web-based resources and generally asked questions in immigration law, business law, and intellectual property law.
Disclaimer
The Law Office of Pari Sheth LLC claims no responsibility for the accuracy of the information in this section. It is for information purposes only and does not constitute legal advice, consultation, or opinion.
For a specific question, email Pari@parisheth.com or call (314) 614-3954.
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FAQ
Usually, the best business for you is the one in which you are most skilled and interested. As you review your options, you may wish to consult local experts and businesspersons about the growth potential of various businesses in your area. Matching your background with the local market will increase your chance of success.
A business plan precisely defines your business, identifies your goals, and serves as your firm’s resume. Its basic components include a current and pro forma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. It can also tell sales personnel, suppliers, and others about your operations and goals.
Committing your own funds is often the first financing step and a strong indicator of how serious you are about the business. You may want to consider a partner for additional financing. Banks are an obvious source of funds. Other loan sources include commercial finance companies, venture capital firms, local development companies, and life insurance companies. Trade credit, selling stock, and equipment leasing offer alternatives to borrowing. Leasing, for example, can be an advantage because it does not tie up your cash.
The RFP process is used to obtain complex services in which professional expertise is needed and different methods may be applied. An agency is often unsure of the most effective route and looks to outside contractors to propose a way to fulfill the contract. The RFP is specific about qualification requirements, performance specifications, time frames, and other requirements.
The RFQ process is used where contractor qualifications matter more than cost. Selection is based on the professional qualifications necessary to perform the contract at a fair and reasonable price. Contractors submit a Statement of Qualifications, which is scored. At least three of the highest ranked contractors are typically interviewed. Once the best fit is identified, cost negotiations continue until a fair and reasonable price is reached.
A corporation is a business structure created and regulated by state law. It is an independent legal entity, separate from the people who own, control, and manage it. Corporation and tax laws treat it as a legal person: it can enter into contracts, incur debts, and pay taxes apart from its owners. It does not dissolve when its shareholders change or die, and the owners are not personally responsible for the corporation’s debts.
If a business owner has limited liability, that person is not personally responsible for the business debts and obligations of the corporation. If the corporation is sued, the assets of the business are at risk, not the owners’ personal assets, such as houses or cars. Owners must comply with corporate formalities and paperwork to maintain that privilege. Limited liability companies also offer this protection. Sole proprietorships and general partnerships do not.
Partnerships and sole proprietorships do not provide limited personal liability for business debts. An LLC does offer limited personal liability, and running one is generally less formal than running a corporation. Corporations are taxed on their own profits. Partnerships, sole proprietorships, and LLCs are generally not taxed at the entity level; profits pass through to the owners, who report them on their personal tax returns.
Several steps are required. The first is filing articles of incorporation with the corporations division of your state and paying a filing fee. Some states call this document a certificate of incorporation, articles of organization, a certificate of formation, or a charter.
Yes. Corporations must follow statutory rules that many unincorporated businesses do not, including annual shareholder and director meetings and records of important director decisions. They file a separate corporate tax return and typically keep a double-entry bookkeeping system with journals and a general ledger.
A professional corporation is a special kind of corporation that only members of certain professions, such as lawyers, doctors, and other healthcare workers, can create. It can limit personal liability for the malpractice of associates.