Hello, week 5! Tonight is all about legal…

SARAH McCURRY

Sarah McCurry introduced herself as a “modern trend lawyer” (her business is based on referrals, not cut-throat, and through advertising. She is billed hourly vs certain amount of trust.) Then she asked the participants to introduce ourselves and give her a short business description. – There is such a great variety of start–ups here, it is very neat!

I tried to shorten my notes for you here, but I thought most of them were worthy of sharing:

FORMED BUSINESS: (can be sued based on your personal assets)

Organization (forming a business and “I’m supposed to incorporate”)
Sole-prop (1 person)
Partnership (2+ people in ownership)

ENITY: (can only sue based on the resources based only on property of business)

First you have a company name, purpose, etc.
Next you need liability
Limited liability comp (LLC)
Corporation (‘can be burdensome’) “C-corp” (board of director, meetings, minutes, movements to move)
Stock – buy a minimal share of stocks, you will be taxed on the amount you own (see articles of incorporation)
Non-stock
Non-profit

FYI: file w/SCC-VA (to form corporation) business entity search

FYI: B-corp is a “label” like food marked “organic” (you’d have to be LLC or Corp)

CORP (SCC on-line filing) – member of VA state bar, corporation, self

TWEET: “Sound advice – when it comes to a start-up, have paperwork in place, respect the entity and stay organized!”

FOUNDATIONS — IMPORTANT!!

Articles of organization
Certificate of organization
IRS-EIN get number (not mail) – social security number for company
Bank account – business!
Write a check to county

TWEET: “If you are running your business out of your personal bank account – go to the bank tomorrow morning.” SM

Filing process for LLC – the RIGHT foundation

Less paperwork
Shares = membership
Sign documents “managing member”
Who gets what % of loss
Who gets what % of gain
What happens?
Insurance in place to pay rent, liability ins, payroll, spouses, etc.

DBA – Company vs Name

Reg. for taxes – who is paying?
State/county needs to know
File “VA factious name” application
Take to local court
“If I do something wrong? Will a customer be able to find me?”

LLC: (BMW, Chrysler – but, if you sell on stock market, probably go to DE and register for tax purposes)

No stock — membership only
1 – tax as sole proprietor (or partnership)
2 mo & 15 days – S Corp (w/employees)
Keep records (expenses…) “Where are you and where are you going?” SM
Mold it how you want, tax-wise
No bylaws or official docs

ALWAYS put things in writing

Contracts
Commercial Lease

o VA-buyer beware

o read the terms

o personal guarantee (personally being responsible for paying if your company cannot)

o oral promises don’t matter

Hiring
Purchases

Substantial compliance – look into (rules and regulations, terms on agreements)

****SIGN: Darla D. Hancock, Managing Member of The Social Market

7 habits of highly effective people by coveys

Focus on goals
Be positive

Be proactive, life doesn’t happen (take action on wht you can do, not worry about what you can’t control)
Begin with the end in mind (prioritize and bring a proper foundation
Think “win-win”
Think cooperatively (think community, not individually) – believe in abundance
Don’t assume you know more than anyone
Teamwork, value difference
Take care of yourself

KAREN AYLWOOD

Karen works for Chesterfield Economic Development. She defines what she does as a “Corporate Concierge for Small Business” – helping to build communities of partners and resources. Her advice was practical and informative about what Chesterfield County has to offer small businesses:

IF YOU USE “DBA” – fill at clerk’s office (county) – $12

Where do you look for grants? Chesterfield Business Starts Here