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Wednesday, March 26, 2008

Should I Form an LLC or INC.?

Corporations, or businesses that operate under a corporate structure, go back as early as the 1300s. Modern corporations are similar to those during the days of trade expansion into The Americas by countries seeking riches and imports from foreign lands. By forming corporations, partner ventures could limit their liabilities in the event of unforeseen circumstances: hurricanes, reefs, wars, pirates and so on.

Today, we have the same objectives (limiting personal liabilities) and the same mechanisms (corporate entities); only the reasons and structures have changed over the years.

In the United States and other countries, there are tremendous tax incentives to further motivate business owners to incorporate. Officers in the corporation can legally pay themselves a salary for part of their income, and then pay themselves a profit dividend at a lower tax rate for the rest of their income. Further, expenses related to the business are pulled out of the profit before taxes, another huge plus of the corporation.

For these reasons, it is my hope that you will consider forming a corporate structure to protect your business and yourself from liabilities and maximize your profits.

See also my earlier blog entry “We Don’t Need no Stinkin’ Corporation.”

In my next blog, I’ll expand on how to incorporate.

JM Kelly, The IT Entrepreneur

Sunday, March 9, 2008

There's no secret to "The Secret"

Unless you live in a cave, you have no doubt heard of the book and video entitled The Secret, which teaches that you can have anything you want simply by wishing for it (or asking The Universe for it).

Mystical and religious beliefs aside, the basis of The Secret, The Law of Attraction, has been around for centuries. The Law of Attraction states basically that "you get what you think about" and "like attracts like". There have been several books written on the subject, all of which are scrutinized by the scientific community.

Based on my personal observations, there are some truths to the claim. In business, people who exude negativity will, in fact, attract negative people. The same could be said of positive people, criminals, entrepreneurs, etc. The best method I have found to locate projects (i.e. work, food on the table) is by referrals. I would not get good referrals if people thought poorly of me, which they would if I were an ass.

The reason that there’s no secret to “The Secret” is because others have written about it before. One of my favorite books, the classic Think and Grow Rich! by Napoleon Hill, tells the secret of wealth accumulation told by 500 self made multimillionaires. Commissioned by the legendary industrialist Andrew Carnegie and taking 20 years to write, this book illustrates the parallels of people who built wealth for themselves out of “nothing but the power of their minds”.

Being scientifically minded myself, yet open to possibilities, I feel there are connections between human thoughts (energy) and the fabric of the universe. According to renowned author and physicist Brian Greene, everything we perceive is made of tiny strings of vibrating energy; everything including our bodies and minds, our thoughts, and of course, money and material objects. These tiny strings vibrate in a universal symphony to form our reality. Check out The Elegant Universe if this interests you.

Whether you believe in the Law of Attraction or not, it is hard to argue with the fact that a positive mental attitude goes a long way. Couple this with mutual cooperation for the purpose of achieving a common goal, and your business endeavors will stand a far better chance at success.

JM Kelly, The IT Entrepreneur

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