Lean Accounting vs. Traditional Cost Accounting

Manik Thapar · Guest

People work for bread but not bread alone! What I mean by this is that
offering more money is not the answer. This individual might be looking
for a sutible work enviourment, something might be bothering him, you
dont really know. What you need to do is sit down and talk to him,
finmd out what is bothering him, and tell him you are there to help him
in whatever way you can. But make sure that you let him know that this
problem needs to be resolved ASAP and then set a time frame. At the
same time start looking for some one to fill his position, incase you
continue to have problems with him

You need to make sure that you have the right people on the bus and
wrong people off the bus.

for more on this subject visit www.careerpath.cc and click on the
MANAGERS MANUAL LINK

Regards
Manik Thapar

John A. Weeks III · Guest

In article <11hacaa2cl7fe29@news.supernews.com>, dpingin@gmail.com
wrote:

Quote: - are there any cheap alternatives to incorporating so that we can "try
out" our idea before deciding whether we should invest the time and
money in incoporating (we won't change for the service and will absorb
any expenses ourselves).

The cheapest thing to do is find and hire a good accountant.
In general, such an accountant will save you more money in
taxes and fines than what their fee will cost. You will end
up with far better localized advice tailored to your situation,
and you will end up net positive in the long run on the deal.

As far as your situation, no matter what you do, you will
have tax and accounting issues. They will different between
the various forms of business, but they will still be there.
No free lunch in the USA.

The easy thing to do is start as a partnership. In general,
partnerships are a really bad way to run a business. So I
would suggest that you also have a contact between the two
parties, and set it up so the partnership dissolves automatically
after some set period of time, like 24 months. That will
force you to revisit the issue before many of the bad things
can happen to a partnership. If it is successful, then a
corporation might make sense. If one party loses interest,
then a sole proprietorship might work best. If both parties
want to can it, then you just let it fade to black.

-john-

--
======================================================================
John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================

fp · Guest

The cheap alternative is to file as a DBA. Do this with the county you are
doing business in. It involves filing a fictitious name in your local
newspaper for 4 weeks. You will also need get a business license from the
city or county. As a DBA you will have personal liability of the business
actions. You can get liability insurance either separately or as a rider on
your home insurance.

As for obligations of taxes and accounting, you will still need to do those.

There are other costs of doing business. You will need a separate bank
account. Shop around for this service as it can be expensive. You will need
a facility for your business. Even if it is in your house you will need to
lease the space to your business.

If you do the business in California the State will probably want you to pay
taxes on any income because the money was earned in California even if you
don't live here.

I hope I answered all of your questions. Good luck with your new business.

--
******************************
Fred Parker
Lynn Consulting Group, L.L.C.
http://www.lynnconsultinggroup.com
******************************

gs · Guest

Quote: On Wed, 31 Aug 2005 04:25:46 -0000, dpingin@gmail.com wrote:
Hello all,

A friend and I are thinking of starting a business together but we're
on a shoestring budget. We haven't decided where it should be based yet
(it's that type of venture) but at the moment we're thinking of
California USA (which is where my friend is based). We'll be providing
an internet based service to small-medium sized businesses. We think
it's a good idea but we haven't tested it out yet.

If the idea is successful, then at some point we're going to have to
set up a company (let's say a corporation). Neither of us have
experience with this but we do know that it costs money (1000-1500) and
will place certain obligations on us (such as taxes and accounting).
Our question is the following:

- are there any cheap alternatives to incorporating so that we can "try
out" our idea before deciding whether we should invest the time and
money in incoporating (we won't change for the service and will absorb
any expenses ourselves).

- if there are, and we do decide to pursue them, are there any risks
associated (say in terms of personal liability)?

thanks in advance
kind regards,

David

look into the forms of business the state allows

LLC might be the answer and allow some level of protection
often easy to form yourself

regardless of the business form, you have tax liabilities, at the
personal level rather than at the corporate level plus taxing
income at the personal level.

depending on the state, there might be a minimum annual "fee"
regardless of income, so check that aspect too.

no charge for service ... hope you can make it up in volume :-)

I recommend you include in the startup docs pre-planned rules for
disolving the businesses. Define how it can dissolve, the value per
person (or dollar invested, or percentage per person), the ability to
sell the participation, right of first refusal.

Doing this at the beginning when everyone is bright eyed usually makes
it fairer to the parties at the end since there is no need to
negotiate at the breakup. It also makes people think about
dissolution at the beginning and you might end up being friends at the
end too.

my 2 cents

(I've formed S-corps, LLC's & sole proprietor in VT and still haven't
a clue, so take the info with a grain of salt)

- Ed

fp · Guest

Quote: LLC might be the answer and allow some level of protection
often easy to form yourself
depending on the state, there might be a minimum annual "fee"
regardless of income, so check that aspect too.

In California that LLC fee is $800 for revenue below $250,000 and a percent
charge for revenue above that amount.

There is also a $70 filing fee and a $20 restatement fee every 2 years.

--
******************************
Fred Parker
Lynn Consulting Group, L.L.C.
http://www.lynnconsultinggroup.com
******************************

Wayne Lundberg · Guest

"Tech Guy" <jefftilt@tnetzero.net> wrote in message
news:11hacbc881mte5c@news.supernews.com...
Quote:
I too am looking for a business and spent the first 5 months reading about
business valuation. The best book I found is entitled The Business
Valuation
Book by Scott Gabehart and Richard Brinkley. Brinkley is the former CEO of
VR Business Brokers and an analysis of their database of businesses that
have sold provides the statistical framework for the book. It is an
American
Management Association book, ISBN 0-8144-0642-4. It comes with an
accompanying CD that gives many "rules of thumb" on valuing various types
of
businesses. I'd recommend you get it so you can back up your assertion as
to
value.

"big head" <jumbocranium@yahoo.com> wrote in message
news:11gd5fci68p124e@news.supernews.com...

I am looking at buying an established retail business. Here are the
specifics I have now.
61.5k in assets
80k in discretionary earnings
asking price is 395k.

That seems high to me, but I have no experience in these matters.
Any advice or guesses as to where I should start negotiating would be
great.
I have not seen tax returns yet, they are in the mail

Thanks

Why not just put your comments in the newsgroup and go from there. Why do
you want me to do research on a subject that I have been dealing with for
years and know what the heck I'm talking about.

Wayne