Small Business Corporation Benefits

Deciding on the best company structure for a new endeavor can be a daunting process due to the confusion that it poses and the multiple options out there.

People often wonder whether a particular structure will offer enough benefits and is worth any of the potentially additional administration. The small business corporation is a popular option.

There are a number of benefits associated with this structure. To start with, all owners will receive personal liability protection afforded by the corporate entity. This protection has been established and enforced by the court system for over a century now. For the greater part of the business world, incorporation was the only choice for obtaining this essential need.

Big corporations like Walmart and Ford were all once small businesses.They have been able to grow in part because of the protection they have had all this time by running their businesses through asset protecting vehicles like the corporation.

While this protection is essential in today’s business environment, it is not an absolute protection. You should still get insurance and owners may end up being asked to personally guarantee business debt at the initial start up of your company.

This legal entity also provides an excellent structure for taking on investment so if you plan on raising money for expansion, the corporation is ideal for facilitating an equity transaction. Because it is a separate being under the law, it is able to establish its own credit as well. Over time, banks will lend money to the company itself without requiring any owner involvement.

It also comes with a standard built in governance structure. The small business corporation will be managed by a central body called a Board of Directors. The Directors can appoint officers who will be tasked with running the day to day business.

While a corporation by default is subject to the double tax structure of a C corporation, it can qualify for a single layer of taxation by making what is known as an S election to the Internal Revenue Service. Not all small business corporations will qualify. Check with your accountant.

Another benefit is that you can more easily sell a business. Because the entire business is within this separate legal entity, it is easier to sell the company because you can just issue the ownership of the corporation to the new owner. Ownership is generally represented by shares.

Many entrepreneurs ponder over whether to use a limited liability company instead. The LLC is more popular for the standard small business which is owned by one or just a few owners. It is a more simple and more flexible option.

However, if you plan on growing an expanding business, operating in several jurisdictions, taking on third party investors, or going public someday, the small business corporation is the better option.

Proxy Voting – Small Business Corporate Regulations

A proxy is an agent who has been legally authorized to act on behalf of someone else. When shareholders are unable to attend corporate meetings they can still cast their votes by using a proxy, who votes on their behalf. The proxy needs to produce a power of attorney document.

Generally shareholders get a mail from the particular company, in which they hold shares, prior to any meeting containing several documents providing information about the company’s growth, performance, its management, information about changes in the share structure, notices about any mergers or acquisitions etc. The mail would contain all the matters that shareholders would require to vote during the meeting. Along with these documents, there would be a form to allow shareholders to vote by a proxy if they cannot attend the meetings in person.

Importance of Proxy Voting

Shareholders have to carefully study all the documents provided to them and cast their votes. It is the primary means by which a shareholder can influence a company’s operations, its corporate governance and other important issues. Therefore voting and making their choices clear is very essential for a shareholder. Hence, voting in person is not possible; proxy voting becomes essential for a shareholder. Usually a shareholder has the right to cast one vote per share he owns, so it is important that the shareholder casts his vote at least by a proxy. Proxy voting enables a shareholder to own shares of companies registered all over the world and influence the company’s decisions.

The Role of Institutional Investors

Thanks to the Internet, several large institutional investors post their decisions online explaining their stance and making small time investors aware of why they have made their choice. They put up proxy voting guidelines, helping proxy voters to know their views about the matters to be decided on at the meeting. These institutional investors can urge the company to alter or at times even withdraw some of the proposals making the institutional investor’s proxy voting guidelines fairly important.

Proxy Voting – Service Providers

The Internet has made it very easy for shareholders to cast their proxy votes online. Proxy service providers, such as EquiServe, Automatic Data Processing and other such companies deliver the documents in an automated electronic format and the shareholders just have to fill out the form and cast their votes. They have to log in using a personal number or a code number assigned to them and cast a vote for or against the corporate resolution that has been proposed.

Companies allow shareholders to nominate members to the board of directors. While it may be a refreshing change to get to nominate directors, the shareholders should have the prudence and the ability to elect an appropriate person who will guide the company to better, above-average growth and to ensure good corporate governance in the company. The wrong choice may make them elect someone with no experience causing a lot of harm to the company. Shareholders get to vote on such matters as election of directors, auditors, acquisitions and mergers.

The Role of Internet

Owing to the excellent choice of software available to enable the process of proxy voting to be simple and easy for a shareholder, within a matter of a few minutes a shareholder can cast his vote by a proxy through the Internet or by a simple phone call. The Internet has made it possible for an investor to own shares of companies across the globe and cast his vote after making an informed decision influencing the company’s decisions regarding corporate governance and other important issues.

Boost Business With These Loyal Gift Basket Customers

As the new owner of a gift basket business, you will soon find out that your corporate customers are at the heart of your thriving business. Corporate customers need to be nurtured and serviced well.

Let`s face it….nothing beats an order for 25 to 50 well priced baskets with the same content and same delivery address!

What a way to profit big while providing a gift that will bring much joy and satisfaction to the recipient!

Reasons Corporate Customers Will Send Baskets:

1) Corporate baskets are most often ordered to reward loyal employees and

2) to thank the company`s best customers.

3) Other excellent reasons corporate customers send baskets are to send get well wishes to good employees

4) to send happy birthday wishes or

5) to send sympathy condolences to top customers, associates and employees.

6) Another popular reason is to congratulate an associate or

7) to apologize to a customer or to make up for delays.

Why Baskets are the Ideal Gift For Corporate Customers:

They are the perfect gift for businesses to send since it saves the executive, manager, secretary or principal much shopping time. They can also easily determine what budget they want to spend on each gift by giving you their price range upon ordering. Best of all, baskets are always a welcome sight for the recipient who has the honor of being delivered a pretty and delicious basket.

How Gift Baskets Can Boost Business; Yours and Theirs

Basket giving can strengthen business relationships, increase employee and customer loyalty, and generate more referrals.They are often the perfect gift since they can be customized to the occasion and are most often impressive in presentation when well designed. The best baskets are filled with a mixture of food items that can be easily eaten and shared at the office or place of work. Appropriate for men and women, this gift generally never sends an inappropriate messages. Most corporate baskets are filled with delicious treats, and as a bonus, many executives are now adding gift cards to crown the basket with even more value and appreciation.

Make your corporate customers the heart of your business and the health of your profit margin will remain very healthy for years to come.