I am in the process of starting a small business. the initial start up causts are high, but there are no real expences after that. Im hoping that paople on this board can give me advice as far as incorporation, and the costs/legal issues that go along with it. this is a $1.2 million startup, so think of the risk involved. I am seeking info and guidence. tomorrow i register my company thanks ------------------ Hanta-Force Paintball http://www.hanta-force.com
Geez, that is a high start-up. I assume you have venture capital or at least one hell of a loan! What kind of business and how in the hell is it small with a start-up cost that high? I guess, technically, anything with fewer than 100 employees is "small" but that's a ton of coin. From a risk standpoint, considering the amount of money you are putting in, INC's offer the most stability and protection from liability. Of course, they are most expensive to maintain and have the greatest requirements for paperwork, etc. In other words, they cover your ass by being a pain in the ass. You'll have to set up a board of directors with, I'm assuming, you as CEO. You'll draw up business and market plans as well as budgets, but if you have that much money already, you've probably done all that. Finally, you have to set up all your heirarchy of management. You are the CEO, but who are your VP's (if any, you don't have to have anyone but you and, I believe, two others) and what are their responsibilities, liabilities and share in the company. Hire a very good CPA. A good one can take care of nearly everything you need and it will cost you less in hassle than you'll pay in cash. Good luck! ------------------ The way to use life is to do nothing through acting, The way to use life is to do everything through being. - Lao-Tzu
Hire a lawyer, too. There are a lot of pitfalls in incorporation that are often hard to avoid without legal representation. You also might consider an LLC rather than a corporation. You get limited liability without the double taxation that corporations are subject to. There are also lots of rules and regs you have to keep up with, but your attorney will be able to lay it all out for you. ------------------ Houston Sports Board
LLC is not an option. It is a paintball field,store the startup is because land is so expensive where I live. I'm looking at 17 acres for 1.1 mill. the rest od my start up which could reach as high as 1.5 mill total is to cover the countless small purchases requred for this kind of business. the main expense in any paintball business is the land, or building. the good thing is that after the land/loan is paid off in 7 years, we will be making a 320K profit after takes and saleries. its just gonna be tought to make those 7 years. all of our estimates are ultra conservative, so it is absolutely reasonable than this business could pay for itself in one year also, but I like to be cautious. here is a question. I know I need insurance on the operation of the business(paintball field coverage is suprizingly cheap). but does your company have to be doubly insured? like insuring the company and the service that we provide?? well after I go incorporate tomorrow is when i meet the lawyer type people. there are just so many steps in this process i have done soooo much research already. oh well it shoulf be all worth it in the end well thanks, and keep the advice pouring in i will need all of it PEACE ------------------ Hanta-Force Paintball http://www.hanta-force.com
Are you incorporating as a corporation, joint-partnership or a sole proprietorship? It will cost more and be MUCH more work, but become a corporation. It's by far the best way to go, especially in your situation. I'll explain why later if you're not registering as a corporation. If so, kudos to you I've been working with 8 other people to start a Texas non-profit corporation and it's been lots of work, but hopefully we'll get some real work done pretty soon. ------------------ "Any answer that can't be questioned is no answer at all. It's gibberish. It's the jabbering of startled monkeys flinging dung at the moon" -- Scott Christensen -- www.ewav.com
Need help? I am a recent college grad with a degree in Public Relations and Advertising. Email me if you need/want a resume. I need a damn job. ------------------ "Salt Lake City, Utah. You will never find a more wretched hive of scum and villany." --Olaju-Won Kenobi, to young jedi Steve (Fran)'chiseWalker
That sounds great Voice. Is it near Houston? Once you open it, let's have a CC.NET fight. something like the Mobley bashers vs the Mobley apologist. lol!
TVOR-I work with accounting, so I'm sorry, I can't help with your insurance question. However, on the choice of entity, I'm curious as to why you couldn't do an LLC. It's really a nice option, in that you have liability protection and no double taxation. But if you can't, you may want to consider an S Corporation. In a nutshell, this is a "small" corporation, where the profits (and losses) are passed through to the shareholders. Therefore, there is no corporate level of tax-the onus is upon the shareholders. This may be beneficial to you in the short run, as the losses you expect to recognize in the initial years would be deductible on your 1040 (as long as you have basis in the corporation). On the other hand, a C corporation can provide you with tax-free fringe benefits. If this will be your livelihood, this is a nice little perk. However, as others have mentioned, there is the double tax on earnings. The biggest thing for you to do right now is to think of how your business will operate. It sounds as though you've done that. Be thinking about what the company's economic goals will be (ie to maximize profit to shareholders or to invest the profits back in the corp.) If you have a sound idea of what you want, the next step is to surround yourself with good advisors. Get an attorney. Get a CPA. Let them keep up with the legal requirements of your operations, so you can do what you do best-run the company. Good luck. ------------------
I am incorporating as a corporation. the reason llc is not an option is that we are building a 40,000Sq' indoor paintball complex in order to be able to play year round. there will be 3 indoor fields each field requires between 2-3 referees. during the summer there will be anywhere from 5-10 outdoor fields. these will also require referees. so besides the main employees there will be anywhere form 9-35 employees most of them will be paind off the books through free field use and free paint, but some will take the cash instead from what ive learned CORPORATION is our obly option. also our future plans include a manufacturing company and much more, so it is best to deal with the hassle now rather than later. as far as Houston... sorry I live in NY my field will be in Southampton NY also due to the unique nature of the business the only people that i will be hiring will be people that play paintball. you have to know the business. sorry lynus, we have no need for advertising. but maybeinthe future(like 7 years from now when the loan is paid off ) ------------------ Hanta-Force Paintball http://www.hanta-force.com
A million dollar start-up and you don't need advertising? Well, okay..... ------------------ "Salt Lake City, Utah. You will never find a more wretched hive of scum and villany." --Olaju-Won Kenobi, to young jedi Steve (Fran)'chiseWalker
Offhand, I don't see how 35 part-time semi-employees would keep you from becoming an LLC. I would really advise that, since you really want to insulate yourself from tort-liability possibilities in a business that could lead to injuries. But what would I know? ------------------ "Thirty-seven?" -Randall, Clerks www.clutchtown.com
From my perspective, a LLC is the only way to go. Tax reporting is so much easier, plus you limit your liability. Don't know about NY, but in Texas, you can have a LLC as a partnership. Advice: you're going to need a large liability insurance policy for your business. Accidents do happen, and a sharp lawyer could easily own your company if some kid accidentally gets hit in an eye, or falls over a log. ------------------ Houston Clutch fans - don't forget to vote YES for the Arena!
You need help with a million dollar start-up and you're asking posters on the bbs!?!? I'll pray for you! j/k, I'm sure you'll be fine. ------------------ RealGM Rockets Draft Obligations Summary Gafford Art Artisan
well as far as corporate structuring goes, I will be meeting with some "experts" tomorrow. I suspect they will tell me the complete story on all sides. as far as insurance goes, paintball is safer sport than golf.there are sever companies that exclusively cover paintball operations, and they are verry cheap. lucily I have looked inte all of these things a while ago. but i appreciate the continued support. and No, no paintball company ever needs advertizing. at least not anything that an educated monkey couldnt do. word of mouth is more than adaquit. also remember that a million bucks isnt really alot in terms of companies. hell the land alone is gonna cost me 1.1 mill in the area that I live everything is expensive. but the earnings are higher. if i were to do this in Houston im sure i could get it done for 500K anyhoo im off to dream of my millions....... of dollars in debt that is ------------------ Hanta-Force Paintball http://www.hanta-force.com
