The Savvy Business Woman

Staying afloat in tough financial times

2008-03-13T14:55:37Z

The financial savvy of business owners varies greatly. Some do a fabulous job of handling money, spending wisely and so forth. Some have savings set aside to get through tough times. Others just pay the bills when they come in (or not) and don't even have a basic business budget. Following are some basic tips to help your business stay afloat in tough financial times:

Budget - sometimes entrepreneurs focus so much on the many facets of running a small business, they overlook this very basic financial tool. If you have no clue where to start, look at your historical spending and break it down by category. (E.g., 32% rent, 17% supplies, 8% advertising, etc.) Use these percentages as a guideline in coming up with a budget (and at the same time look out for areas you might need to adjust). Then, stick to the budget!

Comparison Shop! - Take another look at your current vendors. Say you typically order office paper, toner and staples from a major box store because it is convenient. Shopping around you could find a better vendor (perhaps from a smaller outfit out of state). (For instance, ordering my office toner from a toner place online saves me quite a bit over buying it at the local office supply store). Same thing for your web designer, credit card processor, cleaning crew and so forth. I don't recommend dropping good existing business relationships to save a nickle, but why pay more than you need to? Big Box Stores won't typically negotiate on price, but small businesses who want to keep you as a client (say your grounds maintenance or window washer) might.

Talk it Out! If your area has been hit with tough times, you aren't alone. So, rather than hiding the bills (I recently spoke with a small business owner who talked of unpaid bills being stashed in the rafters because the person responsible for handling them simply didn't pay), talk with your suppliers, vendors, whomever. Honestly explain your situation and ask for REASONABLE relief (say, changing terms from net15 to net30, taking 5% off the bill or whatever. (Important caveat - insolvency can mean default under some contracts and virtually everything you say could be used for "debt collection")

Tighten the Belt. Yes, the national coffee shop latte seems a necessity for some business owners, but do you really NEED to spend $60 a month for a daily mocha-java-special with whipped cream on top? Pick up a coffee pot at a yardsale and stick it in your breakroom & possibly add $800/year to add to your pocket. Same thing goes for eating out - I'll admit that a good gyro or fresh salad from the corner lunch shop tastes great, but you can really save money by "brown bagging" it! (I overheard a recent call-in from a gentleman who after tracking spending for one month was astonished to learn that he spent $500/month on eating out. $6000/year isn't chump change for many business owners).

Barter. Barter doesn't need to mean under-the-table seedy side deals. If your advertising firm needs new floors and the flooring installer needs some flyers and a radio spot done, it could be a win-win situation! Some sites like craigslist even have barter sections to help you find a good swap. Keep in mind that you will need to report the value of any services you received as income for tax purposes.

Re-evaluate your business. This one is tough, but some businesses have found that new strategies prompted by tough financial times actually improve their entire business.

Get it in writing!

2008-03-13T14:12:13Z

It comes up with surprising regularity - long term business arrangements are agreed to with no writing whatsoever. The law allows this - a general partnership can be formed without any official filings or written agreements and no one forces an individual owner to put anything in writing - but it can cause major problems down the road.

Recent contacts with unwritten business arrangements emphasize this point.

Case # 1: In one new business venture, an entreprenuer shook his head at the idea of needing to spell out details that had to the point "Just been worked out" between two friends who recently started a business together. This illuminates a reason why otherwise intelligent businesspersons fail to put things in writing. There is sometimes fear that putting details down on paper will destroy trust. However, if partners trust each other, that relationship will not be destroyed by committing to common goals on paper! Two other businesses at the other end of the spectrum (winding down rather than starting up) illustrate why a written agreement is so important, even if no conflcit ever arises.

Case # 2: A sole owner of a LLC wanted to finally retire and gradually transfer the business to long-term employees. No operating agreement existed - probably perceived as unnecessary for a single-member LLC. However, such an agreement was essential to sharing the business and needed to be in place before there could be joint decision making, funding requests, transfer of ownership interest and the like. Thus what seemed unnecessary at the beginning of the business became essential at retirement. Fortunately, this owner could put things in order - not everyone has that chance.

Case # 3: Another family came to me after a loved one who co-owned a business died. No details had ever been put in writing, title didn't necessarily match presumed ownership and the business was run "by a handshake" In some respects this worked - the partnership flourished for years and no one cared how things were titled, what the business was worth - earnings were split and that was that. However, when it came time to settle the estate, figure out what assets belonged to the partnership, what should go to the surviving partner and what should be kept with the estate to go to the family - it created havoc. A simple partnership agreement could have easily avoided these problems. The default rules help somewhat, but they are no match for a written partnership agreement.

On a related note, a general partnership simply does not insulate from liability. The family above could easily have been stuck with serious partnership debts. Other forms of ownership - such as a corporation or LLC - protect personal assets. However, no matter which form you select to run your business, a small amount of effort to create written rules (partnership agreement, operating agreement or by-laws) will pay off in the long run.

Does foreclosure investing make sense?

2008-03-13T14:10:38Z

Every cloud has its silver lining, right? While foreclosures can be devastating to homeowners facing the loss of their home, many small business owners and individuals have picked up on the idea that real estate in foreclosure can be picked up for a fraction of the market value.

With foreclosure rates rising, it may be a worthwhile investment for small business owners or entrepreneurs. However, nowhere is the old "caveat emptor" buyer beware principle more applicable than in foreclosure investing.

To start, make sure you know the position of the mortgage being foreclosed upon. What does it matter if it is a first mortgage or second being foreclosed? Potentially hundreds of thousands of dollars! A real estate attorney can run a quick title search to check on this. (Turn-around times vary by law firm or title company, my firm seeks to process within 24-72 hours of request in a foreclosure situation). Make sure you know the condition of the property. This can be a bit tricky since there is often no way to inspect or even see the interior, but you can drive by and know the neighborhood. Make sure you can cover the full price and already have financing lined up - unlike a standard real estate contract, there is no contingency for obtaining financing and if an investor can't muster the purchase price within so many days of ratification, they stand to lose their entire deposit.

There are several approaches to foreclosure investing, and vast numbers of books and articles on how to "get rich quick" in this area. However, most approaches boil down to one of two possibilities: 1) negotiate a deal with the property owner or 2) buy at the foreclosure auction.

Pitfalls exist with either approach - Maryland has enacted laws designed to help homeowners facing foreclosure from predatory "foreclosure consultants" and you should be scrupulous about adhering to the rules. It is one thing to pick up a great investment by jumping on a great opportunity, quite another to amass wealth by trampling on the rights of someone who is down-and-out. People face foreclosure for all types of reasons (and if you are merciless, you may someday find yourself in a hard place without mercy!) It is far better to treat the property owner with respect and dignity and negotiate an agreement that follows the law.

If you buy on the courthouse steps, you should be armed with plenty of research and know what you are getting into. In any case, I'd suggest lining up some or all of the following profesionals: 1) an attorney to look over the title and conduct the settlement, 2) a Realtor or appraiser to give an idea of the property value, 3) a lender (or the funds) to cover the investment and 4) a contractor to take care of needed repairs!

(As with all posts on this blog, the foregoing is not legal advice. If you wish to contact Attorney Cedulie Laumann about a particular situation, please don't disclose private, personal details in comments. You can reach the Office of Attorney Cedulie Laumann at 410-216-7000 or through the website elawmd.com)

How quickly can I start a business (incorporate or form a LLC) in Maryland?

2007-12-14T13:38:15Z

Sometimes entrepreneurs find a deal that just can't wait. Perhaps it is a piece of property to purchase, or an existing business to acquire. Or maybe just an itch to start marketing under a particular business name. Whatever the reason, business owners sometimes require quick incorporation or LLC formation. The good news is that this can be done ASAP, although it triggers an additional governmental filing fee in the State of Maryland.

In Maryland, new entities (corporation or limited liability company) must file Articles with the State. The normal turn-around time is 6-8 weeks. However, for an additional fee, the State will process new filings on a faster "rush" basis. For some time, the State promised to process the initial paperwork in 24 hours, however, that time frame has stretched a bit and it realistically seems to take 2-6 days for processing of expedited fax requests. Still better than waiting two months, but prudence suggests that a new venture contact their attorney to get the ball rolling as quickly as possible.

As with many areas of life, you can get things done faster if you are willing to pay a bit more. (In my practice, I do not charge more in attorneys' fees for rush service, but fees are set by each individual business lawyer or law firm). Of course, it takes more than the initial Articles to run a business, and every company should make sure they have a complete Company Record Book with proper tax set-up and agreements governing the internal workings of the business before jumping into a major purchase.

Small business owners & record keeping - You CAN go paperless!

2007-11-16T11:17:55Z

Many small businesses generate a lot of records ... bills, checks, estimates, receipts for business expenses, invoices, reports and on and on and on... This week I heard from a few small business owners who felt themselves drowning in a sea of paper clutter, but were scared to let go of anything lest the IRS might demand a paper copy of some ancient receipt. Several home based businesses actually claimed that their accountants forbid any electronic records and required all years to be kept in paper indefinitely. While it is prudent to occasionally keep a few critical originals, (say, the last few years tax returns, important signature-based contracts) everything else can be scanned, stored electronically & shredded, so long as a few simple rules are kept.

Small businesses may want to invest in a high-speed, ADF (automatic document feeder) scanner. (In my experience the all-in-ones and single-sheet feeders are far too slow and unreliable to use on a regular basis). A personal favorite is the Fujitsu Scan Snap - load a stack of papers onto the ADF, press a single button and zoom! it pulls a good 10-20 pages/minute and the included software stores in searchable pdfs. However, given the chance of pc's to "crash" or have accidental deletions, a backup of the files should be burned onto CD or other removable media. (keep the back-ups in a small fireproof, waterproof safe)

To sum it up, while the IRS does require certain basic record keeping requirements, small business owners are not forced to drown in paper clutter. There is a lot of misinformation, but the following DIRECT quote from IRS publication clarifies the position on scanned records should clarify for those hesitant to let go of the paper:

------ "Electronic Storage System Records maintained in an electronic storage system are accepted for recordkeeping purposes if the system complies with Revenue Procedure 97-22 in Cumulative Bulletin 1997-1. An electronic storage system is one that either images hardcopy (paper) books and records or transfers computerized books and records to an electronic storage media, such as an optical disk." -----

Check out the IRS rules yourself at www.irs.gov, but please don't let the assumption that you must have paper of everything scare you into keeping needless paper clutter! In sum, a business owner must keep complete records, but legible digital images are perfectly acceptable. (See earlier post about back-up electronic records) Per procedure 97-22, you must make sure the scanned documents are legible and indexed, but you can shred the originals and go paperless! So, go ahead and keep all your records- just keep them on your harddrive & duplicate copies on a few disks stored in a safe. Get rid of those boxes and piles allover the place!! Feel free to check out IRS a link to the detailed requirements at www.recapinc.com/irs_97-22.htm and the IRS publication 583 at www.irs.gov

Can I hire "independent contractors" or do they need to be employees?

2007-10-08T09:55:09Z

With all the start-up costs facing a new business owner, paying for help looms large. Wages involve a host of other related cost, unemployment insurance, that "FICA" thing, withholding taxes and the like. A number of small business owners inquire about "independent contractors." It seems an easy way to avoid the whole mess involved with hiring employees, right?

The law defines "indepdent contractors" not by the label the small business owner puts on them, but on HOW they work. It is a fabulous idea to hire independent contractors when it makes sense - for instance, you may want to hire a bookkeeper, office cleaner or courier without bringing them on-board as an employee. However, you do not want to call your 9-5 secretary or your uniformed landscaping assistant an "independent contractor" if that is not what she is...

In the words of the IRS "If you have the right to control or direct not only what is to be done but also how it is to be done then your workers are most likely employees. If you can direct or control only the result of the work done, and not the means and methods of accomplishing the result, then your workers are probably independent contractors."

Key areas are training, instructions, benefits & reimbursement for expenses - the more a worker receives in any of these categories, the more likely they are an employee. The less they receive, the less they look like an employee.

For example, say you want someone to help deliver local packages for your business. If you tell your help when to show up, when to leave, ask them to wear a uniform or name badge, have a delivery order and certain procedures they need to follow, offer medical insuranc and pay for the gas, oil changes & so forth, you almost certainly will not be able to avoid the "employee" designation. On the other hand, if you hire a delivery person to pick up & deliver all your packages in their own vehicle, in whatever order they chose, with the only instruction that they are delivered the same day & compensate per delivery you likely have an independent contractor.

Still confused? Your help can always ask the IRS to make the call by filing an SS-8 form with the IRS.

How much do I have to pay my employees? What about this new minimum wage in MD?

2007-10-08T09:30:51Z

So, you are thinking of hiring employees and wondering what you need to pay them? Recently, someone interested in moving to Maryland expressed excitement about the great minimum wage. At city-data, a poster wrote "I just had a question about the minimum wage in MD. I've read on a few other sites that the minimum wage in parts of MD is $11.30/hour...and that everywhere else it's $8.50. Just curious if this was actually true."

No, it is not true. While dissapointing to many workers, this $11.30 / hr. minimum wage applies ONLY to government contracts. It further does not apply to every government contract, so if your business plans to do government contract work, check the rules closely.

I encourage every employer to pay a "working wage" - while the small business owner may shell out a little more initially, you usually will have a much better time retaining quality employees and spend less on turnover and training. That being said, currently in Maryland the minimum wage is $6.15 / hr. We fare better than some states who only match the federal minimum wage of $5.15 / hr., although it is still not enough to live off of. However, it does enable employers to hire teenagers or other unexperienced workers without breaking the bank.

Running solo ... How does a small business owner take a vacation?

2007-07-24T20:07:32Z

Summer vacation time seems to produce a crunch on sole practitioners (and individually owned corps & LLC's). Whether you have vacation plans or schedule juggle with kids out of school, chances are that at least a few days, you will not be able to be available for your clients. But this is an impossibility when you run your own one-woman (or one-man) show, isn't it? I've never met a small business owner who shrugs off lost business. How can you afford to step out? My own worst-case vacation story is at the end!

How can you make the best of your plans? I've tried most of these, with varying degrees of success:

1) Route the calls to your cell phone & hope you have coverage. This could possibly work, but it both puts a damper on the vacation (Can you even answer calls whitewater rafting or snorkeling?) and even if the calls come through clear, it will be difficult to maintain a professional image when the sound of calypso music and a bartender asking if you want two olives is in the background (or the rollercoaster screams punctuate the background - you get the idea!).

2). Just ignore it all & take a total vacation. Chances are a client will suddenly have an urgent matter, an important order will come through or something. I wholeheartedly encourage all business owners (including TYPE-A) to step away every once in a while (and somehow the world does seem to keep turning). It is a great idea to leave your phone and laptop safely tucked away while you enjoy an outing with your spouse and/or children. However, a week or two of zero contact doesn't work when you are running the show. Nope, unless you have a seasonal business & you are in the off-season, waiting until you are back in town and leaving a client hanging for a week or more simply doesn't fly in today's instant-access world.

3). Leave it in someone else's hands, but check in. This by far seems to be the best approach. First, plan ahead. Want specific steps to take? Notify key clients in advance of your travel plans, put a vacation message on your e-mail account and on your voice mail. Second, get back-up help to pick up mail & faxes, respond to contacts and send you periodic updates or extremely urgent messages. I know, a solo is now thinking "there is no one else." Think again - we are talking about handling a few contacts, not full-time salaried help year-round. You could hire a teenager, pay a friend, beg a sister or brother, install a temporary answering service - be creative! Most importantly, you can enjoy your time away from the business while not fretting that you might lose the biggest potential job of the year or alienate an important client.

So, I promised my worst business owner vacation story - here goes. A few years ago, I had a lovely oceanfront camp site to enjoy with my children. We're talking tent-camping, beautiful scenery, roasting smores over the fire pit, star gazing at night (of course, there were hot showers & bathroom facilities nearby). I made sure my calendar was clear for a week, clients knew I'd be away and so forth. I thought I'd check my e-mail and get messages routed to my cell phone. Only problem, without electricity, my phone died and I couldn't charge. The only internet service was a 15 min. drive away at a little tiny library open a few hours a week (I believe dial-up, too). When a pressing matter arose with a client who desired immediate resolution, I ended up driving to find a good reception spot, conference calling on my children's cell phone (which could charge in the car) on a "firefly" phone (for those unfamiliar, this phone has no numbers, only a few buttons and takes several min to get through passwords & push-button menus to dial out). Everything eventually resolved, but it definitely made me think twice about how to manage business from afar! Despite the business frustration, I must say we truly had a nice family vacation! (and the smores were delicious)

Driving Business to Maryland Women / Minority Owned Businesses

2007-06-09T10:57:06Z

This blog is primarily about business women in Maryland, which occasionally gets some press. According to an article today in the Baltimore Sun, "OMalley ensures Minority Business," the current implementation of government contracts for women owned or minority owned businesses is under review. "The governor told the Maryland-Washington Minority Contractors Association that although the number of minority- and women-owned firms registered with the state has increased in recent years, it appears that minorities' share of state business might actually have declined."

Quite an interesting mix of statistics - women-owned firms have increased, but no thanks to governmental contracts. So, what does this news mean to say, a local business woman in Annapolis or Bowie? Apparently the American Minority Contractors and Businesses Association thinks we are headed for a positive year. As the Sun quoted the Association's president: "There's a great belief and anticipation in the minority business community that he's going to be good for the program because he believes in it... There's no way he's going to come back here with bad numbers."

For women-owned or ethnic minority owned businesses who have not yet competed for governmental contracts - this seems a good time to consider it. Since 2001, Maryland's MBE Participation goal is 25%, with sub-goals of 10% for Women owned firms and 7% for African American owned firms. With current rates much under those goals, there certainly appears to be some room for businesswomen to compete.

Don't know where to begin? To compete under the MBE program for government contracts, your business must first be "Certified." How do you get certified as a minority business? Ask your start-up attorney about this... for instance, my law firm offers this service as an add-on to the standard small business formation package or as a separate service to existing businesses. Requirements for certification include the size of the business (large businesses cannot qualify), the net worth of the owner (for instance, the respective empires of Oprah or Martha Stewart would disqualify those businesswomen!) and ownership - your business must be at least 51% owned by a member(s) of one or more of the following groups: African American/Black, Female, Asian Pacific, Hispanic, Subcontinent Asian, American Indian/Native American.

to share home & bed .. and a business? co-owning a business with your spouse

2007-06-06T18:42:00Z

A few things converged to get me musing about husband-wife ownership teams. Besides my own (brief) experience with a husband & wife partnership, the Baltimore Sun recently had an article about a Maryland couple and the effects of their divorce on the lucrative business they built together; I am working with a company successfully run by a married couple and recent client inquires involved questions about how a couple could best structure a joint business.

First, the positive - have a harmonious common goal & keep the money in the family, right? If you get along smashingly with your spouse, never quibble about whose turn it is to take out the trash and compliment each other, why not work towards a common goal? Husband and wife LLCs are taxed by default as partnerships, although corporate taxation is possible. Some couples allocate things so that one is an owner, one an employee, while others look to classify one spouse in a "limited partner" role.

When such businesses go well, they go well. Your financial savvy and attention to detail matches his great ideas and people skills or vice-versa. But, human nature being what it is, when they go badly, they go very badly. The spouse who loves your input, praises your work, may (believe it or not) initiate all manner of "business" litigation against you, not to mention dragging in lawyers, accountants, appraisers and so forth. The above Baltimore Sun case involved a whole host of allegations, and in my experience threats, suspicions and actual "stealing" and "hiding" money surface when one spouse declares war.

Ever trying to mesh idealism with realism, my suggestion is this - if you have a great match & think owning a business together will work (and at least 2 friends or family members agree with your self assessment); go for it. But make sure everything is in writing - yup, have a detailed operating agreement or by-laws, describe exactly how the business decisions & money will be allocated, how conflicts will be resolved (arbitration, mediation, etc.) if they do arise, and how the interests will be allocated in the event of death/divorce/incapacity.

As an attorney, my job is to help clients achieve their goals, while raising issues they may not have analyzed on their own. So, if you are contemplating a joint venture with your spouse, do it by the books & let me know how it goes ...

government grant money for women owned businesses

2007-06-06T18:01:38Z

So, you're starting a business. Congratulations! With a great idea, carefully thought out business plan, talent and motivation, you are ready to go! Except for the money, that is! Start up money would help. A pleathora of sources tease new business owners with claims of government grant money. Cliche, but appropriate: "if it sounds too good to be true, it probably is."

Quite simply, no SBA or other grant money exists simply because you are a businesswoman. (This doesn't stop a lot of folks from asking for such grants from the Small Business Administration - See SBA.gov) It is true that the SBA has some $12M to fund Women's Business Centers which can provide a great resource to businesswomen. However, don't expect to walk away with grant money simply because you want to start a business. What grants do exist generally amount to offers to pay if your business can do a certain job for the government. Thus, non-profits can often obtain grants for such things as running after-school programs, providing job training or cleaning up the Bay. That being said, there are times when being certified as a minority business owner, or a business with at least 51% women owned, may help.

But if you are looking for money, it will likely come in the form of a loan. The SBA may point you in the direction of private lenders who look to loan. The 7(a) SBA loan program provides small businesses with capital loans up to $2M. To increase your chances of getting a loan, small business owners should make sure their books are in order. Have an up-to-date company record book with bylaws or operating agreement, meeting minutes, resolutions, balance sheets and the like. While tons of online sites offer form Articles, often for a modest fee, Articles alone will not suffice. Want to show your business savvy? Then consult a professional or two - preferrably an attorney and accoutant who work with small businesses. In the Annapolis area, my firm offers flat-fee start-up help, which includes the company record book and basic tax set-up. elawmd.com Once you get your books in order, walk confidently to your financial institution to apply for a small business start up loan or approach a venture capitalist with a polished business plan.

An apple a day keeps the IT guys away?

2007-06-02T15:26:25Z

After a frustrating crash of no less than three computers within weeks of each other (two crashed in the typical scenario - they stopped working; one literally crashed when the power cord got caught and the laptop smashed on the ground, shattering the screen), my law firm decided to make the plunge and switch to MAC. Too many hours wasted on troubleshooting the PC problems, re-loading and scrambling to restore data made the worry free claims of mac lovers very appealing.

Yet, almost every lawyer I know uses PCs rather than Macs. Virtually all of my experience has been with windows based PCs. A lot of the software for running a law firm (time management, billing, litigation support software, etc.) is simply not made for Macs. So, I really hesitated. I could purchase some of my software again (buying whole new macintosh versions), but that would multiply the cost of the computer significantly. Well, turns out an inexpensive piece of software called "parallels" can be placed on a mac and basically run a virtual Windows environement. One can load whatever must-have windows software, while keeping the mac operating system intact. For under $80, it seems a great investment.

So far, so good. Networking was a breeze... Even someone with no computer savvy could easily set up their office network using macs with no outside help. A few minor quirks popped up - (for instance, blackberry sync via bluetooth doesn't fully work, but this apparently is a known issue, and it really isn't terribly challenging to plug in a USB cable). However, upgrading to a new operating system while still being able to utilize software on another OS - looks like a good choice so far.

For the small business owner trying to evaluate the best computer system for their business, I'd suggest factoring in the cost and aggrevation of computer crashes and networking issues. The PCs which "crashed" were all relatively new, running Windows XP with a variety of freezing and other problems before they finally breathed no more. My firm spent many hours on networking issues with the PC system - given the utter simplicity of setting up a MAC network, I don't anticipate major networking problems in the future.

to incorporate or not...

2007-06-02T13:23:31Z

A lot of folks hear buzz about "S corporations" and the like and wonder if it makes sense for their business. But what about LLCs? LLPs?   LLLPs? Close Corps? What does it all mean, and which one makes sense for a small business today?

Short & sweet, in most cases doing business as a legal entity rather than as a sole proprietor is a very smart move. Liability insulation means your personal wealth (your house, personal assets, etc.) isn't a target for someone who wants to sue your business (say a disgruntled customer or competitor). However, keep in mind that if you want to take out loans for a brand new business, the bank will almost certainly expect you to guarantee or assume personal responsibility for repaying the loan.

What's the catch?   Besides drawing up the paperwork to get started, you'll need to follow certain formalities in the running of your business. Some entities require two sets of taxes - filed both by the entity and by the individual owners. Maryland requires annual personal property returns.

A Limited Liability Company (or LLC) is created by state statute. Thus my state of Maryland formed a law which allows folks to use this type of entity for their business. In many cases, LLCs offer the same protection as incorporating, but don't require all of the formal corporate structure (such as a board of directors)

"S Corps" or "Subchapter S Corporations" don't really refer to the type of entity you form, but rather the way your business is treated and taxed by the IRS. If you are a small or medium business without many owners, you can often tell the IRS to forget about taxing the corporation and only tax the owners.

"Close Corporations" limit the number of people who can own part of the business.   Like other corporations, ownership is based on "stock."

Partnerships arise when 2 or more people own a business together. This may offer much less liability protection. A number of variations on the partnership theme occur by statute. For instance, there are LLPs (limited liability partnerships).

You can read up about the different ways you can structure a business (my firm address some of this on its website elawmd.com) or ask a professional for help. An attorney can give you pros & cons of the different business structures, and an accountant can explain the tax consequences of setting up your business a particular way.
So what do you need to do yourself?   Be prepared to discuss the following three things about your business:

1) What you envision your business doing? (are you running a retail flower shop or buying and selling real estate?)
2) Who you expect to put up money for the business? (yourself alone, you & your spouse, several friends, etc.)
3) Who you expect to handle the decision making for the business?

how to juggle home & business...

2007-06-02T12:30:00Z

Who hasn't been overwhelmed at times with simultaneously juggling work, family and household responsibilities? Whether you have a great dane, poodle, three kids or simply a mountain of paperwork, some organizational help is welcome!

A great yahoo! group is flylady.... despite the title conjuring up weird images (the founder's favorite sport of fly fishing did not immediate occur to me and I frankly don't enjoy flies buzzing around), the site offers helpful tips on organizing, managing, cleaning, and simply maintaining a household. For those who find motivation in constant cheerleaders, one can sign up for dozens of e-mailed tips on organization or a daily digest of the tips.

Some helpful tools are step-by-step guides to building a "control journal," creating and maintaining daily routines and tips to manage clutter. www.flylady.net

You've come a long way, baby. Right?

2007-06-02T12:28:08Z

A local magazine recently spotlighted successful business women of the past. As striking as their talents was the unusual nature of their status as businesswomen. These women bought, sold, managed and grew businesses in an era when a woman could not (in most circumstances) hold any legal ownership interest. When many 18th and 19th century woman put their skills and talents to use running taverns, boardinghouses and the like, they required a man to formally "front" the business - often, a husband or father. Only if a husband died could the widow attain status as the legal owner.

In revolt to the strictures of a system where a woman could do the work, so long as she did not benefit from it, came waves of "revolution." In more recent years, women donned suits, tossed femininity and mothering roles aside and strode up the corporate ladder - when they didn't bump into glass ceilings, that is. My own conversations with many older "sisters" reveal the bitterness of such a route. A woman could be as successful as a businessman, but was it really satisfying if she ignored her uniqueness as a woman to do so? In my particular field, I know female lawyers who built a career at the cost of their homes. Chatting with these women, you can see the pangs of regret before they voice their disappointment. Sharing how she went back to work mere hours after childbirth, one woman raised and answered the question "was it worth it?... no."

Today, bright and talented women own a variety of businesses and yet often want to ensure they pay equal attention to their friends, children, husbands, parents and volunteer work. I thoroughly enjoy talking with other women who own or manage a business and notice a trend to embrace their status as businesswomen. Kudos to these women! (a mix of clients, friends, vendors and casual acquaintances)

It makes me smile to think of the description of a successful businesswoman penned more than three thousand years ago fresh today... a businesswoman who buys & sells, runs a lucrative business while "looking well to the needs of her household." Such a woman deserves great praise!