Registering companies in different states in the US

A couple of weeks back I explained how Delaware was a good state to register a company. Now, what I’ve learned is that it depends on what kind of business you are doing. What kind of industry you are in. In some cases you will have to register a company in each state you are operating in.

The reason why has to do with protection in the case you are being sued in another state then the state you registered it in because your Delaware company, your Florida company…wherever you have it is a domestic company in that particular state. It is a foreign company in every other state or country. This basically means that you don’t really have the same rights as a LLC or corp in a "foreign" state: a state it is not registered as a company in. 

“If you plan to staff offices in a state other than Delaware, with employees who conduct business directly with the public, it may be wise to register in this state. Registering in additional states is generally not necessary if you are a consultant; a one- or two-person or home-based business; or sell through independent distributors, manufacturer's representatives, wholesalers, retailers, or through mail order or the Internet” (The Delaware company [online] 30.08.10).

A friend of mine told me it might be possible to put up a company in Delaware and in the state you are operating in, but doing everything through the company in Delaware, getting all the benefits Delaware as a state has to offer. I will find out how that works and come back with more info on that.

In the meantime I’m working on the business plan, hereunder the research, which is probably the most important thing when opening a new business. I started doing research around late January, but I guess research is something constantly ongoing. In this case it is for the business plan, but I think research is something that needs to be done frequently to be able to handle whatever situation occurs in the marketplace. BE PREPARED.

I’ve also started getting the practical stuff together such as international sim card for clients to reach the company on, website design, business cards and so on. It’s like a puzzle.

It’s late and I should probably go to bed now, but for some reason I can’t go. Its like I have too much energy inside to go to bed, although I’m dead tired. If I go now I will only lay awake in bed thinking of what the next step for my business would be, however I will try and sleep. It’s important to have a degree of structure, so I try to get up around 7am everyday.

I will get back as soon as I have more info on how to run companies from different states.

Good night!

Self-respect

The worst thing in the world is to wake up really hungovered and the sun is shining outside your window. I can’t stand it. I also can’t stand being hungovered.  The sun was up today, but luckily I wasn’t hungovered.

The last 9 years going out has been an almost daily activity. Maybe not going out, but at least drinking was an almost everyday routine until I realized how much time I was wasting. It doesn’t get any better when you are studying for three years in the United Kingdom. If you are trying to avoid alcohol do not enter this country. I have friends who have actually become alcoholics, and they don’t even know it. Young people; age 20-35. People don’t associate a person who goes to dinner parties or networking multiple times a week where alcohol is involved every single time as an alcoholic. It is just regarded as fancy and important. You know what I mean… its like the alcoholism is covered in fancy agendas. It is even expected that you come to these parties and drink. If you don’t drink people think that there is something wrong with you. For instance… last night I decided to try and not drink until the end of the night…just have a couple of drinks near closing time, cause I didn’t wanted to feel reduced when I had a ton of stuff that needed to be done today. Almost everyone I met was wondering why I wasn’t drinking and if I was ok…funny thing to ask a person when you can’t even stand on your own two legs.  Its strange how it sometimes seems like people drink so that they can act like idiots and dance like they have down syndrome…not sexy btw. I used to do that too when I was around 20. It was fun, but now I cant deal with it anymore...all the side effects of alcohol. Well I still like to do the mental and drunk dance a couple of times a year, but that’s it. I have never been in better shape in my whole life, still drinking just ones a week kills me, so I try to assess what parties and ¨meetings¨ are really worth going to and what people are really worth hanging with. I think it increases your self-respect by being selective. Without respect for yourself you are nobody. That’s how I see it. I do have friends who are not very much liked by the media or the government, but as long as I feel that the relationship I have with them is meaningful I don’t care what other people think. I stand by it and I’m not afraid of being seen in public with these people.

What I don’t like and what I think is embarrassing is superficial clowns who only talks about rich men, themselves and what parties to go to in 2017. A lot of the ¨very important¨ networking stuff is really just a hype. Luckily I love my own company, so I am ok with spending that time alone working or watching a movie, but it took me years to realize that I’m actually not missing out on anything by not going to every single party in town.  It feels really good to be in control over my own time not letting life control me but me controlling life. 

I don’t know anyone in the world who can drink everyday and still be successful over a long period of time. The definition of success to me is also much wider than the profit you are making on your business. Its not just wealth, it is also health and happiness. If you abuse yourself with alcohol everyday it will def affect your wealth, health or happiness. This is not rocket science.

Yesterday a friend emailed me and told me how upset she was feeling. She was really feeling sad and that the darkness has swallowed her raw. She also seemed a little bit worried that she would drink the pain away. She is a very intelligent woman living in LA working on a huge business plan…I bet she will be one of the wealthiest in the US within 5-10 years from now. She is smart, funny and beautiful… still she feels like the whole world is collapsing around her. I told her a life philosophy that I never really was aware I was living, but it is a very simple one; Focus on what you want to do with your time, not what you don’t want. That way you don’t have time to do what you should not do. This is what I started to do a year ago when I was finishing my final year at University. I told myself that I would be very selective with both friends and projects. Automatically I avoided getting involved in anything I wasn’t really passionate about and I avoided less intelligent people taking up my time, because I focused on who I wanted to spend time with and what I wanted to do. Just like that I started to drink less, I didn't have time for stupid parties and so on. My time was spent on stuff I liked and everything started to become more meaningful and I was happier. Being happy is very important, because when you are happy you work better and you attract good energy. I think this strategy is very logical, but I also have to admit I am a true rebel by heart.  If I tell myself not to do something I will most likely do it. So in a way I have found a way to trick myself into the right direction.

Personally I think it is very important to respect yourself to be able to have wealth, health and happiness, and for entrepreneurs who are looking for results you don't want anything to slow you down, right?

What do successful people have in common?

As a young entrepreneur with many ideas it is useful to know why successful people are successful. What do they have in common? Can you identify with their characteristics?

What can you learn from their common characteristics?

Personally I feel that passion and drive is one of the most important things. Almost everyday when I wake up I think of one thing and it makes me smile. Passion. While dating can get extremely boring and make me pretty impassionate about the whole thing, business never does.

Searching the Internet I found a couple of good lists of things that successful people have in common. What do you think?

List 1:

1. Successful people are fast in analyzing situations and making immediate decisions.

2. Successful people think before they act.

3. Successful people consider consequences and possible solutions to any action they are about to take.

4. Successful people do not fear risk, on the contrary they use risk as a tool to reach where others cannot reach.

5. Successful people never quit, they hunger and thirst for success.

7. Successful people are persistent even if what they believe in seems impossible.

8. Successful people do not believe in failure. Failure is a sign that there is a mistake along the line that needs to be corrected for success to happen.

9. Successful people believe in their capabilities, and dynamism.

10. Successful people love to see everyone around them succeed.

11. Successful people know that the journey to success has a price to pay and so they prepare themselves for that price.

12. Successful people are non conformists they never never follow the path of everyone; even if they do they always modify it to suit their needs. Each and every one of them has a secret path created for themselves.

13. Successful people use just 1/10th of acquired knowledge on their path to success. That is why acquired knowledge is not a major prerequisite to success.

14. Successful people use general knowledge (common sense) in every step on their journey to success.

15. Successful people surround themselves with like minded people.

16. Successful people are generous and share their knowledge with. others. The sharing of knowledge brings about awareness, more interest and more ideas from outsiders.

17. Successful people are very intuitive, discerning, and positive about the next day but living for today.

18. Successful people succeed where others fail, and they never fail from trying again and again.

19. Successful people do everything to learn whatever could contribute to their success.

20. Successful people could make something out of nothing. Take away a million from a successful man and he will make two, but give two million to an unsuccessful man and he will have non left in a very short time.

21. Successful people are very creative and are successful.

List: 2

1. Hard work. Successful people work very hard and they are keen on practising or rehearsing things until they come out perfect. Their outcome is only the tip of the iceberg; it is only that 10% that people see. The rest of 90% is preparation and hard work.

2. Focus. When they do something, the rest of the world disappears until they stop. All their attention and all their resources work together for a common goal, to complete the current task they are on. Many times, they forget even to eat or sleep, so much they are absorbed into their action. They just don’t let themselves overwhelmed by “urgent-not important” issues that crowd their agenda. They are keen on prioritizing.

3. Passion. They like what they do or they do what they like. Either way you put it, they enjoy their work, they are so passionate about it, that hard work is a pleasure and a must for them. Do you think that Beethoven could have written any of his works without passion? Or Van Gogh would have been able to paint so astonishing if passion was not there? Of course not!

4. Curiosity. Successful people want to know. They want to learn. The questions they most frequently ask are not “What? When? Who?” but rather “Why? Or How?” The best way to repeat a successful action is to know why was it successful, what was that little trigger that generated attraction and recognition.

5. Empathy. Have you noticed how many people like successful guys out there? It’s because their way of coming into resonance with others, their way of establishing rapport. Highly successful people are empathic and often it happens that despite their solitude, many people like them and feel good around them. That is because of their high level of emotional intelligence, because of their abilities to listen and learn from the world.

6. Responsibility. They are fully responsible of their acts. When something happens, they don’t waste time to search for who’s to blame, they rather move on to finding what needs to be done next. They don’t complain and they don’t look for pity.

7. Self-improvement. Successful people work on themselves, they change with the times, they learn from the past. Look at the famous singer Madonna: how many times did she completely change her style? Too many times. Each time when she felt the need to shift to something new. The result: she was appreciated every time by her fans and she’s still in tops after so many years.

8. Humor. They appreciate humor, they live in this spirit, they do serious things with relaxation and joy, they don’t rush or get hurried just to see things done.

9. Creativity. Successful people think out of the box. They search for new ways of doing things, when they don’t find something very comfortable, they try to adjust it to serve them better. Going with the flock is definitely their way of life.

10. Flexibility. There is a saying that in an organization, the most flexible element always wins. It is true. Think no further than your workplace. Which are the colleagues you value most? Aren’t they the ones who are flexible, who can adjust themselves so much that they can understand your point of view? Yes, success comes with a large dose of flexibility, and this does not mean that such people do not have their own opinions. Not at all! It just means that they know how to listen and how to act to see things and actions going their way. They know how to spot opportunities and change them into more joy, satisfaction and success for themselves.

Don’t stop believing (Aaaaa!! This is absolutely hopeless!!)

I have never been so much in love as when I first started to work with my business idea. I know it sounds crazy and probably a little bit sad, but it’s very much true. I was totally obsessed, and all I was thinking of and dreaming of was how I was going to turn my idea into reality. It was so real to me I could see the office space I had created in my mind, smell the air outside the gigantic building of my headquarter by the ocean and most importantly feel the adrenalin rushing through my vanes as I lay my hands on the beige, leather steering wheel trying my best to maneuver my extremely fast car.

This might sound a little bit materialistic, but trust me it has never been about money. That has never been my focus. It never is because I know that the great things in life are not for sale. I learned that when my dad passed away 5 years ago.

So if its not about money what is it then? It is the will to succeed, and the slightly unhealthy relationship to competition. I play to win, not to participate. The feeling from winning or getting good results gives me a feeling that is indescribable, like no other feeling in the world. I can live on that feeling for days without eating or sleeping. When I win or do well I am invincible. It gives me extra ¨muscles¨ to deal with next challenge…but this is of course when I win. When I lose...ouch!  If I fail my world falls apart. I’m a really bad loser, and unfortunately that has slowed me down a lot of times.

Luckily I have started to realize that it is ok to lose faith or fail as long as you keep going. Every entrepreneur will at some point lose faith and feel that their business idea is stupid and impossible to implement. It is perfectly natural. Just because you are having ¨one of those days¨ does not mean that you should give up. Entrepreneurs are probably more in the danger zone of feeling that than any other occupations because we normally have a thousand ideas that needs to be tested a million times. Get used to the feeling of having a door slammed in your face and get used to the word no, because every yes starts with a no.

Some people might disagree with me, but set high goals…maybe even unrealistic goals. It is better to higher your goals and be everything you can be than to lower your goals and be almost all you can be. PS! I’m not talking to the crazy Idol contestants who don’t have a family that loves them enough to tell them that they cant sing.

When you have a good idea hold on to it. The harder you fell in love with the idea, the harder you shall hold on to it! DON’T STOP BELIEVING!!

Smart US state to corporate your business

Last week I mentioned the most popular types of corporations; General corporation, S corporation and LLC.  I promised that I would look at which state that would give the greatest benefits when registering your company. As I suspected Delaware seems to be a great place to start! If you know of a better state please shout out asap :)

These are the most important reasons why Delaware is a smart choice;

•                NO SALES TAX

•                NO PERSONAL PROPERTY TAX

•                NO INTANGIBLE PROPERTY TAX

Corporate...

•                Delaware state income tax is not levied on corporations, which are not doing business in Delaware.

•                Annual franchise tax is low (minimum is $30 tax plus $20 filing fee, total $50).

•                One person can be the only Officer, Director, and Shareholder.

•                Officers and Directors can be indemnified, limiting their personal liability.

•                Corporate books and records may be kept anywhere in the world.

•                No minimum amount of capital is required.

•                Non-resident shareholders pay no Delaware tax on shares.

•                Shareholders are protected by takeover statue, which limits abusive hostile takeover tactics.

•                Directors need not be shareholders.

•                Service from the State of Delaware is fast and efficient.

•                Incorporation costs are low.

•                Most Delaware corporations can be formed within minutes and documents are available within 24 to 48 hours.

•                Delaware corporation law has well-established legal precedent.

•                Delaware courts are respected nationwide for their expertise in corporate matters.

•                Voting provisions requiring greater-than-majority approval may be enacted.

•                Liberal choice of corporate name provisions and ease of reserving corporate name.

•                Corporation may pay dividends from profits and surplus.

•                Shareholders, directors and/or committee members may act by unanimous written consent in place of formal meetings.

•                Directors may be given the power to make and alter by-laws.

•                Corporation may hold stocks, bonds or securities of other corporations, real and personal property, within or outside the state, with no limitation as to amount.

•                Different kinds of business may be carried on in combination.

•                Corporation may fix quorum of board of directors -- not less than one-third of the whole board; two if only two shareholders; one if only one shareholder.

•                Voting trusts and voting agreements may be created.

•                Generally, stockholder liability is limited to stock held in the corporation.

•                Delaware law includes Close Corporation provisions.

•                Classes of stock may be issued in series.

LLC...

•                Delaware has maintained a preeminent position with its Limited Liability Company stature.

•                Delaware law does not require that the name of any member of the LLC be disclosed in the certificate of formation. Some states require the publication of the names of all members.

•                Unlike other states, single member LLC's are permitted.

•                The creation of your LLC may be your only contact with Delaware. Delaware does not require you to have any meetings in the state nor are you ever required to visit Delaware.

•                A Delaware operating agreement may contain provisions which deny voting rights to some members and may also exculpate members and managers from personal liability and may permit indemnification. Delaware permits maximum flexibility in drafting operating agreements. Companies may be managed by its members or by a manager.

•                Delaware does not impose any income tax on LLC's which do not transact business in Delaware. Additionally, Delaware does not impose either an income tax or inheritance tax upon members who are not Delaware residents.

•                Delaware permits terms in the operating agreement which will exculpate managers, members, agent and employees from personal liability for management of the company and permits indemnification of those persons by the company.

•                Unlike other states, no minimum capital is required.

•                Neither members nor managers need be US citizens. Units of ownership may be owned by individuals, corporations or any other business entity existing under either US or foreign law.

•                There are no limits on the type of legal business, which a company may transact.

Additionally check out these websites;

- This site shows step-by-step how a non-US residents who are searching for a way to start their own online business and particularly to get able to accept credit cards on their sites, open accounts in US banks with Internet access and  US VISA Debit Card:

http://www.non-us.com/index1.htmT

- Here you can order formation documents and read more about the differences between the corporations and LLCs:

http://www.thedelawarecompany.com/llc_corporation_information.aspx#whyincorp

Energy vampires – Motivation death

Sometimes it’s hard to admit that you are the main reason for where you are in life.  Disagree? Don’t.

If there is one thing I can’t stand it is negative people. Either it is complaining or talking shit about other people they totally freak me out.  If there is any type of vampires that exists it is surely the Energy Vampire; people who suck out your shine and motivation. OH YES! They are everywhere. At your office, in the store, driving around in cars, eating at the same restaurant as you, staring you down and giving you empty, depressed looks…they are your ¨FRIENDS¨.  Everyone knows a person like that. It might even be you. They complain about other people, the weather, their economy and how everything is stupid and not good enough. Some of them even try to bring you down on purpose because they feel like a failure in some way or another. If you have a friend like that I have one good advice; dump them. Even if you have a boss like that; quit and find something else to do cause you know you can do better. They are poisoning your mind. Your beautiful mind, and no one but yourself can take that away from you. You have to protect yourself against losers who simply don’t understand what you do.

We all have days when we feel like shit and that everything is impossible, and that’s why it is so important to be aware of these Energy vampires…but even more important is to focus on the good and not trying to avoid the bad. For instance it is extremely important to be in an environment with other number 1s; with other winners who thinks like you and wants the same as you. Because this will nurture you and you will inspire each other and seriously get high on life like the mad Christians do on Jesus. No offense, I do believe.

If you can dream it or feel it, you can achieve it.

Registering a company in the US

Last week I told you how to register a company within the UK. As mentioned last week, without yet revealing my business, my main market is in the US, and because I’m moving to the US at some point (as fast as possible) I would like to register a company in the US as well.

Because I’m a non-American resident at this point in time and I do not have any kind of Work Visa or Green Card I will have to go through a system that will be both time consuming and I will probably meet some obstacle on my way. It might not run as smoothly as I wish at first. Therefore to make it run smoother it is useful to know the rules or at least the loopholes. Lets just face it; it’s just too much information. For a person who was born in the US etc this process is obviously much easier, but even for an American citizen it can get complicated. A couple of things that is important to considere is what type of company you want to form and it what state.

The most common company types in the US are LLCs (Limited liability company) and corporation. The reason why is because both corporations and LLCs limit the liability of the owners/shareholders from the debts of the business and against lawsuits against the business, just like the Ltd in the UK.

The difference between these two companies is how they are taxed, but it depends on what type of corporation you chose. In a standard corporation or a C corporation the net business income is subjected to corporate income tax, and the monies remaining after the corporate income tax are taxed a second time when they are distributed as dividends to its owners who must then pay personal income tax, however a S corporation and LLCs are similar in that they are both ¨pass-trough¨ entities FOR TAX PURPOSES; the income of these companies are passed through their owners and reported on the owners personal tax returns, that way eliminating the double taxation incurred by owners of a standard corporation or a C corporation.

When this is said hiring a lawyer to examine your situation and help you determine your needs is a good idea. This all depends on your situations. If you are looking to save employment tax and your situation warrants it an S corporation is probably the best option. LLC is a good choice if operational ease and flexibility is important to you. Go to this website for more information on how to register your company, taxes, licenses and permits http://www.business.gov/register/steps-to-register.html (Best website). 

When it comes to what state that is the best to register in, I have to admit that don’t have a clue, but I know that Florida and Delaware are good places to register a company. Anyone who can recommend a good state; tax beneficial and other advantages?

Next week I will look at the different possibilities of forming an American company for a non-resident and WHAT state. Stay tuned.