How do you do it? Do you prioritize it over other business activities? I was struggling with consistently getting good posts up – especially when I was going through my retreat. There was so much creativity going on I didn’t want to stop the momentum. I have now set aside two hours a week to review other people’s blogs and to write at least one post. I will let you know how it works out, but I really want to hear about how you handle blogging.

It can get chaotic as an entrepreneur and time is an extremely valuable asset – how much do you devote to blogging and why?

I did a bit of brainstorming today on my business plan. From my previous exploits, I’ve found that a company without a business plan lacks direction and guidance.

I’ve decided that I’m going to start this exercise in small chunks at a time. Doing a little at a time will allow for the consolidation of my ideas. So I took an hour today to reflect on where I want the business to go. I began with a very simple question – what will it take to support my own, full time salary?

For a long time, I’ve been consulting. I enjoy helping people on custom software development and IT project management. I’m looking to transition a full time job and a part time consulting gig into a full time business. I believe that this can be achieved only through the development of assets. While consulting can make significant amounts of money, time is a limiting factor. You cannot make yourself or your employees available for a limitless number of hours. Therefore, all you can do to boost revenue is to boost rates. This is not something that is fair to my customers, and it’s not a model for significant business growth. At some point, your rates are going to become impractical and your customers will seek business elsewhere.

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Now that you have your FID, you can proceed onward to what makes your business an official corporation. File articles of incorporation with your state’s secretary of state. Massachusetts entrepreneurs can file online here. Note, too that you do not necessarily have to reside in the state you incorporate in. Many people incorporate in Delaware due to low initial cost and other benefits. A quick google on the subject led me to a few helpful bullet points. I opted to incorporate in MA for convenience and to support my local economy.

Name your Officers

When filling out the Articles, be sure to name all the important officers of the company – namely your President, Treasurer, and Secretary. It varies by state, but most states allow you to hold all three positions.

Allocate your stock

Assign stock to your board of directors and other interested parties. This part is tricky and generally completed with the help of a good attorney. Since I’m the only member of the board at Enlight Solutions, it was easy for me. I issued 200,000 shares of common, no par stock worth $0 to myself. There are two classes of stock: common and preferred. Usually, common stock gives the board member voting rights whereas preferred stock gives extra benefits such as dividends in exchange for voting privileges. (More formal definitions can be found can be found here)

Pay your fee

You have to spend money to make money! It’s cliche, but in this case it’s quite literal. You can’t legally file your companies taxes without submitting your articles. In Massachusetts, it costs $265 in filing fees to process your articles. Be prepared to remit payment so you can be up and running quickly.

Legal Eye for the Business Guy (or Girl)

Make sure to have all of this looked at by an attorney that is well versed in business law before you actually submit your articles. A trip up in these early stages could lead to serious problems down the line.

Your articles of Incorporation are public information. You can search MA filings here. You can use other corporations filings as a guide to help you.

It goes by many names – FID, EID, EIN – whatever the abbreviation it is, this magic 9 digit number is to your company what your social security number is to you. This is how the IRS will track all of your company taxes. It is required for corporations because most states require it on your Articles of Incorporation. Any company, however, must have one to legally employ people. Additionally, you’ll need one if you want a corporate bank account. How do you get it? It’s actually really simple.

The Employee Identification Number Application can be found on the Internal Revenue’s Website here. There’s a link about halfway down the page that says “Apply Online Now.” Don’t blow by the instructions and the FAQ on the above linked page, however. There’s a lot of useful information there.

The only point I really hit a snag with is on item 8a – If you’re a C-Corporation, you will fill out an 1120 form. If your’e an S-Corporation, you will fill out an 1120-S form.

Immediately after submitting this application, you will receive what’s called a provisional EIN. More than likely, this will be your EIN if your application gets successfully processed. You should get an official notice in the mail within a few days. The number that you receive will be utilized when you go to file the next important document – the Articles of Incorporation. I’ll discuss that form Part IV.

References

• IRS Website

In the initial stages of setting up your business, a good accountant and a reliable lawyer will be vital to your success. Ensure that they have the necessary qualifications.

A good Certified Public Accountant (CPA) will be accessible to you via e-mail or phone for random questions that arise throughout the course of your business day. How should I document this transaction? Is this purchase tax deductible? These are the types of questions that a qualified CPA will field at no or minimal cost in order to maintain a good relationship with his or her customer.

A lawyer must be available at a similar capacity. Try placing one on retainer so that you can access them on as needed basis.

The best way I’ve found these professionals is via word of mouth followed by thorough research. Utilize your network – ask other entrepreneurs who they use and why. Then, get other references from your prospects, but bear in mind that they handpick their supporters to help market themselves. Do some online sleuthing to see if there are any complaints published or any bad commentary on the professional’s performance.

Most service providers will honor a free consultation for you to feel out the relationship. This is the crucial part of the search. Does he or she prefer e-mail over telephone? Are you comfortable with their business tactics? Are his or her rates reasonable for the work you need done? These are the type of questions that will really decide whether it’s a good match. Don’t be afraid to listen to your instincts. If your gut says it doesn’t feel right, then walk away. Just like dating in the romantic world – there’s plenty of fish in the sea.

In these initial stages, don’t be afraid to offer an exchange of services rather than cash.  I’ve had a relationship of this nature with two lawyers for some time now.  They call and ask me random computer questions, and I call for legal advice.  It’s a mutually beneficial relationship that also helps market your skills.  Not only have I got free legal advice, but I’ve gotten many leads in this manner.