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Entrepreneurs & Start-Ups
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Entrepreneurs & Start-Ups


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2017 Will Be the Year of the Entrepreneur
By Rick Bell Monday, January 16, 2017

2017 year of the entrepreneurIf you feel as if you should have started your company already, or regret not forming your own company in 2016, this can be your year.

 

It’s no secret that the most expeditious way to fulfill your professional dreams is to start a company and become your own boss.

 

There is no better way to achieve wealth. There is no better way to provide for your family.

 

There is no better way to gain freedom from a life of unfulfilling labor.

 

In fact, starting your own company is the best way to fulfill all the aspirations you possess.

 

I’m not saying it’s easy, but it’s easier now, in 2017, than it’s ever been before. It’s easier to form a company, easier to raise money to grow your company and easier to find qualified people to work for your startup. It’s also easier to create a winning idea for your startup.

 

Easier to form a company:

Never before have so many company formation services existed in order to help you set up your company, at a minimum cost. More than 50 companies can help you get started. The cost of starting a Delaware company, one that is completely drafted for you—including filing fees—can be less than $200.

 

Easier to raise money:

Never before have so many angel investor groups been looking for new companies in which to invest. These groups, starting with the New York Angels more than ten years ago, have sprouted up around the country and invested millions of dollars in startups.

 

Once you get beyond the angel stage, a huge pool of venture capital funds are ready to invest billions in young companies.

 

Crowdfunding is another new form of fundraising that has improved the chances of entrepreneurship, making it available to all.

 

Easier to find qualified people:

Millions of people out there are looking for jobs today. Whether you want service workers, high tech engineers, laborers, writers or healthcare professionals, the pool of available workers has never been larger.

 

how to come up with good startup idea

Easier to come up with a winning idea:

Disruption is the name of the game today. Take any product that already exists and make it better with the addition of a microchip, a long-lasting lithium battery and a connection to the internet.

 

That’s it. In the next ten years, every product sold today will be re-made, and will work differently, by improvements in technology, some of which are available at a minimal cost.

 

Pick your product, redesign it and go for it.

 

Get ready to become completely engrossed in your product. Get ready to research every aspect of your product until you achieve the breakthrough that will set you apart from the pack.

 

Get ready to analyze your vision 24/7/365 and refine it continually by finding the true path of least resistance.

 

But your new compny will be fun! It will be rewarding! And it will be fulfilling!

 

So give this some thought: where do you want to be next year at this time? Still wishing you’d already started your company? Or well on your way to fulfilling your dreams?

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We Can Help You Become an Authorized iOS App Developer
By Michael Bell Tuesday, January 10, 2017

how to become an authorized ios apps developer

More and more creative people--whether idea-generators or developers--are trying to sell their app ideas to Apple.

 

We fully encourage and support this entrepreneurial spirt, so we researched the necessary steps you'll need to take in order to become an authorized iOS app developer.

 

The first step required by Apple is that you enroll in their program for $99 a year. Once you have enrolled, you can submit your application.

 

Apple states that it will first review the application and, once it has reviewed your application, you will be informed as to what to provide in order for Apple to approve your company as an App Developer.

 

However, I wanted to know exactly what Apple requires so I asked an array of questions. Here is what I found out:

 

 

  • Apple requires a business license. Business licenses differ by state and type of company, so be sure to obtain the proper business license.

 

 

  • If you are applying as a company, Apple requires a DUNS Number (a nine-digit number that identifies businesses on a location-specific basis).
  • If you are applying as an individual, you will not need a DUNS Number.

 

  • The last and most important thing Apple requires (and for some people, this may be the hardest requirement) is a physical address for your business.

authorized ios app developer

 

Why Do So Many Startups Choose Delaware as the Home State for Their App Company?

 

As many business owners know, one of the major benefits of incorporating in Delaware is the ability to file a new company without listing director, officer or member information on the public record. 

 

Why does this matter? Often, many clients who form an app startup are looking to bring in Venture Capitalists or Angel Investors to help fund their business.

 

If your startup is looking to do that, or at least wants the option, then a Delaware company makes it very easy to distribute ownership percentages (in an LLC) and shares of stock (in a corporation) while still maintaining all confidentiality and liability protection.

 

The Delaware Court of Chancery has been voted number one for having the strongest corporate law structure for past 13 years. What does this mean for you?

 

It helps to put up the biggest wall between one’s business life and one’s personal life, so if a lawsuit were presented against your company, it would make it very hard for a litigant to come after you personally.

 

This, along with many other benefits, helps makes the state of Delaware the number one choice for over 65% of Fortune 500 companies.

 

Your Delaware company does have to actually operate in the state of Delaware. So how do you show the physical address for a business that is incorporated in Delaware but operates elsewhere?

 

Typically, business owners file for Foreign Qualification for corporations and LLCs, also known as Certificate of Authority.

 

Foreign Qualification can help show you are a domestic business entity to Delaware and a foreign entity to the state in which the business is physically conducting business.

 

foreign qualificaiton for an app company

We offer a unique Foreign Qualification service to assist you in preparing and filing for Certificate of Authority in the state in which you are physically conducting business.

 

This can help your business comply with all local and state compliance issues and often help illustrate the information Apple is looking for, such as a physical address to certify you as an Authorized App Developer.

 

Be sure to read all of Apple's relevant information and how it applies to your specific app idea.  

 

For any additional questions on how we can help you become an authorized iOS app developer, please email us at info@delawareinc.com or contact our Sales Department at 800-345-2677, Ext. 6900.

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The Problem with Marijuana Industry Startups
By Brett Melson Monday, January 9, 2017

marijuana industry startups

The cannabis industry is one of the nation's fastest growing industries and is generating enormous interest from entrepreneurs, investors and, of course, regulators and tax authorities. 

 

Twenty-eight states and the District of Columbia have legalized medical marijuana, with fourteen states authorizing the sale and use of medical marijuana just within the last five years. 

 

Eight states and the District of Columbia have gone further and passed laws permitting the recreational use of cannabis and cannabis products.

 

Despite the impediments the industry faces from practical and regulatory obstacles, the legal cannabis market is presently valued at $2.7 billion dollars annually; in Colorado alone, cannabis sales reached $1 billion within the first ten months of 2016.  

 

Since Delaware is known as the Incorporation Capital of the world, we have also seen a large number of startup companies that are operating in the medicinal or recreational marijuana industry.   

 

The easiest part of opening a business in the cannabis industry is the formation of the company. While Delaware allows the formation of companies in the marijuana industry, it will not allow the use of the word “marijuana” or any similar terms in a company’s formation documents.

 

Stocks associated with corporations in the industry that are listed on the publicly traded markets have seen tremendous gains in the last year. However, despite the growth and potential of the cannabis industry, there are a number of difficulties for those operating in the space, primarily due to the treatment of cannabis under federal law. 

 

Marijuana remains illegal under federal law. It is a Schedule 1 controlled substance. Even in the jurisdictions that have legalized medical and/or recreational use of marijuana at the state level, the cultivation, sale and possession of marijuana remains a violation of federal law.

medical marijuana industry

Per a Supreme Court precedent, federal law criminalizing the use of marijuana trumps any state laws that legalize its use.

 

The Obama administration has adopted a policy allowing states to implement marijuana legalization laws; under this administration, federal agencies have not sought to prosecute those operating in accordance with applicable state laws. 

 

Since marijuana remains illegal under federal law, most federally chartered banks and financial services companies will not open accounts for, or process transactions with, businesses operating in the cannabis industry. 

 

Proceeds from the production and sale of cannabis products are currently considered drug proceeds under federal law; as a result, banks that deal with cannabis companies risk potential seizures and/or enforcement activities by federal agencies. 

 

Although some smaller banks are willing to assume a greater risk in dealing with cannabis companies, most large banks simply find the emerging cannabis industry too risky from a regulatory perspective.  As a result, many cannabis companies cannot open or maintain bank accounts or process credit card transactions.

 

Due to these banking complications, cannabis companies cannot use traditional banks or other financial services, so they often operate as cash businesses and thus have difficulty documenting the source and movement of funds for tax filings.

 

Holding significant cash not only raises security issues (robberies of cannabis companies are a very real problem), but it also brings intense scrutiny from the IRS, state tax agencies and the Treasury Department, which polices money laundering.  

 

Cannabis companies are a frequent target of IRS audits, state tax agency investigations and Treasury Department inquiries.

 

In addition to the operational difficulties related to the inability to access banking and financial services, cannabis companies are often unable to obtain bank loans or even mortgages on properties that will be used in the operation of a cannabis business. 

cannabis startups

Other market participants, such as commercial landlords and insurers, are also hesitant to do business with cannabis companies. Many commercial leases contain provisions that prohibit use of a leased property for activities that are illegal under federal law. 

 

As a result of these issues, cannabis companies generally pay far higher rates of interest on lending from alternative capital providers; pay higher rents from landlords willing to lease these businesses space; and are forced to forego insurance that any business would otherwise obtain.

 

Even if the federal government were to soften its stance toward cannabis, it is likely that the Food and Drug Administration will move to regulate cannabis. Such FDA regulation, among many other potential sources of regulation, could prove to be highly burdensome. 

 

Thus legalization may not cure the marijuana industry's regulatory woes and may, in fact, increase them. However, there is a growing number of enterprising startups that are trying to solve these problems, such as Tokken, which aims to help marijuana dispensaries manage their huge influx of cash.

 

It is unclear how state and federal laws and policies will evolve, although many people feel complete legalization is inevitable.

 

Until then, participants may see the cannabis industry as a tremendous opportunity and a new gold rush (or green rush), but they will need to overcome a number of practical and regulatory obstacles and deal with significant operational headaches until cannabis has become more widely accepted by government agencies, traditional financial services institutions and the market as a whole.

 

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1099 Form: When and Why to Use It
By Meri Weiss Tuesday, January 3, 2017

what is a 1099 form

The 1099-MISC form reports total payments to the IRS, from either an individual or an entity, to an independent contractor that has provided services throughout the year that total more than $600.

 

Any person or company that makes payments throughout the year to an independent contractor is mandated by the IRS to report these payments on a 1099-MISC form to both the recipient and the IRS.

 

Examples of types of payments may include:

 

  • Rent
  • Freelance or work-for hire-payments to writers, artists, consultants, etc.
  • Home repair, carpentry, plumbing, electrical and fix-it services
  • Services such as babysitting, childcare, home cleaning and yard maintenance
  • Prize money, award money and winnings
  • Payments in lieu of corporate dividends, salary or bonuses

 

One common use of the 1099-MISC form is for freelancers to report the earnings from their independent contractor work. (Its function is similar to a W-2 for an employee). The 1099 should include the freelancer’s personal information, including name, address and Social Security number or EIN.

 

Equally common is utilizing a 1099-MISC for household help. This would include a person who cleans your home or office and is paid more than $600 during the course of the year to do so but is not on the payroll.

 

Even the person who mows your lawn or cleans your pool is supposed to receive a 1099-MISC form if you pay them more than $600 during the calendar year.

 

However, if your service payments are made by check to corporations, or entities with Employee Identification Numbers rather than individuals, you do not need to send a 1099-MISC.

100 form: when and how to use it

Companies that receive payments for their services are required to keep track of these payments and count them as income for tax purposes.

 

If you are in doubt as to whether or not to send a 1099 form, you should send the individual an IRS W-9 form, which is a request for an individual’s SSN or EIN number.

 

If they report their income as a corporation, you do not need to report payments to them on a 1099 form.

 

The 1099 form also classifies the type of payments received, based on the work completed. Employers should send the 1099 form out by January 31, to both the individual and the IRS.

 

The minimum amount for which a 1099 form must be sent from an employer is $600 annually; every employer or individual that has paid $600 or more during the course of a tax year to an independent contractor is obligated to send a 1099 form by January 31 after the year’s books are closed.

 

Recently, the IRS has been looking more closely at taxpayers’ responsibilities to send W-9 forms and 1099 forms to independent contractors, so make sure you comply. The penalties can add up and be expensive.

 

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5 Key Attitudes for Entrepreneurial Success
By Jeremy Reed Tuesday, December 20, 2016

No entrepreneur succeeds in every business venture. Every successful entrepreneur fails at least once, if not twice.

 

How entrepreneurs learn from and utilize their failures, however, is what matters, because in entrepreneurship, attitude is everything.

 

Here are five key attitudes every entrepreneur must conquer in order to run a prosperous business venture.  

 

PASSION

Entrepreneurs should be passionate about their ideas, goals and, of course, their companies. This passion is what drives them to do what they do.

attitudes for entrepreneurial success

Some entrepreneurs love the adventure and excitement of creating something new, and once it is established they lose interest and move on to something else.

 

Other entrepreneurs feel passionately about the product they are constructing or the sense of accomplishment they feel because they know they are helping other people, helping animals or helping the planet.

 

Whatever drives an individual to try to succeed is where his/her passion lies, and that passion is integral to entrepreneurial life.

 

BRAVERY

Entrepreneurs, like everyone else, feel fear. They are fearful that they won’t succeed or fearful a well-conceived idea cannot be executed.

 

They do not, however, let these fears of failure define them. They are brave. They learn from failure. They utilize their fear of failing to push themselves to work harder and to strive to correct the mistakes that may have caused them to fail.

 

Many entrepreneurs need multiple attempts to create a successful company. It is bravery that drives them to pursue success.

 

FLEXIBILITY

Entrepreneurs experience setbacks. There are hurdles to overcome on any journey.

 

Not everyone handles change or disappointment well. However, entrepreneurs must possess flexible mindsets so they can alter a course that seems to be headed toward failure.

 

Flexible entrepreneurs should be aware that they may have to modify the route toward their established goal, or even perhaps tweak that established goal, in order to reach it successfully.  

 

STRONG WORK ETHIC

It is not easy to start from the ground up and become a successful business owner. Many hours of hard work, frustration, creativity and supervision are poured into a new venture.

 

If you are not willing to get up and work hard every day, probably seven days a week, then how can you expect success? No successful business is created quickly, easily or without strife.

 

Entrepreneurs do not work a standard 9-5 day, nor do they log 40-hour work weeks. They are always working—establishing new ideas, creating new products, designing new processes, hiring smart and talented people.

 

Entrepreneurs motivate themselves and continually look forward.

 

INTEGRITY

attitudes entrepreneurs should have

Entrepreneurs must be able to show others they are truthful and honest. Regardless of the type of business they hope to establish, colleagues, vendors, customers and investors must trust them. There is no way around this—entrepreneurs must be trusted, and trust must be earned.

 

The best business idea in the world will likely fail if an untrustworthy person is at the helm.

 

Suppliers need to know that payments for goods they have shipped will arrive on time.

 

Customers need to know that whatever product or service they have ordered will be delivered as promised. Colleagues need to know that they are a valued part of the company’s success. Investors need to know that the company has to potential to grow.

 

Attitude is everything in entrepreneurial life.

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