University of La Verne SBDC Small Biz Blog

The Forms of Ownership presentation is a discussion of the most common forms of business ownership that are available to business owners. Information is presented about Sole Proprietorships, Partnerships, Corporations, and Limited Liability Companies. This information, along with specific filing information for each form of ownership, allows the business owner to determine which form of business ownership best fits their business needs. About the presenter: Lucius C. Davis III is the Small Business Liaison in the Taxpayers’ Rights Advocate’s Office. He assists with the development of small business education and outreach programs in order to help business owners better understand their income tax requirements and responsibilities. He also provides information about the Franchise Tax Board’s (FTB) programs and services that are available to them. Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendati...

by Joshua Botello So, you want to start a business, but don’t know if you need a sole proprietorship or LLC? C-corp? S-corp? Whoah. (hands up) Don’t worry I’ll break it down for you to determine the right one for your business. Here’s my disclaimer: I am not a lawyer or accountant. This by no means legal advice and is for education purposes only. All the resources for this video are listed in the description below. Ok? ok. SOLE PROPRIETOR First up is a sole proprietorship. This is the cheapest and easiest to form. With this structure, you are the business. If someone decides to sue you for a bad product or service, since you are the business, they could go after your house, car, and any other personal property. In the eyes of the law, there is no separation. You can easily become a sole proprietor by filing a Fictitious Name Statement also known as DBA for about $100 dollars in the county the business is located. Limited Liability Company (LLC) The next formation is a Limited Liabilit...

by Joshua Botello Insurance. One of the dullest topics to ever talk about with anyone, other than an insurance broker. This means that we should have this important conversation as soon as possible until it is too late and you are up to your waist in legal issues that could tank your business in one fell swoop and is essential for small businesses to operate. Let’s take a look at 6 of the most common types of insurance policies that any business may need.  Disclaimer: The information in this article, while authoritative, should not be considered legal advice. Consult your licensed financial advisor, legal counsel, and/or regulatory body to determine the best policies for your business.  COMMERCIAL LIABILITY First on our list is commercial liability insurance, otherwise known as general liability. It's one of the most common types of business insurance. Basically, this kind of insurance protects your business against bodily injury and property damage. It i...

by Joshua Botello If you have filed for your DBA, EIN and now you look to start selling, there is one crucial but often overlooked item business needs to get: a business bank account. A business bank account is a necessity because it separates your business expenses from personal expenses, allows check processing, and gives you access to financing. I’ll show you what to look for in a business account and what information you need to open one. Most of this research can be done online. So let’s start there and open up our bank account. Finding a Bank The first step to getting your business bank account is determining your bank. Most commercial banks that have personal accounts also provide business bank accounts. You should start with your bank where your personal account is and simply inquire about a business account. You need to consider that any bank and even credit union can have business accounts. You will need to check if this makes sense to go with a traditional bank or credit uni...

Photo by  Kelly Sikkema  on  Unsplash by Joshua Botello Getting small business certifications has been a way for disadvantaged businesses to get a leg up on the ever-competitive market. These are the most common small business certifications you are going to find. They definitely offer an advantage in the marketplace, so here is some background on what these programs are about and what you’re going to need. Photo by  Hannah Skelly  on  Unsplash Service-Disabled/Veteran-Owned Small Business (SDVOSB/VOSB) The Veteran-Owned Small Business certification is a federal certification through the Department of Veterans Affairs. This particular program is not what is known as a set-aside, the government does not allocate a specific amount of contracts to VOSBs. What this certification offers is a spending goal of all contracts at 3% of total spending. Now, this might sound small, but in fact, amounts to $40 billion in contracts annually. T...

Image by   pictavio   from   Pixabay   by Joshua Botello If you have ever asked: “what the heck is a bond?” don't worry, you aren't alone. Basically, bonds are contracts typically between three parties, protecting losses caused by one of the party’s not meeting contractual obligations. Here are the major types of bonds and when you might need them in your line of work. Surety Bonds So, if you’re a construction business then the surety bond would be for you. The surety bond is between your company, the customer, and the guarantor (the issuer). You pay the guarantor to take out the bond. If you fail to meet the contractual obligations to your customer, then the guarantor pays the fee or the fine to your customer. The SBA has resources for providers and even guarantees surety bonds in order to help small businesses compete for jobs. It’s worth checking to see if they can guarantee your surety bond. License / Permit Bond This type of bond falls under the um...

by Joshua Botello If you are looking to open a business in a particular city, a city business license is a must when it comes to operating legally. The purpose of the license is for cities to regulate what businesses are in the city and collect local taxes for all businesses operating within the city limits. I’ll cover all the things you will need to look out for and what information you are going to need for filling out the application. The first thing you want to know is where your business is going to be: a home business or a storefront? There are few differences, So let’s hop on to the internet and get to that application. Ok, so I’m in my web browser and starting on google.com. I am going to use our city as an example to go to cityoflaverne.org. Here I am on the webpage. What we need to do is navigate to the business department. Luckily it’s right here and we can just click on “business licenses” to head over. For the city of La Verne they only do printed applications, but w...

by Joshua Botello An investor presentation drums up images of “Shark Tank”, where the founders create goofy, but memorable pitches with ridiculous propositions for investment into their businesses.  But that’s TV. In reality, it’s very different.  For starters, investors prefer a pitch deck. This is a slide presentation made in a program like Powerpoint or Keynote to set the scene and explain why they are needing the investment. The investors are serious and will grill you about all aspects of your business before they even consider hearing how much you are actually asking for. The pitch deck is all the data and rationale about your business and why to deserve the investment you are asking for. That’s why we created this infographic. It distills all the information needed to make a concise and persuasive presentation to the 11 must-have slides to make the presentation work and win your investment. I will also use some notable examples to illustrate how these slides wo...

by Joshua Botello  A Sales Tax Permit or seller’s permit is a requirement in California for retailers if you sell a physical product in the state of California. Is that all, you say? California also requires a seller’s permit if you have inventory stored in California, have employees like independent salespeople in California, or if you have a website that sells products in California. So, now that we have that out of the way let's hop on to the computer and get into the application for filing that seller’s permit. Finding the Application Here we are on the desktop, and we are going to head to our browser and type in CDTFA.CA.GOV to get to the California Department of Tax and Fee Administration. So now that we are on the home page we need to navigate to the actual application. So we head to this register button, just below the header and click register. Now we have to go down about halfway down the page to “Register or Apply for a New..” and then Click business...

Photo by   Álvaro Serrano   on   Unsplash by Joshua Botello On March 19, 2020, the State of California issued a Stay At Home order for all residents and businesses (deemed nonessential) to close and minimize the spread of COVID-19. After approximately 7 weeks the order went into effect -- at the time of writing this article -- many businesses and workers have felt the stress of paying bills, protecting their families and livelihoods. Getting Back to Work Now that the end is in sight and a plan to open up the economy is nearly formed, many businesses will need to be “phased in” to opening back up. However, the riskier “hands-on” vocations will be scrutinized to maintain the safety of patrons and workers alike.  The question is: how can business owners ensure the safety of customers and workers while balancing a healthy financial recovery? Here are some ideas of what that might look like. Social Distancing Business owners will primarily need to prot...