Business Planning

Why A Business Plan?

• To prepare to start, buy, or sell a business
• To determine the best way to manage your business
• To identify and minimize risks that may cause your business to fail
• To obtain a business loan or investment
• To project financial operations that will take maximum advantage of the available financial resources
• To establish vision and values that will guide the business well into the future

Reasons to Keep Your Business Plan Updated:

• Your business plan has never been updated (or last updated over a year ago)
• Business in general is fast changing
• Your current business needs require additional financing
• Significant market changes have occured
• Your company has developed a new product, skill, technology, or service
• There is a change in your management team
• A threshold was crossed such as a location change or more employees were hired
• Your current business plan no longer reflects the reality of the business

Whether you have an idea for a new business you’d like to explore, you’re starting a new business and need guidance, or you have an existing business and are trying to weather the current economic climate, Entrepreneur Fuel can help entrepreneurs get a business idea off the ground. Entrepreneur Fuel can assist you with brainstorming for new business ideas, performing a feasibility analysis for your business idea, writing a business plan, choosing a business name and selecting the right domain name, financing your venture, complying with business tax and reporting requirements, and much more.

Business Formation
The array of possible business forms can overwhelm inexperienced entrepreneurs. Each type of business organization carries complicated legal and taxation implications that affect the entity and its owners far into the future. New businesses must consider start-up expenses, the complexity of the possible business forms, personal liability issues, tax consequences, and the continuing legal burden imposed by statutes and regulations.

Some of the most common business entities include the following:

Sole Proprietorships combine ownership and management in one person. The owner receives business profits (and losses) directly, with income taxed on the owner’s personal return and not at the business level. Sole proprietors hold complete and personal liability for business obligations. While this form requires no statutory establishment (owners can start a business at any time), they must obtain any necessary licenses and abide by employment laws.
Partnerships involve two or more owners operating a business for profit. As with a sole proprietorship, the partners generally hold personal liability for business obligations, but receive profits directly from the business as income. This tax advantage makes partnerships very attractive to some businesspeople. Some legal modifications to the partnership form allow for some limitation of liability, if statutory requirements are met, including limited liability partnerships and limited liability companies.

Limited Liability Companies (LLCs) are popular options for new businesses. These organizations combine some tax benefits of partnerships with aspects of corporate limited liability. While this mixture is compelling, limited liability businesses must comply with specific ownership and termination requirements, and may not realize the full extent of either the tax or liability advantages.

Corporations become separate legal entities upon formation. As such, corporations assume liability for their own obligations, thereby insulating the owners, directors, and officers of the business from personal liability. Additionally, corporations can sell ownership interests, or shares, in the company to raise capital. Despite these benefits, the tax treatment of a corporation can cause financial obstacles. The corporation files its own tax return and pays taxes on profits before it pays dividends to shareholders. Shareholders then must pay taxes on the dividends on their personal income tax returns. In some cases, tax rules can mitigate or modify this double taxation effect. Corporations may range in size from large, publicly held conglomerates to small closely held businesses involving family members as shareholders.

Entrepreneur Fuel can assist you with all the details of business planning and business plan creation. Please fill out the form below to see how Entrepreneur Fuel can help you start and launch your own business.