Of all the choices made when starting a business, one of the most important is the type of legal structure to select for a company. Not only will this decision have an impact on taxes, it will also affect personal liability and even the ability to raise money.
This morning on Franchising & You podcast, Tom Spadea, partner and Franchise Attorney at Spadea Lignana talked through the topic of legal entity options across several situations:
Legal entity options for a franchise business and considerations for each
Considerations for choosing a legal entity for multi-unit and area development
Choosing the right legal structure considering implications on future events – voluntary and based upon necessity – sale of business, death of principal and effect on family, death of a partner, bankruptcy.
While every item on the franchise disclosure document (FDD) is important, some may be more important to you than others. One of the big-ticket items you should be paying attention to is money: what you must put into the franchise and what you get in return.
It would be wonderful if there were a simple calculation to figure out your cost benefit, but there just isn’t. Unfortunately, because the FDD is such a complex document, many prospective franchisees try to simplify it, and nowhere is this more apparent than in the items dealing with fees and services (Items 5, 6, and 8).
Frequently, prospective franchisees will focus on either the franchise fee or the royalty and compare it to the competitors’. At a quick glance, the lowest fee seems the most attractive. Unfortunately, that’s the equivalent of going to a used-car lot and buying the cheapest car you can find.
Welcome to Franchising & You! If you’re interested in learning more about owning your own business and considering franchising as the path to business ownership, then this podcast 🎤🎧 is right for you. If your interest is in expanding your portfolio of businesses and franchises, then you’re in the right place. And, if you’re a current business owner exploring whether or not to franchise your business, then Franchising & You is right for you.
Franchising & You airs Saturdays at 9:30 AM EDT / 8:30 AM CDT and is sponsored by Benetrends Financial, Spadea Lignana and Retail Solutions. Access all segments of Franchising & You on-demand HERE.
We do choose our own destiny. It comes down to choices we make, action we take and the commitment we follow through on to achieve our goals. There is no time like the present to make things happen and to make each and every day count. #Acceler8Success
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This Edition is Focused on Lifestyle Entrepreneurship!
Considering entrepreneurship just as a career choice would be to think about it in a very narrow and traditional way. It is about time that we realize and understand that entrepreneurship is not just a shift in your career but is a lifestyle which you need to adopt and get adjusted to for an uncertain time period. Hence, any person thinking of turning into an entrepreneur needs to seriously contemplate and weigh all the options before he actually takes the plunge.
To begin with, once you decide that you want to go the ‘business’ way, then the first sacrifice or lifestyle adjustment which you may need to make is to forgo your monthly pay checks which used to sincerely credit your bank account balance. This is the first and the most difficult choice which you will have to make. Read the full story here.
As commonplace as it has become in purchasing a business or franchise, funding continues to be a challenging experience. As such, it’s important to understand there are options and some often overlooked as being incorrectly perceived as unavailable. The most common is to use retirement funds without concern of taxes and penalties. The key is working with a professional to help navigate the process.
This week on Franchising & You our guest is Matt Trivelis, Senior Consultant at Benetrends Financial. Matt takes listeners through the process of using retirement funds to enter the world of entrepreneurship – without reducing the amount of money to invest due to early-payment penalties and tax liability. He also explains how to use retirement funds as the cash injection necessary for SBA loans and how to use the funds to receive a salary during startup. Listen LIVE or On-demand here!
With the advent of the Digital Age, a new breed of entrepreneur has evolved. This new breed of entrepreneur is unlike almost all of the entrepreneurs before them, in both their values and in their day-to-day activities. This entrepreneur creates businesses for the sake of working on those businesses, not in them. These entrepreneurs create businesses that operate almost exclusively on the internet and are run almost entirely on autopilot.
These entrepreneurs strive to create a specific lifestyle, and they build businesses that reward them with that lifestyle, while simultaneously offering valuable products and services to customers all over the world. Read the full story here.