It is a site worth looking into further.
Wednesday, October 24, 2007
Other ways to borrow money
A friend of mine recently told me to view a website called www.prosper.com. It is a site set up for people to borrow up to $25,000 from groups of people. Click on the picture below for an explanation of how the site works.
It is a site worth looking into further.
It is a site worth looking into further.
Monday, October 22, 2007
Partnerships, LLCs, and S-Corps...Oh My!!!
First of all let me give the legal disclaimer. This information just touches the surface of the information that you need in order to make a decision for your business. This blog is not your attorney or your accountant or your financial advisor. Please seek legal and tax advice before moving forward with your business planning decisions.
This information is courtesy of the site www.squeezenet.com under their "handy facts" section, sub-section "business". It gives a basic description of the different types of legal business entities.
Corporation
Viewed as a legal, separate entity which can enter into contracts, incur debt, and does pay taxes separate of the owners' personal taxes. As a separate entity it offers some protection to the owners whose personal assets are considered separate of the corporation and therefore cannot be attached or accessed in the case of a suit or other settlement.
"C Corp" (or Regular Corporation) vs. "S Corp"
As described above a corporation is a separate entity recognized by federal and state law and therefore pays separate income taxes. An S Corp has liability protection much like a C Corp, but shareholders can pay income taxes in much the same way the owners/operators of a sole proprietorship or a partnership company does. As with anything dealing with "who pays which taxes" the laws and rules can be tricky. It is always a good idea to consult legal counsel when starting a new business of any kind.
Limited Liability Company (LLC)
Similar to a corporation in that the owners' have immunity from personal liability. An LLC differs from a corporation in a number of ways: it can be easier to set up and maintain from a paperwork/records standpoint, it does not pay separate income tax, and an LLC does not have stock.
Sole Proprietorship
This is by far the easiest type of business to set up but also the one that puts your personal assets at greatest exposure. Essentially, in a sole proprietorship, the business owner and the business are one and the same. The business owner and the business pay the same income taxes. By the same token though, if the business is sued or has some other ruling against it, the business owner's personal assets, whether they were used as part of the business or not, can be attached and appropriated to pay damages or debt. This is where, if you're not cautious, you can lose "the shirt off your back."
Partnership
A partnership is similar to a sole proprietorship in as far as personal liability and taxes go. The difference is that there is more than one owner. There are different types of partnerships. For example, a limited partnership (LLP) consists of a general partner who has management authority etc., and a limited partner who has perhaps given money or property (some financial asset) to the business but is not involved in the day-to-day running of the business. An LLP is a very complex arrangement, it is only allowed in some states and is limited to professionals such as doctors and lawyers who would not want to share in each others' liability but need some of the benefits a company can offer as opposed to private practice.
I hope you find this information useful.
This information is courtesy of the site www.squeezenet.com under their "handy facts" section, sub-section "business". It gives a basic description of the different types of legal business entities.
Corporation
Viewed as a legal, separate entity which can enter into contracts, incur debt, and does pay taxes separate of the owners' personal taxes. As a separate entity it offers some protection to the owners whose personal assets are considered separate of the corporation and therefore cannot be attached or accessed in the case of a suit or other settlement.
"C Corp" (or Regular Corporation) vs. "S Corp"
As described above a corporation is a separate entity recognized by federal and state law and therefore pays separate income taxes. An S Corp has liability protection much like a C Corp, but shareholders can pay income taxes in much the same way the owners/operators of a sole proprietorship or a partnership company does. As with anything dealing with "who pays which taxes" the laws and rules can be tricky. It is always a good idea to consult legal counsel when starting a new business of any kind.
Limited Liability Company (LLC)
Similar to a corporation in that the owners' have immunity from personal liability. An LLC differs from a corporation in a number of ways: it can be easier to set up and maintain from a paperwork/records standpoint, it does not pay separate income tax, and an LLC does not have stock.
Sole Proprietorship
This is by far the easiest type of business to set up but also the one that puts your personal assets at greatest exposure. Essentially, in a sole proprietorship, the business owner and the business are one and the same. The business owner and the business pay the same income taxes. By the same token though, if the business is sued or has some other ruling against it, the business owner's personal assets, whether they were used as part of the business or not, can be attached and appropriated to pay damages or debt. This is where, if you're not cautious, you can lose "the shirt off your back."
Partnership
A partnership is similar to a sole proprietorship in as far as personal liability and taxes go. The difference is that there is more than one owner. There are different types of partnerships. For example, a limited partnership (LLP) consists of a general partner who has management authority etc., and a limited partner who has perhaps given money or property (some financial asset) to the business but is not involved in the day-to-day running of the business. An LLP is a very complex arrangement, it is only allowed in some states and is limited to professionals such as doctors and lawyers who would not want to share in each others' liability but need some of the benefits a company can offer as opposed to private practice.
I hope you find this information useful.
Wednesday, October 17, 2007
Athens commissioners already preparing restrictions for medical offices
Recently an article came out in the Athens Banner Herald regarding proposed restrictions for future medical space to be built along Prince Avenue. (Here is the link for the article http://www.onlineathens.com/stories/100907/opinion_20071009024.shtml ). The commissioners of Clarke County have discussed adding a size restriction for future medical offices to be built along the Prince corridor by adding a size restriction to make Prince Avenue more "pedestrian friendly".
Does keeping a building small (less than 10,000 SF) make the area more pedestrian friendly? I think the answer is no. Scott Weinberg, a planning commissioner, threw in his two cents by approaching the process through design standards. I think this is a far better option than size restrictions. All of us can think of ugly little buildings and big beautiful buildings. I happen to own an office in The Georgian Hotel that is gorgeous and in one of the most pedestrian friendly parts of the Southeast. I think that the Commission and Planning Commission need to do some serious homework regarding the future of the medical industry before they restrict away at random. The medical industry is establishing partnerships between previously unlikely co-owners. The commission may regulate away some excellent medical facilities that may allow Athens become the other end of the bio-science research corridor that it desires to be.
Don't get me wrong, well thought out design standards give areas character and can make a town beautiful i.e. Charleston, Savannah, Madison, just to name a few that are close by, but it is through creativity, variety, and thoughtful design that buildings are built for posterity.
Does keeping a building small (less than 10,000 SF) make the area more pedestrian friendly? I think the answer is no. Scott Weinberg, a planning commissioner, threw in his two cents by approaching the process through design standards. I think this is a far better option than size restrictions. All of us can think of ugly little buildings and big beautiful buildings. I happen to own an office in The Georgian Hotel that is gorgeous and in one of the most pedestrian friendly parts of the Southeast. I think that the Commission and Planning Commission need to do some serious homework regarding the future of the medical industry before they restrict away at random. The medical industry is establishing partnerships between previously unlikely co-owners. The commission may regulate away some excellent medical facilities that may allow Athens become the other end of the bio-science research corridor that it desires to be.
Don't get me wrong, well thought out design standards give areas character and can make a town beautiful i.e. Charleston, Savannah, Madison, just to name a few that are close by, but it is through creativity, variety, and thoughtful design that buildings are built for posterity.
Monday, October 1, 2007
Bars for Sale in Downtown Athens
It is fairly common as a commercial real estate agent to receive quite a few calls regarding people wanting to open a bar in the Downtown Athens area. Very few brokers know this market or even want the hassle of learning it. It is even harder to get a straight answer about what is actually available in the area. That is where we come in.
A new phenomenon has recently occurred where owners of the Bars in Athens, GA have begun to sell their businesses. Some of the prices garnered for these bars is astounding with asking prices quoted in the hundreds of thousands of dollars.
How does one value a bar for sale in Downtown Athens? It is not simply the typical process of valuing Profit and Loss statements used to analyze the business. Other issues that are less tangible have come into play. How long is the lease? Is it below market value? Where is the bar located? How strong is the business with the college students? Does it have an outdoor area for smoking to counter balance the issues associated with the smoking ban? Believe it or not there is a multiple of Net Operting Income or Gross Profits to determine the bar's value. Give us a call if you are interested in purchasing a bar in downtown Athens. We are happy to be your advisors in the process.
A new phenomenon has recently occurred where owners of the Bars in Athens, GA have begun to sell their businesses. Some of the prices garnered for these bars is astounding with asking prices quoted in the hundreds of thousands of dollars.
How does one value a bar for sale in Downtown Athens? It is not simply the typical process of valuing Profit and Loss statements used to analyze the business. Other issues that are less tangible have come into play. How long is the lease? Is it below market value? Where is the bar located? How strong is the business with the college students? Does it have an outdoor area for smoking to counter balance the issues associated with the smoking ban? Believe it or not there is a multiple of Net Operting Income or Gross Profits to determine the bar's value. Give us a call if you are interested in purchasing a bar in downtown Athens. We are happy to be your advisors in the process.
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