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Business Formation and Planning Archives

Formation of an LLC and tax implications

Virginia residents thinking about new business ventures may wonder about the impact of the form that they choose on their personal finances. During business formation, establishing a separate entity may be important to ensure that one's personal financial life is separated from a business. An LLC allows this separation to occur so that personal assets can be protected. However, it is important to note that the IRS doesn't have separate tax returns for this type of business designation. Instead, an LLC may be treated as a sole proprietorship, a partnership or as an S or C corporation. At the state level, there may be forms to file.

FN Manufacturing and FNH USA to merge

FNH USA, a Virginia company, will be merging with FN Manufacturing to create a new entity known as FN America. This should end some of the confusion that has existed about the two separate companies and their names. The planned merger was announced May 6 by the chief executive officer of Herstal Group, the Belgium company that owns the American side of Fabrique Nationale. Although the two companies will now be merged into one, their production side will remain in Columbia, South Carolina, and their business and management side will remain in McLean, Virginia.

Virginia businesses have a choice of structures

Businesses frequently find themselves in a situation where they need to add partners. Sometimes it is because the prospective partner brings a particular skill set. At other times, partners are needed who will invest funds into the business. When a business is considering the addition of partners, it is extremely important to have the right business structure in place.

To stay successful, a pivot may be required

Virginia business owners may be interested in knowing what to do if they need to change the direction of their businesses. Sometimes a business may start out strong, but over time, with gained experience and changing market conditions, it may be necessary to adjust or lean the business in a slightly different direction in order to stay successful.

Virginia governor's race may be affected by green tech fallout

Virginia voters may have to consider an extra wrinkle in the state's gubernatorial race, as a green auto manufacturing firm scaled back production plans. Terry McAuliffe is running for governor in Virginia, but the Mississippi auto plant's business formation was followed only by disappointments. McAuliffe was chairman of the firm when it received a donation of 100 acres worth $1.8 million by a Mississippi development foundation, as well as a $3 million loan for site preparation from the state.

Forming an intellectual property plan

As people in Virginia know, for thousands of years, business leverage has been based on brute strength as well as the quantity and quality of available raw materials. Human muscle power built the pyramids of Egypt and Roman aqueducts. Oxen and draft horses towed barges and moved mills. With the Industrial Revolution machines started doing the work, but the game was still mostly about size, power and strength. The company with the biggest factories and quickest ships usually won.

New jobs to be created by lozenge company

A new lozenge company will open distribution operations and headquarters in Danville, Virginia, a move that is expected to create about 150 jobs over the next three years. The business formation by AllergEase is predicted to ease unemployment in both Guilford and Rockingham County, where the unemployment rate is currently 11.3 percent.

SEC recognizes new way to communicate with investors

Residents of Virginia may have heard that the Securities and Exchange Commission, or SEC, has established new guidelines for disclosure of business information via social media. The SEC now recognizes social media sites such as Facebook and Twitter as legitimate channels of communication. The SEC views social media sites the same way as it does corporate websites or the SEC's own Edgar site. The new rules state that corporations must make clear which social media sites will serve as official channels of disclosure. This will impact not only large corporations such as Netflix but also those involved in corporate formation, limited liability companies and business start-ups.The new disclosure rules follow a notable incident in December of 2012. Reed Hastings, the chief executive of Netflix, used his personal Facebook account to congratulate Netflix employees for more than 1 billion hours of video viewing by customers in a single month. The SEC considered this information material to investors who would not have access to the news unless they had Facebook accounts and subscribed to Mr. Hastings' posts.

Virginia greenhouse venture will add 205 jobs

A new $30-million greenhouse operation is expected to create 205 jobs in Virginia over the next five years. Red Sun Farms plans to construct multiple climate-controlled greenhouses to grow organic, hydroponic vegetables by using state-of-the-art technology. Virginia Gov. Bob McDonnell lauded the new business formation as a "game-changing project" that has been a long time coming. The project will be constructed on 45 acres in a new business park located in Dublin, Virginia. Red Sun Farms will be the first tenant of the New River Valley Commerce Park. The company has operated in Mexico under the name Agricola El Rosal since 2001.

Small business start-ups still possible

New research shows that it is the baby boomers, not the Generation Y entrepreneurs, who are the real risk takers when it comes to business formation. Boomers and Generation X'ers are far more likely to take on the challenges of starting a small business than their younger counterparts. The study found that 41 percent of Generation X employees, those between 30 and 49, and 45 percent of baby boomers, aged 50 to 69, consider themselves "entrepreneurial" as compared to only 32 percent of Generation Y investors aged 18 to 29. While younger workers do tend to be drawn to smaller companies where they can exercise their creative spirit, all generations evidence an entrepreneurial spirit within their companies.Older workers have many advantages when it comes to starting a business, including experience, connections and accumulated wealth. At least 40 percent of Generation Y business owners and 43 percent of baby boomers identified themselves as "high risk" in terms of business ventures while only 28 percent of Generation Y responders answered this way.

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