WE'VE MOVED!
We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
Could We Create a Business Together?
Sign In or Register to comment.
Comments
couple of issues that need clarification. First, why is the
thread stuck on a corporate model? If the ultimate decision is to
have 3 functioning businesses, then one way to house them under
one entity without exposing each one to liability for the actions of
the other businesses is a series LLC. Additionally, an LLC will
allow a tax structure that is similar to an S corp without the
limitations placed on the S corp (specifically, an S corp can only have
one type of stock). So, I`m not clear why (if it was a concious
decision) the idea of an LLC was abandoned. Note, series LLCs are
only available in Delaware and Nevada. At one time, I had thrown
out the idea of a Nevada LLC.
Second, the idea of having the lawyer do the work for a percentage of
shares is a complex one. There are ethical restrictions about
having a lawyer do business with a client. One step that should
take place when a lawyer does business with a client is that the client
should receive a letter from the lawyer telling the client to have a
second lawyer review the transaction to be sure that it is fair.
The ethics rules in most states want to make sure that the client isn`t
taken advantage of by the lawyer (theoretically more
sophisticated). In this situation, I don`t know that it is
practical for the drafting attorney to send a letter to each and every
participant to ensure that the participant is fairly advised and
consents to the relationship.
Beverly Salhanick, Esq.
I believe the only commonality these projects have is that they are all being incubated within the Startupnation community and the lessons learned from one are applicable to the others.
I`m only a layman when it comes to the legal Beagle stuff... but aren`t LLC`s and S Corps all corporations? Sole Proprietor and Partnership, if I recall my basic business law classes are the only other choices and impractical for this exercise.
I believe MiteyMite is attempting to get the ethical questions answered. The discussion as far as equity division and structure has been in the brainstorming phase. I applaud MiteyMite`s push to move this beyond brainstorming and aquire some concrete answers to the issues that would arise from whatever structure is ultimately decided upon. The devil is in the details... guess that`s why we need a lawyer.... which reminds me of numerous lawyer jokes.
"The StartupNation community is seeking lawyers with expertise in BOTH equity division methodology and compensation methodology, "
I would have added "corporate/company formation"... but at least SOMEONE is pushing forward in an attempt to get formal answers to the questions posed by whatever structure is implemented.
I might be in....
what would you think about a business idea that is sort of co-op that offers small business services. We would form a company that effectively markets small business services from a variety of providers. Services could include accounting, web design, etc, etc....
The company, by way of example, could be called ABC Small Business Services. It would have a website designed by a web develop or developers that want to create the site in exchange for equity. An SEO expert from our commmunity could help position the site so that we get traffic. We would solicit small business service providers to sign up with us, and small business owners would contact us for the services. We would then hook up the service provider with the small business customer, and we would take a cut or a referral fee (TBD). Our sales force could be made up of members from the community who could go out and solicit customers...and service providers as well to join. It solves many problems. Customers would have a one-stop shop credible source for the services they need, and the service providers get exposure and marketing, something they desperately need.
Sounds pretty cool to me. I`m in.....
Here`s what we would do to make this happen.....
First, a small group of us would form an executive committee -say no more than five of us. We would be responsible for putting together the business plan and then soliciting other team members. We would attempt to create a company that required little upfront capital. Instead of giving equity away to investors in exchange for capital, we would provide equity directly to the people who contribute to the development and growth of the company. So one of the first rules is that anyone who wanted to be involved would have to do so in exchange for ownership in the business, not salary (in the early going).
So....there it is. I`m going to do this. Anybody interested in joining me?
Jeff
do you like the idea? The details clearly need to be thought out and mapped out but does the idea grab you?
We will make something happen. Let`s just make sure that it`s the right "thing" with the right people, at the right time....
Jeff
Hopefully we all learned something from the first go around with this effort.
Keep checking in to stay up on next steps....
Jeff
May I suggest that a team of potential contributors be put together from all works of life whose defined task should include but not limited to identifying the current market trends in th echosen field, say ID protection, contemporary global issues of ID protection, the legal, technological and other forms of ID theft and protection, et al. This team should wriet a report within a Month on the predefined scope. A determination of the methjod of remuneration should be clearly stated; equity and/or cash.Other ideas?
Isn`t the business you described being done by companies like elance.com and others? Maybe I`m missing something but it looks very similar. If this is true, what sets this idea apart from the competitive sites? Help me understand better.
I do have a suggestion on any business that is started. I like the idea of the establishment of an executive team getting the ball rolling in the early stages. I would also suggest the formation of an advisory board. Why?
I believe there are a fair number of SuN members who fall into the category of non-startup - established business people who are running profitable businesses (and many for many years) - and post here and read the threads and chime in from time to time. I base this on reading the posts since April `06 and reviewing profiles and also the advice given to questions asked. I would fall into that category. I have been a professional for 40 years and owned and operated my own business since the early 90s. I didn`t become a member because I was starting a business. I do like being around startup type people. I do like giving back and re-paying for help people provided to me many years ago.
I believe a fair number of SuN members fall into this category and do not have the time to devote the necessary time and energy that this "idea" business will require; due to ongoing business requirements - keeping their own customers happy. However - and I speak for myself here - it would be exciting to be involved at some level, i.e.: participating as an Advisory Board member.
Just an idea. Ponder it. I see value. Maybe you do, too.
Have a great tomorrow.
R@
The world is flat. Let`s navigate accordingly.
Steven
I do think there are other services out there that would be competitive to what I`m proposing. I think the market however is huge, and growing, and underserved. I think there is still a lot of untapped opportunity.
And again, I`m not at all emotional about this particular idea. Maybe it`s a good one, maybe not. I just threw it out there for consideration.
One thing I do know is that if we don`t keep trying, nothing will ever happen.
So let`s keep trying, keep exploring, and keep being smart about anything we do.
Jeff