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Could We Create a Business Together?

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Comments

  • BjsEsqBjsEsq subscriber Posts: 0
    I have not been consistently following this thread, but there are a
    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.
  • PokermanPokerman subscriber Posts: 5
    I have not been consistently following this thread, but there are a 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.
    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.
     
  • processorprocessor subscriber Posts: 0
    Wow, That a great idea, count me in.  I just expanded(opened )my second start up business. I now have a branch.  Let me know how I can help
  • JeffJeff subscriber Posts: 1
    What are the rules of the game???
    I might be in....
     
  • JeffJeff subscriber Posts: 1
    just a wild thought for any of you still paying attention to this thread (see this is how I know who`s really serious about this!)....
    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
  • JeffJeff subscriber Posts: 1
    good news....
    do you like the idea? The details clearly need to be thought out and mapped out but does the idea grab you?
  • JackedeJackede subscriber Posts: 1
    Jeff, This sounds almost like a co-op or buying association. It`s a good idea for us to help ourselves and also help the group, (business). I`m involved with marketing and would be interested in assisting getting this project off the ground.That`s what we needed... a more concrete outline that can be envisioned...Great job Jeff!
  • JeffJeff subscriber Posts: 1
    Good to hear that a few of you are still supportive and hanging in there. We`ll make something happen. Entrepreneurship takes patience and tenacity. Let`s just call this exercise over the last few months a good screening process.
    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
  • JeffJeff subscriber Posts: 1
    You`re not too late Michael T!
    Hopefully we all learned something from the first go around with this effort.
    Keep checking in to stay up on next steps....
    Jeff
  • PokermanPokerman subscriber Posts: 5
    I`ll be monitoring the thread and doing what I can to help.  Several projects within my own business preclude me from contributing as much as I`d like at the current time but I`m definitely on board for the long haul.
  • lucky1lucky1 subscriber Posts: 0
    Jeff, what an exciting idea.  I wasn`t able to read all 62 postings so far.  With the collective, knowledge and expertise on this site you have a wealth of talent to draw from.  What type of business are you considering?  Obviously internet based.....I`ll read the rest of the posts.  I`m sure there are many ideas and I`m interested in being involved as well.  Congratulations on your success...it has been fun watching everthing evolve.
  • AMEX555AMEX555 subscriber Posts: 0
    Jeff, Very well said. Phantastic idea. Two things though, brain-storming about the potential business (e-comm) and of course, defining the niche services/market. There is a need to protect personal ID as well as prevent personal ID theft. Team work of committed players are most essential.
    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? 
  • keyconkeycon subscriber Posts: 34
    Jeff - glad to see you`re back actively involved on the business development concept.
    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@
  • NYC696NYC696 subscriber Posts: 0
    Jeff, I`m in. The `Tiger Team` project provided an opportunity to think broadly about the opportunities and challenges of crafting a unified storefront behind which independent businesses and professionals provide fee-based services to businesses. This can work.

    The world is flat. Let`s navigate accordingly.

    Steven
  • JeffJeff subscriber Posts: 1
    Love the renewed enthusiasm, and of course the "pushback" too. I think an advisory board is a great idea and should be included in the project`s design.
    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
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