Choon Yong-ACE Class Report-Small Business Workshop

Author of Book: Instructor: Shant Ohanian
Date Read: November 3, 2023

Book Report

Begin: 9/15/2023
Finish: 11/3/2023
Title: Small Business Workshop.

Why I chose to take this class:
I took this class to learn about small business and corporations. This class will give me knowledge on how to start a business, requirements, laws governing corporation, tax implications, by laws, sales and service contracts, business expenditure and how to raise capital.

What I learned from this class:
There are several types of business, it ranges from Sole Proprietorship, C Corporation, S Corporation, Limited Liability Corporation (LLC) and others. The difference between the different types of business ownership are several:
The personal liabilities, Sole proprietorship is unlimited liability were as Corporations, shareholders are not liable, . Administrative Requirements: Sole proprietor ship and LLC has relatively few requirements, whereas most corporations have to elect board of directors/ officers, annual meetings and annual reports filings.
Most people choose the type of business because of liabilities, management, administrative requirements, taxation, capital raising and ease of operation.
To start a business you first have to register with the secretary of state ( Franchise Tax Board) for sole proprietor ship, or file an article of incorporation and it cost about $100. ( This fees varies for each state). There are Incorporation services that can help you set up your corporation for a fee. The incorporation fee and publication fee varies by state. the toughest state for corporation to do business are: California and New York. You will also need a Business Name and Logo, which has to be verified that the Business is not used by others. There are business that will provide this service. There are lots of administrative requirements:

  • Business Plan,
  • Business Name and Logo,
  • By Laws of the Corporation,
  • Funding for business,
  • Sales / Service contracts,
  • Business Expenses,
  • Taxation.

The business plan is very important to raise capital.
Business plan usually includes:

  • Executive summary.
  • Company description, overview and mission statement.
  • Products and services.
  • Marketing plan.
  • Operational Plan.
  • Management and Organization.
  • Budget and Expenses.
  • Financial Plan.
  • Appendices.

The Bay-Laws of the company consists of:

  • Capital Stock.
  • Share Holder Meeting.
  • Board of Directors.
  • Officers.
  • Corporate Shares.
  • Dividends.
  • Fiscal Year.
  • Corporate Seal.
  • Waiver of Notice.
  • Amendments.
  • Others.

The By Laws are required to show that how the corporation functions and not as a shell company.
Sales and Service contracts are important as that’s where most legal issues arises, Sales and Service contracts should include:

  • Parties involved in the transaction.
  • Purchase price and terms.
  • Taxes.
  • Shipment.
  • Risk of Loss and Title.
  • Inspection of Goods and Rejection.
  • Events of Delays or Defaults.
  • Remediation and Legal Fees.
  • Termination.
  • Arbitration.
  • Limitation of Liability.
  • Disclaimer of Warranty.
  • Severability.
  • Waiver.
  • Governing Laws.
  • Entire Agreement.
  • Signature of Parties involved in Transaction.

Service Agreement / contract Requirements:

  • Parties.
  • Term.
  • Service Provided.
  • Payment Amount.
  • Payment Method.
  • Retainer.
  • Termination.
  • Inspection of services.
  • Return of Property.
  • Time is of the Essence.
  • Mutual Indemnification.
  • Confidentiality.
  • Taxes.
  • Independent Contractor Status.
  • Safety.
  • Alcohol and Drugs.
  • Successor and Assigns.
  • Defaults.
  • No Waiver.
  • Governing Laws.
  • Severability.
  • Additional Terms and Conditions.
  • Entire Agreement.
  • Signatures.

All start up business must have a budget and expenditure plan. Also how and where are they going to raise the resources to fund the business. There are lots of other considerations to start a business.

How will this class contribute to my success upon release:

I learned how to start a business and can use the knowledge to start my own business and to reach others how to start their own business.