1. Starting a Business Types of Business 1. Consultant (Sole Proprietorship) 2. Mom and Pop shop (same family) 3. Corporation FICA, Tax, Separate Tax, Sell Stock, Limit Liability, Separate you from company 4. Chapter S /LLC Jay H. SchlagStarting a Business1

2. Starting a Business Corporation 1.Officers (State) Pres., Sec. Tres. 2. Board of Directors Chairman of Board 3. Operational Officers CEO, Accountant, CTO Jay H. SchlagStarting a Business2

3. Starting a Business Stock 1.Founders Stock 2. Preferred Stock 3. Common Stock Rules can be different Reason to have stock Value, Dividend, Voting Power Dividend / Growth Jay H. SchlagStarting a Business3

4. Starting a Business Business Plan 1.What are you going to do 2. Cost Analysis 3. Risk Analysis 4. Market Analysis Jay H. SchlagStarting a Business4

5. Starting a Business Getting Money Into a Business 1.Sale of Product 2. Sale of Services 3. Loans 4. Stock Founders, Preferred, Common 5. Donations Jay H. SchlagStarting a Business5

6. Starting a Business Getting Money out of a Business 1.Salary 2. Dividends on Stock Jay H. SchlagStarting a Business6

7. Starting a Business Have an idea 1.CTO – You, Sell your idea to the corp. for stock 2. Lawyer – Set up corp. file patents (in return for stock) 3. CEO – Experienced – work for stock - invest 4. Marketing Manager - Experienced – work for stock Jay H. SchlagStarting a Business7 Founders

8. Starting a Business 1.Write a Business Plan 2. Form a Board of Directors (Invest) 3. Raise Capital 4. Hire: Other Technical People (Work for common stock) Accountant Director of Operations Jay H. SchlagStarting a Business8