Thursday, April 28, 2011

What are the Steps to create an LLC

More and more people today are thinking of starting their own business and being entrepreneurs. Limited Liability Company (LLC) offers the owners an easy way to set up business and also gives protection against creditors.

The first task one needs to do while setting up a limited liability company is to think of a name for the company. The name of the company should not only describe the purpose and objective of the company but also should be a legal name according to the state rules. Some of the issues to be kept in mind before finalizing a name are firstly it should not be same as the name of another LLC on the file or with the LLC office.

The company name should end with words such as “Limited Liability Company” or “Limited Company,” and should not include words like, Insurance, Corporation or City which are prohibited by the state. Above all this it also has be kept in mind that the name of the company decided upon should not violate any other company’s trademark.

Once the name of the LLC is finalized one needs to fill the Articles of Organization with the State. This is a simple process and one can easily get it from the Secretary of State’s website or a local office. It is a simple document containing information like the name of the business, purpose of the business, membership officers and place of business.

The only disadvantage of forming an LLC rather than a partnership or a sole proprietorship agreement is that a small filing fee is required to be submitted along with the articles of organization. The fee amount depends on the state one is registering the company into. For the state to approve the application it can take a few weeks time.

Next one should make a LLC operating agreement. Even though it is not necessary it is always preferable to make one. It mainly includes information relating to the day to day running of the business like members percentage interests in the business, their responsibilities and rights, voting powers, how the profits and losses will be allocated and overall how the business will be conducted. Once all these formalities are done the only thing left is to obtain licenses which need to be obtained for any other business as well.

Tuesday, April 5, 2011

How and When to Ask for a Raise?

Asking for a pay-raise from your employer can be a difficult subject to broach, especially when unsure how to go about it. This is the reason many employees just accept their small annual cost-of-living-raises instead of asking for the raise they know they deserve. Despite the fact that this is a much easier and far less stressful method, it is unlikely that an employer will hand out a big fat raise without being asked, even to a deserving and dependable worker.

Do they deserve it?

When seeking a pay raise, an employee must be absolutely certain that they have a valid reason to ask for one. If they do, then it is time to start planning the request. If not, however, then the employee should spend a few months going above and beyond the call of duty before even thinking of asking.

The outline

For the employee that deserves an increase in pay, the fight is still far from over. The word "raise" is not a word an employer loves hearing, which is why deserving workers must outline, in as much detail as humanly possible, why exactly they should be paid more money. They should highlight work-related achievements and if possible, provide factual statistics of how their performance has saved the company money, set an excellent customer service example or increased productivity in other employees, in order to help justify the payroll increase. In short, the person asking should make the validity of the request as irrefutable as they can.

Once a worker gets his battle plan outlined, he should go over it. It is a good idea to bounce it off a trustworthy friend too, but not a co-worker. Co-workers should never discuss their compensation with one another, as this is a huge no-no in the business world.

Knowing the range

Before requesting a raise in pay, workers should familiarize themselves with the standard pay range for their occupation and experience. Without this information, employees are likely to either ask for too much, or even not enough. A great way to find this information is by checking with the Bureau of Labor Statistics.

Timing is everything

Waiting for the opportune time to make the move can be the difference between getting the raise you deserve and being prematurely shot down. People should consider how far away their annual reviews are; if they're coming up, it may be a good idea to wait until then, accruing as many achievements as they can before the reviews. However, if an employee has just made a stunning achievement and his review isn't coming up, the best idea may be to strike before the accomplishment fades from his boss' memory.

Many factors enter into a pay raise, even for those that rightfully deserve one. The odds of getting a pay raise are much better when employees have done their homework. By putting together a list of achievements that display their worth and knowing the industry, employees can more easily negotiate their compensation. With the proper game plan, timing and attitude, employees can get the pay increases they deserve.