About kevin kemper Expertise IN my 34 + years with prospective entrepreneurs aged 7 through age 77, in Canada,
Mexico and elsewhere; both directly and through my TV show and newsletter on Entrepreneurship,
have advised on: starting a business, writing a business plan, finding staff, setting compensation
plans, when to joint venture or consider a franchise, have a partnership or corporation structure,
when to start a biz vs buying. Currently tutoring individuals in S. Africa, Bangladesh, India, China, Australia and Brazil. [My incomplete book is entitled Assured Entrepreneurial Success]
Expert: kevin kemper Date: 6/25/2004 Subject: Private share allotment
Question Greetings Mr. Kemper:
I am a sole proprietor in a photography-related field. I've been in business for a little over 4 years. I have recently received alot of help from two close family members and we are really starting to make great strides in repeat and new business.
I am also a small individual investor who enjoys dollar-cost averaging in my IRA and researching various socially-responsible companies.
I see the value of investing in good companies with lots of transparency. Therefore, I would like to construct a shareholder plan for my business. We are planning to incorporate within the next year, revise the business plan and organize our income, balance and cash flow statements. I am also formulating a plan to offer "shares" of my business to myself and these other family members.
I really don't need any funding at this time. However, I know the day may come when the need will arise and I should be prepared. Regardless, I have two primary motivations:
1. To give me and my family members a tangible stake in our success, making me more serious about accountability and helping them see how important they are to our success. If I award them with shares that may eventually be worth alot, they will be happy for all of their "free" labor.
2. It would be fun and educational to have our own stocks and pretend we're like the big guys out there.
I don't know where to start. How do I "create" shares out of my humble studio? How do I assign them? How do I distribute dividends and/or reinvest them? How do the share gain value and can they "sell" or "buy" more of my shares? How do we handle other interested family and trusted friends?
Thank you for your time!
Eric
Answer ERIC; I started my self-employment with a photo biz!
congrats.
u want to create a Corporation and file for the "S" tax
approach, with dividends and tax obligations passed on through to the share holders.
