Laura,

I would like to suggest that at the outset, the business startup consider its basic strategy. That strategy will set the stage for business structure.

Why is this? First, what if the business is seeded with venture or angel funds and functions in stealth mode for the first six months or year prior to full scale production or marketing and sales? The business mission is part of that strategy. That mission sets the course for the company's reach into the marketplace and even the way it will do it. Will it be in manufacturing, retail, wholesale, services, etc.? Will it be international? What products or services will it offer the marketplace? The answer to these questions will play a large role in business structure. In many cases, a proprietorship would not be the best choice. LLC? Possibly. Again, depending on the products offered. A large number of services companies operate out of LLC formations. Sub-S? Perhaps. Numerous small independent gas and oil companies form as Sub-S corporations.

Second, how are similar businesses forming? I covered some of those issues above. One of the best indicators for a business formation is what other like business structures look like. Why? Most likely, you will be competing against them. Or they may be your vendors. Given this, business formation sets the stage for peer to peer business relations, and along with that arises a number of other issues - associations, liability, etc.

Third, consider growth strategies. If your strategy is to be a multi-million dollar business in three years, the sole proprietor may not be the place the start. You make a good point there about business liability. The larger a business become, the greater the liabilities it faces. The same holds true with aspirations of an IPO.

Consequently, there are a number of things to think through for a startup in terms of a business formation. The business plan or strategy will be one of the determiners for business formation.

Laura,

I am in the process of working with a client who does not use all the features of QuickBooks. Although the client is using QuickBooks Pro, it has ample features for managing its business finances.

I am taking it through a strategic planning process and will be showing it how to set up QuickBooks to track its individual strategies and corresponding objectives through QuickBooks.

Did you know that QuickBooks can be used to track the entire strategic planning process? And that's not through the budgeting module or class feature.

How about a categorical rating? Journals and magazines have a rating for articles they believe worthy of publication. Each category receives 1-3 points for meeting the categorical criteria, 1 being lowest and 3 being highest.

For example:

CATEGORY POINTS

Exhibited knowledge of subject
Addressed core issue in topic
Meaty
Clear thesis
Body supported thesis
Conclusion brought application

Floyd

Gerald,

I appreciate your artistic approach to interpretation, but that is a completely different genre than written works of art. I return to my statement on contexts. I mentioned in my article on this post about the author's intent. To leave interpretation open to the reader with many works of written art is to do a disservice to the author. Authors of manuscripts want to communicate their intent. I for one do not want to leave the interpretation open to others of what I write. I want others to understand what I mean.

Allow one example of many I could give. Assume the IRS sends you a letter stating that you have tax due of $100,000 by April 15 or you will face a fine of penalties and interest. You read the letter and say, "My interpretation of April 15 is that it refers to another time period. The IRS has one interpretation and I have another. My interpretation of "balance due" is balance due to me. The IRS owes me money." Better keep a watch on your door for an IRS agent who's coming to collect. The intent of the author is very important in a written work. If not, we would not be able to understand one another at all because all of us would be reading into what others said or wrote rather attempting to understand the words intended by the speaker or author.

Floyd

Quoting particulars rather than focusing on general life principles quite frequently leads to taking phrases out of their context and missing the entire point of a written work. Also, interpretation requires understanding several contexts and the intent of the author. Among those contexts are history, culture, intent, audience, and so on. An interpreter who reads his or own meaning into a text is really missing the entire point. It is easier to quote a passage without interpreting it, but that leads to no conclusion at all about the text before the reader. The consequences of approaching a text is argumentation and attacks. I have seen this occur numerous times, leading to acromony and ill-will between people.

My approach to such an issue of whether the Bible or any written work is applicable to business is to consider the general principles that work proposes. Peter F. Drucker wrote volumes on business management, and he is widely quoted. But when executives execute their business, they do not rely on quotes but on application of principles that Drucker asserted. People may disagree with Drucker, but they do not get heated over their disagreements, nor do they assert that their belief in Drucker's principles is no one else's business.

But enough on Drucker. What about the principles about which the Biblical authors wrote? Would anyone deny integrity, honesty, fair dealing with people, gentleness, mercy, justice, equity, planning, and so forth as general principles in business? I use those all the time in my business dealings. If I did not, I would not be in business, beause no one would deal with me. All of those are biblical principles.

To deny that these biblical principles do not play a part in everyone's dealings in business is living in denial. Additionally, all of these principles are public and not private issues. We all live them and discuss them daily. We are all open to them, because they make up characteristics that enter into all business transactions. They enter into Codes of Ethics in numerous businesses world-wide.

I embrace the principles the Bible teaches because they are engrained in me and they work in building strong business relationships and partnerships with others. That does not deny texts in the Bible that are open to interpretation. But those texts can lead us to dig deeper to discover what they mean and how they apply. Additionally, with texts I do not fully understand, I defer discussion and attempt to moderate my discussions around how I can foster good relationships rather based on what I know and apply.

That's my take and two cents worth.

AFBBIZ

As a California State certified tax preparer and QuickBooks ProAdvisor, I believe you have done a service for your readers in giving them practical tips on the use of a home for business purposes. One additional item: give forethought to this tax deduction if you ever have intention of selling your home. Any depreciation expense you take for a home office must be considered in the sale.