If you've taken out student loans before, then you've likely heard the terminology "promissory note" thrown around. You may not have heard of it used in the context of business operations though, but it operates much the same as it does in any other situation. Put quite simply, a promissory note is simply an "IOU" or a signed promise to pay someone that lended you money back.
Posts tagged "Business Organizations"
Many companies in the state of Utah decide to keep their shares private between owners, and there are many potential benefits to this. These companies are often referred to as closely held companies.
Any time anyone enters into a business relationship with someone else, it can always be helpful for the two parties to draft a contract. It should define their relationship with one another, what services will be provided and for what amount of pay, as well as liabilities, that one or both may assume. Drafting such a contract can be beneficial for both parties involved.
If you've ever seen one of the many different business investment shows on television, you've likely heard the terminology "core competency" used. It has to do with a company defining what they do well so that they can use it to their competitive advantage.
A study published on June 11 by Crunchbase News shows Utah is fast stepping away from being known only as a hot spot for tourists hitting the slopes and would-be attendees of the Sundance Film festival. It's instead starting to be though of by business investors as the next hub for tech companies and other innovative companies.
When it comes to a company deciding to expand either domestically or internationally, many elect to either merge with or acquire new companies in order to give themselves a competitive advantage in the market.
Once you become committed to setting up a business, choosing between the many different incorporation options can be difficult to do. A standard C corporation and an S corporation each carry with them different advantages and disadvantages.
One of the first steps you should take after you form your corporation is to draft its bylaws. They serve the purpose of spelling out both the procedures and standards the corporation intends to uphold during its time in existence. It also dictates what activities the company will not engage in as well.
Companies that have no more than 500 employees are considered to be a small business in the eyes of the Utah government officials. Interestingly, according to the Utah Small Business Association, 97 percent of all employers in the state are considered small business owners. While nearly 60,000 of those businesses have employees, more 183,000 are run by and employ a single person.
Although setting up a business as a limited liability company (LLC) has long been a preferred option of many small business owners, an S corporation has also been quite popular.