Ladies and gentlemen, after much concern with where I have been for the past two months… we’re back in action with a new series of posts. I want to revitalize theNetFool.com now that I have rebooted from the close of a challenging semester and bring the blog back into the limelight. You know what that means! I’m going to need your help to spread the word that we are indeed back in action. I’m looking forward to the challenge .

With that in mind… I have a little “break in the action” planned for today!

I’ve long been a proponent of traditional pen-and-paper communication, but seeing as how technology has been evolving to the point where I can watch live television on my cellphone… the old school postal service (aka “snail mail”) just seems to be behind the times. Despite numerous attempts to improve one of the oldest American means of transportation, many companies have crashed and burned at the hands of traditionalists like myself. Just recently, however, I’ve discovered a fantastic service that I think can really be a game changer. Read the rest of this entry »

Welcome back to the second half of our two-part article tutorial on forming your own eBusiness. In part one, we talked about forming the idea, gathering up your resources and brainstorming for that winning company title. If you haven’t checked out the post already… I highly recommend that you go back and read up on the strategy portion of this lesson.

Now that we have our corporate strategy set up and organized, we need to talk about the real “nitty gritty” details of how exactly to form your business. Everybody talks about it, but it seems like something that is so difficult to do that many people don’t even try! Not the case. Starting a business on the internet, an eBusiness if you will, is one of the more simple processes out there. All we really need is some legal protection under an LLC or an S-Corporation to start off; then, we should set up some financial agreements to lock in our business security. Let’s get to it!

Limited Liability Corporations (LLC.) and S-Corporations (Inc.)

One of the most daunting tasks in operating an eBusiness online is choosing between the two types of corporate structure: Limited Liability Corporation (LLC.) or S-Corporation (Inc.). There are many similarities and differences between the two… but in the long run, the choice is really based on a business-specific case. In the terms of online businesses, you probably won’t want to try out anything but an LLC or an S-Corp for practical reasons… so let’s stick with the two.

There are many examples of both businesses on the internet, and the differences can sometimes be blurred. When you think about a Limited Liability Corporation or S-Corporation, both function as “pass-through” entities for your business. What this basically means is that any taxation for the business can be “passed-through” to their owner’s income statements for legal purposes. This avoids the problem of double-taxation that you would run into with anything else. For Bullish Bankers, we took the LLC. for flexibility and practicality, and became Bullish Bankers LLC. My friend Tyler Cruz (whom many of you know) chose to get an S-Corp for Merendi Networks because of savings on employment taxes among other things.

The Bottom Line Decision:
I recommend Limited Liability Corporations because they are a lot easier to operate. They do not have to be operated by a board of directors like an S-Corp, and also offer flexibility in profit-sharing and a more lax ownership structure. If you would prefer the rigid and set-in-stone rules that come along with massive employment… go with the S-Corp. If you would rather feel your way through it all with a more allowing structure… go with the LLC. You can read more details in this article if you need more information.

Registering Your Corporation

Now that you have selected between an LLC and an S-Corporation… it’s time to go ahead and actually register your business. How much will this cost? Actually, it is only around $100 to do it yourself. The price will vary by state, but in Maryland (where I registered both of my small businesses) it was just $100 for registration filing for life. Not a bad deal for thousands in potential tax savings, eh?

So here are the two routes:

• Hire a Professional: If you are just too lazy to dig around on your State Department website and do the filing yourself (which is ultra-simple), you can always hire someone and pay them fees to do it for you. Sure, this will run you around $200 (double) for the filing costs and the service charge… but it is also a lot easier. I’d recommend using LegalZoom.com to handle this. I have never used them myself, but have heard only positive remarks toward their service.
• Find the Forms and File: This is really very simple to do, and is just a one-form contract. The best way to do anything nowadays is to search through Google. So search for your “State filing an LLC.” or “State filing an S-Corp” and you should find the documents available no problem. Not a lot is required on these forms, just your name, business name, address and a check for the amount required. They will be called the “Articles of Organization” or “Articles of Incorporation”. For an example, see how easy the form for Maryland is!

Filing with the Internal Revenue Service (IRS)

To save some time, we are going to go ahead and file for an Employee Identification Number (EIN) from the IRS. The reasoning behind this is essentially the same reason why individuals carry Social Security Numbers. This is a number that you will need time and time again, so it is better to get it now and get it over with.

Getting an EIN from the IRS is one of the quickest and easiest steps you will make, despite how daunting it seems. It is completely free, and you can apply for an EIN online and get your EIN number almost instantly via email. Then, just print out the forms to have a physical copy or two. You’ll need the EIN if you sign on as an affiliate for any company or if you need to open a bank account, among other things.

Setting Up a Banking Account

Many banks nowadays emphasize small businesses. Because banks function off of deposits and loans… they actually do want your money. Check out your local banks or nationalized chains and ask them about their banking plans for small businesses. You are going to want a bank with checking… and if you are planning on running a lot of transactions you might want to pay a little extra for the flexibility. I use PNC Bank for my operations through both LLCs that I own.

Once you set up a bank, you will have something to link a PayPal account to if you choose to do this. As an online eBusiness, I trust PayPal to handle most of my transactions. Plus, since this is legally separate from your banking account, you will get as many free transactions as you want! This PayPal-Bank combination is pretty standard nowadays, and it is how a lot of us operate. At the very least, you need that bank account to have checking capabilities so you can pay the bills under your company name.

Protecting your Business with Legality

We’re almost done! We’ve got everything from the company registration (takes a month or two to clear) to a bank account to our Employee ID Number from the IRS. All we need at this point, is a few second checks against any potential liability issues that might arise. I would recommend getting together a Privacy Policy and a Terms of Service for every website that you administer under your eBusiness. We need a way to ensure that nothing goes wrong… and if something does, you are protected against it. Writing a Privacy Policy and Terms of Service can be a time-drawn process, but it is well worth it in the long run. You can take a look at the Privacy Policy and Terms of Service from Bullish Bankers LLC. if you need an example of how to correctly write one of these to cover your bases.

Second to the online forms to secure your liability downside, if you are working with partners you should draw up a charter. This is just a simple document that you can write yourself delegating tasks and the corporate structure. We’ll call this a Manager’s Agreement. One thing about the law that many don’t understand, is that you can effectively write anything yourself and have people sign it to be legally bound… so long as they are fully aware of what they are signing and consent to the terms. Get in Microsoft Word and write up a clause… perhaps delegating who is the CEO and who is the HR Representative… perhaps talking about ownership, who owns what % of the business… or even talking about your voting process. You should always draft something like this and have it signed early if you are running a corporation to have everything set before you hit the ground running.

Bottom Line:
Whew! That’s a lot of paperwork, eh? Hopefully, after reading through this two-parter… you realize that starting your own business really isn’t too much work when it all comes down to it. After all, once you get past the initial set up, your business will carry a considerable amount of added weight, and people will downright trust you more. An added bonus to all of this is that you no longer have full liability for loss because of your filing with the government. I’d say it’s a good idea overall.

Hope you enjoyed this lesson on forming your first eBusiness. Feel free to contact me with any questions, or just drop a comment. Oh, and stay bullish on the net!
-Jimvesting

Welcome to the exclusive two-part series on starting your own online venture! Do you have a brilliant idea that can bring in revenue (and profit!) through the world wide web? Perhaps you already are active on the internet, but want a way to bring everything under one umbrella business for practical and legal purposes?

There are many ways to start thinking about running your own business… and being a business owner is something that will become increasingly popular as the years go by. As the owner of two small businesses, I have been through the process myself, and I would like to help YOU do the same! Don’t let anyone tell you that running a business is difficult, you just need to know where to go and how to organize yourself. Let’s start in with the basics, and then in part two we will cover more specific goals and structure.

Forming an Idea that Works

If you are looking to start a business, what’s the first thing you will need. That’s right… a business idea! It sounds a bit funny, or even a bit obvious, but solidifying your idea will probably be the biggest step you will have to take. As an example, I am going to use Bullish Bankers… which is an online financial research community that I formed with some friends from Penn State University.

It’s one thing to say “okay, I am going to start a financial business online“… but it is entirely different to lay out exactly what you will be doing. Obviously, the point of owning a company is to make money (assuming you are for-profit). Therefore, you will need to first consider your competitive advantage. What do you have to bring to the table? If you are planning on going in direct competition (i.e. doing the exact same thing as another business), you better be more experienced and able than your peer to be able to win. I would prefer to be in a niche like financial services, but have some kind of spin that makes my business unique. That is what we did with Bullish Bankers LLC., and it has worked thus far!

When you are brainstorming your business idea, don’t think solely about what you are doing… make sure that you can be profitable in your space, and that you have some kind of edge over your competition (whether that be uniqueness or execution skills).

What Kind of Business is It?

When thinking about eBusiness, one has to understand that being an “online business” isn’t a classification. In fact, now that so many companies are moving to internet-based revenue streams… it is essential that you understand where you are on the map. Additionally, if you are a business owner… you will need to be able to quickly identify to potential partners, employees and clients exactly what business you are in. For example, if you walk into a bank for a new account and tell them you are an “internet” business… they are going to want more information.

Furthermore, it is important to have a classification for what you do for your own sake. Too many people come up with business plans and think that they can do everything at once. If you are going to focus on selling cars, don’t also try to offer marketing services. Not only will your business industry give your clients a better idea of what exactly you do, but it will help you to keep from over-extending yourself. Staying with your niche industry is always the best way to form and operate a profitable business… don’t try to do too much at once.

Naming Your Business

Coming up with a name for your business is a very important part of your new online venture… but it shouldn’t be a deal breaker if somebody has already chosen the name that you wanted. That being said, I would have to say that the name your company carries will be important in lending authority to your name. I would suggest sitting down with a pen and a notebook to jot down ideas as they come to you. Go ahead and take an hour to come up with some interesting ideas, then pick your favorites. I would suggest using some “trigger” word that would immediately attach the name of your business to what you do. For example, when we selected “Bullish Bankers”… that is a name that immediately brings up the thought of Finance to people in the industry, so it is much easier to get your foot in the door.

Checking to see if your name is available can be a bit tricky. The problem here is the you register your corporation with the State department where you reside… so you will need to check with the State to see if your business name is available. This can be solved relatively easily with a search through Google for something like “California business name availability search.” Try out some combinations, or simply call your State department to figure out if you are in the clear or not.

Recruiting Partners and Stakeholders

Alright, so by now we have the idea, the name and the general business strategy set in stone. All we need right now is a helping hand. Sure, you can opt for what is known as a “sole proprietorship” and go it alone. In this case, ignore this section entirely. However, I would actually recommend that you enter into some kind of partnership among people you know, and people that are interested in the business. We will discuss the actual contractual part in the next part to get things legalized… but for now you should consider recruiting a few partners or private investors that are interested in the success of your idea. Nothing jump-starts a business like a little buying interest to keep you motivated to succeed!

Okay, so we’ve covered the thought-process behind launching your own eBusiness. Now that we have everything in place and ready to go… let’s turn to the second half of this report and start considering how to actually file and register all of your ideas legally. It is important to have everything ready to go before you start… which is a big reason behind why I laid out this “idea machine” technique before actually talking about registering your business.

Do you have that million dollar idea? If so… let’s figure out exactly how to get up and running. Check out part two of this series on forming your own eBusiness, and we’ll continue this lesson to the point where you can legally operate as a business!

-Jimvesting

I’ve been working feverishly around the clock to develop a massive and all-inclusive guide to the best stock market picks of 2009, and tonight I have finally completed my work! You can play with internet marketing all that you want, but there is simply no asset pool that will ever match the potential gains of the stock market. Imagine throwing $1,000 into a stock one day, and walking away with twice that the next… this actually happens on a regular basis in the markets… and I feel the time is right.

Considering the insane gains available in the stock market, there is always going to be downside risk. This is NOT an eBook that I have developed myself, I have worked exclusively with 10 professionally-minded mutual fund managers that specialize in every area of the market imaginable to combine only the best ideas and get you started. This work is a compilation of many efforts, and holds true investing power in forecasting what the money makers will be for 2009.

Why The Heck Would I Want to Be In Stocks Now?

Now is the wrong time to be jumping ship, it is the right time to be getting back into stocks. Ask any professional, and they will tell you that investor mindset is always wrong: we want to invest more at the peaks, and abandon ship at the troughs. Human emotion plays a big part in this, and the only way to stay ahead and actually make money is to “be greedy when others are fearful” (Warren Buffett).

Are you interested in stocks? Do you invest in your spare time? Are you managing a portfolio of your own? This publication is for you!

I’ve gathered some of the most in-depth analysis together in a professionally-rendered eBook and put it up for an insane bargain-basement reduced cost. If you signed up for a premium stock service, you would get less information for $100s a month (if you are lucky). It’s fantastic that I can offer this to you guys, as stock ideas are always great to go through and learn from.

But you haven’t heard the best part…

… I’m Giving It Away for FREE!

I decided that rather than charge for this exclusive and professional content, I would let you guys have it for free. Sure, I’ve become a financial adviser of sorts over the past few years of operation. While I cannot give you recommendations, what I can do is offer suggestions and ideas to further your wealth. The market is tough right now, so if you don’t understand the stocks you are buying… you are doomed to fail. Regardless, things are cheap right now and investing at the bottom will make money 90% of the time over the long run.

There is no guarantee of positive return with these stock picks and recommendations, however I can almost assure you that all of the carefully selected picks that appear in this publication are well researched and the investment thesis is clear. At the very least, it can be very interesting to see what possibilities lie out there.

How to Gain Access to the EXCLUSIVE Report

I am releasing this information without financial charge, however I would like to reap the rewards of doing so, in various metrics increases.

On February 6th, 2008, I will put out a blog post with the link to download the publication. However, this post will be password protected.

To get the password, you’ll need to do one of three things:

1. Refer three friends to subscribe to Jimvesting via email, and tell them to comment on this post confirming. I will check.

2. If you have a blog post with more than 50 subscribers, write a post talking about Jimvesting and link to the homepage. If you have a blog with more than 100 subscribers, give this blog a paragraph plug in one of your posts, telling people why they should visit. And if you mention the report, extra brownie points to you!

3. Sign up to Jimvesting’s brand new newsletter, and refer two friends as well. You’ll get great information on how to make more money online, but never any spam… just premium content when you want it, where you want it. Use the form below to do this, and ask your referrals to do the same. Then, tell them to comment on this post to confirm… I will also check this.

Don’t forget to let me know below what you plan on doing, and follow up on it once you are done. Of course, participation isn’t necessary… but you won’t get that secret password until you do. Again, these should be new events… not directing me to an old blog post, or referring a member that has already subscribed to my email feed or newsletter. This is a great opportunity, with a HUGE reward in clear view.

This offer closes February 6th, 2009… so let’s get started!

-Jimvesting

Recently, I had a huge burst of traffic on tailwinds coming in from one website in particular. The website is called “Youngest Blogger,” and it is one of many ranking websites for the best bloggers on the internet. This one features a list of bloggers under the age of 18, so in general these bloggers are very much the overachiever type.

I’m not under the age of 18.

This is a disclaimer, haha, because what I decided to do was literally trick the system to see what would happen. The downside? Five seconds of my life lost, and I would probably be blocked from a list that I could never get on in the first place. The upside? My fifteen minutes of fame! Hmmm… well it doesn’t take a Quantitative Risk Analyst to understand that the upside FAR outweighs the downside risk.

What I Did to Exploit Huge Traffic

Okay, so I come across a website that is claiming to rank the “top bloggers under 18″… and it sounds like something I would be interested in. Naturally, because I am over the age of 18, this would be a website that I just passed by. However, there is in fact a manual submission system in place that allows you to enter your age and website on my own. (evil thoughts)

Hmm… so they are going to allow me to choose my own age, eh? Excellent. I think that I will be 15 years old today. This is exactly what I did after checking with the terms of service. While I am sure that Carl O’Cab (the owner) would have loved for me to only support accurate age information, the last time I checked, I am not legally bound to give away my birth date to strangers. At any rate, the worst that can happen is being banned from the website… which I could care less about if I have my link placed, right?

This system is actually still in place, and the owner Carl O’Cab obviously doesn’t check through submissions… because I submitted theNetFool.com as being my blog, run by a 15 year old. It got approved quickly, and stayed in the #1 slot for a few weeks… taking traffic and subscribers along with it. I got around 50 hits a day from this site alone (in its prime). I’m sure that the website isn’t doing as well as it was when it first came out… but traffic is traffic, and it took me 5 seconds to rake in hundreds of unique visitors.

What is Unethical, and What is Just Plain Smart?

So this entire experiment begs the question… was I being completely unethical to do something like this, or just a bit smarter than your average bear? This is debatable, but I like to think that I am a very ethical candidate. So, yes, I cheated the YoungestBlogger.com system and gained a #1 ranking despite the fact that I was nowhere near the age of 15 anytime recently. Some might applaud this, and some might frown upon it. At any rate, this is something that I knew would never hurt anyone… and at bare minimum would keep ol’ Carl on his toes so others don’t do this with malicious intent.

If I was REALLY smart, I would have done this with an affiliate blogging website to get traffic to that location fast and easy. Maybe you will go and do this after reading? But I encourage you to refrain from doing so. This was more of an experiment on my part to see whether or not a simple submission could benefit my website in a major way.

My conclusion? Always, and I mean always, shoot for the win in situations like these. If you come across a ranking system that allows for manual submissions… why not give it a shot? What’s the least that can happen. By maintaining the risk/reward understanding, you can run a much more successful blog. I’m interested to know where your stance is on the issue… was it unethical, or smart? You be the judge.

-Jimvesting

Disclaimer: This post was meant as an example case, and nothing against Carl O’Cab, who runs a terrific service which I encourage you to use ethically and legally