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  A Home-Based Business Online


    August 5

     Sent to 5,805 subscribers

  Editor: Elena Fawkner
  Publisher: AHBBO Publishing
     Contact By Email

1. Welcome and Update from Elena
2. Home-Based Business Idea of the Week - Clip Art
3. Feature Article - What's In A Name?
4. Web Watch - Lies, Lies and More Lies
5. Pro-Motion Column
6. AHBBO Build Your Own Website Tutorial
7. Letters to the Editor
8. This Week's Subscriber Web Site Pick - Catherine
 Hutton's Internet Resource Center
11. Subscription Management
13. Contact Information

1. Welcome and Update from Elena

Hello again, and a warm welcome to all the new subscribers
who have joined us since the last issue!

Apologies for the lack of notice, but as you can see, AHBBO
has reverted to a Saturday publication date now that I am back
in the full-time work-world.

Apologies also to those of you who have been trying, without
success, to access part 5 of the AHBBO Build Your Own
Website Tutorial.  I'm not sure why so many of you were having
a problem when others weren't but I recreated the responder
and all now seems to be working fine.

Remember, AHBBO is running a 2 for 1 advertising sale
for the rest of the summer.   So, if your online business is
suffering from the dreaded summer slump, this may be just
what you need to shake some life back into it.  Details at
segment 10.

Finally, several of you have contacted me asking whether
the law firm I'm now working for in Los Angeles handles
small business matters.  The answer is a resounding yes!
If you're in the market for legal services for your business
(e.g. incorporation services, partnership agreements, licensing
agreements, joint venture agreements, IPOs, you name it),
by all means contact me at this email address and we can
take it from there.

As always, thanks for reading and I hope you enjoy this
week's issue.

Remember, this ezine is for YOU! If you have comments
or suggestions for topics you would like to see addressed,
or would just like to share your experiences with other
subscribers, I want to hear from you! Please send comments,
questions and stories to Contact By Email .

2. Home-Based Business Idea of the Week - Clip Art

Believe it or not, a huge proportion of the population
is not yet Internet savvy and still relies on the old-fashioned,
"bricks and mortar world" ways of doing certain things.

Here's where your offline clip art business comes in.
Many small business owners, for example, place ads in
popular offline publications.  Have you ever seen an ad
in a publication that was just text? Just a big block of
words. I'm sure you have, and wasn't it boring? If you're
scanning quickly through ad sheets, your eye won't stop at
a block of grey text. It'll skip right over. To make an ad
interesting and eye-catching, it's helpful to use ready-made
graphics called clip art.  Your business is in creating
and producing ready-made clip art for sale to businesses
placing these advertisements.

Clip-Arts are ready-to-use pictures, borders, headlines
and other little pieces of art, printed in groups on a page,
that can be clipped out and used in ads and publications.
Clip art can be found at office supply stores, and from
mail order dealers, as well, of course, on the Internet.
Here's how you can get into the business of selling clip art.
First, you need a source of clip art. If you, or a friend,
are artistically inclined, draw your own. Don't worry
about having to draw it small enough, you can reduce
whatever you've drawn with a photocopier. It's a good idea
to make your art relatively free of small details, since
they'll get lost when you photocopy the picture. Draw
items that would be useful in mail order ads (business
related pictures, money, mail, etc.). Then, reduce them and
assemble them on one page. You now have a product you can

Another source of clip art is other dealers. Many dealers
sell copyright-free clip art packages that you can resell,
either for 100% profit or for a commission. The only
drawback is it will be the same clip art that others are
selling. That's OK, though, if you make sure to advertise
it in places where other dealers aren't.

Finally, if you own a computer, you have a wealth of clip
art at your fingertips. Many graphics and sign-making
software packages allow you to create your own graphics.
These can be printed out and used as clip arts. A laser
printer will produce the best, professional quality clip
art you'll ever see.  Of course, there's nothing to stop
you from offering your unique clip art online either.


There are many more ideas like this in AHBBO's Home
Business Ideas page at
and Online Business Ideas page at
with more being added
all the time.

3.  Feature Article - What's in a Name?

Copyright © 2017 by Elena Fawkner

How's business?  Humming along nicely?  Good ... glad to
hear it.  Take a seat.  We're going to talk about what you need
to start thinking about now that your business is off the ground,
so to speak.

When you started your business, you may have done so on
a part-time basis while you continued with your full-time job.
Perhaps you're still doing double duty. If so, it's possible that
you haven't really given too much thought about the tax and
legal ramifications of the legal entity you have chosen for your
business.  After all, it's hardly something to worry about when
you're just starting out.  After all, who knows whether this
thing's going to fly, right?  At some point, though, once your
business begins to get off the ground, you do need to turn your
mind to such things.  Now that your bird is in the air, it's time
to give some serious thought about the entity you're using for
your business.

In this article, we'll discuss the main forms of legal business
entities and the advantages and disadvantages of each so you
can begin thinking about which one is best suited for you, your
business and your circumstances.

Of necessity, we're only concerned with general issues here.
Each state/province/country is different and you will need to take
the advice of your own professional adviser (lawyer or
accountant) before making a final decision that's right for you.

While this discussion will be focusing on entities most
commonly used in the United States, most of them exist, in
some fashion or another, all around the world (although some
of the finer details will vary).  For this reason, this article is only
intended as an issue-spotter and thought-starter and should
not be used as a substitute for independent professional advice.


The most simple form of business entity, the sole proprietorship,
is just that ... one person who is the sole owner of the business.
If you're running your business under your own name or under a
fictitious business name that you have filed with the state (and
that fictitious name has not been filed by a partnership of which
you are a member or by your company) you are a sole proprietor.
You are required to file a fictitious business name if your
surname does not appear in the name of your business or the
name of your business suggests the existence of other owners.

Under this form of business entity, the owner and the business
are legally inseparable.  In other words, the business does not
have an existence separate and independent from its owner.

=> Advantages

The advantages of a sole proprietorship are that it is simple and
inexpensive to set up (you've probably done it without even
realizing just by signing up for and promoting an affiliate program,
for example); the owner reports the business's profit/loss on his
or her personal income tax return (the business doesn't have to
file a separate tax return); the owner may offset a business loss
against other income; and the owner has total management and
control of the business.

=> Disadantages

The disadvantages of a sole proprietorship are that the owner has
personal, unlimited liability for the debts of the business; the
owner may find it difficult to obtain finance; community property
is at risk if the owner is married and the owner is personally
liable for the acts and omissions of agents and employees.

A sole proprietorship may be a good choice for you if you are in
sole control of your business (i.e. you don't use agents or
employees) and where personal liability for business debts is
not a major concern.  When your business starts to grow,
however, and you begin adding employees, incurring significant
debts or need to source venture capital of any substantial
amount, it may be time to consider another form of entity for
your business.


The next step up from sole proprietorship is a partnership.  A
partnership is a business with more than one owner that is not
incorporated and that is not a limited liability company
(corporations and LLCs are discussed below).  In a partnership,
each partner shares in the management of the business and in
the liability for the acts of fellow partners.

The internal workings of the partnership are governed by a
partnership agreement which should include issues such as the
authority of the partners, the name and purpose of the
partnership, each partner's respective contribution to the
partnership (whether in the form of money, time, expertise
or other services); payments to be made by the partnership to
the partners in the form of profits and drawings; the management
duties of the respective partners and how to handle the addition
of new partners and the withdrawal of existing partners.  In the
absence of a partnership agreement, the profits and losses of
the partnership are distributed equally amongst the partners.
If this is not the intention (for example, because of a disparity
between partners' respective contributions), the partnership
agreement should provide for this.

=> Advantages

As with a sole proprietorship, a partnership is relatively simple
and inexpensive to set up; each partner reports his or her
share of the partnership profits or losses on their personal
income tax return (again, the partnership doesn't have to file
its own tax return); a partnership offers a deeper talent pool
than does a sole proprietorship; the burden of running the
business is shared and, generally speaking, a partnership is
stronger financially than a sole proprietorship.

=> Disadvantages

As with a sole proprietorship, however, the partners are each
jointly and severally (i.e. together and separately) liable for the
debts and other obligations of the business.  In addition, each
partner is liable for the acts of the other partners (within limits).
Another potential disadvantage is that because decision-making
authority is divided, disagreements may arise which may cause
friction between the partners.  It would be a good idea to provide
for a dispute resolution mechanism in the partnership
agreement to overcome deadlocks.


A limited partnership offers a useful compromise for the business
that wants to attract capital but doesn't want to relinquish control
of the business.  A limited partnership is one in which there are
two types of partners: "general" and "limited".  A general partner
has exactly the same rights and obligations as a partner in a
traditional partnership arrangement (discussed above).  A limited
partner, however, contributes financially to the business but has
minimal control over its management.  So long as the limited
partner stays out of the control of the business and doesn't get
involved in any misdeeds that adversely affect the partnership
and the other partners, he or she enjoys a cap on personal
liability set at the amount of the investment or the amount
received from the partnership after it became insolvent.

=> Advantages

In addition to the advantages discussed above of a normal
partnership, a limited partnership offers the additional advantage
of being a way for the general partners to raise cash without
involving outside investors in the management of the business
and without having to deal with the intricacies of creating a
corporation and issuing stock.

=> Disadvantages

For the general partners, the disadvantages are the same as
for a normal partnership.  In addition, it should be noted
that a limited partnership is more expensive to create than
a general partnership.


A corporation (or company) is an entity created and regulated
by state law (at least in the US).  A corporation is a separate
entity from those who create it; it is, in fact, known as a legal

=> Advantages

Because the corporation is a separate legal entity, the
shareholders (owners) are protected against personal liability
by a corporate "veil" or "shield".  The corporate veil limits the
owners' personal liability because, as the corporation is a legal
entity unto itself, it has capacity to enter into contracts, incur
debts etc. in its own name and therefore only the assets of the
corporation are at risk.

In practice, however, lenders and other contracting parties will
typically require personal guarantees from the directors and/or
shareholders so such protection is probably pretty illusory in a
practical sense.

Unlike a partnership, however, individual owners are protected
from the misdeeds of fellow owners so long as the corporate
entity is not merely an "alter ego" for the shareholders.  (Alter
ego liability will arise if, in litigation, a court finds that the
corporate arrangement is nothing but a sham; a way of protecting
individual shareholders/owners from liability for premeditated
misdeeds.  In such circumstances the court will "lift" or
"pierce" the corporate veil and attach personal liability to the
individuals behind the company.)

One particular advantage of a corporate structure for a
business is that it may afford the owners a more favorable tax
treatment because of what is known as "income splitting".
Essentially, because the first $75,000 (or whatever amount
applies in your jurisdiction) of retained profits are taxed at
separate corporate income tax rates that may be lower than
the individual income tax rates of the business owners, owners
who work for their own corporation can split income between
themselves and the corporation which may mean a lower
overall tax bill.  Check with your lawyer or accountant about
whether this is something you can take advantage of.

Finally, because a corporation issues stock, it is an ideal
vehicle for bringing in outside investors or rewarding employees
with stock options.

=> Disadvantages

The main disadvantage of a corporation is that it is more
expensive to create than a partnership (general or limited) or a
sole proprietorship.  For this reason, you should probably
(subject to legal and accounting advice) only consider it if your
business faces or is likely to face substantial risk (and even if it
does, consider whether insurance may not be a more cost-
effective protection); you want to raise substantial amounts of
capital or there are significant tax benefits available to you
under such a structure.

Also, you may find the paperwork onerous.  Many companies
will use their lawyers to attend to the various filing and annual
formalities rather than attempting to do it all themselves.

Because a corporation is a separate legal entity apart from the
owners, it is also a separate taxable entity.  This means the
corporation must file its own tax return and this can lead to
double taxation.  Income is taxed twice: once in the hands of
the corporation because dividends are not tax-deductible and
again in the hands of shareholders who must pay tax on
dividends received.  On the other hand, however, where
shareholders are also employees, they can receive salaries
and bonuses as compensation rather than dividends and the
corporation can then claim such amounts as are "reasonable"
as an expense.

One way of avoiding the double taxation problem is to elect to be
taxed as an "S corporation" if eligible to do so.  If a company is
eligible, the shareholders can file an election with the IRS to
have corporate profits/losses flow through the corporation
directly to the shareholders who then declare the profit/loss on
their personal income tax return.  The S corporation does not
have to file an income tax return itself.  There are limitations on
the types of corporation that can elect an "S corporation" status
including the number and residency of shareholders.  Talk to your
lawyer or accountant for more information if this sounds like
something you may be interested in.


A limited liability corporation (or "LLC"), fits somewhere between
sole proprietorship/partnership and a corporation.  Similarly to an
S corporation, the members (owners) of an LLC are taxed on
business profits which flow through the corporation to be
declared on their personal income tax returns.  In other words,
like an S corporation, an LLC is not a separate taxable entity.
Like a corporation, however, an LLC IS a separate legal entity
so all owners are protected from personal liability for business
debts and other obligations.  Note that as with a normal
corporation, the protection is not absolute.  Owners will still be
liable if they sign personal guarantees and they must beware of
alter ego liability (discussed above).

=> Advantages

LLCs offer a more favorable tax treatment than a normal
corporation because the IRS rules allow LLCs to choose
between being taxed as a partnership or a corporation.  An
LLC is also more flexible than a corporation when it comes
to allocating profits/losses and management duties.  Unlike
a corporation, profits and losses can be allocated
independently of ownership interests.  An LLC is also less
expensive to set up and maintain than a corporation.

=> Disadvantages

There would seem to be few disadvantages associated with
an LLC other than that it is more expensive to set up and
maintain than a sole proprietorship or partnership.  Perhaps the
greatest potential disadvantage is one of uncertainty.  The LLC
is a relatively recent creation of the legislature and, as a result,
many issues that may be expected to arise have not yet been
tested by the courts.

As you can see, there are several business entities to
choose from for your business; each of which has its own
advantages and disadvantages.  What is right for you depends
on your particular circumstances: your personal financial
situation; the financial risk inherent in your business; your
business's financial position and whether capital needs to
be raised; the level of control you want to exert over
management decisions and many other considerations.
It is therefore imperative to seek professional legal advice
before making a final decision but do seek it.  Your business
is a serious undertaking.  Protect it and protect yourself.


**Reprinting of this article is welcome!**
This article may be freely reproduced provided that: (1) you
use the autoresponder copy which contains a resource box;
and (2) you leave the resource box intact. To receive a copy
of this article by autoresponder, just send a blank email to


4.  Web Watch - Lies, Lies and More Lies

I received nine emails this week from different individuals, all of
whom apparently went to their son's soccer match on Tuesday
afternoon.  Wow!, I thought to myself, what are the odds?  Nine
separate people, all of whom wrote to me, each have a son
who plays on the same soccer team!  And, best of all, the
reason they were all able to attend a mid-week soccer game
was because they were making $50,000 a month working from
home!  AND, even better than that, their opportunity is "HIGH
INTEGRITY!  NOT MLM!".  Oh please.

Legislators, take note.  Never mind about anti-spam legislation.
Deal with the real problem: truth in advertising (or lack thereof).
Start taking real action against those who make these sorts of
outlandish claims, preying upon the naivete and/or greed of
those who should know better, and you'll clean up 90% of spam
in one fell swoop.  Those who promote such scams offline are
held accountable for their (mis)representations.  Why should it
be any different online?

5.  Pro-Motion Column - Answers for the "Pro in Motion"

by jl scott, ph.d., Director, IAPO

Q. I would like to start my own ezine or newsletter. Which is
the best program? What are some of the guide lines? What are
some of the common mistakes, and how do I avoid them? Are
there any "insider secrets" that i should know about? (Janis)

A. I sent your question along to our Development Consultant,
Bryan Hall, for a complete answer. However, I decided that part
of your question is an issue we could discuss in this column.
Which part? Common mistakes.

I believe that online it's all about the publisher. I've seen
ezines with terrible content but the publisher has a great
personality - so I read them anyway.

The mistake would be in not allowing your personality to come
through. Be sure to let your readers know you - what you're
about and what you stand for. If they don't like you, they won't
read even the best content!

The next biggest mistake can be found in the way an ezine looks
and reads. This is a visual medium. If the reader has to sort
through too much "art work" to get to the meat, (s)he won't
bother. Make your ezine READABLE!

Along that same line - "readable" also means error free. Be sure
to use that SpellCheck on everything you do. "Mistakes" to give
it color are one thing. Sloppy writing and spelling errors are
something else altogether.

The last thing I'd like to warn you about is over-personalization.
Using an email program that personalizes your ezine is a good
thing. However, when the reader finds his/her name 14 times in
the ezine (s)he knows it's being done by the program. Then it
becomes condescending. Don't do it!

The bottom line: if your ezine is both personal - and
professional - you'll find plenty of subscribers!

* To submit questions to "Pro-motion"

jl scott, ph.d., Author
Copyright © 2017, All Rights Reserved

This article may be reprinted with permission by including the
following resource box:


dr. jl scott is the Director of the International Association for
Professionalism Online (IAPO) - and
also the publisher of MONDAY MEMO! - the ezine dedicated
to upgrading Professionalism on the Web. For your FREE

6.  Build Your Own Website Tutorial

This week - Week 6 : Submitting to Search Engines

This week's instalment is available by autoresponder.  To
receive this week's instalment, please send a blank email
to .

=> To receive previous instalments, just send a blank
email to:

Week 1 -
Week 2 -
Week 3 -
Week 4 -
Week 5 -

=> Next week:

Week 7 : Submitting to Directories and Other Forms of

7.  Letters to the Editor

Hi there Elena,

I've been getting your newsletter for quite some time now and
very much enjoy it. A while back you wrote about affiliate
programs and that they were good but having your own product
was where the real money was. My question is how do you get
your own products? Any help would be appreciated.




Good question Darrin.  You know the three cardinal rules when it
comes to real estate, right?  Location, location, location.  Well,
the three cardinal rules when it comes to making money online
are information, information, information.

ANYONE can create an information product that will sell online.
Just take a subject that you know well and create an information
product out of it.  A great resource is Ken Evoy's and Monique
Harris' collaboration, Make Your Knowledge Sell!  Visit

Or, if you're looking for a REALLY fast start, the best advice
I can give you or anyone in the same position is to become an
Internet Marketing Warrior.  Long-term readers of AHBBO will
recall me raving from time to time about Allen Says' private
members' site.  And now there's even more to rave about.  I
received an email from Allen just this past week or so to say
there have been even more products with resell rights added to
the site.  As a Warrior member, you get these rights absolutely
free.  (Allen buys up the rights and makes them available to his
members.)  So, if you're looking for ready-made information
products to sell, the best advice I can give you is to sign up
as a Warrior.  Warriors get to participate in a very lucrative
affiliate program too.  It's one of my best earners because it
literally sells itself.  It really IS that good.  To learn more:


To speak your mind in the next issue of AHBBO, send a Letter
to the Editor!  Just email me at
Contact By Email and be
sure to include your resource box!

8.  This Week's Subscriber Web Site Pick - Internet Resource


This site is operated by Catherine Hutton and describes itself
as a one stop internet shop offering "internet advertising, website
design, domain name registration, hosting, search engine
submission, business opportunities and more".

What I like about this site is that it offers services that everyone
running a business online needs, it isn't bogged down with fancy,
slow loading graphics (how many so-called web-design sites
have you visited that take FOREVER to load ... sheesh! get a
clue people!) but is still pleasing to the eye and very easy to

Nice job Catherine!


I will be featuring AHBBO subscribers' sites in this segment
for the next few months.  So if you want your site seen by
thousands, write and tell me about your site!  But make sure
it's one you've created yourself or have had created especially
for you.  No self-replicating affiliate sites please.
Contact By Email

11. Subscription Management

To SUBSCRIBE to this Newsletter:
Home Business Newsletter

To UNSUBSCRIBE from this Newsletter:

If you find this newsletter valuable, please forward it
in its entirety to your friends, family and associates!

13. Contact Information

Elena Fawkner, Editor
A Home-Based Business Online
Contact By Email


Copyright © 1999-2017 AHBBO Publishing
All Rights Reserved

Copyright 1998-2017, AHBBO.com. All rights are reserved. Wednesday, 08-Dec-2021 07:35:04 CST

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