Facebook’s first five days as a public company saw its value drop 13.1 percent, the worst first-week performance of any initial public offering in a decade. That’s the sorry picture compiled by Bloomberg at the close of trading yesterday. In contrast, Visa’s 2008 IPO resulted in a first-week bump of 45.4 percent, putting big smiles […] http://goo.gl/R6LdX

Source: safzath


Look at things differently.

Source: matejgrusovnik.com

Author:  Leon Presser

Patents are used to protect inventions. In the United States a patent grants to the inventor a monopoly over his/her invention for twenty years from the filing date of the patent application. The monopoly includes use, manufacture and sale of the invention. Further, in the United States a patent prevents others from importing into the United States the patented invention.

Patents are considered the strongest form of legal protection you can obtain for intellectual property.

A serious problem for new entrepreneurs is that patents are time-consuming and costly to obtain. Procuring a patent in the United States can take three to four years and cost well over $15,000 when you seek the help of an intellectual property lawyer.

To obtain foreign patent protection, you must file a patent application in each country in which you desire protection, since each country has its own patent laws. Thus, more expenses.

Owning a patent can be a major business advantage. However, applying for one is a costly and time-consuming effort that will affect your business operation. If you are a starting entrepreneur with limited funds, or a struggling small company, applying for a patent is an onerous undertaking.

There is an alternative in the United States: a simplified approach to a patent application called aProvisional Application for Patent.

You can file a Provisional Application for Patent which will provide you intellectual property protection for up to a year. You must, however, file the full patent application (i.e., the non-provisional patent application) within one year or you may lose substantial rights. The filing fee for a provisional patent currently ranges between $130 and $260, and the documentation required is much simpler than the application for a non-provisional patent.

The advantages of filing a Provisional Application for Patent are:

1. It represents an inexpensive strategy that you can employ while you explore the marketplace before you invest the effort and the many thousand of dollars required to file for a full patent. In other words, it can buy you time to determine if filing a full patent application is the right allocation of your resources. In particular, it gives you legal protection while you talk to investors, potential customers, possible subcontractors and others.

2. As long as the full patent application is filed within twelve months of the filing of the provisional application, the filing date will be the date of the filing of the provisional application. This could be quite valuable if you are trying to beat a competitor by establishing an earlier filing date.

3. It provides you with up to a year of additional time to carry out research and prepare for the filing of a non-provisional patent application.

4. It allows you to claim ‘patent pending’ status which may result in a valuable marketing advantage.

You should be aware that current patent laws in the United States are the subject of much criticism. As a result, for a number of years, the Congress of the United States has been considering reforming the laws on how patents are awarded and litigated. It behooves you to keep abreast of any new legislation in this area.

Of course, I must tell you that I do cover this topic and related issues in more detail in the book. I do want you to read the book. I also encourage you to go to the book’s website (www.whatittakestobeanentrepreneur.com) and subscribe so that you will be notified each time a new post occurs.

(Some of the material in this post utilizes information from various references listed in the book)

It takes one great idea to set off a reaction. 

It takes one great idea to set off a reaction. 

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Streaming music service Rdio has launched its new version on Mac and Windows browsers and via its Mac and Windows apps. The new version has been completely redesigned to put… http://goo.gl/LDzJw

Source: safzath

Author: Leon Presser

You should be aware of the difference between single and double taxation.

One of the first legal decisions you will need to make as an entrepreneur is how you are going to operate as a business. That is, are you going to operate as sole proprietorship, as a partnership, as a corporation, as a limited liability company, …? This decision has legal, tax and operational implications. In this note I am going to address only one issue but an important one. The issue is the amount of tax you will be required to pay. With some legal entities you incur single taxation, while with others you are subject to double taxation. For example, with an S corporation or a limited liability company (LLC) you will not pay double taxes while with a C corporation you will. Let me illustrate with a quantitative example.

For Federal income tax purposes the following rates are currently in place:

  1. C corporations are taxed at a maximum tax rate of 35%.
  2. Dividend distributions by a C corporation to its shareholders are taxed at a maximum tax rate of 15%.
  3. Individuals are taxed at a maximum tax rate of 35%.

A C corporation pays income tax on its income at the corporate tax rate. The Board of Directors of the corporation decides on whether or not dividends are paid to its shareholders, and if they are paid, the Board decides the amount and the timing. The corporation’s shareholders pay income tax on any corporate dividends they receive at the individual tax rate on their personal income. This is referred to as double taxation.

In the case of an S corporation or an LLC any profits (losses) achieved by the S corporation or the LLC arepassed through to the individual shareholders who will include them in their personal tax returns. Thus, any monies going to the individual shareholders are taxed only once, as part of their personal tax return. This is referred to as single taxation.

Let’s look at some specific numbers to grasp the importance of the topic. If your earnings came through a C corporation, the effective tax rate on the earnings distributed to you personally was 44.75%. This tax rate was computed as follows: the income of the C corporation was taxed at 35%; the money remaining after the 35% tax was deducted then taxed again at 15% when it was distributed to you as dividends; and the result is that you net approximately 55.25% (i.e., 100% -44.75%) of the monies originally earned by the C corporation. That is double taxation!

Now, suppose that your earnings were coming through an S corporation or an LLC instead of a C corporation.

The earnings would pass through to you and be taxed as individual income at 35%. The result is that you would net 65% of the monies originally earned by the S corporation or the LLC. This is single taxation!

Note that with the S corporation or the LLC, you keep 9.75% more of the money originally earned (i.e., 44.75% – 35%).

Please realize that in this example I computed taxes based only on federal tax rates. In addition, you would have to pay applicable state and employment-related taxes. Thus, the tax bite is even larger.

The maximum 15% federal tax rate on the distribution of dividends is scheduled to expire in 2010. Congress is discussing changes to this tax rate as well as others. You should realize that changes in these tax rates can have a serious impact in your ability to succeed as an entrepreneur. Further, you need to evaluate carefully any changes to any of these tax rates to make certain that the way you are operating your business is still the best way.

I want to emphasize that your decision in selecting a form of legal entity to operate your business must be made taking into consideration a number of important issues. In this note we addressed only one of those issues: single vs. double taxation. You can not make your decision on this issue alone.

Of course, I must tell you that I do cover this topic and related issues in more detail in the book. I do want you to read the book. I also encourage you to go to the book’s website (www.whatittakestobeanentrepreneur.com) and subscribe so that you will be notified each time a new post occurs.



The Tastebuds.fm app allows users to share mixtapes with each other using Spotify’s in-built playlists. So that’s one item on the romantic check-list already sorted out then and there. With Fellody, users can check the app’s community and see what’s trending in musical choices with other users. (via Spotify Launches Apps for Those Looking for Love)

Source: thenextweb.com


by AllThingsD - Etsy, the online marketplace where people sell their arts and crafts, has raised $40 million in funding. Investors include Index Ventures (which led the round), Accel Partners, Union Square Ventures, Hubert Burda Media and Glynn Partners. In a blog post, Etsy CEO Chad Dickerson said the company will expand internationally. To date, the company has raised $91 million in capital. http://dlvr.it/1Xphr0

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