8/2/02

L. A. SECTION ENTERPRISE CHAPTER

SETTING UP AN EFFECTIVE INTERNET WEB SITE

The use of an Internet Web Site as a business tool was the subject of a presentation by Pete Nelson of Valeo Communications to a joint gathering of AIAA, and IEEE and ASME members from Los Angeles and Orange Counties on June 19, 2002. To the consultant and small engineering enterprise, it offers an opportunity to secure clients and establish credibility and expertise. The Internet may not be for everybody but one of the attendees, a one-man consulting firm in quality control, indicated that his individual web site and his listing in IEEE and AIAA web sites produce more business than any other source. If you decide to open a web site, its design should allow for growth consistent with realistic planning. The web page must capture the attention of your intended audience right away. Most people will not scroll down a half a page if the top half doesn't interest them. Remembering that helping the customer is helpful for business, it may be effective to feature a set of frequently asked questions (FAQ's). Be sure to include your domain name and e-mail address everywhere you can, especially in offline material. Nelson also covered affiliate programs and their associated costs. He also listed several search engines and directories, online resources, and networking resources to assist the entrepreneur in various aspects of his business. You can see these for yourself by visiting our web site: www.aiaaeenterprise.org.

CHOOSING THE PROPER LEGAL STRUCTURE FOR YOUR BUSINESS

One of our section members, Selma Goldstein, spoke to our group on July 30, 2002, about Issues in Choosing the Legal Structure of a Business. Selma is an Enrolled Agent, a person licensed by the U.S. Treasury Department to represent taxpayers before the Internal Revenue Service. The factors to consider in selecting the business entity under which to operate include the type of product or service, the size and location, the numbers and types of owners, administrative complexity and costs, liability risks, tax laws, availability of fringe benefits, and access to capital. She considered the following legal structures: Sole Proprietorship, Partnership, Limited Partnership, C/S/Professional Services Corporation and Limited Liability Company/Partnership The "short answer" on choosing an entity to meet certain needs is as follows:

IF YOU NEED THEN CONSIDER

Liability Protection C-corp, S-corp, LLP or LLC

Minimal FICA S-corp

Fringe Benefits C-corp, LLC, or LLP

Reduced Income Tax C-corp or Partnership

Loss/Credit Passthrough non-C-corp

Simplicity Proprietorship or LLC

Continuity C-corp or S-corp

Access to Capital C-corp or S-corp

You can view the briefing charts in their entirety for both the Nelson and the Goldstein presentations by accessing the "networking contacts" portions of our web site.

Consultants who wish to make potential customers aware of their services are invited to register in the directory of our web site www.aiaaeenterprise.org. It's easy to do and it's free!