How to stimulate charitable work

If the president wants to stimulate something, how about relaxing the rules to qualify as a 501(c)3 non-profit?

As it now stands, the IRS application for non-profit status is a 23-page document with a ridiculous amount of requirements. I get calls from people asking for my help, but I have to quote them $2500 due to the tremendous amount of work involved. The process is tedious, and it can take a year or more to get final approval, since most applications are bounced back several times for revisions, clarifications, addendums, etc. On top of that, the IRS charges a $750 filing fee! All this for the privilege of doing charity work.

After I explain this to my potential clients, 99% of them disappear and never call back. I assume that the vast majority of them never follow through with their plans.

Instead, I suggest that the president and/or congress enact immediate measures to relax the requirements and fees involved with 501(c)3 applications. This would stimulate the growth of charitable organizations, which are needed now more than ever.

What do you think?

Starting a business is less risky than having a job

“Being an entrepreneur means no one can fire you. For a woman who wants to have children it means not totally sacrificing your career. The 65-plus executive who is told he must retire but isn’t ready doesn’t have to. What prevents a disabled person from starting and running their own business? It’s really mind over matter.”

Read it all here.

Now is the time to start a business

The following Wall Street Journal article (sort of) confirms my position that NOW is the best time to get into your own business. Stop relying on others for a paycheck. Get out there and start something killer.

Your thoughts?

Link:   http://blogs.wsj.com/independentstreet/2008/12/12/are-recessions-good-times-to-start-businesses/

This is brilliant.

I signed up with a “Yes.” What will you do? Link: “No Recession For Me“

Why do lawyers always come last?

I handle a lot of startup businesses. While I love helping entrepreneurs get off the ground, one thing really bothers me, and it involves fees. Believe me, as an entrepreneur myself, I truly understand the challenges new businesses face when it comes to startup money. But why am I the lowest on the totem pole, so to speak, when it comes to budgeting for the new business? Let me explain.

I get lots of inquiries regarding costs for incorporation, trademarks, contracts, and other services for business startups. However, quite often the query comes with a caveat to the effect that “we don’t have a lot of money to spend on legal fees.” I am baffled by this type of  remark. So let me set the record straight.

If you’re starting a business, I know you have budgeted for much of the following: advertising, marketing, web development, web hosting, employees, computers & peripherals, SEO, phone lines, high-speed internet access, stationery, business cards, office rent, security deposits, etc. And you’ve probably budgeted healthy amounts for each. But why haven’t you thought of your legal fees? Without the proper legal structure in place, your investments of time and money can disappear faster than you can say “frivolous lawsuit.”

While my fees are MUCH lower than typical attorneys, it can still add up to get all the pieces in place. For example, did you know that New York requires all new corporations to file a stock registration statement (even for a single owner corporation), and that failure to do so can result in fines and JAIL? Or that all new LLCs in New York must complete legal publishing (an expensive and stupid requirement which, when ignored, will get your LLC suspended and expose you to personal liability)? Most attorneys don’t even know about these things.

Instead of budgeting for advertising, office, website, etc., and then throwing whatever few dollars are left over toward legal fees, I suggest you budget FIRST for legal requirements, and THEN for everything else. Remember, you can’t construct a building without first laying a foundation. Budgeting for your new business from the top down, instead of from the bottom up, makes little sense.

Completely off-topic: Music

Best rock punk alternative album of 2008: “Rise and Fall, Rage and Grace” by The Offspring.

Best song of 2008: “Hammerhead” by The Offspring. Not sure why this hasn’t gotten the acclaim it deserves. Listen to it and see for yourself why this song is amazing.

In my mind, if an album has three good songs on it, it’s s decent album. Four good songs, that’s a very good album. Five good songs makes a great album. Six good songs is an outstanding album. The album above falls under the “outstanding” category.

P.S. That’s why Green Day’s “American Idiot” is the best album of all time. Not one clunker on the entire album.

Listen to my radio interview

My interview on Mitchell Rabin’s A Better World Radio is available here.

Guest appearance on the radio today

I’ll be appearing as a guest on Tuesday, December 9, on Mitchell Rabin’s A Better World Radio at 1 pm.  Listen here live.

Bad economy = less people getting divorced

According to a legal industry survey, the poor state of the economy is causing fewer couples to follow through with divorces. Among the reasons cited are attorney’s fees. Big surprise.

See the story here

More People Choosing DIY

According to the Associated Press, more people are choosing to represent themselves rather than paying the exorbitant fees charged by typical lawyers. Not surprising, but still a mistake when there are a few lawyers out there who aren’t pigs.

Story: More are serving as their own lawyer