We've talked about cutting costs a lot in our blog, from going paperless to outsourcing, and the latter just might have gotten a little easier. There are so many companies in the US that outsource to India, and while some may feel bitter about sending our dollars overseas, sometimes it has to happen in order for a US company to survive, though big corporations are starting to turn towards rural outsourcing. There are many companies right here more rural parts of the US thriving because of this. The reason why rural outsourcing is becoming so popular is because, even though their costs might still be higher than outsourcing in India, from 10-150 percent higher, it's just easier to deal with a stateside company. The reason why these outsourcing companies can do business at such a low cost, is because they're located in areas where cost of living is lower than on either coast. If you're looking to start your own outsourcing company, it's no longer a requirement that you'll only gain business by being located overseas, give us a call with questions on how to start your own business 866-999-8200.
The most common entities are Corporations, S-Corporations and Limited Liability Companies. Many people need help in deciding what type of entity to file for, we always suggest speaking to an accountant or a business attorney in your state in order to get advice for what type of entity would be best for you. Before contacting a professional it's probably a good idea to learn about the different types of entities. I'll give you a run down of the basics:
Limited Liability Company - Often referred to as an LLC, this type of entity is widely popular with smaller businesses, as it’s generally easier to take care of than a corporation. Since there are no stocks in an LLC, LLCs are owned and usually owned by members. You can have an outside party manage an LLC that you’re a member of, though it’s not usually what smaller companies choose to do since they’re so small it’s not necessary to have an outside party manage their LLC.
Corporations – Corporations are entities that have shareholders and a board of directors. While the shareholders own the corporation, the board of directors run and make decisions for the corporation in the interest of the shareholders. Every shareholder can vote on the directors, and amendments made to a corporation’s articles. Corporations might sound like huge companies, but lots of times small businesses run by one or two people are incorporated, because a corporation might benefit them more than an LLC or another type of entity. An S-Corporation is essentially the same as a corporation, though it is taxed differently than a regular corporation, also known as a c-corporation. We suggest you speak to your accountant in regards to whether an S or C corporation is best for you.