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4 Things to Consider When Forming a Company

4 Things to Consider When Forming a Company

Everyone wants to live the American Dream and own a successful business. The expansion of the internet has made it very easy for you to register a company and attract a worldwide audience. However, running a business is difficult, especially within the first two years of operation. It’s stated that 75% of new businesses don’t survive more than three years because of strict competition and the lack of experience.

However, you can protect yourself from losing everything if you know what business type you should be registering. For example, did you know when you register a limited liability company your personal wealth will not be impacted because the banks and loan companies won’t be able to come after you? Today, we’ll be going over the different types of companies you can register when starting out in business. Specifically, we’ll be exploring the following types:

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  • Companies limited by shares
  • Sole proprietorship
  • Companies limited by guarantee
  • Limited liability partnerships

Companies Limited by Shares

This accounts for the majority of companies registered around the United States, Canada, and the United Kingdom. With this structure, you have completely separated yourself from the company so if anything happens, you personally won’t be held liable. For example, with this type of company, owners have limited financial liability and their personal finances will be protected. If anything happens to the company, the banks can only liquidate the belongings of the company, i.e. inventory, the building, credit registered in the company name, etc. When structuring this type of company, it’s important all lines of credit and purchases are made under the company name.

Some other benefits include:

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  • The status of “limited corporation” greatly increases your brand and credibility
  • You can sell shares to increase cash that’s available
  • Increased chance of acquisition by another company
  • Owner can easily be passed on by selling your shares
  • Larger tax breaks and credits

Sole Proprietorship

This type of company can be registered very easily by going online to the local business bureau website. A sole proprietorship is registered under your own name so you are personally liable for financial losses afterwards. It’s a risky type of business model, but people proceed with registration because they have very little start-up money. It’s recommended to avoid this type of business model when starting or switching over to limited liability as you start to grow. The only benefit of such a model is that you’ll pay very little tax compared to any other type of business structure.

Company Limited by Guarantee

This company structure is mostly associated with non-profit organizations, like charities, NGO’s, sports clubs, and membership organizations. When you open a limited guarantee company, you will hold no financial responsibility as most of the debt is protected by guarantors who have invested to support the non-profit cause. This type of company has no shareholders and are funded by a small group of private companies wishing to sponsor your cause and no profits will be distributed to them since they re-invested to help promote the non-profit objectives of the company.

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Some other benefits of this type of company formation:[1]

  • No financial loss to the non-profit organization
  • Higher tax breaks because money is given to charitable causes
  • Debt is protected by guarantors

If you will be operating a non-profit organization, then always register this type of business model.

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Limited Liability Partnerships

If you will be operating as a partnership, then a limited liability partnership (LLP) is the best type of structure to follow. Normally professionals will register this type of company to make sure everyone has a say in the decision process. Not to mention, the partners are the owners of shares never being sold so they can keep full control of the LLP. However, financial consequences can be huge if one partner decides to pursue fraudulent business deals because the whole partnership will be held responsible.

Some other benefits include:

  • Larger tax breaks for everyone in the LLP
  • Profits are shared equally amongst all partners
  • LLP members can be located anywhere in the world
  • You can appoint another company to be part of the LLP (grow company through partnerships)

Final Thoughts

If you are planning on registering a company, then use this guide to explore your options and decide which type of business works well with your objective. I would recommend a limited liability because you have full control of your company and can sell shares at any time to raise capital. All financial burden will be on the company so your personal finances and assets will be protected no matter what the outcome. I would also recommend consulting a lawyer before getting started so you have all the important information you need.

Reference

[1] https://www.1stformations.co.uk/introduction-to-company-formation/

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Last Updated on April 25, 2019

How to Write a Career Change Resume (With Examples)

How to Write a Career Change Resume (With Examples)

Shifting careers, tiny or big, can be paralyzing. Whether your desire for a career change is self-driven or involuntary, you can manage the panic and fear by understanding ‘why’ you are making the change.

Your ability to clearly and confidently articulate your transferable skills makes it easier for employers to understand how you are best suited for the job or industry.

A well written career change resume that shows you have read the job description and markets your transferable skills can increase your success for a career change.

3 Steps to Prepare Your Mind Before Working on the Resume

Step 1: Know Your ‘Why’

Career changes can be an unnerving experience. However, you can lessen the stress by making informed decisions through research.

One of the best ways to do this is by conducting informational interviews.[1] Invest time to gather information from diverse sources. Speaking to people in the career or industry that you’re pursuing will help you get clarity and check your assumptions.

Here are some questions to help you get clear on your career change:

  • What’s your ideal work environment?
  • What’s most important to you right now?
  • What type of people do you like to work with?
  • What are the work skills that you enjoy doing the most?
  • What do you like to do so much that you lose track of time?
  • Whose career inspires you? What is it about his/her career that you admire?
  • What do you dislike about your current role and work environment?

Step 2: Get Clear on What Your Transferable Skills Are[2]

The data gathered from your research and informational interviews will give you a clear picture of the career change that you want. There will likely be a gap between your current experience and the experience required for your desired job. This is your chance to tell your personal story and make it easy for recruiters to understand the logic behind your career change.

Make a list and describe your existing skills and experience. Ask yourself:

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What experience do you have that is relevant to the new job or industry?

Include any experience e.g., work, community, volunteer, or helping a neighbour. The key here is ANY relevant experience. Don’t be afraid to list any tasks that may seem minor to you right now. Remember this is about showcasing the fact that you have experience in the new area of work.

What will the hiring manager care about and how can you demonstrate this?

Based on your research you’ll have an idea of what you’ll be doing in the new job or industry. Be specific and show how your existing experience and skills make you the best candidate for the job. Hiring managers will likely scan your resume in less than 7 seconds. Make it easy for them to see the connection between your skills and the skills that are needed.

Clearly identifying your transferable skills and explaining the rationale for your career change shows the employer that you are making a serious and informed decision about your transition.

Step 3: Read the Job Posting

Each job application will be different even if they are for similar roles. Companies use different language to describe how they conduct business. For example, some companies use words like ‘systems’ while other companies use ‘processes’.

When you review the job description, pay attention to the sections that describe WHAT you’ll be doing and the qualifications/skills. Take note of the type of language and words that the employer uses. You’ll want to use similar language in your resume to show that your experience meets their needs.

5 Key Sections on Your Career Change Resume (Example)

The content of the examples presented below are tailored for a high school educator who wants to change careers to become a client engagement manager, however, you can easily use the same structure for your career change resume.

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Don’t forget to write a well crafted cover letter for your career change to match your updated resume. Your career change cover letter will provide the context and personal story that you’re not able to show in a resume.

1. Contact Information and Header

Create your own letterhead that includes your contact information. Remember to hyperlink your email and LinkedIn profile. Again, make it easy for the recruiter to contact you and learn more about you.

Example:

Jill Young

Toronto, ON | [email protected] | 416.222.2222 | LinkedIn Profile

2. Qualification Highlights or Summary

This is the first section that recruiters will see to determine if you meet the qualifications for the job. Use the language from the job posting combined with your transferable skills to show that you are qualified for the role.

Keep this section concise and use 3 to 4 bullets. Be specific and focus on the qualifications needed for the specific job that you’re applying to. This section should be tailored for each job application. What makes you qualified for the role?

Example:

Qualifications Summary

  • Experienced managing multiple stakeholder interests by building a strong network of relationships to support a variety of programs
  • Experienced at resolving problems in a timely and diplomatic manner
  • Ability to work with diverse groups and ensure collaboration while meeting tight timelines

3. Work Experience

Only present experiences that are relevant to the job posting. Focus on your specific transferable skills and how they apply to the new role.

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How this section is structured will depend on your experience and the type of career change you are making.

For example, if you are changing industries you may want to list your roles before the company name. However, if you want to highlight some of the big companies you’ve worked with then you may want to list the company name first. Just make sure that you are consistent throughout your resume.

Be clear and concise. Use 1 to 4 bullets to highlight your relevant work experiences for each job you list on your resume. Ensure that the information demonstrates your qualifications for the new job. Remember to align all the dates on your resume to the right margin.

Example:

Work Experience

Theater Production Manager 2018 – present

YourLocalTheater

  • Collaborated with diverse groups of people to ensure a successful production while meeting tight timelines

4. Education

List your formal education in this section. For example, the name of the degrees you received and the school who issued it. To eliminate biases, I would recommend removing the year you graduated.

Example:

Education

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  • Bachelor of Education, University of Western Ontario
  • Bachelor of Theater Studies with Honors, University of British Columbia

5. Other Activities or Interests

When you took an inventory of your transferable skills, what experiences were relevant to your new career path (that may not fit in the other resume sections?).

Example:

Other Activities

  • Mentor, Pathways to Education
  • Volunteer lead for coordinating all community festival vendors

Bonus Tips

Remember these core resume tips to help you effectively showcase your transferable skills:

  • CAR (Context Action Result) method. Remember that each bullet on your resume needs to state the situation, the action you took and the result of your experience.
  • Font. Use modern Sans Serif fonts like Tahoma, Verdana, or Arial.
  • White space. Ensure that there is enough white space on your resume by adjusting your margins to a minimum of 1.5 cm. Your resume should be no more than two pages long.
  • Tailor your resume for each job posting. Pay attention to the language and key words used on the job posting and adjust your resume accordingly. Make the application process easy on yourself by creating your own resume template. Highlight sections that you need to tailor for each job application.
  • Get someone else to review your resume. Ideally you’d want to have someone with industry or hiring experience to provide you with insights to hone your resume. However, you also want to have someone proofread your resume for grammar and spelling errors.

The Bottom Line

It’s essential that you know why you want to change careers. Setting this foundation not only helps you with your resume, but can also help you to change your cover letter, adjust your LinkedIn profile, network during your job search, and during interviews.

Ensure that all the content on your resume is relevant for the specific job you’re applying to.

Remember to focus on the job posting and your transferable skills. You have a wealth of experience to draw from – don’t discount any of it! It’s time to showcase and brand yourself in the direction you’re moving towards!

More Resources to Help You Change Career Swiftly

Featured photo credit: Parker Byrd via unsplash.com

Reference

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