NAVIGATION

How to Hire and Inspire Millennials in Your Workforce

How to Hire and Inspire Millennials in Your Workforce

If you are looking to fill positions in your business, chances are many of the resumes you receive will be from Millennials. Millennials have now surpassed Generation X to become the largest generation in the American workforce. If you feel like rolling your eyes: don’t! Many millennials have the drive, skills and ideas you’re looking for when building a productive team of employees—but this generation has a different set of work values and attitudes. What’s surprising is that the changes millennials are pushing for in the workplace are things that are desired by most employees, regardless of age.

Collaboration.
Collaboration shouldn’t be limited to team work and meetings. This new generation of workers wants to use technology to connect with the world and their peers in ways that allow them to have deeper and more globalized connections.

Outline a path for growth and development:
Millennials are all about knowing where they stand and how they can improve. Without a roadmap for success, you’ll be frustrated by a lack of results and they’ll be frustrated by a lack of vision.

Understand both their professional goals and their personal goals:

Work and life are now integrated in so many ways that millennials (and frankly all your workers) want not only to contribute and be better at work, but also to grow as human beings.

Provide flexibility:
Millennials want to have the option to work from home and maintain flexible schedules. If employees are doing the same amount of work at the same level of quality in the same amount of time, why does it matter where they’re getting it done? This millennial work style has had the most radical impact on companies in recent years, and it shows no sign of reversing.

Embrace cognitive diversity:

Millennials are attuned to diversity of every sort, and cognitive diversity is no different. Having people come together to challenge ideas, innovate and collaborate is energizing to this group.

Feedback:

Millennials want feedback—they’ve been raised in an era driven by metrics and effectiveness. Everyone is driven by goals, but the millennial workforce believes (correctly) that this can happen in many arenas, from company goals to collaboration to job satisfaction and engagement. When an employee does good work, don’t wait to hand out the praise, they’ll feel appreciated and want to work even harder.

Purpose:
A recent study found that 80 percent of millennials ranked purpose and meaning in their day-to-day work as the most important thing. That mindset also carries over to millennial consumers, who prefer to support brands that care about the greater good instead of just their bottom line. Millennials expect constant feedback, learning opportunities, and most of all, the chance to meaningfully contribute to society through their work.

For help on hiring and inspiring a team of effective employees for your business, contact the Economic Development Collaborative-Ventura County. Conveniently located in Camarillo, California, we’re here to help.

President’s Message

edc-vc, president, ceo, sbdc, smallbusiness, venturacounty

Bruce Stenslie

May 10th was a red letter day as EDC-VC joined local officials, First 5 Ventura County and Gus and Alma Ferrel, owners of ABC Kids Preschool, to cut the ribbon at the grand opening of the ABC Kids new Oxnard location on the campus of the Boys & Girls Clubs of Greater Oxnard and Port Hueneme (the Club). The Ferrels made available 78 new preschool slots in the Oxnard community, which has a high, unmet need for early childhood education.

This event marked the long-term collaborative efforts of the Ferrels as entrepreneurs committed to early childhood education, the  Economic Development Collaborative-Ventura CountyFirst 5 Ventura County as funders of a loan program, and the Club. Our collaborative mission was to add quality preschool slots to Oxnard.
Aware of the Community Investment Loan program funded by First 5, the Club reached out to the EDC-VC to consult about the potential for using excess space at their Oxnard club for quality child care, identifying three core benefits:
  1. By extending its services to younger children, the Club could add value to member families, providing a more comprehensive suite of services and creating a feeder for its youth development activities.
  2. By creating 78 new child care spots, the operation could help close the gap in access to quality care, particularly for low income children in the area.
  3. By contracting the childcare and preschool service out to a private, professional provider, the Club could lease the space to a business, generating rental income, essential for supporting and expanding the Club’s youth development offerings
The goal of expanding high-quality preschool to every preschool-aged child in Ventura County requires stewardship, operating dollars, facilities, trained teachers and public will. Reflecting on this most recent example of the positive impact regional partnerships can create through collaboration, I am encouraged that public-private partnerships are one way we can help our communities reach this goal.

The Club worked with First 5 Ventura County to develop the evaluation criteria for selecting the care provider, assuring that the partnership with a quality care provider would maintain alignment with the Club’s mission and values. EDC-VC provided the Club and the qualified child care provider with technical assistance with the business plan, assuring a sustainable service and partnership.

EDC-VC also blended the First 5 funds with private capital to build out the space to meet licensing standards. The City of Oxnard played a key role by owning and leasing the property to the Club and supporting the expansion of quality care and preschool by assuring a quick and efficient review of building plans to help the center launch.
Recent research demonstrates that regional investments in high-quality preschool programs can result in long-term economic and workforce gains. (Click here for the full study). To achieve these gains, we first need to narrow the widening gap between disadvantaged families and their access to high-quality preschool programs.
Currently in Ventura County, about 50% of preschool-aged children do not attend preschool. The Ventura County cities of Oxnard and Port Hueneme are especially challenged with limited access and capacity. To that end, First 5 and EDC-VC joined together to create the Community Investment Loan Fund. The Fund helps increase the number of licensed child care and quality preschools needed to serve the high-need communities by providing below-market financing.
The Community Investment Loan Program, and regional stewardship supporting the development of quality child care and preschool spaces, has enabled real quality outcomes in early child education. Since 2011, the following results have been achieved:
  • 318+ new high-quality preschool spots have been established, 107 of which are for the especially scarce and high-value infant and toddler age group.
  • Created more than 52 full-time equivalent jobs in early child education.
  • Secured a total lending, from all funds, of $1,665,000, with $1,196,868 in First 5 Tobacco Tax fund-leveraging an additional $468,132 in private lending.
  • Achieved a return on investment for each new child care spot for an affordable $5,236 in loan capital. Full-day preschool at age four for low-income children has the highest ratio of adult earnings benefits to costs, at over 5-to-1.

Filing Deadline is October 15 for Low-Interest Federal Disaster Loans

sba loans

65392838 – sba loan application form with a pen on a desk with an approved stamp

Low-interest disaster loans from the U.S. Small Business Administration (SBA) are available for businesses of all sizes and private nonprofit organizations. Qualified applicants may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets.

Economic Injury Disaster loans are available for businesses that may or may not have sustained any damage, but have experienced a downturn in business because of the disaster. The SBA can also lend additional funds to businesses and homeowners to help with the cost of improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future. Disaster loans cover losses not fully compensated by insurance or other recoveries.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or emaildisastercustomerservice@sba.gov for more information on SBA disaster assistance.
Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Hot Section Technologies Heats Up New Growth

aircraft maintenance growth

Hot Section Technologies (HST) has been in the business of aircraft maintenance, repair and overhaul for over 30 years. Its experts provide airframe maintenance, repair and overhaul services for regional and turboprop aircraft manufactured by Boeing, Bombardier, Embraer, Fairchild, Fokker, Hawker, Beechcraft and others. They also provide maintenance, repair and overhaul services for turbofan, turboprop and APU engines manufactured by GE, Honeywell Aerospace, Pratt & Whitney and Rolls Royce.

HST was in the midst of a turnaround which started in 2016 and, as a result, was experiencing solid growth but with that growth came challenges, including a significant strain on working capital and business operations.

The EDC-VC provided HST with both a uniquely-structured loan for working capital and consultation from specialists in process improvement, finance and marketing.

HST’s working relationship with the EDC-VC began with consultations. In February 2016, HST CEO Jase Rex met with SBDC advisor Carlos Conejo, a Lean Six Sigma Master Black Belt who spent a significant amount of time in the company’s shop reviewing everything from shop layout, purchasing practices, inventory control, work flow and repair procedures. Following those review sessions, he provided ideas for improvement.

Rex then met with SBDC advisor Gonzalo Fernandez, a specialist in finance with decades of experience in providing financial support to business through banking. After assessing the company’s financial condition, Fernandez developed a financial plan that would provide adequate working capital and stabilize operations.

Finally, HST leaders met with SBDC advisor Rose-Lise Obetz, Ph.D., a specialist in marketing. She reviewed the company’s marketing and sales practices, evaluated its market, customers, competition, website, search engine results and branding, then made suggestions for improvement in each of those areas.

Consultation with experts from EDC-VC resulted in improved business practices and a more even cash flow.

“Our customer base has grown significantly and spread throughout the world,” Rex said. “I believe our current growth rate in revenue is directly attributable to the relationship we have with the EDC-VC. We now have solid tools to manage both our operations and finances.”

Building A Business Support Network

Building A Business Support Network

Owning a business is not only stressful, it can be lonely. Whether you have just started a new business or are preparing to celebrate yet another year of successful business, it is important to build a network of like-minded individuals who can offer advice, listen to your ideas, and share opportunities with you.

Having a business support network can help you feel less stress over the everyday struggle of work and entrepreneurship. Here are a few ways you can build a business support network.

  1. Chamber of Commerce: Find and join a local or state chapter so you can meet and support other business leaders. Becoming an active member can expose you to other industries, perspectives, opportunities, and like-minded individuals.
  2. SCORE: Supported by the Small Business Association, SCORE is a nonprofit that helps entrepreneurs launch and grow their businesses. There are SCORE locations throughout the U.S. providing workshops, mentorship and professional support to business year-round.
  3. Extracurricular groups: It’s easy to forget that we form bonds with people we meet through leisure activities like sports leagues, volunteer and travel groups. When not working on or in your business, it’s important to engage in non-work-related activities that feed your outside interests.
  4. Former co-workers: If you’ve shared ideas or worked well with previous coworkers and staff, re-engage with them to share your current business venture. Their skillset might be useful in your next idea or they can provide valuable insight or contacts that you may not have considered.
  5. Professional organizations or conferences: Depending on the nature of your work and business, there might be an established network of professionals who meet regularly. Conferences and professional groups are instant support systems because they bring together small and large crowds of people pursuing similar goals. You can get a lot of inspiration and information by not only attending events but potentially sponsoring or speaking at one.
  6. Online Groups: Thanks to the wonder of the internet you can find a group for just about anything. You can build connections through online groups who can come from anywhere in the world. You can also join a local online group that has the advantage of being able to meet up.

For more information on ways to build your business support network, contact the Economic Development Collaborative-Ventura County.  Conveniently located in Camarillo, California, we’re here to help.

Cross-Channel Marketing

Cross-channel marketing

You may have come across the term “cross-channel marketing,” but what is it and how does it work?

Cross-channel marketing is a way of identifying potential customers, then exposing them to your product or service through multiple channels. For example, if a user is browsing for a product on a company’s website but does not purchase it, the business can use cross-channel marketing to remarket the product to the prospect through other media, which can include advertisements on another web page or through email campaigns. Increased conversion rates are the goal.

According to the 2016 State of Marketing Report published by Salesforce Research, successful marketers were nearly 35 times more likely to use cross channel marketing with their customers vs. under-performing sales organizations.

However, successfully employing cross-channel can be difficult.

Businesses need an integrated platform of marketing technology software and applications, referred to as a “martech stack,” so they can become familiar with their customers across a broad range of media. That will enable companies to touch those customers and potential customers early and often.

Once that is in place, using it effectively becomes the next step. One expert identified four main keys to success in cross channel marketing.

Visibility

The prime principle for cross channel marketing is being visible. Customers move frequently between devices and channels and do considerable shopping before making a purchase. In fact, Google statistics show that 90 percent of shopping consumers never stay on just one device when making a purchase.

Getting that visibility goes back to that integrated martech stack mentioned earlier. Businesses should include CRM, retargeting platforms and marketing automation solutions to track each interaction a customer is having with their brand across all devices and channels.

Measurement

Once a business has a sense of the customer interactions with their brand, it needs to measure the impact of its current marketing campaigns, including online and offline interactions as well as devices or channels.

Personalization

Personalization is key to making cross-channel marketing efforts speak to the customer’s wants and needs, but it’s no easy task. A survey conducted by Experian revealed the biggest challenges to personalization included not having immediate access to insights, not having enough data, and having too much inaccurate data.

Optimization

The most successful marketing campaigns depend on knowing what landing pages, services or products drive potential customers to make the next step. Businesses must know exactly which channels bring in the purchases, and why. Without that knowledge and correlation, a business is still using the shotgun approach.

In sum, visibility, measurement, optimization, personalization and the right technology will enable businesses to take full advantage of cross channel marketing.

If you need help developing and implementing a marketing strategy for your business, contact the Economic Development Collaborative-Ventura County. Conveniently located in Camarillo, California, we’re here to help!

Source: Forbes

Benefits of a Diverse Marketing Team

Benefits of a Diverse Marketing Team

Diversity in the workplace occurs when a company hires employees from a variety of backgrounds, race, gender, age and religion. A diverse culture in the workforce in general benefits companies in a number of ways. It provides a wide range of perspectives that can be valuable in a number of areas, both tangible and intangible.

Better Morale

When diversity is well-managed, employees feel validated and important regardless of their apparent differences. Feeling valued improves the morale of each worker and promotes positivity in the workplace. In addition, giving employees the opportunity to work with people who bring different skills and views to the table helps them recognize that everyone is important for different reasons.

Different Perspectives

A workplace with people from different backgrounds and cultures exposes employees to varying viewpoints and ideas. Allowing culturally diverse employees to brainstorm results in a wide variety of solutions that are based upon different experiences and schools of thought. With more ideas to choose from, the chances of finding the best possible final solution is improved.

Community Relations

With many communities becoming increasingly culturally diverse, it is increasingly important that companies mirror the communities that they serve. Companies need to be able to communicate effectively with customers and understand their needs, no matter the customer’s language or culture. Communities and customers also prefer to engage with companies that employ people who are similar to them.

Diversity can be especially important when it comes to a company’s marketing team and marketing efforts.

Think Globally

In an increasingly globalized world economy, marketing teams that are culturally diverse can help companies expand their business in worldwide markets. Understanding the cultural nuances of a company’s target market will enable the company to communicate more effectively, in a way that is accepted within that culture. For example, in Poland, a handshake at the end of a business conversation simply means the conversation is over; it does not mean an agreement has been reached.

A diverse team will be more likely to recognize subtleties and identify facets of marketing efforts that might prove off-putting or even offensive in international markets. Something as simple as color – which is often either considered artistically or is taken for granted – can have an impact on marketing efforts. One scholarly study showed that the colors purple and gray hold opposite meanings in different cultures.

For these reasons and more, consider a culturally diverse marketing team and workforce to be among the greatest assets your business can have. Although workplace diversity comes with some challenges, the benefits more than outweigh the difficulties you may encounter, especially with the use of proper management techniques.

For help incorporating diversity into your marketing and/or workplace environment, contact the Economic Development Collaborative-Ventura County. Conveniently located in Camarillo, California, we’re here to help!

Celebrating – and Becoming Involved in – International Trade

Celebrating – and Becoming Involved in – International Trade

May is World Trade Month 2018, a time for celebrating companies that export goods and services around the world, and for highlighting the expanded opportunities international trade can bring to companies of all shapes and sizes.

The educational focal point of World Trade Month is World Trade Week. Established in 1935 by President Franklin Delano Roosevelt, the third week of May is dedicated to educating the public about the importance and benefits of global trade to the local and national economies. Many business organizations across the country host educational programs and events to help further the public’s understanding of this vital facet of commerce.

How vital?

According to the U.S. Census Bureau, there are more than 27 million companies in the U.S., and slightly more than 10 percent of them export goods. In 2017, those companies exported $1.54 trillion dollars’ worth of goods, up from $1.45 trillion in 2016. And even more impressive is the fact that 97.6 percent of those companies were small or medium sized businesses, with fewer than 500 employees.

Whether your company is among them, or is currently contemplating joining their ranks, there is assistance available in negotiating a landscape that can seem extremely daunting.

As part of the U.S. Department of Commerce, the International Trade Administration is charged with helping U.S. exporters and workers success in the global marketplace. Its functions include promoting exports, attracting investment and leveling the playing field. In 2016, the ITA assisted over 28,000 U.S. companies that wanted to play on the world stage, enabled $59 billion in U.S. exports, facilitated more than $5.3 billion in foreign investment into the United States, and successfully removed, reduced, or prevented 110 foreign trade barriers. In total, its work supported more than 300,000 American jobs that year alone.

Working closely with businesses and their leaders, the ITA helps U.S. businesses tap into global markets in ways they may not have been able to otherwise.

The U.S. Small Business Administration is another important partner which provides resources to assist small businesses in reaching the global marketplace. The SBA’s export loan program helps small businesses access the financing they need to sell their goods and services in the global arena. In 2016, the SBA provided over $1.5 billion in guaranteed loans to small business exporters which supported over $3.3 billion in export sales.

In addition, SBA works closely with the U.S. Commercial Service and the U.S. Export-Import Bank of the United States to provide potential and existing exporters with a unified, one-stop approach to export expansion through 21 U.S. Export Assistance Centers nationwide.

To help area companies expand their business through export opportunities, EDC-VC’s Small Business Development Center of Ventura and Santa Barbara Counties launched its own Export Initiative in June 2011. It provides free one-on-one consulting with SBDC consultants who specialize in exporting, and training seminars for businesses interested in accessing export opportunities or expanding existing international exports.

If your business is in Ventura County or Santa Barbara County and you are interested in exploring international trade opportunities, contact the Economic Development Collaborative-Ventura County to set up an appointment. Conveniently located in Camarillo, California, we’re here to help!

Sources: sba.gov, Trade.gov

Conducting a Workplace Investigation

Conducting a Workplace InvestigationA properly conducted workplace investigation can be a fairly lengthy process but can be absolutely vital in maintaining the integrity of a business, or indeed its very existence. 

Employers are obligated by a variety of local, state and federal laws to investigate a range of complaints in a timely manner. Employers are further obligated to take any appropriate corrective action to ensure that illegal actions and behaviors cease immediately. It is therefore vital that employers conduct a thorough, well-documented investigation into the alleged action(s).

As potentially disruptive as investigations can be, they must be prompt, thorough and effective to ensure everyone’s protection. There are several steps that should be taken as soon as the employer receives a verbal or written complaint.

Ensure Confidentiality

The employer must protect the confidentiality of employee claims to the best of its ability, but should never promise absolute confidentiality to any party involved in the investigation. The employer should explain that, to conduct a prompt and effective investigation, some information will be revealed to the accused and potential witnesses, but only on a “need to know” basis.

Provide Interim Protection

An employer may need to take immediate measures for the protection of the accuser or the alleged victim, such as separating the alleged victim from the accused to guard against continued harassment or retaliation. But tread carefully, because actions including involuntarily transfers or burdensome changes could appear to be retaliatory and result in a retaliation claim.

Select the investigator

Employers generally use the resources of experienced HR professionals, internal security, legal counsel (inside or outside) or a third-party investigator. Regardless of the category chosen, the appropriate investigator should be able to investigate objectively without bias, have no stake in the outcome, and have skills that include prior investigative knowledge and working knowledge of employment laws. He or she should have strong interpersonal skills, attention to detail and the right temperament to conduct interviews.

The investigator must be in a position to maintain confidentiality, be respected within the organization because his or her conclusions will be used to make a determination, have the ability to act as a credible witness and, if they are internal, have the likelihood of continued employment with the company.

Create a Plan for the Investigation

A complete plan for the investigation should include an outline of the issue, the development of a witness list, sources for information and evidence, interview questions targeted to elicit crucial information and details and a process for retention of documentation such as interview notes and e-mails that could be treated as evidence.

The time it takes to complete a thorough investigation will vary depending on the circumstances. It could take several days, and sufficient time should be allowed to interview the accuser, the accused and any witnesses; flesh out additional details; review the findings; conduct follow-up interviews; discuss proposed resolution with upper management; decide on final resolution; create any relevant disciplinary actions, warnings or memos; hold separate closure meetings with the accused and the accuser; and write investigation report/summary.

Develop Interview Questions

Questions should be developed well before beginning the interviews, though additional questions will be added as more evidence and information is revealed. Good questions are relevant and designed to draw out facts without leading the interviewee; they should be open-ended to elicit as much information as possible.

Conduct Interviews

At the outset, the investigator should inform all parties involved of the need for an investigation and explain the investigation process. While it is necessary to stress confidentiality of the investigation process, do so carefully, as this can be seen as interference with employee rights to engage in concerted activity under the National Labor Relations Act (NLRA).

The investigator should focus on being impartial and objective to gather and consider relevant facts. The investigator should never offer any opinion or say anything to interviewees that will raise concerns about his or her impartiality.

Make a Decision

Once the interviews are conducted, other necessary procedures, such as evidence collection, should be completed. The investigator or member of management, along with legal counsel, should make the final determination of any employment actions that are warranted based on the investigative report. The employer must consider all the parties involved as well as organizational processes, not just whether the accused is guilty, in the final determination.

Closure of Investigation

It is important to let the complainant know that the organization took the complaint seriously and took appropriate action. Once a decision is made, the employer should notify both the complaining employee and the accused of the outcome. The organization must ensure the complainant agrees that he or she has been properly heard and understood, even if he or she is not in agreement with the results.

Develop Written Summary Investigation Results

The employer should consider preparing a final investigative report in case the matter is escalated. The organization should keep a clear paper trail of the evidence, such as examining documentation of previous employee behavior and incidents. The investigator should have a clear record of everything done and any findings as well as other steps taken during the investigation. Employers should also document interviews with the accused, the accuser and witnesses.

The final report should summarize the incident or issues investigated, including dates; the parties involved; key factual and credibility findings, including sources referenced; employer policies or guidelines that apply to the investigation, specific conclusions; the name of the party or parties responsible for the final decision; a list of any issues that could not be resolved and the reason(s) for that; and the employer actions taken.

The goal of the document is to ensure that if a court, jury or government agency were to review it, the reviewers would conclude that the employer took the situation seriously, responded immediately and appropriately, and had a documented good-faith basis for any actions taken during or as a result of the investigation.

The EEOC has a wide range of resources to aid employers, including sample investigation interview questions for the accuser, the accused and any witnesses.

For more guidance on conducting a workplace investigation, contact the Economic Development Collaborative-Ventura County. Conveniently located in Camarillo, California, we’re here to help!

How to Choose the Best Legal Structure For Your Business

How to Choose the Best Legal Structure For Your BusinessOne of the first decisions an entrepreneur must make is about how best to structure his or her business. It is also arguably one of the most important decisions, as the structure they choose will have legal and tax implications.

A variety of options is available. The following gives brief descriptions of several, one of which may be the one best suited for your business.

Sole Proprietorship

A sole proprietorship is the simplest and most common structure chosen to start a business. One person – the “sole proprietor” – owns the business by him or herself and is responsible for its assets and liabilities. As an unincorporated business owned and run by one individual, there is no distinction between the business and the owner. The owner is entitled to all profits and is responsible for all the business’s debts, losses and liabilities.

Partnership

Partnerships are the simplest structure for two or more people to own a business together.

There are two common kinds of partnerships: limited partnerships (LP) and limited liability partnerships (LLP). Limited partnerships have only one general partner with unlimited liability, and all other partners have limited liability. The partners with limited liability also tend to have limited control over the company, which is documented in a partnership agreement.

LLPs are similar to limited partnerships, but give limited liability to every owner. An LLP protects each partner from debts against the partnership; they won’t be responsible for the actions of other partners.

Partnerships can be a good choice for businesses with multiple owners, professional groups (such as attorneys), and groups who want to test their business idea before forming a more formal business.

Limited Liability Company

A limited liability company (LLC) is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. It enables a business to take advantage of the benefits of both the corporation and partnership business structures.

LLCs protect the owner from personal liability in most instances. Their personal assets — such as vehicles, house and savings accounts — won’t be at risk in case the LLC faces bankruptcy or lawsuits.

Corporations

The two most common types of corporate structures are the C corp. and the S corp.

A C corp is a legal entity that is separate from its owners. Corporations can make a profit, be taxed and can be held legally liable.

Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures. Corporations also require more extensive record-keeping, operational processes and reporting.

Unlike sole proprietors, partnerships, and LLCs, corporations pay income tax on their profits. In some cases, corporate profits are taxed twice — first, when the company makes a profit, and again when dividends are paid to shareholders on their personal tax returns.

An S corporation, sometimes called an S corp, is a special type of corporation designed to avoid the double taxation drawback of regular C corps. S corps allow profits, and some losses, to be passed through directly to owners’ personal income without ever being subject to corporate tax rates.

Not all states tax S corps equally, but most recognize them the same way the federal government does and taxes the shareholders accordingly. Some states tax S corps on profits above a specified limit and other states don’t recognize the S corp election at all, simply treating the business as a C corp.

There are special limits on S corps. S corps can’t have more than 100 shareholders, and all shareholders must be U.S. citizens. S corps still have to follow strict filing and operational processes of a C corp.

Both C corps and S corps have independent lives. If a shareholder leaves the company or sells his or her shares, the corporation can continue doing business relatively undisturbed.

Cooperative

A cooperative is a business or organization owned by and operated for the benefit of those using its services. Profits and earnings generated by the cooperative are distributed among the members, also known as user-owners. Typically, an elected board of directors and officers run the cooperative while regular members have voting power to control the direction of the cooperative. Members can become part of the co-operative by purchasing shares, though the amount of shares they hold does not affect the weight of their vote.

For guidance on choosing the best legal structure for your business, contact the Economic Development Collaborative-Ventura County. Conveniently located in Camarillo, California, we’re here to help!


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