Friday, April 28, 2006

Microsoft down 11% on spending plans

MSFT is down today because investors are not happy with spending plans, but I don't think people get the big picture on msft and their inability to compete with google. One thing that will hold back their chances is the fact their data center must use windows while everyone else (google and yahoo) use linux. linux is more efficient for data centers for several reasons including that it doesn't run a graphical user interface. when microsoft bought hotmail it was widely rumored that when they switched from linux to windows they had to use twice as many machines. that means microsoft will use more machines, more space, more power. further if they buyout web 2.0 companies, like yahoo did with flickr and delicious , they will loose ground by converting to windows, as nearly all web startups use linux.

Monday, April 17, 2006

SEO and google news

Here is an interesting article about getting on google news... they claim "In order to have your articles crawled by Google News, their URLs must contain a number consisting of at least three digits." It also it suggests emailing google directly at

Another article in the new york times discusses the fact that people are losing the clever headlines and using a boring headlines with keywords people will search for using services like google news.

Sunday, April 16, 2006

How To Start A Business in Alabama

Choose legal structure:

sole proprietarship

no liability protection
must pay fedral self-employment tax (currently 15.3%)

- limited liability partnership
provides little liability protection

- limited liability corporation
provides liability protection
pass through tax entity (avoids corporate taxation)
earnings require payment of fedral self-employment tax (currently 15.3%)
must be dissolved
operational and accounting ease and flexibility compared to S-Corp.

S corp
provides liability protection
pass through tax entity (avoids corporate taxation)
earnings don't require payment of fedral self-employment tax
subject to more stringent accounting guidelines than LLC.
Limited to 35 maximum shareholders, and no foreign capitol

C corp - (most large corporations)
provides liability protection
earnings are taxed at corporate and personal levels
stringent account reqirements
required annual reports, and board of director meetings

How to create an LLC:

1) Draft and file articles of incorporation.
-lawyer is needed for complex articles
-file with county courthouse
-you can use online service.
-also might want to create operating agreement.
2) Pay Alabama business priviledge tax. (Forms PSA)
-currently you have 30 days after forming corporation
-this is paid yearly. (from dec1 to march 15 for that year)
3) File ss4 with irs to get ein (employer identification number, aka tax id)
-choose closing month for accounting.
4) Get local business license.
5) Set up business bank account.
-this allows you to easily separate business and personal finances.
-normally banks require you to have EIN and local business license.
6) Get business insurance.
-Insurance can further protect your personal assets.

**** Yearly Taxes

The LLC must file a form 1065 with irs.
The first year it must file a Form 8832 to be taxed as partnership.
The LLC sends members K-1 forms.
File earnings on 1040, schedule C.