100 votes

Could a business be structured around Multi-level Marketing, yet still be ethical?

Multi-Level Marketing is viewed as unethical for (generally) two reasons: Many MLM's require you to 'buy in' at a certain amount, often paying some of that buy-in to the person who recruited you. For ...
85 votes
Accepted

Could a business be structured around Multi-level Marketing, yet still be ethical?

Why are there claims that MLMs are unethical? Because they work much like a pyramid scheme. Members don't make money by selling product, but by recruiting others into the scheme who then recruit ...
  • 1,647
54 votes

CEO entitlement from share ownership?

In its basic form, a corporation is a type of 'privileged democracy'. Instead of every citizen having a vote, votes are allocated on the basis of share ownership. In the most basic form, each share ...
44 votes
Accepted

Which year to use to pay US taxes on business income that was invoiced in December but paid in January?

If your business is operating on an accrual basis, the income would be counted as occurring in 2016. If your business is operating on a cash basis, the income would be counted as occurring in 2017. ...
41 votes

Should I invest ~18k being 19 years old?

You are currently in a phase of your life where you have a couple hundred € per month you can experiment with freely without hurting yourself too much. If you want to invest the money in stocks, you ...
  • 21.7k
34 votes

UK - Can I buy things for myself through my company?

No. Purchases for your company are intended to be for your company to perform its function: merchandise that the company sells, equipment that the company needs to function... Purchases for companies ...
  • 2,425
32 votes
Accepted

Can I send back money I "loaned" from my personal account to business account?

You won’t have to pay tax on it, but if HMRC asks about it (unlikely but possible) you will have to explain it. But saying “I was repaying myself the money I put in to start the business”, together ...
  • 22.2k
25 votes

How can I make $250,000.00 through investing within 5 years?

How do I achieve my savings goals? This question is the essence of personal finance. Whether the goal is to save for a down-payment on a house, retirement, or just an expensive toy (like a sports or ...
21 votes

Why can't my LLC get a credit card when the owner has credit history and a good credit score?

This question is impossible to answer without knowing some details that you probably should not share over the internet. As you are discovering credit score is not the only means utilized for credit ...
  • 75k
18 votes

Should I invest ~18k being 19 years old?

There are a few concepts I think you should be very aware of as you look at what to do with your money. The first is the concept of utility. What is utility? Think of it as a unit of happiness. If I ...
15 votes

Why can't my LLC get a credit card when the owner has credit history and a good credit score?

You could be hurting yourself by submitting so many credit card applications, which can be a red flag in many systems regardless of your personal credit score. I realize you say that according to ...
  • 5,262
14 votes

Why "N-year" loans (and other complications)? Why does a loan need so many parameters?

This model would work fine under a couple of assumptions: that market interest rates never change, and that the borrower will surely make all the payments as agreed. But neither of those assumptions ...
13 votes

Where are all those unsold vehicles?

When the 2016 models come out, the dealership marks down the 2015 model and then it sells pretty fast. The process doesn't take that long in the car market because the 2015 models are just as good as ...
  • 14.9k
13 votes

Could a business be structured around Multi-level Marketing, yet still be ethical?

Is an MLM fundamentally unethical? The way to make money in an MLM is to recruit other people to join the organization, who recruit others, etc. You then get a percentage of their sales. People at ...
  • 20.8k
13 votes

How does tiktok company earn money?

First off you need to consider startups aggressively subsidize their offer early on in order to capture market share. Popular examples of startups valued at billions of $ that were/are in the red ...
  • 4,047
12 votes

CEO entitlement from share ownership?

You can apply for a position with any company you like, whether or not you are a shareholder. However, owning shares in a company, even lots of shares in a company, does not entitle you to having ...
12 votes
Accepted

UK - Can I buy things for myself through my company?

Yes, it could - it could not deduct them from taxes, and THEY WOULD BE OWNED BY THE COMPANY, but there are very valid cases for all your examples: a new jacket, a new pair of shoes, Yes, because the ...
  • 11.4k
12 votes

Why can't my LLC get a credit card when the owner has credit history and a good credit score?

Just use a personal credit card and be done with it. Your idea of compartmentalizing for bookkeeping purposes is correct and essential to protecting the liability shield provided by an LLC. However ...
11 votes

Could a business be structured around Multi-level Marketing, yet still be ethical?

Everyone has already addressed the problems with MLM, but I thought I would address the edit you just made: I know that the commonly cited downsides to MLM as users have mentioned is concerning the ...
  • 286
11 votes

Are founders typically completely on-hook for business loans, when a business fails?

In the U.S., it is almost impossible to get a small business loan without a personal guarantee. If you aren't willing to back your own business, why should the bank or government back it? The SBA, for ...
  • 23.8k
11 votes

Should I invest ~18k being 19 years old?

My apologies if I missed this point in the other answers, but YES, this is an especially great time to invest from one common baseline consideration. Compounding interest is better and better the ...
10 votes
Accepted

How are the best way to make and save money at 22 years old

Fantastic question to be asking at the age of 22! Saving and Budgeting A very wise man suggested to me the following with regard to your net income save 10% for retirement, which you don't touch ...
  • 779
10 votes

Sell a domain name with equity contracts?

Is it an unattractive offer many buyers would shy away from? Buyer who have specific plan may skip getting into such deals as this would be an hindrance to resell the business. Others who are not ...
  • 56.6k
10 votes

Why should I choose a business checking account instead of a personal account?

Some benefits of having a business checking account (versus a personal checking account) are: You can deposit checks made out to the business name. This improves perception of your business's ...
  • 46.4k
10 votes

Why can't my LLC get a credit card when the owner has credit history and a good credit score?

I can almost guarantee that it is because you are living abroad. When you apply, the location of your business actually doesn't matter much. They are not really loaning money to the LLC. They are ...
  • 2,307
10 votes

Why can't my LLC get a credit card when the owner has credit history and a good credit score?

Because the owner of the LLC is generally not personally liable for the company's debts (with certain exceptions), so your personal credit history has no bearing on the LLC's credit-worthiness (except ...
9 votes

Could a business be structured around Multi-level Marketing, yet still be ethical?

To me the ethical concerns of MLM are centered around not accurately describing the business. This may be born out of the perpetrator's limited understanding. The key thing to understand about MLM ...
  • 75k
9 votes

Can I send back money I "loaned" from my personal account to business account?

When you give the loan, print a sheet of paper recording it: "I, Gergö Horvath, give a loan of £100 to "Gergö's Children's Entertainment Company". And keep it. And when you return the ...
  • 21.2k
9 votes
Accepted

Claim money from unused health insurance (set by employer)

Unless there's something very out of the ordinary about your specific situation, private medical insurance policies in the UK, whether group policies through a company or personal ones, are just that: ...
8 votes

CEO entitlement from share ownership?

If I own shares of a company, am I entitled to apply as position of CEO? Sure, but anybody else can apply too. Who decides? The corporate board of directors, who are nominally chosen by a vote ...

Only top scored, non community-wiki answers of a minimum length are eligible