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	<title>The Blog at Jumptree &#187; Business</title>
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	<link>http://blog.jumptree.com</link>
	<description>a guide to project management, business, coding and anything else that we can think of.</description>
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		<title>How to start a company in Maryland</title>
		<link>http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/</link>
		<comments>http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/#comments</comments>
		<pubDate>Fri, 28 Mar 2008 11:41:37 +0000</pubDate>
		<dc:creator>Jackson Lin</dc:creator>
				<category><![CDATA[Business]]></category>

		<guid isPermaLink="false">http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/</guid>
		<description><![CDATA[DISCLAIMER: I&#8217;m not a lawyer and this obviously isn&#8217;t legal advice. This article is about our experiences on incorporating in the State of Maryland. A smaller disclaimer: We incorporated Jumptree back in 2007&#8212;so the procedures might have changed a bit since then. Also, we worked on Jumptree Project for a long time before we actually [...]]]></description>
			<content:encoded><![CDATA[<div class="tutorial">
<p><strong>DISCLAIMER: I&#8217;m not a lawyer and this obviously isn&#8217;t legal advice. This article is about our experiences on incorporating in the State of Maryland.</strong></p>
<p><strong>A smaller disclaimer:</strong> We incorporated <a href="http://jumptree.com/">Jumptree</a> back in 2007&#8212;so the procedures might have changed a bit since then.</p>
<p>Also, we worked on <a href="http://jumptree.com/tour/screenshots/dashboard.aspx">Jumptree Project</a> for a long time before we actually incorporated.</p>
<p>In fact, we already <strong>had a working <em>alpha</em> version before we decided to start up.</strong> Basically we wanted to be sure there was something tangible and not waste money starting something we couldn&#8217;t complete.</p>
<p><span id="more-27"></span></p>
<h2>1. Decide on a corporate structure</h2>
<p>There are several corporate structures to choose from&#8212;such as a regular corporation, an LLC, a partnership, etc&#8230;</p>
<p>If you have no idea what you&#8217;re doing then you really should talk to a lawyer or accountant. Or at the very least get one of those legal books or something.</p>
<p>This article deals with <strong>how to start a C corporation.</strong></p>
<div class="note">
<p><strong>NOTE:</strong> There are two <em>types</em> of corporations, C and S. This designation determines how your company is taxed.</p>
<p>Basically in a C corporation, the company is taxed at a corporate rate. While in an S corporation, the profit (or loss) is <em>passed through</em> to the shareholders who then report the income or loss on their own individual tax returns.</p>
<p>By default, when you incorporate you are a C corporation (i.e. a regular corporation). To become an S corporation, you must elect the S status using <strong><a href="http://forms.gov/bgfPortal/portlets/eFormSearch/getDocument.jsp?docId=9877">Form 2553</a>.</strong></p>
<p>Please note there are other limitations to an S corporation and <a href="http://www.irs.gov/instructions/i2553/ch01.html#d0e53">not every company can elect the S status</a>. The laws regularly change on this so be sure you&#8217;re up to date.</p>
<p>Also note that you have to elect the S status soon after you incorporate because there&#8217;s a deadline for it.</p></div>
<h2>2. The Maryland Checklist for New Businesses</h2>
<p>Every state should have an online resource of what&#8217;s needed to incorporate. Here&#8217;s the <strong><a href="http://www.dat.state.md.us/sdatweb/checklist.html">Maryland Checklist for New Businesses</a>.</strong></p>
<p>This will give you a basic overview of the requirements for starting a business in Maryland.</p>
<div class="note">
<p><strong>NOTE:</strong> The Blood Tax (i.e. Personal Property Tax)</p>
<p>Before you startup, please realize this: Every Maryland stock corporation must <strong><a href="http://www.dat.state.md.us/sdatweb/annrpt2.html">pay a $300 fee regardless of whether it made a profit or loss</a></strong>&#8212;and you have to pay this every year.</p>
<p>So just be prepared to have enough money to pay this fee, or else you forfeit your company.</p>
<p>Some states might not have this tax, while others (e.g. California) has a much higher tax.</p>
</div>
<h2>3. Check if the name is available.</h2>
<p>The first thing is to see if your domain name is available. If <em>example.com</em> is taken, you could try <em>example<strong>corp</strong>.com</em> or <em>example<strong>.net</strong></em> but you&#8217;ll probably always be upset that someone has the <em>real</em> domain. So take your time on this and find something memorable.</p>
<p>Once you&#8217;re sure, call <strong>410-767-1340</strong> to <a href="http://www.dat.state.md.us/sdatweb/checklist.html#regi">check if the name is available</a>.</p>
<p>Also be aware that this name check only tells you if the name is available in the State of Maryland. It&#8217;s entirely possible that another company has this name in another state.</p>
<h2>4. Decide how fast you want to apply</h2>
<p>As of March 28, 2008 the <a href="http://www.dat.state.md.us/sdatweb/fees.html">total cost to startup in Maryland</a> is <strong>$120</strong> (a <strong>$100</strong> fee + <strong>$20</strong> organization &#038; capitalization fee).</p>
<div class="note">
<p><strong>NOTE:</strong> The aggregate par value of stock (i.e. how much you&#8217;re putting into your company) must be under $100,000 or else the fees increase.</p>
<p>Of course if you have that much to invest then you probably don&#8217;t need to read this article and should ask your lawyer to handle it!</p>
</div>
<p>The regular application process takes <strong>7-8 weeks</strong> while the expedited service is done <strong>within 7 days</strong> but costs <strong>$50 more.</strong> If you&#8217;re in a super-hurry you can go in person and get it done that day for <strong>$70 more.</strong></p>
<p>If you go in person, <strong>be sure to bring checks as that&#8217;s the only way to pay.</strong> Since we were in a hurry we decided to just go.</p>
<h2>5. Prepare the Articles of Incorporation</h2>
<p>Go to Maryland&#8217;s State Department of Assessments and Taxation <a href="http://www.dat.state.md.us/sdatweb/sdatforms.html">Forms and Applications page</a> to download this form:</p>
<p class="download"><a href="http://www.dat.state.md.us/sdatweb/stock.pdf" class="file-pdf">Articles of Incorporation for Stock Corporation form and instructions</a></p>
<p>Follow the instructions and fill out the form.</p>
<div class="tip">
<p><strong>TIP:</strong> For <strong>&#8220;THIRD: The purposes for which the corporation is formed are as follows.&#8221;</strong></p>
<p>We put a &#8220;&#8230;<em>and anything else allowable by law</em>&#8221; at the end of the statement as catchall in case we forgot anything.</p>
</div>
<div class="tip">
<p><strong>TIP:</strong> For <strong>&#8220;SIXTH: The corporation has authority to issue _____ shares at $_____ par value per share.&#8221;</strong></p>
<p>The par value is basically the lowest amount for which a share can be sold. To make things simple, we issued <strong>no-par value</strong> stocks. Also, we stuck to <strong>5000 shares</strong> or else the filing fee would increase.</p>
<p>And just because you have the authority to issue 5000 shares doesn&#8217;t mean you have to do it at once&#8212;we only issued out 200 shares.</p>
</div>
<p><strong>DISCLAIMER AGAIN: Seriously, these tips might not suit your business. So if you&#8217;re totally unsure what to do, please consult a lawyer or an accountant.</strong></p>
<h2>6. The actual day we went to file the papers</h2>
<p>The directions are: </p>
<address>State Department of Assessments and Taxation<br />
Corporate Charter Division<br />
301 W. Preston St. Room 801<br />
Baltimore, MD 21201</address>
<div class="tip">
<p><strong>TIP:</strong> Bring quarters for parking.</p>
</div>
<p>Stuff to bring:</p>
<ol class="list">
<li><strong>Photo ID</strong></li>
<li><strong>Checks (or cash)</strong> &#8212; And just to be safe, bring several checks because you don&#8217;t want to mess up and only have one check on hand.</li>
</ol>
<p>When you get there, you&#8217;ll have to first get a name tag by signing in, showing the guard a photo ID, and telling them you&#8217;re going to incorporate a business.</p>
<p>Then <strong>go to the eighth floor</strong> and wait in line to see the receptionist. As I was waiting, I leaned against the wall and accidentally turned off the lights&#8230;yeah, that was embarrassing. So just be careful&#8230;</p>
<p>Next tell the receptionist what you want to do:</p>
<ol class="list">
<li><strong>Incorporate a business</strong></li>
<li id="certified-AOI"><strong>Get a certified copy of the articles of incorporation</strong></li>
</ol>
<div class="tip">
<p><strong>TIP:</strong> Getting a <strong>certified copy</strong> of the Articles of Incorporation will cost <strong>$22 more</strong> but banks will need this to setup a corporate checking account.</p>
</div>
<p>The receptionist will then give you some forms to fill and tell you to wait in another line.</p>
<p>One form is the <strong>expedited application form</strong> and the other is an <strong>order form.</strong> Both of them ask for the <strong>mailing address and who&#8217;s applying.</strong></p>
<p>Once you wait your turn, an inspector will examine your Articles of Incorporation and tell you how much you need to pay.</p>
<p>In total we paid:</p>
<ul class="list">
<li>Base Fee &#8212; <strong>$100</strong>
<li>Org. &#038; Cap Fee &#8212; <strong>$20</strong>
<li>Expedite Fee &#8212; <strong>$70</strong>
<li>Copy Fee &#8212; <strong>$22</strong>
</ul>
<p><strong>Total $212</strong></p>
<p>Then you just wait until they call your company&#8217;s name. We only waited about 20 minutes and we were done!</p>
<p>So that&#8217;s it. Now you&#8217;re legally incorporated!</p>
<p>Stay tuned because in my next series of articles I&#8217;ll discuss how to open a corporate checking account, applying for your Employer&#8217;s Identification Number, and some other stuff that we learned along the way.</p>
</div>
<div class="best">
<p>Want a better way to manage projects and collaborate with your team?</p>
<p>Check out our <a href="http://www.jumptree.com/tour/screenshots/dashboard.aspx">Jumptree Project Management Software &raquo;</a></p>
</div>
]]></content:encoded>
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		</item>
		<item>
		<title>Why we chose ASP.NET to run our startup</title>
		<link>http://blog.jumptree.com/2007/why-we-chose-aspnet-to-run-our-startup/</link>
		<comments>http://blog.jumptree.com/2007/why-we-chose-aspnet-to-run-our-startup/#comments</comments>
		<pubDate>Tue, 18 Sep 2007 19:45:38 +0000</pubDate>
		<dc:creator>Liming Xu</dc:creator>
				<category><![CDATA[.NET]]></category>
		<category><![CDATA[Business]]></category>

		<guid isPermaLink="false">http://blog.jumptree.com/2007/why-we-chose-aspnet-to-run-our-startup/</guid>
		<description><![CDATA[Sasha Sydoruk asks, &#8220;Where are all the cool startups that run on ASP.NET?&#8221; Well I&#8217;m not sure if we&#8217;re considered cool enough, but we choose ASP.NET over Java for a variety of reasons. ASP.NET is easier to setup and deploy Since Jumptree Project is download software, we needed to ensure that we could readily support [...]]]></description>
			<content:encoded><![CDATA[<p>Sasha Sydoruk asks, &#8220;<a href="http://www.sashasydoruk.com/2007/08/19/where-are-all-the-cool-startups-that-run-on-aspnet/">Where are all the cool startups that run on ASP.NET?</a>&#8221;</p>
<p>Well I&#8217;m not sure if we&#8217;re considered <em>cool</em> enough, but we choose ASP.NET over Java for a variety of reasons.</p>
<h2>ASP.NET is easier to setup and deploy</h2>
<p>Since Jumptree Project is download software, we needed to ensure that we could readily support our customer&#8217;s installation and deployment process.</p>
<p>Have you ever run into problems deploying a Java application and then having to spend hours going through your configuration files and resolving library conflicts? Fun!</p>
<p>Java may be multi-platform, but there are numerous middleware implementations of J2EE&#8212;each with its own quirks. So instead of spending time improving your application, you end up having to answer support calls on why your Tomcat application doesn&#8217;t work on IBM Websphere.</p>
<p>With .NET, the environment is pretty much standard&#8212;so it&#8217;s a lot easier for us to provide support.</p>
<p><span id="more-11"></span></p>
<h2>It&#8217;s easier to develop in ASP.NET because it&#8217;s just so RAD</h2>
<p>The .NET platform supports a vast array of libraries that makes a developer&#8217;s life a whole lot easier compared to traditional ASP and Java.</p>
<p>There are a few Java frameworks that stand out, like JSTL, JSF, Struts, Spring, etc., but to make them work together is a painful and convoluted process.</p>
<h2>ASP.NET isn&#8217;t that expensive</h2>
<p>Yes, Java is free. Java Editor Eclipse is free. Java runtime is free. Apache/Tomcat web/servlet server is free.</p>
<p>Free is good.</p>
<p>And this may be the biggest reason why a lot of startups choose something other than .NET.</p>
<p>However, for <strong>US $375</strong> you can join the <a href="https://partner.microsoft.com/40011351">Microsoft Empower for ISVs</a> program and get a whole lotta software, including Visual Studio, Windows Server, SQL Server, Office, MSDN Premium Subscription&#8230;</p>
<p>Of course $375 vs. Free isn&#8217;t really much of a fight, but do consider the hidden costs&#8212;like how much easier it is to setup a .NET environment.</p>
<h2>Great community support</h2>
<p>There are a lot of great .NET blogs and resources such as <a href="http://www.codeproject.com/">The Code Project</a>, <a href="http://4guysfromrolla.com/">4 Guys From Rolla</a>, <a href="http://www.netfx3.com/">NetFx3</a>, and <a href="http://www.codeplex.com/">CodePlex</a>&#8212;a site hosting open source projects.</p>
<p>And if you run into any problems, just check out the <a href="http://forums.asp.net/ ">asp.net forum</a> where Microsoft actually has employees answering your questions! Gotta love it when a multi-billion dollar company is trying to promote something&#8230;</p>
<h2>One platform, multi-language</h2>
<p>What happens if your C# developer decides to leave halfway through a project?</p>
<p>Don&#8217;t worry because you can just as readily hire a VB.NET developer to continue the work because the .NET platform can interpret both languages.</p>
<p>And if you don&#8217;t like C# or VB.NET go ahead and try <a href="http://www.ironruby.net/">Ruby</a> or <a href="http://www.codeplex.com/IronPython">Python</a>.</p>
<h2>The whole product</h2>
<p>In <a href="http://www.amazon.com/dp/0060517123/?tag=jumptree-20">Crossing the Chasm</a>, Geoffrey A. Moore describes the concept of the whole product:</p>
<blockquote>
<p>The concept is very straightforward: There is a gap between the marketing promise made to the customerâ€”the compelling value propositionâ€”and the ability of the shipped product to fulfill that promise. For that gap to be overcome, the product must be augmented by a variety of services and ancillary products to become the whole product.</p>
<p class="source">Page 108, 2002 Edition</p>
</blockquote>
<p>Essentially, the whole product is the sum of the product plus anything else that might benefit the customer, such as technical support, add-ons, and system integration.</p>
<p>So by choosing .NET, we can leverage all the work that Microsoft has done to promote it. And when the time comes, we can more easily integrate our project management software with popular Microsoft products, like Outlook, Excel, and SharePoint.</p>
<h2>What are you good at?</h2>
<p>Ultimately, you should choose a language that you are familiar with and good at. I could have spent time learning Ruby on Rails, PHP or any of the other trendy languages, but I just needed to get started.</p>
<p>And so when I had to choose between Java and .NET&#8212;well&#8230;that was an easy choice.</p>
<div class="best">
<p>Want a better way to manage projects and collaborate with your team?</p>
<p>Check out our <a href="http://www.jumptree.com/tour/screenshots/dashboard.aspx">Jumptree Project Management Software &raquo;</a></p>
</div>
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