North Dakota Center For Technology & Business

The ND Department of Commerce is a partner of Center for Technology & Business. In upcoming blog posts, we’ll be sharing a few exciting business features from ND Department of Commerce to show you what’s happening across the state.

United Pulse Although the growing oil industry has been getting a lot of attention in North Dakota lately, agriculture is still king as the state’s largest industry. For United Pulse Traders, North Dakota is a prime location to capitalize on the growing market for dried peas, beans and other products known as pulse crops.”We are the number one producer of dried peas and lentils,” says Eric Bartsch, general manager for United Pulse Traders, a value-added pulse crop processer. “In 2000 we had less than 100,000 acres in North Dakota. Now we are close to 700-800,000 acres of dried peas, lentils and chickpeas.”In 2007, the company opened its processing facility in Williston, ND, close to the source of the crop fields. The pulse crops are processed, cleaned and color sorted, making them ready for the table. The company packages and ships the products to over 100 countries, including India and countries in North Africa and the Middle East. Bartsch sees North Dakota as one of their key factors of success. “We have facilities located in six countries around the world. We have a pretty far reach. Of all the areas where we’ve expanded, North Dakota has really been one of the best places.”

United Pulse Trading received assistance from the state of North Dakota to get the Williston facility built and operating. “We used the North Dakota Development Fund from the North Dakota Department of Commerce, and the PACE loan program through the Bank of North Dakota. It’s really programs like these that have made North Dakota a perfect environment for expanding business.” United Pulse itself is growing and looking to expand. United Pulse currently employs 35 people in Williston with additional staff in Bismarck. In November 2011, United Pulse Traders announced plans to build a processing facility in Minot, milling split peas and chickpeas. The Minot facility is expected to be in operation by first quarter 2013 with approximately 40 new jobs. “We will be adding value to another 100,000 metric tons of area producers’ agricultural crops and introducing new, added-value food ingredients product lines worldwide as a result of this new facility. “The programs and the environment in the state are pro-business,” Bartsch says. “It really gives a company an advantage to expand here.” The North Dakota Department of Commerce worked closely with United Pulse and the Minot Area Development Corporation to assist United Pulse with several finance and tax incentives available to the company. To learn more about doing business better in North Dakota visit www.NDBusiness.com.

Encourage Yourself: How to Stay Motivated as a New Business Owner

Starting a new business can be both exciting and scary. When you gain new clients or successfully perform a service, you feel energized and ready to take on the world! But what about when business feels slow or you experience setbacks? Unexpected challenges can make you doubt your worth and your ability to run a successful business. Here are some tips to help you regain focus when you feel discouraged:

1. Remember your purpose. How does your product or service help others? What contribution do you want to make to your community? Read your mission statement often. Whenever you feel like giving up, think about the importance of your work. You may not think so right now, but you are making a difference!

2. Use affirmations. Affirmations are statements that focus on a positive outcome. Examples include “I have a successful business” and “My business is prosperous.” Create your own affirmations and post them in places where you can see them every day, e.g., your bathroom mirror, refrigerator, car, and office. Say them aloud throughout the day and notice how you much better you feel. They are great confidence boosters!

3. Visualize your success. Take a few quiet moments each day to “see” your success. Whether it’s selling your product or speaking to a group, create a visual image of yourself performing to the best of your ability. This is also a great technique to use before meetings and events. How do you want to feel as you share your services? What results do you desire? As you visualize, you are reinforcing positive feelings about your ability to succeed.

4. Find people who can offer support. If you often work by yourself, you may experience moments of loneliness and isolation. Hence, it is important to meet fellow business owners who can share their experiences as well as resources to help you connect with the community. You can also identify people to be part of your support system. What specific help do you need? How can each person assist you? What can you share with them?

Now that you’ve made the choice to start your own business, it’s important to acknowledge your talents and skills, and have confidence in yourself. Spending a little time every day to support yourself is essential to your well-being and success as an entrepreneur.

Stacey L. Brown, Certified Life Coach & Facilitator
Owner, Self Reflections – Minot, ND
Stacey offers coaching services and workshops to help women discover their strengths, build confidence, and improve their lives. To learn more about her work, please visit www.atrueyou.com

Who we are and what we do:

Under the United States Department of Agriculture (USDA), Rural Development’s mission is to increase economic opportunity and improve quality of life for all rural Americans. This mission is achieved by helping individuals, communities and businesses obtain the financial and technical assistance needed to address their diverse and unique needs.

With five offices and 43 employees across North Dakota, we help build necessary infrastructure, create jobs and provide affordable housing. These efforts create vibrant, sustainable communities where people want to live, work, raise families and establish businesses.

Overview of 2012:

In North Dakota, Rural Development manages a loan portfolio of over $4 billion. In fiscal year 2012, more than $621 million was invested in the state. This included $61.1 million in housing, $31.6 in community facilities, $23.1 million in business and cooperative financing, and over $500 million in water, electric and telecommunications infrastructure. View progress report.

Resources:

Using over 40 flexible programs, Rural Development offers financing through grants, direct loans and loan guarantees. The following program areas provide a brief breakdown of what types of projects may be financed.

• Housing Programs: purchase or repair homes, construction of affordable rental properties and rental assistance.
• Business and Cooperative Programs: working capital, purchasing equipment, energy efficient or renewable energy projects, technical assistance, business incubators, revolving loan funds and strategic planning.
• Community Programs: development of essential facilities ¾ hospitals; schools and libraries; nursing homes and assisted living facilities; police, fire and rescue buildings/vehicles; and child care centers.
• Utility Programs: telecommunications services, electric systems, and rural water and wastewater systems.

Eligibility:

We proudly partner and work with local, state and tribal governments, as well as non-profit agencies, private businesses, cooperatives and lenders. Individuals may also apply for our housing programs.

Project Example:

Diverse Energy Systems, Inc. of Grafton received a $4.8 million guaranteed loan to construct a new building and purchase equipment to expand manufacturing capacity. The project will create 27 new jobs.

Contact Information:
Jasper Schneider, state director
220 East Rosser Avenue, Bismarck, ND 58501
Telephone: 701.530.2037
Email: info@nd.usda.gov
Website: www.rurdev.usda.gov/nd

So you want to start your own business… Which acronym should you pick to follow your business name?

C, S, GP, LP, LLP, LLLP, LLC… sole proprietorship? Yes, all of the letters listed in the previous
sentence are options for business structure. Before you let the alphabet soup deter you, let’s break down each type into the basics. Generally, choice of entity can be broken down into three key areas: taxability, liability protection, and management options. For this blog, we are going to simply define each type of entity.

• C Corporation (C) - C corporation refers to any corporation that, under U.S. federal income tax law, is taxed separately from its owners. A C corporation is distinguished from an S corporation (below), which generally is not taxed separately. Most major companies (and many smaller companies) are treated as C corporations for U.S. federal income tax purposes. A corporation may qualify as a C corporation without regard to any limit on the number of shareholders, foreign or domestic.
• Tax form filed – Form 1120
• S Corporation (S) – Shareholders of a regular corporation (above) may elect to treat the corporation as a flow-through entity known as an S corporation. An S corporation is not itself subject to income tax; rather, shareholders of the S corporation are subject to tax on their pro rata shares of income based on their shareholdings. To qualify to make the S corporation election, the corporation’s shares must be held by resident or citizen individuals or certain qualifying trusts.
• Tax form filed – Form 1120S
• General Partnership (GP) – A general partnership (the basic form of partnership under common law), refers to an association of persons or an unincorporated company that is created by agreement, proof of existence, and estoppel. It is formed by two or more persons who are all personally liable for any legal actions and debts the company may face. These persons are defined as general partners (GPs). It is a partnership in which partners share equally in both responsibility and liability.
• Tax form filed – Form 1065
• Limited Partnership (LP) – A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more GPs, there are one or more limited partners (LPs). It is a partnership in which only one partner is required to be a GP. The GPs are, in all major respects, in the same legal position as partners in a conventional firm, i.e. they have management control, share the right to use partnership property, share the profits of the firm in predefined proportions, and have joint and severable liability for the debts of the partnership. Like shareholders in a corporation, LPs have limited liability, meaning they are only liable on debts incurred by the firm to the extent of their registered investment and have no management authority.
• Tax form filed – Form 1065
• Limited Liability Partnership (LLP) – A limited liability partnership is a partnership in which some or all partners (depending on the jurisdiction) have limited liability (there are typically no GPs). It therefore exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. In an LLP, some partners have a form of limited liability similar to that of the shareholders of a corporation. Unlike corporate shareholders, the partners have the right to manage the business directly.
• Tax form filed – Form 1065
• Limited Liability Limited Partnership (LLLP) – The limited liability limited partnership is a relatively new modification of the limited partnership, a form of business entity recognized under U.S. commercial law. An LLLP is a limited partnership and as such consists of one or more GPs and one or more LPs. The GPs manage the LLLP, while typically the LPs only have a financial interest. The difference between an LLLP and a traditional LP is with respect to the GP’s liability for the debts and obligations of the limited partnership. In an LLLP, by having the limited partnership make an election under state law, the GPs are afforded limited liability for the debts and obligations of the limited partnership that arise during the period that the LLLP election is in place.
• Tax form filed – Form 1065
• Limited Liability Company (LLC) – A limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. LLCs do not need to be organized for profit. It is a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC, although a business entity, is a type of unincorporated association and is not a corporation. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation, and it is well-suited for companies with a single owner. LLC members are subject to the same alter ego piercing theories as corporate shareholders. Limited liability company members may, in certain circumstances, also incur a personal liability in cases where distributions to members render the LLC insolvent.
• Tax form filed – varies
• Sole Proprietorship – A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor’s. A sole proprietor may use a trade name or business name other than his or her legal name.
• Tax form filed – Form 1040 Schedule C (generally)

As I previously stated, entity choice can typically be defined by three key areas: taxability, liability
protection, and management options. The above information was just an introduction. Tune in next
month when we dig into the taxability issues of each entity.

Tonya Schlaht, CPA
Tax Manager
Bismarck, ND
Eide Bailly LLP
tschlaht@eidebailly.com

Source: Wikipedia. This blog was developed using sources from Wikipedia and is distributed with the understanding that the blogger is not rendering legal, accounting or other professional advice or opinions on specific facts or matters and recommend you consult an attorney, accountant, tax professional, financial advisor or other appropriate industry professional. Therefore, the services of a legal or tax advisor should be sought before implementing any ideas contained in this publication. ©2013

—– IRS CIRCULAR 230 NOTICE —–
Any tax advice expressed in this communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of avoiding penalties imposed on the taxpayer by any governmental taxing authority or agency. In addition, if any such tax advice is made available to any person or party other than the party to whom the advice was originally directed, then such advice, under IRS Circular 230, is to be considered as being delivered to support the promotion or marketing (by a person other than Eide Bailly LLP) of the transaction or matter discussed or referenced. Thus, each taxpayer should seek specific tax advice based on the taxpayer’s particular circumstances from an independent tax advisor.

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Joanna Krizan, our Financial Coordinator here at CTB, is our featured artist for March and April. We discovered her love of art and artistic abilities shortly after she came to work with us. She is a self- taught artist and works on her projects as a hobby. She is constantly looking for inspiration on new ways to create art.

Joanna loves variety so she is always trying to create a new piece of art that is unique and nothing like the last. She started painting on canvas using acrylic paint and has also used various materials to create her abstract works of art. Joanna recently discovered the idea of using potpourri. She had some old potpourri lying around the house that she was going to throw away and thought, “hey maybe I can reuse this somehow.” So she did. Currently Joanna’s art is not for sale but she hopes that one day she will be able to create enough pieces to attract buying customers. She hangs her art in her own home and will often give it to family and friends. “If I can make someone smile or be inspired by my art, then it was worth it” she explains.

Stop by CTB now through May 1 to see the exhibit featuring Joanna’s art.

The ND Department of Commerce is a partner of Center for Technology & Business. In upcoming blog posts, we’ll be sharing a few exciting business features from ND Department of Commerce to show you what’s happening across the state.

Enchanted Castle When the highway to the rural town of Regent, North Dakota was upgraded from gravel to pavement, Gary Greff wondered how he could encourage travelers on the nearby interstate to make a detour and stop at the community’s local businesses. When Greff noticed people stopping their vehicle to take pictures next to a welded statue of a man holding a hay bale created by a local farmer, an idea was born. “I’d never laid a bead of weld in my life before I started this project,” Greff said. “But you can do anything you want if you set your mind to it. I’m living proof of that.” The first sculpture, The Tin Family, was erected in 1991, and others soon followed. Currently the Enchanted Highway boasts seven sculptures, including “Geese in Flight,” which is listed in the Guinness Book of World Records as the world’s largest scrap metal sculpture. Since the sculptures have been erected, a recent vehicle count shows traffic on the highway has dramatically increased. The Enchanted Highway Gift Shop sign-in book records visitors from all 50 states and many different countries. “Regent hasn’t gotten any bigger, so we know the Enchanted Highway had its influence,” said Greff, who now heads the Enchanted Highway Foundation. “I’ve had more than one person say they would not be in Regent if it wasn’t for the Enchanted Highway.”

With support from the North Dakota Department of Commerce and its Tourism Division, the Enchanted Highway Foundation is developing a hotel, bringing additional economic activity to the area. The Enchanted Castle is scheduled to open in this summer and is expected to draw tourists, hunters and workers from the region. The Enchanted Highway is located off Interstate 94, exit 72 east of Dickinson, and extends for 32 miles south to Regent. There is no cost to view the sculptures, but visitors are encouraged to visit the Enchanted Highway Gift Shop and make a donation. For more information, visit www.enchantedhighway.net. To learn more about doing business better in North Dakota visitwww.NDBusiness.com.

The ND Department of Commerce is a partner of Center for Technology & Business. In upcoming blog posts, we’ll be sharing a few exciting business features from ND Department of Commerce to show you what’s happening across the state.

Caterpillar The manufacturing sector is alive and well in North Dakota – look no further than Caterpillar, Inc. and its “Now Hiring” sign outside the facility. “We’ve been in a hiring mode for well over a year, now,” says Dan Walerius, general manager of the company’s drivetrain component remanufacturing facility. “We’ve had a two-year cycle of unprecedented growth, so we’ve been adding a lot of staff.” Open positions vary in skill set from welders and machinists to engineers and accountants. The North Dakota facility is currently the only Caterpillar drivetrain component remanufacturer, although similar facilities in Asia and Europe are scheduled to open in 2012. Recent growth in the mining industry and a favorable corporate business climate in North Dakota were catalysts in Caterpillar’s decision to expand the existing location.

“Caterpillar has a lot of opportunities for expanding anywhere in the world; North Dakota certainly wasn’t their only option,” Walerius says. “The skills of the people here and the fact the state and local communities are pro-business all led to the decision that, yes, this is the place we want to expand.” The $50 million, 225,000 square-foot addition is expected to be completed by June 2012, tripling the facility size and adding up to 250 jobs. “North Dakota has an environment that businesses feel is conducive to innovation and growth,” Walerius says. “It is part of a culture we have here of welcoming businesses and collaborating with the businesses.” To learn more about doing business better in North Dakota visit www.NDBusiness.com.

The ND Department of Commerce is a partner of Center for Technology & Business. In upcoming blog posts, we’ll be sharing a few exciting business features from ND Department of Commerce to show you what’s happening across the state.

Spectrum Aeromed Transporting medical patients by airplane or helicopter presents unique challenges. Medical equipment needs to be accessible, yet secure. Compact equipment design is important due to the tight spaces of smaller aircraft.Spectrum Aeromed, based in North Dakota and recently recognized as one of Inc. Magazine’s 500 fastest-growing companies, provides smart solutions for air ambulance equipment. From stretchers to oxygen storage, the company equips aircraft from around the world with life flight systems.Eighty percent of Spectrum Aeromed’s business comes from international sales, with many clients based in South America, the Middle East, Europe and Russia. All of Spectrum Aeromed’s operations are in Fargo near Hector International Airport with the exception of two small customer service operations in Washington state and Germany.

The company’s customers appreciate the ease of international travel and transactions out of Fargo. “So much of our business is international that if we bring in an aircraft from Brazil, Mexico or even Canada, they can do customs right here,” says Spectrum Aeromed CEO and President Dean Atchison. Atchison cites the business-friendly climate of North Dakota as one of the factors contributing to the company’s success. “North Dakota gets it, from the governor on down,” Atchison says. “We don’t need to show entrepreneurs how to do things. We need to set up programs and then let them be successful. I think that’s what really happens in North Dakota.” Spectrum Aeromed has been able to employ five interns thanks to the North Dakota Department of Commerce’s Operation Intern, a cost-sharing program that encourages businesses to employ and train interns. The company has also developed relationships with local universities for workforce recruitment. “North Dakota State University and University of North Dakota are world-class educational institutions,” states Atchison. “Being able to hook into those sources of talent is really a key point of differentiation. It allows us to do some things here that we really couldn’t do elsewhere.” To learn more about doing business better in North Dakota visit www.NDBusiness.com.

No matter where you stand in the world of business—whether you’re already on top or you’re just trying to break in—some skills are infinitely valuable at any level. One such crucial skill seems simple, but still is dismissed or forgotten all too often: The ability to listen. When employees are surveyed on their bosses’ strengths and weaknesses, listening typically seems to fall on the weak end of the spectrum. The inability to listen could look like one of many things; whether you’re devoting more attention to your smartphone than the person speaking, or you have a tendency to react strongly to bad news, being a poor listener is a huge deterrent to open communication. The following video takes a quick look at some tips to becoming a better listener. Tuning in to what your employees are saying will ultimately help make you into the type of manager who’s worth talking to. And if you’re not the boss yet, check out the video anyway—a little listening can go a long way.

We love this series of videos from Online MBA, check out more at http://www.onlinemba.com/blog/managers-listen/

So you have your business idea. You spoke with your attorney. You developed your business plan.
Now…the fun part!

There are four simple steps to getting the financial side of your business going.

1. Open a checking account – This should be the easy part! However, there are more things to consider.

• Does the bank offer free online bill-pay?
• Do they waive your ATM fees?
• Will they give you a discounted interest rate on a loan if you open a checking account with them?
• Do they waive overdraft fees?
• Do they have required minimum balances?
• Is the location convenient for you?

Do make sure you consider these things before you dive in. You will likely need a few forms of identification and the tax payer identification number for you or your business in order to seal the
deal.

2. Choose accounting software – The not so easy part? One thing to ask yourself… to cloud or not to cloud?

• The Cloud – what is it; think of the cloud just like you do your online banking. You can log in, transfer funds, pay some bills and whammo – both your records and the bank’s records are updated simultaneously! This is the cloud…it is internet based anything.
• Examples of cloud-based accounting software are Intacct and Bill.com.
• Benefits – network performance, backup and disaster recovery, real-time info
• Disadvantages – user fees, network issues, computer speed
• Non-Cloud Alternatives – QuickBooks, Quicken, Peachtree

Tip – contact an accountant to assist you. They know the different systems and can assess the size of your business and unique needs you may have.

3. Create a schedule for entering deposits, paying bills, and reconciling cash. – Paper organizer, Outlook calendar, post-it notes…whatever works for you to enter things on a regular basis.

• Most businesses enter information throughout the month and then reconcile their cash to the bank when the bank statement arrives at the beginning of the month. If your business is quite small, maybe the bank statement serves as your reminder?

Whatever you knack for staying organized, just do it!

4. Hire an accountant to check your work – Unless you have some solid background in accounting just buck-up and get some professional advice. You will likely spend more time, resources, and money trying to figure everything out yourself. Taking a few hours to sit down with a professional can get you off on the right track.

Please contact me if you need assistance with any of the above information. I would be happy to help!

Tonya Schlaht, CPA
Tax Manager
Bismarck, ND
Eide Bailly LLP
tschlaht@eidebailly.com

Source: Eide Bailly LLP 2012-2013 Tax Planning Guide.  This blog was developed using sources from a third-party publisher and is distributed with the understanding that the publisher and blogger are not rendering legal, accounting or other professional advice or opinions on specific facts or matters and recommend you consult an attorney, accountant, tax professional, financial advisor or other appropriate industry professional. This blog reflects tax law as of Dec 1, 2012. Some material may be affected by subsequent changes in the laws or in the interpretation of such laws. Therefore, the services of a legal or tax advisor should be sought before implementing any ideas contained in this publication. ©2012 

—– IRS CIRCULAR 230 NOTICE —–
Any tax advice expressed in this communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of avoiding penalties imposed on the taxpayer by any governmental taxing authority or agency. In addition, if any such tax advice is made available to any person or party other than the party to whom the advice was originally directed, then such advice, under IRS Circular 230, is to be considered as being delivered to support the promotion or marketing (by a person other than Eide Bailly LLP) of the transaction or matter discussed or referenced. Thus, each taxpayer should seek specific tax advice based on the taxpayer’s particular circumstances from an independent tax advisor.

The information transmitted in this email and any attachments is intended only for the personal and confidential use of the intended recipients. This message may be or may contain privileged and confidential communications. If you as the reader are not the intended recipient, you are hereby notified that you have received this communication in error and that any retention, review, use, dissemination, distribution or copying of this communication or the information contained is strictly prohibited. If you have received this communication in error, please notify the sender immediately and delete the original message from your system.