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Structuring your business correctly for your needs and tax purposes, is an important step in starting your own business, be it at home or at another location.

Here are brief descriptions of the different types of a business structur

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

e that will help you in your decision.

SOLE PROPRIETORSHIP--- A sole proprietor is an individual who owns and operates the business.

GENERAL PARTNERSHIP---A partnership exists when two or more persons join together in

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

the operation and management of business for profit.

LIMITED PARTNERSHIP---Like a general partnership, a limited partnership has two or more participants. In a limited partnership, there are two types of partners. A general p

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

artner has the same rights, powers, and restrictions as a partner in a general partnership. A limited partner is typically not liable for the obligations of the partnership.

C” CORPORATION---A corporation is a legal entity ha

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

ing its own rights, privileges and liabilities, apart from those of the persons forming or owning the corporation. It is the most complex form of business organization and is comprised of three groups of people – shareholders, direct

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

rs, and officers.

SUBCHAPTER "S" CORPORATION---A special section of the Internal Revenue Code permits a corporation to be taxed as a partnership or sole proprietorship, with the profits taxed at the individual rather than the

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

corporate rate.

PROFESSIONAL SERVICE CORPORATION---A professional service corporation, as the name implies, is a corporation made up exclusively of licensed professionals.

LIMITED LIABILITY COMPANY (LLC)---The Limite

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

Liability Company may be treated as a partnership for U.S. income tax purposes and also provides the limited liability of a corporation. This option may be the preferred choice for certain new operations and joint ventures.

Once yo

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

have made a choice on the type of company you feel is best, be it Sole Proprietor, Partnership, etc., there are certain steps you should take to protect yourself and your business.

1. Once you have chosen a name for your company, y

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

ou should register the name with department in your state that handles this function. Usually at this step, you can establish your tax ID number and resale number.

2. Next, decide on a domain name for your website. Try to have the n

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

me relate to your product or services if possible. You can use several different sources to see if the name you would like to use is taken.

3. Next, obtain a business license for your company. Depending on where you live, licenses m

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

y vary.

This is a must to protect youself and to prove to the IRS that you do have a business.

4. If you decide to incorporate at the beginning, use a good corporate attorney to properly set up your company.

5. Even if you are goi

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ng to act as a Sole Proprietor for a part time home business, set up a separate checking account for your business. This will eliminate a lot of problems when filing your taxes. Use that account for all your income and expenses relat

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ng to the business.

6. Contact the IRS Business Section and obtain a Federal ID Number. This will allow you not to be passing out your personal Social Security Number to everyone. It will also allow you to keep your business income

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

eparate from your income from other sources. (If outside the United States, check your local laws.)

7. If working from your home, it is advisable to have a separate phone line(s) for your business. Again, this will save you a lot of

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

time when filing your taxes in documenting your business phone expense.

8. If your business will require you to make contacts in person, get your business cards to hand out. You should also have business stationary for correspondin

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

with your customers, if needed, my mail.

9. Set up a filing system at the start for your expenses, purchases, etc. File properly at the beginning, and you will save yourself a lot of time and frustration at tax time.

There are ot

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

er things as your business grows, but do these few steps and you will thank yourself many times as your business grows.

Again, depending on your state, country, etc. different items may be required. The main thing is to create a goo

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

d operating structure so you can spend your time promoting your business.Some businesses start out as one type and then change to another as they grow. So you do have the opportunity to change later if needed.

For a detailed explana

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

ion of the different ways to structure your business, and some pros and cons for each, visit http://www.homebusinesscreated.com and look in Step Three of the Seven Step Course offered for free to our customers.

Article by,

Tim Smit

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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I am a strong believer in the professional contracting work avenue/model. I feel it gets us closer to our roots, and takes us back to a time before we had Fortune 500 companies where we could go work for 30 years and retire. Employment, as we know it today, is the newest work model as a whole. There are other avenues and models that have come about as a result of traditional employment, but the idea of someone paying you a set salary for 40 hours a week, giving you 2 weeks paid vacation and 5 PTO days per year is, believe it or not, quite new!!! Right now you are probably thinking I am completely nuts, and that's ok, stay with me and you will see what I mean.

Abrasive, confrontational employees are a pain in the neck, and meek, timid employees can be a disaster if they're hired for the wrong position. Learn how to pick the ones you need, and pass by the candidates who won't fit with your company culture.

Think about how much time and energy it takes to hire a good sales person. Think about how much it costs to carry a good salesperson on your payroll, and then think about the amount of revenue needed for your company in order to help you accelerate your sales. Finally, add in the opportunity costs for your company if during a given period, particularly a long one, instead of selling a million dollars a year, you have an under performing rep. When you add in all of these factors, it’s very costly to make a mistake when it comes to hiring sales people.

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