How would you rate yourself on the Big Five personality dimensions?

 Personality psychologists are interested in what differentiates one person from another and why we behave the way that we do. Personality research relies on quantifiable concrete data which can be used to examine what people are like. These five dimensions were derived by asking thousands of people hundreds of questions and then analyzing the data with a statistical procedure known as factor analysis. Now, the Big Five is widely accepted as the model of personality(The Big Five Project - Personality Test).

How would you rate yourself on the Big Five personality dimensions? 

According to the scores I got on The Big Five Project - Personality Test, I am relatively open to new experiences(percentile:72%), very well-organized and can be relied on(percentile:92%), and tend to be good-natured, sympathetic, forgiving, and courteous(percentile:66%). However, I am a generally anxious person that tends to worry about things and is neither particularly social nor reserved(percentile:50%).

Is your personality profile suitable for a managerial position? If you answer yes, describe why your personality profile makes you suited to a managerial position. 

Overall, I reckon the answer is relatively close to YES, depending on what kind of position, team, or industry I am in. I am open to new experiences means I am able to accept come out with new ideas quickly. When a physical store I am operating, is affected by negative events such as COVID-19, I will make new solutions to solve such an issue quickly, switch sales onto platforms such as DoorDash or Uber. The well-organized character also helps me to implement new strategies with higher efficiency. However, I am a generally anxious person that tends to worry about things. Therefore, I must transfer the power of fear and anxiety to the fuel of execution. I think "What you fear is what you create." To conquer fear, I must understand what I fear and prepare for it. In addition, I am neither particularly social nor reserved. So, I can learn to be a quiet leader or a vibrant leader. Quiet Leadership provides a brain-based approach that will help busy leaders, executives, and managers improve their own and their colleagues' performance. 

Reference

The Big Five Project - Personality Test. (n.d.). Retrieved February 4, 2022, from https://www.outofservice.com/bigfive/ 

The Impacts of My Locus of Control Will Have on My Success?

 Introduction

Locus of control is a measure of the degree to which people feel accountable for their own behaviors. Individuals with a high internal locus of control believe that they control their own destiny and what happens to them is their own doing, while those with a high external locus of control feel that things happen to them because of other people, luck, or a powerful being. Generally, the internal Locus of Control means those who are more likely to take responsibility for their actions, tend to be less influenced by the opinions of other people, often do better at tasks when they are allowed to work at their own pace, tend to work hard to achieve the things they want, and likely to feel confident in the face of challenges. In contrast, external Locus of Control are those who are more likely to blame outside forces for their circumstances, credit luck for any successes, and frequently feel hopeless or powerless in the face of difficult situations. However, it is also important to remember that internal locus of control does not always mean "good" and external locus of control does not always equal "bad." Sometimes, having an external locus of control can be a good thing, particularly when a situation poses a threat to self-esteem or is genuinely outside of a person's control. For instance, a person who loses a video game that requires great teamwork may feel depressed if they have a strong internal locus of control. However, it is not totally one player's fault.

What Is Locus of Control?

Locus of control orientation is a belief about whether the outcomes of our actions are contingent on what we do or on events outside our personal control. It was explained by psychologist Philip Zimbardo in his book "Psychology and Life"(Cherry, 2021). The consequences of our actions helped determine our beliefs about the likely results of future behaviors.

Our anticipation of certain results influences our behaviors and attitudes. In other words, an individual is more likely to pursue a goal if they have been rewarded for similar efforts in the past and believe that they can influence their chances of future success. However, it is important to note that locus of control is a continuum which means no one has a hundred percent external or internal locus of control. Instead, most people lie somewhere on the continuum between the two extremes.

What My Locus of Control Score Means?

According to the Locus of control test, I have a mixed attribution style when it comes to success(57%). It says sometimes I interpret my success as a result of my skills, intelligence, and nice personality. Sometimes, I attribute it to external factors, such as luck, ease of tasks, or other people's help. As a consequence, I don't always take the credit I deserve. My self-esteem, motivation, and general well-being would most likely be improved if I realized that I actively influence positive events in my life.

The Impacts of My Locus of Control Will Have on My Success?

When I think about questions such as who controls my happiness? Who is responsible for my income? My answer is there is always something I can control and something I cannot. I have a mixed attribution style when it comes to success. Therefore, I can balance the external and internal control to get a better result. For instance, due to the pandemic of COVID-19, I may consider it is an event that I can not totally control. So, I will focus on anything I can control to fight it back and make new strategy to adopt it during the event. I think life is always a hybrid from choices and destiny. You cannot choose who to be your parents but you can choose how to treat them and how to fight for your future. If you depressd about your destiny, you will miss the opportunity to fight it. If you think you can totally control who to be your parents, it would be ridiculous. 

Reference

Cherry, K. (2021, August 17). Are you in control of your destiny, or are you at the mercy of chance? Verywell Mind. Retrieved February 6, 2022, from https://www.verywellmind.com/what-is-locus-of-control-2795434#toc-what-is-locus-of-control 

Melody Wilding, L. M. S. W. (2020, January 21). Successful people have a strong 'locus of control'. do you? Forbes. Retrieved February 8, 2022, from https://www.forbes.com/sites/melodywilding/2020/03/02/successful-people-have-a-strong-locus-of-control-do-you/?sh=7d87cb317af3 

Individual differences matter in the workplace

 During week two of BUS 4402, I learned that individual differences matter in the workplace. While employees bring in their personality, physical and mental abilities to work, it is a test for all business owners. From interviewing a candidate to what they expect their employees to demonstrate. Unfortunately, most of them only focus on expectation, particularly, how much money they can earn by doing their job well enough. I think it is similar to a chess game. Suppose your pieces are the employees, how you move them and how you place them at the right square on the board, is your strategy. Although a Queen may be more powerful than a Knight, the Queen is still in danger if you put it in the wrong place. That caused me to wonder, how do we know such private information of each employee we hire, to definite them as each piece on a chessboard? Usually, we collect tons of data as much as we can to better understand who we are hiring. However, it seems like predicting the future based on past experiences which are not always effective. Oftentimes, the behavior you may expect from someone proactive, creative, and willing to take risks will depend on the situation. 

In Taiwan, I reckon that most business owners only care about the Person–job fit rather than Person–job fit when hiring employees. If you only care about a person’s skill, knowledge, abilities, and other characteristics match the job demands, they will only do "what the job demands". Personal values, personality, goals may seem unnecessary at first while recruiting. However, it will become significant in the long term. I think it is reasonable that companies are often interested in hiring candidates who will fit into the company culture since they tend to be more satisfied with their jobs, more committed to their companies.

In addition, faking tests during interviews is also what I was trying to understand. Does any of these tests all consider lies and honesty? Candidates who are faking better than others, are more likely to perform their jobs well? Or, they are just loose cannons that will accidentally blow in the future. If we give an aspirational answer to a friend, that probably means we want to build a good relationship with him/her. However, it is still a lie. When it becomes a habit, it will spill over and affect how they will behave. Although business owners all want to completely know who they are hiring, it is still a strenuous task. Therefore, if I choose to use these tests for selection, I must understand the limitations. Relying only on personality tests is a bad idea, I think. 

An example of hiring was Elon Musk's favorite question to ask during job interviews which leave people stumped. Elon Musk asked this question to people that interviewed at SpaceX and Tesla. "You're standing on the surface of the Earth. You take a walk one mile south, one mile west, and one mile north. You end up exactly where you started. Where are you?” Musk doesn't actually care whether you got the correct answer. Instead, he sees it as an opportunity to check whether prospective applicants approach problem solving and process information.

Reference

REUTERS), (I. (2021, June 17). Riddle Elon Musk asks during job interviews for spaceX leaving people stumped. mirror. Retrieved February 9, 2022, from https://www.mirror.co.uk/news/weird-news/elon-musks-favourite-question-ask-24328522 

DIVERSITY PROGRAM, WHY WE SHOULD IMPLEMENT A DIVERSITY PROGRAM?

 INTRODUCTION

The business case for diversity derives from the progression of the models of diversity within the workplace since the 1960s. In the United States, the original model for diversity was situated around affirmative action drawing from equal opportunity employment objectives implemented in the Civil Rights Act of 1964. From CSR(Corporate Social Responsibility) point of view and extended the idea that individuals outside the dominant group should be given opportunities within the workplace, not only because it was instituted as a law, but because it was the right thing to do. Diversity is shown to bring substantial benefits such as better decision making and improved problem solving, greater creativity and innovation, which leads to enhanced product development, and more successful marketing to different types of customers. Moreover, diversity also enhances organizations' abilities to compete in global markets. Simply recognizing diversity in a corporation helps link the variety of talents within the organization.

However, knowing something is good does not mean you can do it successfully. One of the greatest challenges an organization has when trying to adopt a more inclusive environment is assimilation for any member outside the dominant group. Each time, when organizations hire or promote individuals that are not part of this dominant group into management positions, tension develops between the socially constructed organizational norm and acceptance of cultural diversity. Usually, these individuals are mentored and coached to adopt the necessary traits for inclusion into the privileged group as opposed to being embraced for their differences. Another challenge faced by organizations striving to foster a more diverse workforce is the management of a diverse population. Managing diversity is more than simply acknowledging differences in people. Here we will discuss it based on what it is, why should we use it, and most importantly, how to execute it. 

WHAT IS A DIVERSITY PROGRAM?

I reckon that it is a persisting, systemic, structural, and cultural plan or strategy to keep a business operating within a diverse beneficial environment. 

WHY WE SHOULD IMPLEMENT A DIVERSITY PROGRAM?

Employers often use diversity, equity, and inclusion initiatives for both compliance obligations and to increase the overall bottom line with a more diverse, equitable, and inclusive workforce. According to U.S. Census Bureau projections, the U.S. population will be 31 percent Hispanic, 14.7 percent black, and 8.2 percent Asian by 2060. As companywide culture has become more diverse, businesses and the communities they serve become more diverse as well. A companywide diversity program is a great way to leverage the strengths of your diverse workforce.

Today, I reckon diversity initiatives must be in our must-do lists of daily operations. Not only it’s widely accepted as the right thing to do, but the reasons for cultivating a diverse and inclusive workplace also go far beyond that. Many research shows that when diversity and inclusion work together, they improve the job experience for employees. But they also improve the performance of the company as a whole. According to a report by Forbes, companies ranking high in gender diversity outperform their competition by 15 percent. Moreover, workplace diversity has become an important predictor of a company’s sales revenue and profitability, according to the American Sociological Association. Diverse employees also bring a far-reaching set of life experiences and backgrounds to the table, meaning they’re often looking at life through a different lens. It is also a crucial part of a multinational company because different perspectives can open up new ways to solve challenges or address problems. 

However, it is not as easy as we think it is. Diversity isn’t just changing the complexions of workplaces across the country. It’s also changing the faces of consumers. When a business establishes itself as having a culture that fosters diversity, it becomes more attractive to minority customers. Many studies indicate that positive work environments lead to greater success. Happier employees are more productive and engaged. Employees feel valued and respected, which leads to greater collaboration and creativity. 

HOW TO DEVELOP IT?

To transform our business, a simple fix to a policy or process rarely cuts it. Instead, we look at the people, mindsets, skills, structure, and culture you have now. Diversity inclusion initiatives must start with the commitment from the top. With a commitment from top leaders in an organization to change the existing culture to one of diversity inclusion, the diversity change management process can succeed. This process includes analyzing where the organization is currently at through a diversity audit, creating a strategic action plan, gaining support by seeking stakeholder input and holding individuals accountable through measurable results. To create an effective diversity and inclusion program, the company must consider the Benefits of Diversity and Inclusion Programs, and most importantly, The Stakeholders. To achieve better outcomes, it takes hard work and certain conditions to be in place such as developing norms of cooperation and collectivistic norms, where people are focused on the good of the group instead of their own individual needs, hiring transformational leaders who inspire people to achieve their best, or train all members to be more thoughtful and open to new experiences. 

Starting with the stakeholders, customers, employees, shareholders, directors, and other stakeholders, the HR executives may also want to create a diversity council or committee composed of employees from all levels. The committee or council’s duties should include defining program goals, promoting diversity and inclusion in the workplace, and holding stakeholders accountable for outcomes. After an internal census has been conducted and all relevant data collected, areas of concern and underrepresented demographics can be identified. Then, to address diversity issues, we must review demographics such as age, sex, and ethnicity to see if each group is properly represented throughout the business. 

After all of the potential concerns have been identified, the company must try to implement diversity and create a more comfortable working environment for all employees. We can start with the changes in company policies and practices, staff training, targeted recruiting, and employer-sponsored diversity and inclusion awareness events. Apply the SMART Goals(Specific, Measurable, Achievable, Relevant, Time-bound), we can develop an effective action plan to implement these initiatives and start with the elements that have the greatest business value or that are readily achievable to build momentum for the initiative. In addition, the company must approach the managers and equip them with messages to inform, educate, engage or empower employees where appropriate. The communication plan should incorporate executive presentations, social media posts, internal newsletters, intranet, and email communications. 

Now, the next step is to make sure that diversity and inclusion initiatives are having a positive impact, to measure the results of the programs that have been implemented such as an increased representation of identified groups and improved employee satisfaction are two of the most important metrics to track. 

REFERENCE

Atcheson, S. (2018, September 28). Embracing diversity and fostering inclusion is good for your business. Forbes. Retrieved January 29, 2022, from https://www.forbes.com/sites/shereeatcheson/2018/09/25/embracing-diversity-and-fostering-inclusion-is-good-for-your-business/?sh=34c2346d72b1 

About the Author Lisa Leslie Lisa M. Leslie, & Leslie, L. L. L. M. (n.d.). What makes a workplace diversity program successful? Greater Good. Retrieved January 29, 2022, from https://greatergood.berkeley.edu/article/item/what_makes_a_workplace_diversity_program_successful 

Kokemuller, N. (2016, October 26). What are the benefits of a companywide diversity program? Small Business - Chron.com. Retrieved January 29, 2022, from https://smallbusiness.chron.com/benefits-companywide-diversity-program-69203.html 

Kokemuller, N. (2016, October 26). What are the benefits of a companywide diversity program? Small Business - Chron.com. Retrieved January 29, 2022, from https://smallbusiness.chron.com/benefits-companywide-diversity-program-69203.html 

Team, / I. B., Castro, / D., Abney, / K., & Divine, / C. (2022, January 26). 5 surprising benefits of fostering diversity and inclusion in the Workplace. Intuit®: Official Blog. Retrieved January 29, 2022, from https://www.intuit.com/blog/social-responsibility/5-surprising-benefits-of-fostering-diversity-and-inclusion-in-the-workplace/ 

Individualistic or Collectivist ?

 Culture refers to the characteristics and knowledge of a particular group of people, encompassing language, religion, cuisine, social habits, music, religion, food, what we wear, how we wear it, our language, marriage, music and is different all over the world. In addition, it also refers to values and beliefs that exist in a society. To summarize, I think it is a style of what or how we live, what we think, and how we react to others. For instance, if you greet strangers with a smile on the street, you may get very different reactions from people who come from different countries.

According to the book Business Communications for Success, by Scott McLean, people in individualistic cultures value individual freedom and personal independence. For example, Amazon's stock soared recently, triggered many online media to post articles about it to get attention. Most of them are focused on how much money the CEO Jeff Bezos is earning per day, how worthy Jeff Bezos becomes, or what percentage does Jeff Bezos increasing his rich. These newspapers authors, editors, or publishers are reflecting their cultural viewpoint.

According to Hofstede’s Cultural Dimensions Theory, a framework used to understand the differences in culture across countries and to distinguish between different national cultures, the dimensions of culture, and assess their impact on a business setting, Hofstede identified six categories that define culture. Collectivism vs. Individualism is part of Hofstede's identified six categories.

Culturally speaking, I reckon that I am both individualistic and collectivist, I would say that I am kind of a hybrid personally. I value the autonomy of the person and creativity but not self-reliance. Some collectivistic cultures that I have are stronger bonds to my groups. I am more likely to talk about my likes and dislikes, personal goals, or accomplishments but also likely to define myself in relation to others sometimes.

Since I am kind of a hybrid, I value the autonomy of my employee and their creativity. However, I would like to lead by example and build some collectivistic within my business. I think it is my responsibility to take care of my employee and bring them a better future. Therefore, I would hire more collectivist people since they are more attached to my organization and have more permanent attachments to it but I would also manage and train them to respect diversity. We reward good performance but this benefit is both comes from individual and group effort, not purely group or purely individual.

Personally, I think my communication pattern tends to be collectivistic with low-context languages. Because I think most of the time, relationship prevails over task. And if the relationship is bad, the task is likely to be bad as well. Although people from collective cultures tend to use high-context language which means they are sensitive to their surroundings, I think language competency and expression can strongly influence other people's understanding. With low-context languages, messages can be received more correctly. However, some adjustment is always needed to reduce the chance of conflicts.

It seems complicated at first. However, I think most of the people or events are fall somewhere in between, not purely evil or purely agreeable. Therefore, purely collectivism will limit the creativity of individuals, and purely individualism will lead to a workplace that lacks empathy and responsibility for operating a business.

Reference

Hofstede's cultural dimensions theory. Corporate Finance Institute. (2020, June 1). Retrieved January 28, 2022, from https://corporatefinanceinstitute.com/resources/knowledge/other/hofstedes-cultural-dimensions-theory/ 

McLean, S. (2015, November 25). 18.4 Divergent Cultural Characteristics. Retrieved July 31, 2020, from https://open.lib.umn.edu/businesscommunication/chapter/18-4-divergent-cultural-characteristics/

Organizational culture, BUS 4402

 During this first week of BUS4402, I read chapter one, two, and fifteen of the textbook. What attracted me the most is the diversity program. It may seem pretty simple at first. However, it is not as easy as we think it is. Diversity isn’t just changing the complexions of workplaces across the country. It’s also changing the faces of consumers. I reckon that it is a persisting, systemic, structural, and cultural plan or strategy to keep a business operating within a diverse beneficial environment. 

Two years ago, when I worked at a coffee shop, I have a deep experience of the reason why happier employees are more productive and engaged. One of the reasons is that they tend to be more active and less likely to quit. Although customers are one of the important stakeholders, employees are also an important part of how a company can satisfy the needs of its customers. In addition, when employees feel valued and respected, which leads to greater collaboration and creativity. In the example of the coffee shop, I found that the barista is more likely to actively practice and make better latte art. I think there is a big difference between requiring someone to do something and someone actively performing something. Employees can do one thing as good as 60% or as good as they can to make it close to 99%.

Organizational culture is also a totally new concept for me. I think many business owners start their business with purely one goal, hiring people to work for them and to make money for themselves. However, while employees start working for you, there is huge differences between fear for being fired and happy to work for you. When the boss only care about how much money his/her employees can earn and do not care much about their health, satisfaction, or happyness, his/her employees are likely to put less effort into their jobs. And, the topic made me think of a company, Dyson.

Dyson, a name that has become synonymous with vacuum cleaners and known for transforming a brilliant engineering idea into a bright success. Dyson products are sold in 45 countries of Europe, Middle East, Australia and United States. Dyson’s remarkable success can be attributed to the corporate culture that flows directly from the founder’s personality, problem solving, creativity, and innovation. The consistency in personality and the open culture embedded in the very fabric of organization where mistakes are not punished, rather valued because of a potential to be turned into success.((Ltd, Dyson Company Analysis: Industry and Culture 2021)

Reference

Ltd, A. A. (2021, December 31). Dyson Company Analysis: Industry and Culture. UK Essays. Retrieved February 1, 2022, from https://www.ukessays.com/essays/business/examining-the-rise-of-the-dyson-company-business-essay.php 

Limited liability business forms are generally created by the government. Given this fact, to what extent is it appropriate for the government to interfere in the operations of such a limited liability entity?

During this holiday week, I was doing my best to balance my study and my job. Fortunately, "the power of habits" helps. I always write down a to-do list for myself to understand all the necessary tasks and things I have to do. "The Power of Habits" is also a name of a bestselling book. Due to the help of habits, we lower the tasks of our prefrontal cortex and boost our productivity. In addition, thank you for all your contribution, without your kindness, the world will be darker than it use to be. 

Limited liability business forms are generally created by the government. Given this fact, to what extent is it appropriate for the government to interfere in the operations of such a limited liability entity?

First of all, I learned that a limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities, although in some cases, if a fraud is detected or if a company fails to meet its legal and reporting requirements, creditors may be able to reach the members' assets. An LLC is easier to set up than a corporation and provides more flexibility and protection for its investors. Entities such as Alphabet, the parent company of Google, and Exxon Mobil Corp, are both LLCs. The primary reason business owners opt to register their businesses as LLCs is to limit the personal liability of themselves and their members or investors, and the flexibility of taxation options since it prevents its owners from being held personally responsible for the debts of the company, and also allows all profits to be passed directly to those owners to be taxed as personal income. That avoids double taxation of both the company and its individual owners. 

I think from the government's perspective, more business and companies probably means more income from taxation if they are thriving. Most governments don't want business owners to be out of their control to do unethical things such as fraud, breaking the law, or even tax evasion, which would be shooting on their own feet. And, instead of interfering in the operations of such a limited liability entity, I reckon that governments can treat those entities as part of their assets. They can bring you tax incomes, provide jobs, produce useful goods, and more. However, if one of the assets starts to lose its functions or even hurt others like a virus, consuming the nutrient of its host, the governments must do something to stop and block it. Some regulatory agencies such as Consumer Product Safety Commission, Environmental Protection Agency, Equal Employment Opportunity Commission, Federal Deposit Insurance Corporation, Federal Trade Commission, Securities and Exchange Commission, and more, work together like the immune system inside the human body. Like an army that protects its people against possible danger, I believe what the governments should do is to monitor as anti-virus software, rather than to over interfere what do people use laptops for.

Reference

Fernando, J. (2021, December 7). How a limited liability company (LLC) works. Investopedia. Retrieved December 28, 2021, from https://www.investopedia.com/terms/l/llc.asp 

The requirements for starting a corporation in the United States, India, and China

Introduction

While the businesses world is so wide in breadth and diversity, it can be a confusing task for entrepreneurs who try to start a new business entity. Although there is no single solution for choosing what forms of the entity, there are some tips for it. We must consider the cost to create it, how difficult it is, how to convert it or transfer it in the future, how to raise the capital, how to control and manage it, how to pay effectively pay taxes, and most importantly, to limit your risk by creating a limited liability entity.

Since corporations have multiple advantages such as a separate legal entity, continuity, relatively easy to raise capital, teamwork, and of course, limited liability, many entrepreneurs eventually incorporate it to create their empire. When you consider forming a corporation, you must register your business to make it a distinct legal entity. How and where you need to register depends on your business structure and business location. Depending on the state in the US or other countries when you form a corporation, you must take many essential steps to form a corporation properly.

Requirements for Starting A LLC

Normally, to start a new LLC, you have to file the articles of incorporation to legally register it to be a legally separate entity. You can form it all by yourself or hire a service to do it for you, an LLC formation service, such as ZenBusiness will form your LLC and act as your registered agent. Notice that the registration requirements for Non-US Citizens and Non-US companies are different, so don't pick a formation package that includes an EIN. Either way, you still have to consider first what kind of business organization you want to form. Here are the steps and tips for informing a corporation in the United States, India, and China.

In the United States

Forming a US company is a good way of expanding your business into the US if you’re not a US citizen or operate a foreign company. The best business structure to use when forming a business in the USA is a Limited Liability Company(LLC) and then convert it to a corporation. Anyone can form an LLC in the USA; you do not need to be a US citizen or a US company. The most major factor you must consider before forming your US LLC is your ability to obtain visas to travel to the US from your country to open a bank account for your US LLC. Forming an LLC in the US does not grant you any visas to work in the USA. Opening a US bank account will make it easier to do business with other US businesses. After that, choose your LLC’s state, form the LLC, get an Employer Identification Number (EIN), and have a physical US mailing address. 

What Are The Steps To Form A US LLC?

Let's look at each step to form a Foreigner-Owned LLC:

i. Select a State

It is usually advisable to form an LLC in a state without state taxes, so you only have to handle US Federal Taxes. But, depending on the purpose of your business, if you need to open offices, have a physical store, physical office, employees, or a job site in a particular state, you will need to form an LLC in that state. Wyoming, Delaware, and Nevada are the states you should consider first. Wyoming has foreigner-friendly laws, lower filing and annual fees, and no state, personal, corporate, or capital gains taxes.

ii. Name Your LLC

Every state has its own rules about what kinds of names are allowed for LLCs. Typically, you must observe the guidelines such as it must include phrases like "limited liability company", LLC, or L.L.C. And, it cannot include words such as FBI, Treasury, State Department, etc, confusing your LLC with a government agency is not allowed. Some specific words such as Bank, Attorney, or University, are restricted. Those words require additional paperwork like licenses, hiring a specific professional, or other legal documents to be approved. After considering all these factors, you can try to come up with the best brand name for your business, then follow the naming rules for your business structure, and check if the name is available.

iii. Hire a Registered Agent

Most states require every LLC to nominate a registered agent. It is typically best to hire a registered agent service for your non-resident-owned business, as the service you hire will have a physical address in your business’s state, and will be open all required hours to accept service of process.

iv. File LLC with the State

Of course, to officially file an LLC, you will need to file your documents, the Articles of Organization, with the state.

v. LLC Operating Agreement

A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict. Although typically an operating agreement is not required in most states, it's a good practice to have one. It is a legal document outlining the ownership and operating procedures of an LLC. It may look like this:

Source: https://howtostartanllc.com/free-operating-agreement-template

vi. Get an EIN(Employer Identification Number)

EIN is a tax ID for your LLC and also represents this entity is legal and trustworthy. You do not need either a US Social Security Number (SSN) or an Individual Tax Identification Number (ITIN), or a US mailing address to get an EIN. 

vii. Get a Physical US Mailing Address

You need a physical address in the state you choose since it is necessary to open a bank account in that state. You can establish a physical office in the state you’re going to form and do business in. However, if you do not need to open a physical office in the US, you will still need a US mailing address in your LLC’s state. Services such as Earth Class Mail or ANYTIME Mailbox can set you up with a real US Mailing address, which is required to register for a US bank account and is useful for other services.

viii. Open a US Bank Account

Obviously, opening a US Bank account for your LLC will be the most complicated part of the process due to US money laundering laws. But it will be done once you’ve formed the LLC, and received your EIN. This step may be the most challenging hurdle by far because it requires a trip to America to physically apply at a bank branch. Make sure you call the bank ahead of time because different banks may have different requirements, so you can prepare all of the required documents. New FinTech services such as PayPal can be a good option, depending on the nature of your business. Notice that your LLC’s bank account does not have to be opened in the state your LLC is formed in, but the bank must have a presence in that state.

To Form A US Corporation

After learning the steps to form a US LLC, let's look at a corporation because you probably want to convert your LLC to a corporation when it grows to reach a certain level. A corporation is a registered business treated as a separate legal entity from its owners, also known as shareholders, and guided by a board of directors. You can start a corporation for your small business by appointing an initial director and filing formation documents with your state's business division.

The steps are similar to LLC, with just a few differences. 

i. Choose a Business Name

Of course, it has to be started with a name. And, you'll probably need to include a word that identifies your business as a corporation such as "Incorporated" or "Limited" or "Corporation". Just like LLC, commonly restricted words include "Bank" and "Insurance." In addition, make sure your proposed corporate name doesn't infringe on any trademarks. So, do a trademark search to determine if there are pending trademark applications or active registered federal trademarks with the USPTO.

ii. Check Availability of Name

Ensure that the name is legally available. Check with your state's office of business and corporations to determine if a corporate name is available for use.

iii. Register a DBA Name

The DBA means "doing business as", refers to a plan on operating a business under a different name than the corporate name. The fictitious name has to be registered to be legally used.

iv. Appoint Directors

An owner can be a director, a director need not be an owner. The number of directors you will need to appoint will depend on state regulations.

v. File The Articles of Incorporation

You are required to file articles of incorporation with your state's Secretary of State office. 

vi. Write Corporate Bylaws

Bylaws set out the rules governing how your corporation will be run such as the stocks which the corporation is authorized to issue, the number of directors required, and procedures related to meetings and record-keeping.

vii. Draft a Shareholders' Agreement

A shareholders' agreement is a document you'll want on hand in the event of the death or retirement of an owner, or some other event that causes an owner to need to transfer the ownership. If you are not so sure about what you should do on this step, consulting with an experienced business attorney is a good option.

viii. Hold Initial Board of Directors Meeting

An initial board of directors meeting should be held to deal with matters such as the adoption of bylaws, the appointment of corporate officers, and the authorization to issue stock. 

ix. Issue Stock

If a corporation wants to issue stocks, it needs to be approved by the board of directors. Small corporations are likely to be exempt from the more onerous requirements of the Securities and Exchange Commission (SEC).

x. Licenses

Before your corporation can be open for business, you'll need to obtain business permits and licenses. Requirements will vary depending on your state and local government. 

xi. Register With the IRS and State and Local Tax Agencies 

The Internal Revenue Service(IRA) is the revenue service for the United States federal government, which is responsible for collecting taxes and administering the Internal Revenue Code, the main body of the federal statutory tax law. Corporations are separate taxpaying entities. Therefore, you will need to obtain tax ID numbers from the IRS and your state and local revenue agencies. 

xii. Open a Corporate Bank Account

Finally, just like LLC, your corporation must have a bank account that's separate from the bank accounts of its owners. Banks may require a corporate resolution or a copy of the articles of incorporation. Most banks also require a corporation's EIN.

In India

If you are willing to register a startup or a new company in India then you need to file in Indian official records Ministry of Corporate Affairs (MCA).

Steps for Processing to Setup Company in India: 

1. Company Name 

The name of the company should be so unique that there should not be any existing company with the same name and there should not be any trademark registered with that name. 

 

2. Digital Signature Certificate 

Digital signatures are signatures of an individual in electronic form. DSC is required at various stages in the process in the Setup company in India for directors and shareholders.

 

4. Registration Documents 

You must draft the Articles of Association & Memorandum of Association and other Relevant Form to Start Company in India. 

 

5. Signing and Notary of Documents  

These legal documents need to be signed in presence of the attorney and need to get attestation. However, investors in the US need to get a document notary and apostle, while investors of the UK need a notary only.

 

6. Filling of Registration Application

This process can be done by Company Secretary or Chartered Accountant Registered in India, as in this process one certification from Company Secretary or Chartered Accountant is required. 

 

7. Certificate of Incorporation 

If all documents are in order and approved, you will be allotted Certificate of incorporation, PAN-Permanent Account Number, TAN- Tax Account Number, and DIN- Director Identification Number.

 

8. Corporate Bank Account 

To be more professional, opening a corporate bank account is necessary. International banks such as Citibank, HSBC, or Standard Chartered Bank, may be useful for a foreigner.

9. GST Registration (Goods and Services Tax) 

Once you opened the bank account, you will need to get GST Registration using the Same DSC. 

10. Registered Office

Your Indian company must have a registered office, which must be a physical address in India. Usually, there are service providers to seek for.

11. Indian Company Directors

Your Indian company requires just two directors and one of them should be an Indian Citizen. 

12. Indian Company Shareholders

Corporations or individuals of any Nationality can be Shareholders of an Indian Company. So being a foreigner you can hold 100% ownership of your Indian Company.

13. Share Capital

The minimum share capital required is INR 100,000. For a Private Limited Company, it is INR 1,00,000.

14. The Paperwork

To start a company in India require the director's full name, date of birth, address, and nationality(Copy of passport & Any Utility Bill), shareholder's full name, and address(Copy of passport & Any Utility Bill).

Process for Company Set Up in China

China is being considered one of the big potential markets in the world. As a foreign investor, starting a business in China is not an easy thing considering the difference in politics, language, culture, and more. Company formation in China is quite complex and time-consuming as it involves a lot of formal documentation that could take months to be completed by foreign investors. Moreover, maintaining corporate operations in China is also not an easy task. Therefore, many foreign investors engage a local service provider who can assist them in handling the corporate formations along with dealing with the tax & accounting issues since they are not familiar with the local policy. It is very important to know that while many foreign investors might think of closing their company just after a few months of operation due to company losses, closing down business in China is not so easy as simply stopping all the operations and abandoning the company. If you are interested in selling your products directly in China, you can then consider setting up a company in the country. Depending on the purpose of your entity, there are five types of entities you can consider to form in China. They are Wholly owned Foreign Enterprise (WFOE), Representative Office (RO), Contractual or Cooperative Joint Venture (CJV), Equity Joint Venture (EJV), Foreign Invested Partnership Enterprise (FIPE).

The Steps for Starting A Business in China:

1. Apply for name approval and registration
2. Rent office space as necessary
3. Online registration via MOFCOM(MINISTRY OF COMMERCE, PEOPLE'S REPUBLIC OF CHINA).
4. Apply for a “5 in 1” business license from the local Administration of Industry and Commerce (AIC)
5. Carving chops for the new company
6. Opening bank accounts
7. Register under tax authority
8. Further registrations with local authorities. Special licenses are required to obtain before doing business in specific industries
9. Open company social insurance and housing fund account
10. Issue contracts and complete the necessary registration for employees.

Is The Process Easy Or Difficult for Each Country? 

Overall, due to the politics, language, and culture, I think it is relatively harder to form a corporation in China. The US is the most painless one since the requirements are not so hard to reach. India is somewhat in the middle because it requires Digital Signature Certificate and many identification numbers. 

How Do You Think The ease or Difficulty of Forming A Corporation Affects The Economic Efficiency of Each Country? 

I reckon that the ease or difficulty of forming a corporation did affect the economic efficiency of each country, because a country where it is difficult for a merchant, whether local or foreign, to acquire the permits, licenses, and registration of their business. Also, a country with a bureaucracy in the processes to create companies is obviously not working efficiently in favor of its economy. Countries with more flexibility in the processes are generally those where the economy is strong because it welcomes talented entrepreneurs who want to start their businesses. For example, starting a corporation in India can be hard due to its bureaucracy. They are too bureaucratic and culturally they have a different way of seeing things, putting obstacles. To start doing a business in India, you must first like the country and you must find at least two trusted local partners that belong to different religious or cultural communities. In China, doing business is much harder if you are not allied with its government. 

Reference

Belle Wong, J. D. (2021, October 21). How to form a corporation. How to Start a Corporation. Retrieved December 27, 2021, from https://www.legalzoom.com/articles/how-to-form-a-corporation 

Home. (n.d.). Retrieved December 27, 2021, from https://www.mca.gov.in/content/mca/global/en/home.html 

TRUiC. (2021, December 8). How to open a company in the USA. howtostartanllc.com. Retrieved December 26, 2021, from https://howtostartanllc.com/open-a-company-in-the-usa 

The ultimate guide on starting a business in China. FDI China. (2021, October 19). Retrieved December 27, 2021, from https://www.fdichina.com/blog/starting-business-in-china/ 

Sometimes companies move their corporate headquarters out of their home countries to countries with more favorable tax treatment. Which duty do you believe is higher, the duty of corporations to pay tax to the government or the duty of corporations to pay dividends to shareholders?

 Sometimes companies move their corporate headquarters out of their home countries to countries with more favorable tax treatment. Which duty do you believe is higher, the duty of corporations to pay tax to the government or the duty of corporations to pay dividends to shareholders? 

Actually, I think it is not sometimes, it usually, especially big companies move their corporate headquarters out of their home countries to countries with more favorable tax treatment. In fact, six of Silicon Valley’s biggest companies had a combined tax gap of more than $100 billion this decade, according to a new analysis(Taylor, 2019). The research analyzed Facebook, Apple, Amazon, Netflix, Google, and Microsoft between 2010 and 2019 with their 10-K filings, which are financial forms submitted by businesses to the U.S. government. It also claimed that those profits continued to be shifted to tax havens such as Bermuda, Ireland, and Luxembourg. 

So, which duty is higher? The duty of corporations to pay tax to the government or the duty of corporations to pay dividends to shareholders? I believe for corporations the duty of corporations to pay dividends to shareholders is somewhat higher than the duty of corporations to pay tax to the government. Essentially, the basic function of a business is to make a profit for its owners. In a capitalist market-driven economy, a business that fails to make a profit ultimately ceases to exist and ultimately affects the property of its shareholders. If corporations reward their employees with their shares, it also provides incentives to be creative, innovative, and productive. Moreover, it is much easier to seek funding and grow business quickly, which leads to an increase in labor demand and eventually increases the income per household. Higher salaries mean households and individuals have more money to spend and it also means higher income taxes they have to pay. It is a positive circulation for the economy. In addition, many countries have one common problem, corrupt bureaucrats. We are not so sure the taxes we pay are all effectively used in our society or the public good.

However, it does not mean paying taxes to the government is always a bad thing. Governments need resources and funds to keep their basic functions such as infrastructure, roads, parks, airports, electricity, water, and more. These infrastructures are vital elements for operating businesses. Legislative make laws, rules, and regulations to settle disputes between business owners. We also need many authorities to make public policies. A government is a body of people that work to effectively and successfully guide a unit or community. One thing government does is set and administer policy. They use customs, laws, and institutions to exercise political, executive, and sovereign power with the intent of managing a state of wellbeing that benefits all aspects of the community or unit.

To summarize, I reckon that although for corporations the duty of corporations to pay dividends to shareholders is somewhat higher than the duty of corporations to pay tax to the government, paying taxes to the governments is still necessary since they provide some basic elements of conducting businesses. Of course, it's not a major duty, but it's must be part of the duties.

Should the concerns of stakeholders other than shareholders be taken into account by corporations?

First of all, shareholders are one of the stakeholders in a corporation, but stakeholders are not always shareholders. A shareholder owns part of a public company through shares of stock, while a stakeholder has an interest in the performance of a company for reasons other than stock performance or appreciation. A shareholder can be an individual, company, or institution that owns at least one share of a company. Stakeholders, on the other hand, can be owners and shareholders, employees of the company, creditors, customers who may rely on the company to provide a particular good or service, its suppliers, and more. The key difference is that shareholders can trade the stocks and may not have a long-term need for the company, while stakeholders are bound to the company for a long-term period and for reasons of greater need. For example, if a company is performing poorly financially, its employees, who are stakeholders and rely on it for income, might lose their jobs. Due to these reasons, the stakeholder has a greater need for the company to succeed over a longer-term, and therefore, I believe the concerns of stakeholders other than shareholders must be taken into account by corporations.

 

Why are taxes often more of an issue with corporations than with other business entities?

In the US, it’s because other business entities like partnerships, most LLCs, and small businesses are generally pass-through entities where the incidence of taxation passes directly through to the individual owners, while corporations are separate legal entities. Because it is an independent entity, its decision is made by teams, and its taxes payments are affecting directly its net income, corporations' decision-makers tend to use its tax advantages to pay taxes as little as possible.

Reference

Taylor, C. (2019, December 3). Silicon Valley Giants accused of avoiding over $100 billion in taxes over the last decade. CNBC. Retrieved December 24, 2021, from https://www.cnbc.com/2019/12/02/silicon-valley-giants-accused-of-avoiding-100-billion-in-taxes.html 

What should be the extent of rights for employees?

 What should be the extent of rights for employees? 

According to the U.S. Equal Employment Opportunity Commission, employees have a right to not be treated less favorably because of race, color, religion, sex, national origin, disability, age, or genetic information, receive equal pay for equal work. Although corporations may gain some challenges due to these regulations, this is also an opportunity to increase their efficiency and production. How? Why? Remember that CSR(corporate social responsibility) benefits entrepreneurs in multiple ways. If we consider the extent of rights for employees as a kind of CSR, it may have many advantages that can apply to any business, regardless of its size includes better brand recognition, positive business reputation, increased sales and customer loyalty, better financial performance, and most importantly, greater ability to attract talent and retain staff which connects directly to the extent of rights for employees. Being a responsible, sustainable business may make it easier to recruit new employees or retain existing ones. Employees may be motivated to stay longer, thus reducing the costs and disruption of recruitment and retraining.

Should an employer be able to terminate an employee at will? 

This question is about balance and freedom. Most employers think they should have the freedom to fire anyone for any reason. However, if we put the laws and the regulations aside, business owners are still liable to take good care of their employees. Why? Because good relationships with employees will make an enterprise even stronger. What Google learned from Goodwill, is that be a good boss and you will attract and keep good workers. Therefore, I reckon that an employer should not terminate an employee at will unless it is necessary. An excellent organization is the result of joint efforts and is also responsible for many families since it provides income. If someone tends to hold it back, it affects and harms those families. So, sometimes it is considered a necessary decision rather than at will. Just like many regulations are for the public good, many people still have to switch their jobs to what they can do best. The environment is changing quickly, changing your skills to adopt it is unavoidable.

What are some potential employer abuses the government should protect employees from?

Most of the abuses that employees could suffer caused by their employers include rejection of a job, being fired or getting your shifts reduced, deny promotion, and not being paid equally. Although the Equal Employment Opportunity Commission (EEOC) enforces federal laws banning discrimination in the hiring, firing, salaries, and benefits of job applicants and employees in several work circumstances, employees are less willing to report those issues since they are on the higher side of the scale. So, if governments truly want to protect employees from abuses, it is not enough to only set up regulations. For example, I am pretty sure hiring and firing are both can be "reasonably managed", right? We have seen many unfortunate cases. Rather than just make statements and laws, governments must build a reward system to trigger businesses to actively provide a good working environment and continually keep CSR in the heart of their corporate culture.

Reference

Employee rights. U.S. Equal Employment Opportunity Commission. (n.d.). Retrieved December 18, 2021, from https://www.eeoc.gov/employers/small-business/employee-rights