It is difficult to understand the metamorphosis that transformed the America that was once beloved by the world into one that is now perplexed by it. It was the country that promised so much to those who came here in the pursuit of their American dream. The America from days past placed its mission statement on the Statue of Liberty, the Mother of Exiles, who welcomed the world, stating proudly “give me your tired, your poor, your huddled masses yearning to breathe free, the wretched refuse…the homeless…”. The America of today, however, couldn’t be more diametrically opposed.
To this point, it was President Trump who asked, “why do we want all these people from shithole countries coming here?” He went even further by ordering the separation of asylum seeking and illegal immigrant families, detaining their babies and children in concentration camps while deporting them as a deterrent to any future attempts. He then trumped it up by banning immigration and travel from seven Islamic nations under the premise that they were posing a threat to America’s security. Prohibiting the entry of desperate people seeking safe haven and the possibility of a life in prosperity – that is not the America I had become a citizen of!
The American dream is evaporating, morphing into a national nightmare. The America I was drawn to was founded on truly high moral ideals respecting the essential humanity of those who are striving for a better life. Yet it seems to have forgotten that and replaced it with greed and predatory capitalism, exploiting and subjugating its own people.
What is happening in America now has happened many times before in history. However, we never seem to learn from any of it, no matter how many museums, monuments and memorials are built, books written, or movies made. We can introduce laws to protect us ‘so this may never happen again’ – a favorite phrase – while it is already happening somewhere else. There are so many parallels to events that occurred at the beginning of last century which should be guiding us to avoid making the same mistakes, yet they are being ignored or denied. Let me explain.
I was born in Tehran when the Shah of Iran ruled the country. Under his dictatorial governance, political freedom was restricted, and dissent was repressed. His secret police brutally suppressed any opposition by means of torture, imprisonment and death. The Shah’s ambitious reforms aimed at thrusting the country into the 20th Century by furthering western-oriented secular modernization whilst nurturing its Persian historical identity of glory and world domination. Towards the end of his reign, he became increasingly nationalistic, authoritarian and even more abusive of the power invested in him. He abolished the multiparty government in favor of his own party which, like the royal family, was plagued by corruption and lavish extravagances, while their brutal measures suppressed the people. Those who dared to speak in opposition would stand to lose everything – their income, social standing, freedom and even their lives. A state of fear and daily terror would subdue the nation. Barring external crisis or internal chaos, people can only be held down for so long until they revolt. And thus, the stage was set for the Islamic Revolution resulting in the Shah’s overthrow. There always comes a point where suppression and extreme inequality come to a head.
It usually happens when the gap in wealth disparity widens progressively, benefitting the few at the expense of the masses, the forgotten people.
When I moved to Munich in the early 60’s, Germany was still reeling from the effects of World War II. I remember the visible wounds of the hollowed buildings, the remaining skeletons that were silent witnesses to Germany’s both famed and infamous past. People were still traumatized by their memories and by their decisions – to either go along with the flow of rising nationalism, fascism, racism, and hatred or to choose the risk of standing up to the greater evil that was taking hold of people’s minds. Germany was already politically and economically unstable in dealing with the financial and economic crisis left by World War I, therefore it could not withstand the fallout from the Great Depression. With public discontent and unemployment, hunger and real poverty soaring, Hitler became its beneficiary. He was a charismatic speaker, who used simple language with strong slogans to sell his message of returning Germany to its former glory, prosperity and rank. He knew how to incite the masses by further enraging and agitating them with hateful messages, by directing their frustrations at a particular group, the Jews, and by promising them that he would bring back jobs and income, thus making Germany great again. He vilified the press calling them the “Luegenpresse”, much like today’s fake news. What was to follow was the submission of an entire nation, enticed into believing the propaganda and empty promises delivered through endless rallies, speeches, and state media as well as the real threats by the Gestapo and SS. Germans, so overwhelmed with their own survival and fear, gave silent consent to rising anti-Semitism, the persecution of their Jewish friends, neighbors and citizens leading to the “Final Solution” by means of deadly concentration camps. The confiscation of their possessions would finance the remilitarization, emboldening Hitler into expanding his threats to other countries and allowing him to initiate yet another world war.
The parallels between these previous events and the recent ones in America are irrefutable. The Great Recession, caused by unthrottled greed in the form of financialization and predatory capitalism, brought with it high unemployment, underemployment and stagnating wages for the majority of Americans, creating a new class of the nouveau poor. However, as the middle class became poorer, the rich got even richer. As a result of the bailout of the very institutions that had caused the recession, social programs and support would be diminished, the quality and availability of healthcare reduced as its cost increased, and lower educational curricula leaving behind an impoverished nation.
Naturally, a sense of hopelessness and despair developed having Americans look for a strong leader who would bring back jobs and help the industry to flourish. Donald Trump rose to the occasion, promising that he alone could fix it and that he would place America first to make it great again. He knew to zone in on the needs of the forgotten people, the ones who have been left behind by technological change, wealth inequality and the slow-down of the global economy. He addressed their real pain and anxieties, promising to drain the swamp, to return the by now defunct industries to their former standings and reverse perceived unfair global trade deals. Concurrently, he placed the blame for America’s woes on illegal immigration depicting
those people as rapists, murderers and thieves stealing jobs from taxpaying Americans. As his final solution, he proposed the building of a wall, as well as border restrictions and detentions, both of which he has implemented by now.
Like other authoritarians before him, President Trump loves his campaign-like rallies and speeches, where he uses simple but highly inflammatory language, laced with punch lines and easy to remember slogans. He bullies opponents and critics alike, denigrates the press as fake news and the spreader of lies. He shames, ridicules and disparages minorities, women and even the sick. His attacks on political rivals go so far as to demand them being locked up and looking to foreign aid, even by so-called enemies, to find incriminating material to do so. He thrives on a singular, nationalistic view painting America as the victim in need to take revenge on those who have abused it. He has already initiated one war, although only a trade war, but a war nonetheless. He is throwing the country into ever-greater isolation and separation from the rest of the world as he is breaking friendships and alliances alike which have been beneficial to all for seven decades. Instead, he is turning to rogue nations, ruled by autocrats, seeking questionable new ties and partnerships.
So far, his promises have fallen short - his tax cuts have been profitable for the rich with minimal trickle-down effects, his swamp draining turned into swam hiring, and his healthcare plans have evaporated into the ether. Hate and negativity are on the rise as are the number of mass shootings and clashes. Our government is polarized to the point that there is nothing they can work on in harmony by embracing their opposite views as alternate possibilities leading to better outcomes. Although an opioid drug epidemic has been declared, nothing much has been done. On the contrary, the pharmaceutical industry is still continuing to flood the market with its highly addictive opioid prescription pain-killers, poisoning Americans just to increase revenues and profits. Equally, the gun industry is stronger than ever as the need for real protection is only growing in these times of uncertainty. It also helps their bottom line.
It comes as no surprise that there is a silence and an apathy amongst Americans. That is usually the primary reaction, yet there are voices that are speaking up warning of what may befall us if we continue to sleep. America is experiencing a time of national challenge and as with all challenges, this is also the time of great opportunities for growth. This is the country that has been created as a response to what held people down in the old world. It believed in “E Pluribus Unum” – “Out of Many, One,” so much so that it put it on its official seal. It’s time to return to those values and introduce new thinking, embrace change and hence creating new industrial possibilities. It is time to invest in the people again, to invest in our environment and to treat them with respect and with the future in mind. America can only change the outcome of what is happening now by radically changing its collective thinking.
Our collective consciousness has to shift from what works best for the individual to what provides the greatest good for all. In the final analysis, we are and become what we think. Let us aim high and consider this our moment to bring forth great positive changes.
Business entities can be defined as the corporate, tax and legal structures which an organization chooses to officially follow at the time of its official registration with the state authorities. In total, there are fifteen different types of business entities, which would be the following.
- Sole Proprietorship
- General Partnership
- Limited Partnership or LP
- Limited Liability Partnership or LLP
- Limited Liability Limited Partnership or LLLP
- Limited Liability Company or LLC
- Professional LLC
- Professional Corporation
- Nonprofit Organization
- Cooperative Organization
As estates, municipalities and nonprofits do not concern the main topic here, the following discussions will exclude the three.
Importance of the State: The Same Corporate Structure Will Vary from State to State
All organizations must register themselves as entities at the state level in United States, so the rules and regulations governing them differ quite a bit, based on the state in question.
What this means is that a Texas LLC for example will not operate under the same rules and regulations as an LLC registered in New York. Also, an LLC in Texas can have the same name as another company that is registered in a different state, but it's not advisable given how difficult it could become in the future while filing for patents.
To know more about such quirks and step-by-step instructions on how to start an LLC in Texas, visit howtostartanllc.com, and you could get started with the online process immediately. The information and services on the website are not just limited to Texas LLC organizations either, but they have a dedicated page for guiding fresh entrepreneurs through the corporate tax structures in every state.
Sole Proprietorship: Default for Freelancers and Consultants
There is only one owner or head in a sole proprietorship, and that's what makes it ideal for one-man businesses that deal with freelance work and consulting services. Single man sole proprietorships are automatic in nature, therefore, registration with the state is unnecessary.
Sole proprietorships are also suited to a degree for singular teams such as a small construction crew, a group of handymen, or even miniature establishments in retail. Also, this puts the owner's personal financial status at jeopardy.
Due to the fact that a sole proprietorship entity puts all responsibilities for paying taxes and returning loans, it directly jeopardizes the sole proprietor's personal belongings in case of a lawsuit, or even after a failed loan repayment.
This is the main reason why even the most miniature establishments find LLCs to be a better option, but this is not the only reason either. Sole proprietors also find it hard to start their business credit or even get significant business loans.
General Partnership: Equal Responsibilities
The only significant difference between a General Partnership and a Sole Proprietorship is the fact that two or more owners share responsibilities and liabilities equally in a General Partnership, as opposed to there being only one responsible and liable party in the latter. Other than that, they more or less share the same pros and cons.
Registration with the state is not necessary in most cases, and although it still puts the finances of the business owners at risk here, the partnership divides the liability, making it a slightly better option than sole proprietorship for small teams of skilled workers or even small restaurants and such.
Limited Partnership: Active and Investing Partners
A Limited Partnership (LP) has to be registered with a state and whether it has just two or more partners, there are two different types of partners in all LP establishments.
The active partner or the general partner is the one who is responsible and liable for operating the business in its entirety. The silent or investing partner, on the other hand, is the one who invests funds or other resources into the organization. The latter has very limited liability or control over the company's operations.
It's a perfect way for investors to put their money into a sector that they are personally not experienced with, but have access to people who do. From the perspective of the general partners, they have similar responsibilities and liabilities to those in a general partnership.
It's the default strategy for startups to find funding and as long as the idea is sound, it has made way for multiple successful entrepreneurial ventures in the recent past. However, personal liability still looms as a dangerous prospect for the active partners to consider.
Limited Liability Company and Professional LLC
Small businesses have no better entity structure to follow than the LLC, given that it takes multiple good ideas from various corporate structures, virtually eliminating most cons that are inherent to them. Any and all small businesses that are in a position to or are in requirement of signing up with their respective state, usually choose an LLC entity because of the following reasons:
- It removes the dangerous aspect of personal liability if the business falls in debt or is sued for reparations
- The state offers the choice of choosing between corporation and partnership tax slabs
- The limited legalities and paperwork make it suited for small businesses
While more expensive than a general partnership or a sole proprietorship, a professional LLC is going to be a much safer choice for freelancers and consultants, especially if it involves risk of any kind. This makes it ideal for even single man businesses such a physician's practice or the consultancy services of an accountant.
B, C and S-Corporation
By definition, all corporation entities share most of the same attributes and as the term suggests, they're more suited for larger or at least medium sized businesses in any sector. The differences between the three are vast once you delve into the tax structures which govern each entity.
However, the basic differences can be observed by simply taking a look at each of their definitive descriptions, as stated below.
C-Corporation – This is the default corporate entity for large or medium-large businesses, complete with a board of directors, a CEO/CEOs, other executive officers and shareholders.
The shareholders or owners are not liable for debts or legal dispute settlements in a C-Corporation, and they may qualify for lower tax slabs than is possible in any other corporate structure. On becoming big enough, they also have the option to become a publicly traded company, which is ideal for generating growth investments.
B- Corporation – the same rules apply as a C-Corporation, but due to their registered and certified commitment to social and environmental standards maintenance, B-Corporations will have a more lenient tax structure to deal with.
S-Corporation – Almost identical to a C-Corporation, the difference is in scale, as S-Corporations are only meant for small businesses, general partnerships and even sole proprietors. The main difference here is that due to the creation of a pass-through entity, aka a S-Corporation, the owner/owners do not have liability for business debt and legal disputes. They also are not taxed on the corporate slab.
Cooperative: Limited Application
A cooperation structure in most cases is a voluntary partnership of limited responsibilities that binds people in mutual interest - it is an inefficient structure due to the voluntary nature of its legal bindings, which often makes it unsuitable for traditional business operations. Nevertheless, the limited liability clause exempts all members of a cooperative from having personal liability for paying debts and settling claims.
This should clear up most of the confusion surrounding the core concepts and their suitability. In case you are wondering why the Professional Corporation structure wasn't mentioned, then that's because it has very limited applications. Meant for self-employed, skilled professionals or small organizations founded by them, they have less appeal now in comparison to an LLC or an S-Corporation.