Will a corporation protect me from liability? It can, if handled correctly. You may have heard about "corporate veil," which means that you can't be sued personally for anything that happens in corporation and your personal assets can't be attacked by creditors or a lawsuit on corporation. But in order to have this protection, you must act like a corporation. This means conducting board meetings, taking notes and publishing minutes in your corporate book.

In addition, be sure to have a separate corporate checking account and, if you need them, corporate credit cards. Don't use corporate money for personal purchases, and vice versa (unless you file an expense report). Many people think they don't need to go to all this trouble if there is just one or two people in company, but in order to be treated like a corporation, you must act like one. Your attorney can give you more details.

How do I register my company name? To register your company name simply contact office of Secretary of State. This is easily done by phone. The registrar will tell you if name you have in mind is available as a corporate name and will reserve name for you if it is available. You will be sent a form to complete and submit with a nominal fee. For more information you can also visit Secretary of State's website.

Do I need a business license? Nearly every business will require a county or city license. Luckily, such licenses are relatively easy to obtain and are not expensive. For local licensing requirements, contact your city or county government offices.

Some businesses might also require a state license. For example, hair stylists, contractors and most businesses serving food fall under purview of state licensing board. Each state has an agency that deals with these types of businesses. Contact your local government offices to see if your particular business requires a state license.

Some businesses will even require federal licensing. Examples of such businesses would be those that provide investment advice or that deal with firearms. Federal licensing is typically required for businesses that are highly regulated by government.

I operate my business out of my home. Do I still need a license? Operating a business out of your home does not get you off hook when it comes to licensing. You should check local zoning requirements and property covenants. You can find this information at court house or by calling your local license department. Home businesses are also subject to zoning laws that regulate how property can be used and may restrict various activities.

This is just a sampling of legal issues that must be addressed by every new business owner. To learn more, take your favorite lawyer to lunch.

Just be prepared to pick up tab.

Here's to your success.

Tim Knox tim@dropshipwholesale.net For information on starting your own online or eBay business, visit http://www.dropshipwholesale.net

Put yourself in your customer's shoes. I've been on both ends of uh-oh stick and neither is very comfortable. My company has dropped ball on occasion and we have also been negatively impacted when one of our vendors did same. Put yourself in your customer's shoes and consider what could be said or done to remedy situation from their point of view.

Take responsibility for actions of your company. In my role as a company president there have been times when I've had to call up a customer and confess that a mistake was made, and as president it was also my responsibility to take heat for it. Remember, you're head cheese, Charles, you get to sit behind big desk and take home nice paycheck. You're also one that gets to mop up when your employees makes a mess. It just goes with job.

Do not place blame on specific employees. No matter how tempting it is to put blame on specific people in your organization (even if that's where blame lies), do not do it. It is unprofessional, counterproductive and can backfire on you, especially if person you're blaming reports directly to you. Saying something like "My sales manager is always making mistakes like this!" is not going to make your customer feel any better. To contrary, such statements will make customer question your leadership ability and quality of all your employees, not just one that made mistake. If you don't have faith in your company and employees, why should your customer?

Don't deny that a mistake was made, especially when there is clear evidence to contrary. You're not Richard Nixon, for petesake, so don't try to pretend that mistake didn't happen or stage some elaborate cover-up to try and dodge blame.

Admit your mistake. This may sounds trite, but you must admit your mistake before you can move ahead and start to make amends. Don't be so afraid to take this step. I doubt your company is first one to screw up with this customer and I can guarantee you certainly won't be last.

Apologize for mistake. The one thing that could make situation better is often thing that companies find hardest to do. I don't mean to sound like Dr. Phil, but simply saying you're sorry is often best way to get a business relationship back on track. Ensure customer that it will never happen again. After you have taken responsibility for mistake and apologized in a sincere and professional manner, you must then start process of rebuilding trust that was lost. Promising that such a mistake will not happen again is a good way to start.

Compensate customer for his loss. Even if your mistake didn't cost customer a dime, he will appreciate an offer of compensation. This can be something as simple as a lunch on you or a discount on his next order. The size of compensation offered should be in direct proportion to size of your mistake. A word of warning: don't let customer bully you into overcompensating him for your mistake. That can be more detrimental to relationship than mistake itself.

As my daughter understood all those years ago, Charles, a sincere Oop-see can help make things all better.

Here's to your success!

Tim Knox tim@dropshipwholesale.net For information on starting your own online or eBay business, visit http://www.dropshipwholesale.net