by Diana Wicks, Demand Media
A trade agent is an entrepreneur who
connects manufacturers of products to distributors or end users. You can start
a small business trade agency and even work from home with minimal starting
capital requirements. To become a trade agent, you do not need education in the
import/export business, but you are required to have favorable skills and
competencies to excel in the trade. Importantly, a trade agent must possess
negotiation skills, have an eye for trends and must be very organized as the
job entails making contacts, getting the product, shipping it and reselling it
at a profit.
Customs Clearance & Transport
from Durban to desired Delivery point
Step
1
Carry out market research to
determine which products are in demand. Take into consideration factors such
as: who will your customers be?; will they be hospitals, schools, car show
rooms, government, restaurants?; which country will you facilitate importation
or exportation to or from?; How will you sell your products-directly to your
customers or through representatives and distributors?
Step
2
Establish contacts with the country
or city you want to import from or export to. Contact the U.S. embassies abroad
and ask them to provide you with a list of importers/exporters in the country
they are located in. Visit or contact the Chambers of Commerce in any city you
are looking to do business in; ask them to provide you with contacts of
manufacturers, exporters, importers and distributors.
Step
3
Evaluate the reputation of the
contacts you get by carrying out Internet searches and speaking with other
trade agents or distributors who have done business with the import/export
company. Check on how long the import/export company has been in operation,
where it distributes its product and the financial status of the company in
terms of solvency.
Step
4
Write an introduction letter to the
import/export companies. Introduce yourself and indicate your interests in
facilitating the importation or exportation of their product to distributors or
to the end users. Write to distributors as well, informing them of your
services and the type of product you can help them import or export. Provide
your contacts where the exporter or importer and distributors may reach you.
Follow up your introduction by calling, preferably a week after sending the
letter.
Step
5
Establish a business agreement with
the importer/exporter by negotiating a distributor agreement. Check that the
agreement includes information such as the commission payable, mode of payment,
length of the contract and, if it is renewable, under what condition you may
cancel the contract. Note that you have the responsibility of making contact
with distributors or end users to sell the products obtained from the
importer/exporter.
Step
6
Establish a structure for
transporting the goods from the manufacturer to the distributor. Ask other
trade agents or distributors to refer you to a trustworthy freight forwarder or
find one through the Yellow Pages. A freight forwarder is helpful in providing
you with shipping rates, booking cargo space, arranging for merchandise
insurance and making arrangements for storage before you forward the
merchandise over to the distributors.
Step
7
Price yourself and the product based
on the commission you receive from the import/export company, which is usually
10 percent of the product. Multiply the 10 percent with the import/export price
to see how much commission you get from each unit of the product. Add this
commission to the original price of the product to get the price you should
sell the product to get your commission. Obtain the final price of the product
by taking into consideration expenses, such as transportation, insurance and
packaging.
Registered Agent: What You Need to Know
Series: Business Structure: What you need to know
- Part 1: Filing a DBA Versus Forming a Corporation or LLC
- Part 2: Benefits of Forming an LLC
- Part 3: Benefits of Forming a Corporation
- Part 4: Registered Agent: What You Need to Know
The registered agent is responsible for receiving important legal and tax documents on behalf of the business. Types of documents sent to the registered agent include Service of Process (sometimes called notice of litigation), which is the document that initiates a lawsuit; important mail sent by the state, such as annual reports or statements; and tax documents sent by the state’s department of taxation.
The registered agent must have a physical address in the state of formation or qualification. Post Office boxes or a private mailbox rented from a company, such as the UPS Store, are not allowed. The registered agent must also be available during normal business hours.
Additionally, the registered agent’s address is a matter of public record, which means that anyone has access to it. In states that do not require a company’s legal address be included in the formation or qualification documents, the registered agent’s address is the only address on file with the state for that company.
Individuals are allowed to act as registered agent for a business. For example, if you have a physical address in the state where you form your corporation or LLC, you could name yourself as the agent. You could not, however, name your new company as its own registered agent. In order for a company to act as a registered agent, it must typically be approved to do so by the state in question.
There are companies, such as BizFilings, that provide registered agent services to other businesses for an annual fee. You may be saying, “I’m a one-person company, why should I use a registered agent provider?” In reality, these companies provide a lot of value to even to the smallest of businesses, such as providing online access to Service of Process and providing tools to assist with the ongoing compliance requirements corporations and LLCs face.
As you are evaluating who should be the registered agent for your business, below are some items to keep in mind and some situations for which using a registered agent service provider may be the best choice for your business.
You’re forming your company in a state where you don’t have a physical location.
You are legally required to have a registered agent with a physical address (no P.O. box) in the state of formation. Using a professional registered agent provider helps you satisfy this requirement.
You use a Post Office box as your business address.
You cannot act as the registered agent for your business if you have only a P.O. box or a private mailbox as your only address.
Your company does business in several states.
When you qualify your company to transact business in states other than your state of formation, you need a registered agent in each of those states. By using a registered agent service provider, one company is handling this important documentation for you in each state and allowing you to concentrate on your business.
Your address changes frequently.
It is important to keep the registered agent address updated with the state, but changing it requires a formal state filing and may also require that a fee be paid to the state. If you name yourself as agent, you will be responsible for undertaking this process to keep your address current. By using a registered agent service provider, you never have to worry about this.
Your business is home-based.
As previously mentioned, the registered agent address is a matter of public record. That means anyone, including marketers, can access it. It is not uncommon for the registered agent to receive a lot of “junk mail” for the business. Using a registered agent provider can reduce the amount of unsolicited mail your business receives.
You prefer to keep business activities private.
When a company receives a Service of Process, this document is often delivered by local law enforcement. Most business owners do not want the sheriff to show up in front of customers, employees or neighbors (as in the case of home-based businesses) serve them notice that their company is being sued. Using a professional registered agent ensures you receive any Service of Process discreetly.
You don’t maintain normal business hours.
The registered agent for a business must be available during normal business hours to accept important documents as they are delivered. If you set your own hours, you may wish to consider using a professional provider, so that you never miss these important communications.
You do not have a permanent worksite.
If your business requires you to move around frequently, for example an electrician who is making service calls all day, using a registered agent service provider ensures that important documents will still reach you and your business.
You want one less thing to worry about.
Running your company is challenging enough without personally handling the necessary minutia. A professional registered agent can often help you by providing online access to your accounts and important documents and assisting with the annual filings states impose on corporations and LLCs.
Service of Process has been mentioned frequently in this article and for good reason. It is very important that this document be handled properly and promptly. As previously mentioned, a Service of Process initiates a lawsuit against your company. The Service of Process also typically outlines the timeframe in which a response from your company must be received. If a response is not received in time, a default judgment may be issued. When a default judgment is issued, the other party wins, and your company may need to pay the damages outlined.
As you form or foreign qualify your corporation or LLC, give some additional thought to who will be the registered agent for your company. While the registered agent is a legal requirement, the right registered agent can also be an asset to your business.
This article was provided by our partner, BizFilings.com.
BizFilings is committed to helping entrepreneurs and small business owners learn about incorporation and its benefits, as well as helping them easily and affordably undertake this important business step without sacrificing quality.
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