TweetFollow Us on Twitter

Feb 93 Editorial
Volume Number:9
Issue Number:2
Column Tag:The Editor's Page

Ah To Communicate

By Neil Ticktin, Editor-in-Chief

For as long as I can remember, readers of this magazine have asked for online areas to access information about the magazine, download files, and exchange ideas. We are proud to announce that Xplain Corp. (the publishers of MacTech Magazine) has made arrangements to have an online presence on CompuServe. Once this new area is active (probably by the time you read this), you’ll be able to type “GO MACTECHMAG” and you’ll be there.

The new vendor folder will include information about the magazine, important files such as our writer’s kit, a discussion area, and product information. If the discussion area is active enough, we’ll reprint your comments and questions.

New E-Mail Addresses - Use Them!

To help you get faster service, we now have a series of new electronic mail addresses. These new addresses reflect our new name as well as additional support. All told, we’ve gone from 4 addresses to 20! Please use them and throw away the old ones.

The new addresses are for AppleLink, CompuServe, Internet, America Online, and GEnie. Those of you who used our AppleLink address to send an Internet message, please use the new Internet addresses instead. It is a little known fact that AppleLink charges 50¢ per Internet message (in each direction).

Ask Us Questions, Give us Feedback

Since we were so busy this month, David was kind enough to pick up the slack for me and write a bit more. As you may know, David is a capable tax attorney. We would like to have the magazine take advantage of David’s knowledge, but we need to know what questions you would like to have answered. So here’s an open invitation to ask any of us, including David, about issues you wonder about.

Most of you like the Tips and Tidbits section. Now, we’ve changed the compensation for tips printed from a credit to a cash payment. This is your area, so send us tips. In fact, if you ask DTS a question, send in the question and the answer as a tip as well.

CD-ROM Update

By the time you read this, the new All of MacTech Magazine CD-ROM™ Volumes 1-8 will be shipping. This new CD is the best that we’ve ever produced. It incorporates all the feedback that we’ve received about the last CD.

As of this writing, Symantec is now shipping a much improved THINK™ Reference 2.0. Not only does this new version include Volumes 1-6 of Inside Macintosh, it has new features as well. The best part is that this and On Location™ 2.0 are both included on the CD. See page 52 for more information.

Upcoming Topics

For the last couple of months, we’ve been talking about changes in the magazine and new products and services. Next month, we will return to more traditional editorials. In the March issue, Don Bresee (our Technical Editor), Ken Gladstone (our new Technical Editor), and I will cover Macworld Expo/San Francisco from a developer’s point of view.

As the year goes on, we’ll be covering topics such as Bedrock, MacApp, C++, scripting, HyperCard, databasing and more. The more you tell us what you want to hear about, the better the chance that it will happen.

The Publisher's Column

By David Williams, Publisher

The end of 1992 was completely overwhelming. In all of the excitement of changing the name of the magazine and preparing the new CD-ROM and for Macworld Expo, we went on a buying binge that resulted in a new show booth, two Duo 230’s, a IIci 5/80, and a 486/33 file server. So after all of this and a number of other purchases, we were penniless, but fully equipped. Basically, for about a month, we spent like drunks. What’s most surprising about this is that Neil and I are in complete agreement on everything we bought for the company. I suspect that he would have preferred that the money I spent on my new stereo stuff and 4WD be contributed to the company for computer equipment, but he isn’t unreasonable enough to actually expect it.....OK, it’s close, he reeeaaally wants a 950.

What all of this brings to mind is the business decision-making process and how legal entities effect it. Both Neil and I spent, but where did the authority lie to decide to spend? Our little buying spree brings up the issue of legal authority in a joint enterprise. In actual fact, Neil and I never had to confront the issue because we do work closely and we are in agreement, but at the precise moment when disagreement occurs, most business teams have little or no clear idea of who is really in charge, and how a dispute is resolved. The answer, of course, lies in the choice of business entity.

The last article I wrote on this topic, in the November/December issue, focused on the legal aspects of proprietorships and partnerships, which are general liability entities with little legal management structure. As we saw then, any partner has the authority to bind a general partnership to a course of action, such as buying equipment. In any of the limited liability entities, management authority is legally controlled. In other words, the law dictates a structure of decision-making and power, while providing limited liability for those sufficiently outside that structure.

The limited liability entities are: limited partnerships, S corporations, and C corporations. What makes these entities so different from the general liability entities is that in every case, the grant of limited liability comes from the state government. In other words, rather than just agree amongst yourselves, you apply to the state to form the entity, and for a price, the state grants a limitation on liability. The price takes two forms. First, there is usually a tax or at least an annual filing fee to keep the entity alive. Second, there are statutory restrictions on structure and ongoing documentary requirements to maintain the liability shield. To form the entity, you have to have a fairly complete set of documents that describe most of the relationships between the players involved. A limited partnership does not provide a complete shield, while both types of corporation generally do. On the other hand, a limited partnership is usually cheaper to set up and easier to maintain than a corporation.

In a limited partnership, any general partner has full management authority, but no limited partners do. Liability falls in exactly the same pattern, only the general partners have joint and several liability for everything that goes on. Most states require at least annual reporting to the limited partners and that the general partners act in the limited partner’s best interests. A limited partnership files a form 1065, just like a general partnership, in which the tax attributes of the partnership’s activity are apportioned out to the partners based on their ownership percentages. One of the most powerful advantages of a partnership over a corporation is the ability to specially allocate certain attributes to certain partners and not to others, and to allocate based on other percentages than ownership. If any of these complex methods of allocation are used, there are very complex tax requirements that must be met else the allocation will be disregarded for tax purposes, so consult a competent tax advisor.

Corporations represent the most complete liability shield that states are willing to sell, and require the highest price. Usually, an attorney is required to form the corporation, and there is a substantial annual fee or tax to pay. An S corporation is one that has elected to be taxed as a partnership for federal tax purposes (most states have comparable elections, but there is always at least an annual fee), and files form 1120S, while a C corporation pays corporate tax on its net income and files a form 1120. The corporate form of business is exacting, and failure to meet any of the numerous annual documentation requirements such as minutes of required meetings and resolutions can lead to a collapse of the shield.

A corporation is ultimately controlled by its voting shareholders. Note that it is possible to have non-voting shares, which have no ongoing say in the business at all. The shareholders meet at least once per year for the purpose of electing a board of directors. The directors then meet to appoint the officers, such as president, who run the company. Decision-making is entirely formalized and is determined by the authority granted to the officers in the bylaws of the corporation. In other words, in a corporation, most questions of final authority and ultimate responsibility are answered during formation.

As should be obvious, this is a very simple treatment of a very complex subject. The purpose here was to provide a starting point for discussions with your attorneys and accountants, rather than to allow you to make the decision on your own. Most important, for every concept that I’ve touched on, there are ten that I’ve excluded which can be critical in a particular case.

For Neil and I, here in our S corporation, there is no question that the final authority over spending lies with Andrea, our Controller, who has the checkbook. Which is good because without Andrea to stop us, we’d equip ourselves right out of business. So, for Andrea, who now has only a few days left to pay for all of this new stuff, please keep those subscriptions coming!

 
AAPL
$111.56
Apple Inc.
+2.15
MSFT
$47.17
Microsoft Corpora
+1.43
GOOG
$506.11
Google Inc.
+1.22

MacTech Search:
Community Search:

Software Updates via MacUpdate

BBEdit 11.0.2 - Powerful text and HTML e...
BBEdit is the leading professional HTML and text editor for the Mac. Specifically crafted in response to the needs of Web authors and software developers, this award-winning product provides a... Read more
ExpanDrive 4.2.1 - Access cloud storage...
ExpanDrive builds cloud storage in every application, acts just like a USB drive plugged into your Mac. With ExpanDrive, you can securely access any remote file server directly from the Finder or... Read more
Adobe After Effects CC 2014 13.2 - Creat...
After Effects CC 2014 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous After Effects customer). After Effects CS6 is still available... Read more
Command-C 1.1.7 - Clipboard sharing tool...
Command-C is a revolutionary app which makes easy to share your clipboard between iOS and OS X using your local WiFi network, even if the app is not currently opened. Copy anything (text, pictures,... Read more
Tidy Up 4.0.2 - Find duplicate files and...
Tidy Up is a complete duplicate finder and disk-tidiness utility. With Tidy Up you can search for duplicate files and packages by the owner application, content, type, creator, extension, time... Read more
Typinator 6.3 - Speedy and reliable text...
Typinator turbo-charges your typing productivity. Type a little. Typinator does the rest. We've all faced projects that require repetitive typing tasks. With Typinator, you can store commonly used... Read more
GraphicConverter 9.5 - Graphics editor w...
GraphicConverter is an all-purpose image-editing program that can import 200 different graphic-based formats, edit the image, and export it to any of 80 available file formats. The high-end editing... Read more
Toast Titanium 12.0.1 - The ultimate med...
Toast Titanium goes way beyond the very basic burning in the Mac OS and iLife software, and sets the standard for burning CDs, DVDs, and now Blu-ray discs on the Mac. Create superior sounding audio... Read more
QuickBooks 2015 16.0.2.1422 R3 - Financi...
Save 20% on QuickBooks Pro for Mac today through this special discount link QuickBooks Pro 2013 helps you manage your business easily and efficiently. Organize your finances all in one place, track... Read more
Remotix 3.0.6 - Access all your computer...
Remotix is a fast and powerful application to easily access multiple Macs (and PCs) from your own Mac. Features: Complete Apple Screen Sharing support - including Mac OS X login, clipboard... Read more

Latest Forum Discussions

See All

Dragon Quest III Review
Dragon Quest III Review By Jennifer Allen on December 18th, 2014 Our Rating: :: DATED BUT NOT WITHOUT MERITUniversal App - Designed for iPhone and iPad A walk down memory lane isn’t foolproof for Dragon Quest III, but it has its... | Read more »
8 KEMCO JRPGs Are Just $0.99 in Celebrat...
8 KEMCO JRPGs Are Just $0.99 in Celebration of the Holidays Posted by Jessica Fisher on December 18th, 2014 [ permalink ] KEMCO has announc | Read more »
Brothers in Arms 3: Sons of War Review
Brothers in Arms 3: Sons of War Review By Jennifer Allen on December 18th, 2014 Our Rating: :: FUN BUT PUSHYUniversal App - Designed for iPhone and iPad Brothers in Arms 3: Sons of War could be great fun, but its plethora of... | Read more »
The Snow is Falling on the French Countr...
The Snow is Falling on the French Countryside of Carcassonne’s Newest Update Posted by Jessica Fisher on December 18th, 2014 [ permalink ] < | Read more »
Creatures Such As We Review
Creatures Such As We Review By Jennifer Allen on December 18th, 2014 Our Rating: :: INTERESTING DISCUSSIONSUniversal App - Designed for iPhone and iPad Taking a more sedate approach to interactive fiction, Creatures Such As We... | Read more »
Stair: Slide the Blocks to Ascend (Game...
Stair: Slide the Blocks to Ascend 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Slide the blocks to ascend! Stair: Slide the Blocks to Ascend | Read more »
Give It Up! (Games)
Give It Up! 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: GIVE IT UP is a rather hard game where you have to assist this cheerful, singing Blob in jumping through 9 different tracks.So far... | Read more »
The Drive : Devil's Run (Games)
The Drive : Devil's Run 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: ON THE ROAD AGAIN! The Drive - Devil’s Run is classic point to point style racing game that pays homage to the classics... | Read more »
Procreate Pocket (Entertainment)
Procreate Pocket 1.01 Device: iOS iPhone Category: Entertainment Price: $2.99, Version: 1.01 (iTunes) Description: Create - anytime, anywhere. Made by the developers of the award-winning Procreate® for iPad®, Procreate Pocket™ allows... | Read more »
IRON FINGER - Mini Games Championship (...
IRON FINGER - Mini Games Championship 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Quick to play, easy to learn yet hard to master.. TAP, SWIPE & TILT your way through mini games that... | Read more »

Price Scanner via MacPrices.net

KMI MIDI K-Board Great Gift for Amateur &...
The K-Board is a MIDI Nano keyboard for music creation for iPad, Android, And computers; the easiest way to make music with iPads & Android tablets, and Mac, Windows, or Linux computers. Ultra-... Read more
Amazon offers 15-inch 2.2GHz Retina MacBook P...
 Amazon.com has the 15″ 2.2GHz Retina MacBook Pro on sale for $1699 including free shipping. Their price is $300 off MSRP. Stock is limited, so act now if you’re interested. Read more
Holiday sales continue: MacBook Pros for up t...
 B&H Photo has new MacBook Pros on sale for up to $300 off MSRP as part of their Holiday pricing. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro: $1699... Read more
Google Search App For iOS Gets A Major Makeov...
Google has given iOS users an early Christmas present with a substantial update of it’s not-very-often-upgraded Google Search app. Google Search has been my go-to tool for Web searches since it was... Read more
ShopKeep Apple Pay And Chip Card Reader Avail...
ShopKeep, a cloud-based technology provider to more than 10,000 small business owners to manage retail shops and restaurants with iPads, has released its new Apple Pay and chip card reader. This... Read more
Holiday sale! 27-inch 5K iMac for $2299, save...
 B&H Photo has the 27″ 3.5GHz 5K iMac in stock today and on sale for $2299 including free shipping plus NY sales tax only. Their price is $200 off MSRP, and it’s the lowest price available for... Read more
Holiday Sale! 3.7GHz Quad Core Mac Pro availa...
 B&H Photo has the 3.7GHz Quad Core Mac Pro on sale for $2599 including free shipping plus NY sales tax only. Their price is $400 off MSRP, and it’s the lowest price for this model from any... Read more
iPhone 6 Number 3 Canadian Google Search Of 2...
CTVNews.ca reports that Apple’s iPhone 6 was the third highest-trending Google Canada search topic of 2014, exceeded only by Robin Williams largely after his death by suicide in August, and the FIFA... Read more
New iPad mini 3 Counter-Top & Wall Mount...
newMacgadgets has announced new secure all-acrylic displays for the iPad mini 3 (also works fine with the mini 2, last year’s iPad mini With Retina Display, and the original iPad mini). The new iPad... Read more
Holiday sales continue, MacBook Airs for up t...
B&H Photo has 2014 MacBook Airs on sale for up to $120 off MSRP, for a limited time, for the Thanksgiving/Christmas Holiday shopping season. Shipping is free, and B&H charges NY sales tax... Read more

Jobs Board

*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
Project Manager / Business Analyst, WW *Appl...
…a senior project manager / business analyst to work within our Worldwide Apple Fulfillment Operations and the Business Process Re-engineering team. This role will work Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.