/Tag:LLC

Start & Run Your Business Right: Join Our Facebook Group and Partner Program

The process of starting a business is both thrilling and intimidating. There’s the exhilaration that comes from working through the details and making the dream a reality. And then, there are the business formation options and ongoing compliance requirements that often raise questions and sometimes cause confusion.

That’s why I’m hosting the “Business Formations & Compliance” Facebook group.

The group is a place where business owners and aspiring entrepreneurs can get insight on anything related to forming a business and complying with the rules to keep it in good standing. You can join for free, so there’s no reason not to take advantage of the expertise you’ll find there!

What Can You Expect?

We’ll cover a breadth of topics related to starting and maintaining a business that complies with federal and state requirements.

A few examples include:

  • Filing a DBA
  • Forming an LLC with an S Corp election
  • Incorporating as a C Corporation
  • Annual report obligations
  • Corporate minutes
  • Business name searches
  • Trademark filings

And that’s just the tip of the iceberg. No matter what filing requirements you need more information about, I’ll be there to answer the questions you and other group members post.

You can also meet up with me on Facebook Live Fridays when I’m available in real time to offer tips and insight.

Also New: The CorpNet Partner Program

CorpNet has launched a Partner Program for accountants, bookkeepers, attorneys, business advisors, and other service professionals that wish to give their clients additional value. As our Partner, you can offer formation and compliance services to your customers—with all fulfillment and liability handled by CorpNet. Sign up for free today! Besides strengthening your client relationships, you’ll also get 50 percent of the profits from any formation and compliance services that you sell.*

Seize The Possibilities!

Join the Business Formations & Compliance Facebook group and check out our CorpNet Partner Program. Bringing insight, education, and the potential for additional income, these platforms offer opportunities for empowerment and growth.

*50% commission is based on our gross revenue – minus costs. The 50% profit sharing for partners is a limited offering for early birds. Please sign up now to be grandfathered and start earning right away.

How To Choose And Legally Use Your Business Name

The name you choose for your business will be one of your most powerful and valuable assets. As one of the primary ways customers distinguish you from your competitors, your business name wields a lot of power. The right name can help propel you to success; the wrong name can put you at a disadvantage.

Besides choosing a business name that:

  • Projects how you want people to view your business (e.g., edgy, professional, high-tech, academic, approachable, etc.)
  • Makes it easy for customers to identify what you do.
  • Is simple enough to be memorable.

I encourage you to have all your legal i’s dotted and t’s crossed when selecting a name.

How To Choose A Business Name That’s Yours To Use

Start on the right path immediately by making sure another company doesn’t already have dibs on the business name you’d like to use. If someone else has already claimed it, you could end up in legal trouble if you start using it online and printing it on business cards, checks, marketing materials, etc.

How can you know your preferred business name isn’t spoken for already?

Use a business name search tool or contact your state filing office to see if the name you want to use is currently claimed within your state. Also, I encourage you to use a trademark search application tool to see if the name is available in all of the United States. That will allow you to identify if anyone else has registered for, been granted, or abandoned a trademark for your name.

How To Make The Name Officially Yours

So, you say your name is available? Great!

Now it’s time to make it legally yours within the state you’ll operate your business. As I mentioned earlier, your name represents your brand. If another company offering similar products and services were to use the same (or a very similar) name, it could confuse customers and damage your professional reputation.

If you’re a sole proprietor or partnership, filing a DBA (“Doing Business As”)—also known as a fictitious name—to protect your name in the state doesn’t cost a lot of time or money. If you plan to use your own personal first and last name in your business name, you will not need a DBA. For example, Celia Washington wouldn’t have to register “Celia Washington’s Bookkeeping Services ” as a DBA.

By registering your business as a formal legal entity (Limited Liability Company or Corporation) in your state, your business name will automatically become protected in that state. Realize, however, that another business in another state could use your name there. Also, it’s legal for a sole proprietorship or partnership to use your name as a DBA in your state.

If simply registering in your state doesn’t put you at ease about your rights to your business name, I recommend you consider filing for a federal trademark. If the U.S. Patent and Trademark Office (USPTO) grants your trademark request, it will be illegal for others to use your business name in any of the 50 states.

Don’t Hesitate To Seek Expert Assistance

To avoid lost time and money when choosing a name and taking legal steps to protect it, I encourage you to consult with professionals who can guide and assist you. Consider seeking the input and feedback of branding experts with experience in zeroing in on a business name that will serve your company for the long term. Other helpful resources include attorneys who can advise you in making sound decisions and step you through the legal process of securing and registering your business name. And when you need to prepare the necessary documents to register your business with your state or file for a federal trademark, you might save a heap of time and money by using a reputable online business document filing service.

As you can see, choosing a business name demands more than just slapping words together. You need to devote some thought and time to it. But I assure you, it will be time and energy well spent. Remember, your business name has influence that could make or break your brand.

By | May 22nd, 2017|Naming Your Business|0 Comments

Registered Agents – FAQs

Happy May! This month, we will be going over the requirements for being or maintaining a registered agent and what the registered agent does for your business.

 

Q: What is the purpose of the registered agent?

A: The registered agent is the person named to receive important legal and tax documents on behalf of a business in a given state. This includes important mail sent by the state (annual reports or statements), state tax documents, as well as any Notices of Litigation. Virtually all states require corporations, LLCs, LLPs, LPs and nonprofits to appoint a registered agent in the state where the company is formed. And, if a company registers to transact business in another state (via a foreign qualification), it will typically need a registered agent in that state too.

 

Q: What are the requirements for a registered agent?

A: The registered agent can either be an individual or a company approved by the state to be a registered agent. The registered agent must be located at a street address – P.O. boxes are not acceptable. In most cases, the registered agent also needs to be located in the state where the company is incorporated or qualified to conduct business. Keep in mind that a P.O. box is usually allowed as the mailing address for the business.

 

Q: Can I serve as my company’s registered agent?

A: Yes, absolutely! However, states require that the registered agent must be available at all times during normal business hours to receive and sign for any important documents. That’s because the state needs to make sure a summons, lawsuit, or other official state documents are actually received by the company and not “lost in the mail.” If you’re confident that you’ll always be on hand during normal business hours at the designated address, you can be your registered agent. But most small business owners prefer to have a third party serve as the registered agent for the state.

 

Q: Will my business fall out of good standing without a registered agent?

A: Here’s one scenario of what can happen. Let’s say you fail to maintain a registered agent service, or you choose to serve as your own registered agent and either move or aren’t around to receive an official communication. If an official document from the state can’t be delivered to/accepted by your registered agent, then the state may put your business in bad standing until you update the state records with an active registered agent.

 

Q: What is Service of Process?

A: This refers to the delivery of legal documents such as a lawsuit, summons, subpoena for records, wage garnishment or any other official correspondence from the state. Your business is required to have a registered agent in the state who can receive service of process during normal business hours.

 

Do you have a questions regarding a Registered Agent? Call the CorpNet.com team today for a free business consultation at: 888.449.2638

 

                               

National Small Business Week: What It Means For You And How To Make The Most Of It

Sunday, April 30, 2017, marked the start of National Small Business Week. From that day through Saturday, May 6, the U.S. Small Business Administration (SBA) has organized a variety of events to celebrate small businesses and the impact they have on our national and local economies.

According to the SBA National Small Business Week website, “More than half of Americans either own or work for a small business, and they create about two out of every three new jobs in the U.S. each year.”

I say that’s reason to celebrate! Don’t you agree?

We’re celebrating at CorpNet.com by offering  10 percent off of the cost of any complete business formation package this week only! Visit the CorpNet website’s home page and click the “Get Started” button to view the formation packages for your state. At checkout, use code CNSBW to apply your discount.

Other highlights of the week will include: small business award ceremonies; a live chat over social media with SBA Administrator Linda McMahon and Facebook’s VP and Chief Privacy Officer for Policy Erin Egan about how to start and grow a business; a road tour that kicks off in the Indycar town of Indianapolis and continues with stops in Arlington, Texas and ends in Fresno, California; and free webinars.

What Does This Mean For You?

In a word: Plenty!

As the SBA is promoting National Small Business Week, you can piggyback off the momentum and remind your customers about why supporting small businesses is the way to go.

  • Local small businesses typically hire local people from within their communities.
  • Local small businesses often seek to source raw materials from local suppliers, thus further stimulating the local economy.
  • Local small businesses tend to be vested in and give back to their communities in time, talent, and dollars to improve the lives of those around them.
  • Local small businesses build personal relationships with their customers and nurture a sense of community.

How Can You Get Involved?

For starters, check out the SBA National Small Business Week website for what’s happening each day from April 30 to May 6. Also, generate some buzz by posting about National Small Business Week on social media (hashtag #smallbusinessweek). And consider offering some special deals to draw people to your local small business. Even better, partner with other local small businesses in your area to cross-promote each other’s products, services, and special offers. That’s a powerful way to show your solidarity as small business owners.

A Time To Shine

SBA’s National Small Business Week is a perfect time to reflect on your business success and move onward to an even brighter future. And if you’re an aspiring entrepreneur who wants to move past kicking the tires and start your own business, what better time to take your first steps?

*Image from the National Small Business Week website*

How to Start an Accounting Firm

If you’re a CPA or an accountant, the transition from working for someone else to being your own boss has probably crossed your mind. Self-employment offers an opportunity to have more control over your own schedule, allowing you to better balance your professional endeavors and personal life. It also enables you to manage your firm the way you want to manage it.

Here’s seven steps to start your own accounting practice:

1. Select a business name

Think about whether you want to market your business using your own name (e.g., “Jane Smith, Accountant”) or create a business name (e.g., “Accounting You Can Count On”). As a solopreneur accountant, you might opt to use your own name because you and your brand are one in the same. On the other hand, choosing a business name might help you be perceived as well-established and experienced.

If you go with a business name, make sure it is available to use before you start printing it on business cards and other marketing materials. Check to see if the name is available in the state where you’re planning to operate your business by checking with your state’s secretary of state office. We have a free business name search tool here at CorpNet that can help, as well.

Also check to see if the domain name for your business is available (e.g., accountingyoucancounton.com). Sites like GoDaddy.com will let you instantly find out if there’s a suitable domain, and they will offer suggestions for alternate names if the one you want is already taken.

No one in your state is using the name you want? Excellent! Next, you’ll want to search the U.S. Patent and Trademark Office to see if anyone has a pending request for or has successfully registered a trademark for the name. Don’t skip this step because you’ll land in legal hot water if you infringe on another company’s trademark.

2. Choose a legal structure and register your business.

The business structure you choose will affect your business from both legal and tax standpoints. Solo accountants and small firms often choose to register as an LLC (Limited Liability Company),  PLLC (Professional Limited Liability Company), or PC (Professional Corporation). As state constructs, these business entities are subject to different rules in different states. You can find the specific rules for accountants in your state via the CorpNet website or you can call the Secretary of State’s office in your state to get the details you need.

3. Obtain the licenses and permits you’ll need.

Regardless of which state you’re operating your business in, you’ll need some form of licensing to provide public accounting services. You will need to hold a CPA license and your firm may need a public accountancy license. To determine the requirements in your state, check with your State Board of Accountancy.

Besides CPA accreditation you may also need other state and local municipality permits, as well. They might include a general business operation license, a signage permit, and possibly a home occupation permit (if you’re operating your business from home. CorpNet can help you determine the license and permit requirements applicable to you, or you can check with your local government office.

4. Apply for a Tax ID Number

Also called a Federal EIN (Employer Identification Number), this allows the IRS to track your business’s transactions. LLCs and corporations are required to have an EIN and many banks will require that you have one before they’ll allow you to open a business bank account.

5. Open a bank account exclusively for your business.

It’s important to keep your personal and business finances separate—for both legal and tax purposes. In fact, that separation is mandatory for LLCs and corporations. After you’ve registered your business with the state and have your Tax ID number, you will have the information you need to open a business bank account.

6. Get insurance to protect your business.

Even though officially forming an LLC or incorporating your business will help to lower your personal liability related to business debt and lawsuits against associates, it will not protect your personal assets if action is brought against you due to your own actions. That’s why it’s a good idea to consider getting an insurance policy for peace of mind. Talk with a knowledgeable and trustworthy insurance agent who understands the needs of accountants and other businesses in the financial services industry. A reliable agent can guide you to the type of coverage that will best protect you, such as a Business Owner’s Policy (BOP), Professional Liability, Insurance, Data Breach Coverage, or others.

7. Know your business compliance responsibilities.

Registering your business is just the beginning. LLCs and corporations have ongoing requirements to keep their businesses in good standing. For example, most states require LLCs and PLLCs to file an annual report each year and show proof of a valid certification. Corporations have more corporate compliance responsibilities. Besides annual reports, they must conduct annual meetings, prepare meeting minutes, and meet other compliance requirements.

I know it can be tough to keep up with everything that’s required and when it’s due, so I recommend using the CorpNet B.I.Z. (Business Information Zone) compliance tool. It’s a free monitoring tool that can help you stay on top of your state filings and fees due throughout the year.

The steps to starting an accounting business aren’t overly complex. To make sure you launch your business on solid legal ground, you’ll want to make sure you do it right. Consider talking with a legal professional who can guide you and look to CorpNet to ensure your business forms and filings are done accurately and on time.

 

Annual Reports – FAQs

Happy March! This month, we’re discussing Annual Reports and why they are pertinent to your business.

Q: What is an Annual Report?
A: Also known as a Statement of Information, the Annual Report essentially keeps the state up to date with your company’s vital information. For example, you may be asked to submit information about directors and officers, and the registered agent and office address of the company, especially if any of this has changed in the last year. In most states, there’s also a small filing fee associated with the report.

Q: Do I need to file an annual report for an LLC?
A: While an LLC involves significantly less formal administration than a corporation, LLCs are still required to file an Annual Report in most states. Not every state requires an Annual Report – and each state has its own rules on how often and when the report must be paid. The first thing to do is to understand the requirements for your state; you can either contact your secretary of state office or sign up for CorpNet’s free B.I.Z. service. B.I.Z. is free to any small business (whether you incorporated through CorpNet or not) and sends you alerts for any upcoming deadlines.

Q: What are the consequences for failing to file an annual report when required?
A: Missing an Annual Report deadline can result in late penalties and fees, and who wants to pay money unnecessarily? In the worst case scenario, your company can be suspended or dissolved.

Do you need help filing an annual report or have questions regarding the process? Call the CorpNet.com team today for a free business consultation at: 888.449.2638

S Corporation Election Deadline Is Almost Here: What Startups And Existing Businesses Need To Know

If you’ve legally established your business as a C Corporation or Limited Liability Company (LLC) that has elected to be viewed as a corporation for tax purposes, you have the option of filing IRS Form 2553 to get S Corporation tax treatment.

Why would you want to do so, you ask? Because it could make a big impact on your business’s bottom line.

The Potential Advantage for LLCs

LLC owners who find themselves with a high self-employment tax burden might benefit from choosing the S Corp election. LLCs are normally taxed like sole proprietorships—with all business profits subject to self-employment taxes. With S Corp tax treatment, self-employment taxes are only applied to wages and salaries rather than on all business profits.

The Potential Advantage for C Corporations

C Corporations can benefit from S Corp election because it avoids the costly double taxation C Corps normally face.

As a completely separate entity from its owners, a C Corp essentially pays taxes twice on its income:

1) When the corporation makes money, it files a tax return and pays taxes on those profits, and

2) If the corporation distributes profits to shareholders, those distributions get taxed again on the shareholders’ personal tax returns.

If a C Corporation opts to be treated as an S Corp for tax purposes, however, the business itself doesn’t file its own taxes. Instead, shareholders report their individual shares of the business’s profits and losses on their own personal tax returns.

For instance, if you’re an S Corporation shareholder with 50 percent ownership of the business, you would pay taxes on 50 percent of the profits. That income would be taxed as a profit distribution, and you might get a favorable tax rate. Note that you would also pay taxes on any income you received as wages and salaries (and that portion of your income would be subject to self-employment taxes).

Ultimately, the advantage of filing for S Corporation tax treatment comes from the fact that the corporation doesn’t pay taxes on its profits—all profits flow through to the individual shareholders’ tax returns.

Heads Up: The S Corporation Election Deadline Is Approaching

To make the S Corp election, you need to file Form 2553. If you want the election to be effective in the next tax year, you can file at any time during the tax year prior. If you’re filing in the year you want it to be effective, you must do so no more than two months and 15 days after the beginning of the tax year. According to the IRS, the “2-month period begins on the day of the month the tax year begins and ends with the close of the day before the numerically corresponding day of the second calendar month following that month. If there is no corresponding day, use the close of the last day of the calendar month.”

For existing C Corporations and LLCs, you have until March 21 to take the S Corp election for 2017.

New companies have 75 days from the date of their incorporation to file Form 2553. If they meet that deadline, they’ll receive S Corp tax treatment starting in their first tax year.

IRS Form 2553 provides additional detail about the filing deadlines and other important information, including S Corporation election eligibility restrictions.

Time Is Of The Essence For 2017

If you’re considering the S Corporation election for 2017, I recommend talking with a tax advisor to determine the potential impact it will have on your businesses tax obligations. If you find it is a great fit for your business, contact CorpNet as soon as possible to take care of filing your Form 2553 so you have the peace of mind it’s completed accurately. There’s still time (but not much!) to get it done before the deadline.

By | March 2nd, 2017|Other|0 Comments

Foreign Qualifying your Business – FAQs

Happy February! With winter now in full swing, we will be talking about a way to get away from the cold with Foreign Qualifying! This month, we discuss the opportunities of Foreign Qualification into another state and what the requirements are for those states.

 

Q: What is foreign qualification?

A: A corporation or LLC transacting business in a state(s) outside of their state of incorporation is typically required to foreign qualify in those other states.

 

Q: What constitutes transacting business in another state and when do I need to foreign qualify?

A: As examples, your company is considered to be transacting business in an additional state if…

  • You have a physical presence in the state
  • You have employees in the state
  • You accept orders in the state
  • You have a bank account in the state

State rules vary and this isn’t a complete list. If you have any questions about whether you need to foreign qualify in a state, you can speak with an attorney.

 

Q: If I incorporated in Delaware or Nevada (but don’t live/work there), does this mean I need to foreign qualify in my own state?

A: Delaware is often chosen as the state of incorporation, especially by larger companies, because it has the most developed and flexible corporate statutes in the country and is considered pro-business.  Nevada has also become popular because of its lack of state corporate income tax, franchise tax and personal income tax.  It also has relatively low fees.

However, if you incorporate out-of-state, such as in Delaware or in Nevada, but do much of your business in your home state, you will most likely need to foreign qualify in your own state. You will then be subject to the same fees, taxes and regulations as if you had incorporated there in the first place, and you will have paid filing fees (and, perhaps franchise taxes) to more than one state.

Example: If you have a small business and are going to be conducting a substantial amount of your business in California, it will likely be beneficial to incorporate in the state of California. If you incorporate out-of-state, such as in Delaware or in Nevada, but do much of your business in California, you will have to foreign qualify in the state of California. You will then be subject to the same fees, taxes and regulations as if you had incorporated in the California in the first place, and you will have paid state filing fees (and, perhaps franchise taxes) not only in the state of California but also to the state of Delaware or Nevada as well.

 

Q: What is the process to foreign qualify?

A: You will need to file a Certificate of Authority, which grants a foreign corporation/LLC permission to transact business in a state. In most cases, you will need to show a Certificate of Good Standing from your state of incorporation/formation in order to get a Certificate of Authority.

 

Do you have a question regarding Foreign Qualifications? Call the CorpNet.com team today for a free business consultation at: 888.449.2638

 

 

Nellie in the News – January 2017

Another month has flown by – 2017 is off to a great start for us in the CorpNet office! Our New Year’s resolutions are still going strong. How about you?

Our CEO, Nellie Akalp has been busy as always in the press letting you know the best ways to start your business and how CorpNet can help! Call us today to incorporate, Form an LLC, file a DBA or for your other business formation needs.

Here’s a recap of what was published in January!

Interviews & press Mentions

Small Business Trends – 10 Essential Ingredients of a Successful Business http://bit.ly/2kjz7ti

Fundera – 19 Entrepreneurs Still on the Worst Business Advice They’ve Received http://bit.ly/2i1EA5H

tech.co – 14 Entrepreneurs Share Their Biggest Business Mistakes http://bit.ly/2js47WO

Neshprint – Top 18 Business Experts to Follow on Twitter http://bit.ly/2jVWZm0

Expert Contributed Posts

AllBusiness – Is Your Business Ready for the New Year? Here’s a Handy Checklist http://bit.ly/2j55HL4

franchise.org – Finding the Right Legal Structure for your Franchise http://bit.ly/2iN2KQo

Secret Entourage – Thinking of Selling your Business? Do these Things First http://bit.ly/2j06RYO

Small Business Trends – Is it Time to Incorporate your Business in the New Year? http://bit.ly/2iVOAwm

Huffington Post – Five Ways to Bring More Authenticity To Your Social Media http://huff.to/2jrfgEc

CRE Online – What’s the Best Way to Structure Multiple Real Estate Investments? http://bit.ly/2j24TaP

Accounting Today – How to Help Your Clients Decide if They Should Incorporate or Form an LLC http://bit.ly/2ihDnEj

Mashable – What’s the Best Business Structure For a First Time Founder? http://on.mash.to/2jg88Oe

Entrepreneur – How to Keep Proper Corporate Records http://bit.ly/2iPJjEN

Entrepreneur – The Pros and Cons of Incorporating in Delaware http://bit.ly/2jiAmaO

AllBusiness – Five Things Seasoned Small Business Owners can Learn from Rookie Entrepreneurs http://bit.ly/2jSdfCF

 

 

 

By | February 1st, 2017|Nellie in the News, Other|0 Comments