One of the essential steps new business owners must take when launching their companies is to apply for an EIN Number. An Employee Identification Number (also known as a "Federal Tax ID Number" or "Tax ID Number") is a nine-digit number assigned to a business for filing taxes, submitting reports to the state, applying for business licenses and permits, and completing other documentation. Similar to how a social security number serves as identification for an individual, an EIN serves to identify a business. The IRS issues EINs at no charge. EIN Number Eligibility Requirements The IRS accepts EIN [...]
As a CPA, you probably sometimes find that clients inquire about more than just their business’s taxes and finances. With the strong connection between their money and all aspects of their companies, they may toss you questions about a variety of business compliance issues that aren’t in your normal area of focus. You need to exercise caution in responding because your insight shouldn’t take the place of proper legal counsel or human resources guidance. But having a working knowledge of diverse compliance topics can help you aid your client’s understanding of certain issues and steer them to the [...]
If you're considering forming a limited liability company (LLC) in Michigan, you're probably wondering what paperwork the state requires. For example, do you need Articles of Organization for a Michigan LLC? That's one of the common questions we field here at CorpNet—for Michigan and the other 49 states in the U.S. Articles of Organization – Michigan: Does Your LLC Need Them? The answer is yes. In the state of Michigan, an LLC must file an Articles of Organization form with the Corporations, Securities & Commercial Licensing Bureau of the Michigan Department of Licensing and Regulatory Affairs. The Bureau [...]
Thinking of starting a business in Wyoming? Or maybe you already have one there, but want to change your business structure to an LLC. Either way, you need the scoop on how to form an LLC in Wyoming, as well as what it’ll cost you. Why Form an LLC in Wyoming The LLC — or Limited Liability Company — is a smart choice for your business structure. It protects your personal finances, home, vehicles, and other assets from being seized to cover your business’ expenses. It can also make it easier to position your business to borrow money [...]
Have you been thinking about making your dream of starting your own business in the beautiful Pacific Northwest a reality but not sure how to begin? This post will help guide you through the process of registering a business in Oregon – one of the most scenic and culturally diverse states in the region. Registering a Business in Oregon - What You Need to Know Before we begin, realize the information going forward assumes that you have already decided that operating your business as a sole proprietorship or general partnership (if you will have multiple owners) is not for [...]
The multi-member LLC is a Limited Liability Company with more than one owner. It is a separate legal entity from its owners, but not a separate tax entity. A business with multiple owners operates as a general partnership, by default, unless registered with the state as an LLC or corporation. Would it make sense for you to form your business as a multiple member LLC? To arrive at that answer, you need to consider how choosing that business entity type will impact you legally, administratively, operationally, and from a tax perspective. I encourage you to speak with an [...]
Have you considered incorporating in California but you're just not sure where to begin? As a California business owner, I’m excited to help guide other entrepreneurs get their companies up and running in this fine state. In this post, I’m going to walk you through the process of forming a corporation in California. But first, let’s take a look at the various kinds of corporations the state recognizes. Types of Corporations in California General For-Profit Corporation (General Stock Corporation) - A General For-Profit Corporation is a legal entity, separate from the shareholders who own its stock. It can exist [...]
At CorpNet, we field a lot of questions centered on what aspiring entrepreneurs need to do from an IRS-standpoint to start a business. Almost daily, I see inquiries arrive about obtaining an EIN (Employer Identification Number). I’m glad people ask about that because it is indeed an important item to check off a startup’s to-do list. What Is An Employer Identification Number? You may see EINs also referred to as “Federal ID number,” “Tax ID Number,” or Federal Tax ID Number.” It is a nine-digit number used for tax filing and reporting and for other business documentation purposes. [...]
Here at CorpNet, we are often asked how to form an LLC, also referred to as a Limited Liability Company, when wanting to start a business. To be clear, an LLC is not a business license; as one cannot obtain an LLC license. A Limited Liability Company (LLC) is a legal entity that bears similarities to both corporations and partnerships. An LLC is formed under specific state statutes that provide for the creation and regulation of this special type of entity that has come to be commonly used and respected in business. An LLC can be used to [...]
Is incorporating a business on your list of to dos for 2015? If so, you’ll set the stage for a fantastic year for your business! Whether you plan to incorporate in California, Tennessee, Ohio, or any of our 50 states, the following tips will make it easier for you.
It's possible to create a separate business entity for each venture you start. However, this can result in excess paperwork and legal filings. And in many cases, each business may not be earning a significant amount of revenue individually, making the paperwork seem especially tedious. To save some headaches and paper, this article provdies you with great tips to consider when dealing with multiple business types.
Incorporating a business or forming an LLC is a relatively quick and painless process. However, while it may seem straightforward, there are some common mistakes that business owners make that can have a significant impact on their business as discussed in this blog post.
As a business owner, the day will come when you inevitably will have to address the legal aspects of your business – and the sooner the better. And, fortunately, the process can be relatively painless and hassle-free. I talk to countless small business owners and freelancers who consider themselves too small to worry about incorporation. After all, you don't have mazes of cubicles…you may not even have any employees. However, incorporation can still be a smart idea even for the self-employed graphic designer or wedding planner and in this post we discuss the benefits of incorporating your small business.
Many small businesses consider themselves 'too small' to worry about incorporation. However, whetherowever, you're a self-employed social media consultant or a landscaper, incorporating or forming an LLC (Limited Liability Company) must be on the top of your business strat-up checklist so you can protect your personal assets against liability and save on taxes!
Another summer is officially over. It’s time to start trading in beach towels for some warmer clothes. For the busy entrepreneur and business owner, September marks the perfect time to focus on goals. September is your month…and it’s time to turn your dreams into reality. Whether you’re considering starting your own business, or your business is already in full swing, the start of fall is a perfect time to take stock of what needs to get done–because, believe it or not, the New Year is right around the corner.
In business, like in life, there are going to be parts you love, and parts you’d rather sweep under the rug for awhile. More often than not, the legal aspects of running a business are pushed aside as you focus on serving your customers and making money. While the legal fine print may not be the most glamorous or exciting part of your business, it can be absolutely critical to the success of your business, and the safety of your personal savings. In this post, I'll be providing a quick rundown of the laws and regulations you need to consider for your small business as a small business owner.
To combat the tough climate, some franchisors have been taking steps to make their systems more affordable to potential owners - anything from offering incentives to in-house financing. For the small business owner looking to franchise their concept, in-house financing is probably not a realistic option. However, there are some smaller steps franchisors can take to help ease the process for new owners. One possibility is helping new owners navigate some of the legal requirements associated with setting up their business after the franchise agreement has been signed. By partnering with a legal document filing service, you can give franchisees a head start toward Incorporating (either a C Corporation or S Corporation), forming an LLC, or filing a DBA (aka Registering a Fictitious Business Name).
As a small business owner/entrepreneur, you're always in the flurry of thinking about how to increase sales, juggling appointments, figuring out what’s for dinner and trying to find some down time for yourself, it’s all too easy to forget or put off some of the legal aspects of your business....And while legal regulations may not be the most glamorous part of your business, they’re absolutely critical. In this post, business laws and regulations will be discussed to provide you with what you need to do to make your business legal.
Nevada and Delaware are popular states for good reason. Many larger corporations choose Delaware because it offers some of the most developed, flexible, and pro-business statutes in the country. And Nevada is increasingly becoming a popular choice for businesses due to its low filing fees, as well as the lack of state corporate income, franchise, and personal income taxes. However, most small businesses never see the benefits from incorporating in these states, and end up with a lot more headaches and costs than they ever anticipated. As a general rule of thumb, I like to say that if a small corporation or LLC has less than 5 shareholders or members, it is best to incorporate in the state where the business has a physical presence.
Too often, small business owners consider their ventures too small to worry about forming a business structure…that having an “Inc.” or “LLC” after the company name is only for large businesses with mazes of cubicles and a big payroll. The assumption here is that adding an “Inc.” or “LLC” after your company name means you need to trade in your small business feel for a power suit and cubicle. However, this couldn’t be farther from the truth. There's no reason that business culture and identity need to be linked with your business' legal formation. To put it another way, you can take your legal considerations seriously, while still having fun, and staying 'small'.