LLCs

Sole Proprietor vs. LLC

If you’re the sole owner of a business, you may have pondered the question: “Should I operate as a sole proprietor or a single member LLC?” Decisions, decisions! So what else is new when running a business, right? There are always choices to make—and deciding which business entity type will be right for your company is one not to be made lightly. The type of business structure you choose will have legal and financial implications. It will also affect the time you spend on efforts to keep your business compliant with whatever rules must be followed for the [...]

2018-09-29T14:42:55+00:00 October 2nd, 2018|Categories: Startup and Launch|Tags: , |

Do You Need a Corporate Veil?

What Is the “Corporate Veil”? When a company is formed as a Limited Liability Company (LLC) or corporation, it is regarded as its own legal entity. Therefore, the business—rather than its owners—is held accountable for its debts and legal responsibilities. “Corporate veil” (also called a “corporate shield”) is a business term that refers to the legal distinction between an LLC or corporation and its owner(s). It is the legal separation established by keeping a company’s activities, assets. and liabilities independent from those of the business owner(s). Is it Necessary? The corporate veil, when kept intact, helps protect a [...]

2018-08-28T16:28:05+00:00 August 29th, 2018|Categories: Ongoing Management and Protection|Tags: |

How to Legally Start a Food Truck Business

You’ve likely seen them on busy city streets or at the town fair. They’re also popular sitting outside breweries and concert venues. Schools often hire them for fundraising events. We’re talking food trucks, of course. According to Food Truck Nation, food trucks brought in an estimated $2.7 billion in revenue in 2017, and this industry is not done growing. The road to success with a food truck business is one paved with growth and opportunity, as long as you know (and follow) the rules of the road. Whether you’re adding a food truck to your existing brick-and-mortar restaurant [...]

2018-08-14T04:49:19+00:00 August 15th, 2018|Categories: Startup and Launch|Tags: , , , , |

Do Uber Drivers Need an LLC?

Uber drivers, even those doing rideshare driving as a side-gig, are considered to be earning income through self-employment. Just like other self-employed independent contractors, they face some critical startup decisions—including what business entity type to choose for their business. Should Uber Drivers Form an LLC? After signing the Uber contract to designate themselves as a self-employed private contractor, Uber drivers face the decision of what type of business structure they should operate under. They shouldn’t take this lightly, because the business structure chosen will affect their tax obligations and degree of personal liability. When Uber drivers don’t establish [...]

2018-08-07T05:54:44+00:00 August 7th, 2018|Categories: Startup and Launch|Tags: , |

What Is the LLC Tax Rate?

Before forming an LLC, many entrepreneurs ask about the standard LLC tax rate to see if this form of entity is a solid option for their new business. This is an excellent question and one that can be best answered by exploring what an LLC is and how it is taxed. The LLC (limited liability company) business entity type is one of the most popular selected by small business owners. It shields the owner’s personal assets from the liabilities of the business and may result in some tax savings to boot. The LLC is an entity formed according [...]

2018-08-02T13:34:10+00:00 August 2nd, 2018|Categories: Ongoing Management and Protection|Tags: , , , , , |

Fictitious Name Registration: Know What It Is and Why You Need One

Why You Might Need to Process a Fictitious Name Registration As a small business owner, it’s important to able to pivot quickly if the marketplace isn’t buying what you sell. That was a lesson I learned immediately after I started my business in 2008. Initially, our business planned to connect small and midsized business owners with companies that wanted to market to them. But did I mention it was 2008? As the economy crashed, big companies cut their budgets and the costly services we’d planned to sell were a no go. We had to start over, including using fictitious [...]

2018-06-12T07:51:17+00:00 June 12th, 2018|Categories: Ongoing Management and Protection|Tags: , |

What an LLC Statement of Information Is and Why You Need One

What is an LLC Statement of Information? No matter which state your Limited Liability Company is located in, you will need to file documentation with the Secretary of State to establish your company and keep it legally compliant. A Statement of Information is one of the standard reporting requirements that many LLCs across the United States must adhere to. A state may require a Statement of Information as an "Initial Report," due shortly after registering a business. Moreover, many states mandate LLCs to submit a Statement of Information (also sometimes called an "Annual Report") each year, every other [...]

2018-06-05T11:55:00+00:00 June 7th, 2018|Categories: Ongoing Management and Protection|Tags: |

LLC vs. PLLC: Which Structure is Right for Your Business?

Choosing the appropriate form of business for your company is complicated—and if you are an attorney, physician, accountant, architect or other licensed professional, there are some extra factors to consider. As a professional, you may want to opt for the liability protection and flexibility that a limited liability company (LLC) offers, as opposed to forming a corporation or partnership. But in many states, professionals whose jobs require licensing by the state aren’t legally allowed to form an LLC. Instead, they must form a professional limited liability company (PLLC). In this article, we’ll look at the difference between an [...]

2018-05-29T06:37:28+00:00 May 29th, 2018|Categories: Startup and Launch|Tags: , |

The Accountant’s Role in Business Formation

How much do you value your accountant? If you answered “plenty!” then you’re in good company. According to a survey* by Wasp Barcode Technologies, small business owners ranked accountants as the most important professional to their businesses. Not surprisingly, when asked how familiar the business owners are with accounting functions, most answered in the middle range. Most business owners would never attempt to file their business taxes without the help of an expert accountant, so why wouldn’t you turn to your accountant for help with business formation, too? Most business owners hire an accountant for taxes and accounts [...]

Can Accountants and CPAs Help Clients File an LLC?

This weekend there was a question posted on Facebook asking this very question. Can accounting professionals, like CPAs or staff accountants, help their clients file LLC formation documents? Is this considered "practicing law" or is it part of a firm's standard accounting services? Here is the Original Question   Here is an answer from a group member:   This woman hits the answer spot-on. Since this is such a great question, I believe it deserves exposure outside of Facebook so I wanted to cover it on our blog as well. Here was my answer inside of the Facebook [...]

2018-06-05T06:16:01+00:00 March 27th, 2018|Categories: Ongoing Management and Protection|Tags: , |

How to Budget as a Freelancer

Creating a budget as a freelancer shouldn’t be any harder than it is for any other small business. And yet, the rollercoaster ride of finding and keeping clients, collecting invoices, marketing your business and juggling all of this yourself can create major budgeting headaches. Income predictability is a challenge unique to freelancers, according to a recent survey by Upwork and Freelancers Union. Fortunately, there are many simple steps you can take better learn how to budget as a freelancer. Step 1: Keep Business and Personal Finances Separate Even if you used personal assets to start your freelance business, [...]

2018-01-18T06:19:50+00:00 February 15th, 2018|Categories: Ongoing Management and Protection|Tags: , , , , |

Benefits of an S-Corporation

Incorporating is one of our favorite services, not only for the tax savings it provides those who are self-employed, but also for the asset protection it offers those with passive real estate investments or one-off productions in the entertainment industry. Before we dive into the benefits of an S-Corporation, let’s first understand each type of business entity: S-Corporation: Entity used to assist self-employed individuals transition from small to medium sized business structure. Only entity that allows the self-employed to reduce social security and Medicare tax (SE tax). An S-Corporation can also be an LLC electing to be taxed [...]

2018-01-09T06:13:59+00:00 January 18th, 2018|Categories: Startup and Launch|Tags: , , , , , , |

Can I Change My Registered Agent?

If your business is a Limited Liability Company (LLC) or corporation, you must appoint a registered agent to accept service of process for your company. Assigning an authorized registered agent is necessary for keeping your business legally compliant and maintaining good standing in the state(s) in which you operate. Your registered agent is the entity—an individual or business in the state(s) in which your company conducts business—that will receive legal documents on your behalf. Examples of the types of mail that goes to your registered agent include: Tax notices Federal and state correspondence Notice of lawsuits Summonses to [...]

2018-01-09T06:13:17+00:00 January 11th, 2018|Categories: Other|Tags: , |

6 Business-Boosting Benefits of Incorporating Your Company

One of the most critical decisions you will make as a business owner is choosing the business entity type for your company. Sole proprietor or partnership? Limited Liability Company (LLC), or corporation? Decisions, decisions! For many of the entrepreneurs that I work with, incorporating offers a variety of advantages legally and financially over operating as a sole proprietorship, partnership, or LLC (Limited Liability Company). You should talk with your attorney and accountant or tax advisor before you select a business structure because it’s important that you fully understand the pros, cons, and your compliance responsibilities. To get you [...]

2018-02-22T06:03:48+00:00 January 2nd, 2018|Categories: Startup and Launch|Tags: , |

The CPA’s Guide to Assisting Clients with Business Compliance Issues

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 [...]

2017-12-27T12:58:02+00:00 December 29th, 2017|Categories: Ongoing Management and Protection|Tags: , , , , , , |

How to Start a Trucking Business

If you’ve always wanted to start a trucking business, now could be the perfect time to put your plan into action. In the third quarter of 2017, e-commerce accounted for 9.1% of overall retail sales—almost double the figure from 2010. Online retailing’s popularity is just one reason the amount of goods hauled by truck is projected to grow by more than 3% annually for the next five years, according to the American Trucking Associations (ATA). Demand for trucking will be so great that the ATA predicts the industry will need to recruit almost 100,000 new drivers per year. [...]

2017-12-18T10:36:23+00:00 December 27th, 2017|Categories: Startup and Launch|Tags: , |

What is the Best Time of Year to Form an LLC?

Have you been thinking of launching a new business or changing your existing sole proprietorship to a formal business entity type? Are you concerned that you might not be selecting the best time of year to form an LLC? So When Really is the Best Time of Year to Form an LLC? There's never a bad time to register your business as a legal entity—doing so helps protect your personal assets and might offer some tax advantages, as well. But filing your paperwork to make it effective before the New Year has its perks! So if you are [...]

2017-12-20T04:01:00+00:00 December 13th, 2017|Categories: Startup and Launch|Tags: , , , |

Is a Farm LLC Really Necessary?

Starting and running a farming business provides opportunity and the freedom to forge your own professional path. There’s hard work involved, of course—farming is a 24/7 commitment. And an agricultural business comes with many of the same risks that other types of companies do—and some that other types of businesses do not. A farming business faces many uncontrollable threats such as economic downturns, droughts, floods, accidents related to the use of large equipment, unseasonable freezing weather, and even food trends that may put certain ingredients on the outs. Farming, while it can be fulfilling and financially sustaining, comes [...]

2017-12-06T15:12:20+00:00 December 6th, 2017|Categories: Startup and Launch|Tags: , , , , |

The What, Why, and How of LLC Insurance

Does your LLC need insurance? LLC insurance coverage is a measure you can take to help protect your business assets in the event of a legal claim against your company. While forming an LLC creates a separation between your personal assets and those of your business, having insurance for your LLC helps guard your company against losses as a result of circumstances in the course of doing business. How Do You Know What Kind of LLC Insurance You’ll Need? The type and amount of LLC insurance coverage will depend on a variety of factors including the level of [...]

2017-11-27T14:18:37+00:00 December 1st, 2017|Categories: Ongoing Management and Protection|Tags: , |

Do I Need Articles of Organization For a Michigan LLC?

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 [...]

2017-11-14T03:54:21+00:00 November 13th, 2017|Categories: Startup and Launch|Tags: , , , |