The Launch Blog: Expert Advice from the CorpNet Team

What California’s AB 5 Means for the Gig Economy

In 2020, the hot topic is California’s Assembly Bill 5, often called the “Gig Economy Bill.” This is because AB 5 makes it difficult to be an independent contractor in California. Before we examine AB 5 in detail, let’s understand why California legislators passed the bill in their own words: THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) On April 30, 2018, the California Supreme Court issued a unanimous decision in Dynamex Operations West, Inc. v. Superior Court of Los [...]

January 15th, 2020|Categories: Ongoing Management and Protection|

Tax Savings Features of Corporations, S Corps and LLCs Under TCJA

The Tax Cuts and Jobs Act (TCJA), made tax law changes that affected every business. Deductions, depreciation, tax credits, and corporate tax rates will make filing taxes different for you and your clients this year. Generally speaking, most of your business clients will do well under the TCJA, but there are a few tax breaks that have been lowered or eliminated. Here’s what you need to know. Changes for Corporations Corporations will feel the biggest impact from TCJA, primarily in a positive way. Pre-TCJA, corporate tax rates were similar to individual tax rates, in [...]

January 13th, 2020|Categories: Ongoing Management and Protection|Tags: |

Remaining Independent Under California’s New AB5 Law

Whether you work as an independent contractor or your business hires independent contractors, California’s new AB5 law, which went into effect January 1, 2020, forces your hand on becoming an employer or an employee depending on how you conduct your business. The Existing Employee vs. Contractor Designation Up to now, you’ve probably made sure you’re adhering to the IRS classification rules for independent contractors, which are as follows: Behavioral Control: A worker is an employee when the business has the right to direct and control the work performed by the worker, such as when [...]

January 10th, 2020|Categories: Ongoing Management and Protection|

Help Your Clients Decide if it’s Time to Incorporate or Form an LLC

Among all the decisions and actions a small business may need to take, one of the more important is deciding whether to incorporate or form an LLC. January is the most logical start date for a new LLC or corporation since it eases the paperwork burden. Your clients can start fresh in the new year with their new legal structure and don’t have to worry about reporting taxes as two different entities for the tax year. At this time of year, sole proprietors and general partnerships may be wondering if it’s time to create [...]

January 9th, 2020|Categories: Ongoing Management and Protection|

Can You Change an LLC Name?

The decision to change an LLC name is one not to consider lightly. After all, your business name is one of your most important brand assets. But sometimes, a name change is in order for one of many reasons. Perhaps there was a mistake in your formation paperwork, so you need to correct the name. Or perhaps the name was fine in the past, but now it's not because it includes the name of a business partner who just retired. Or maybe your business has expanded into other products or services, and the name [...]

January 8th, 2020|Categories: Ongoing Management and Protection|

10 Small Business Resolutions for 2020

The start of a new year provides the perfect opportunity for business owners to set new goals and find unique ways to improve their operations. There are plenty of different options for your 2020 resolutions, from shoring up your finances to organizing your online presence. Here are some suggestions and tips from members of the online small business community. Grow Your Savings with Money New Mindset If one of your resolutions for 2020 is to save more money for your business, you may need to shift your mindset. So how can you look at [...]

January 7th, 2020|Categories: Growth and Expansion|

Is it Time to Revisit C Corporations for Your Small Business Clients?

For more than a decade, I (and probably you too) have typically advised small businesses to opt for a Limited Liability Company over a C corporation due to its ease of administration and tax advantages. However, the 2017 Tax Cuts and Jobs Act now creates the opportunity for big tax savings for C corporations and should make us rethink our general guidance. We’ve got a full tax season under our belts since the Tax Cuts and Job Act was enacted. It’s a good time to take a fresh look at corporate structures and consider [...]

January 3rd, 2020|Categories: Ongoing Management and Protection|

Why a Business Plan is Important for Your Startup

I think it’s safe to say that nearly all business experts agree that all entrepreneurs can benefit from having a business plan. Why is a business plan important for your startup? According to a study by Palo Alto Software, entrepreneurs who have a business plan are about twice as likely to successfully grow their business, attract investors, and get loans than those who did not have one. What is it about a business plan that makes it such an essential ingredient for success? Let’s take a closer look! 12 Reasons Why a Business Plan [...]

January 2nd, 2020|Categories: Growth and Expansion|

The Consequences of Noncompliance in Business

"Business compliance" is a phrase that makes many an entrepreneur cringe. But despite the lack of affection for those two words, business owners MUST take them seriously. The possible consequences for noncompliance range from “mild inconvenience” to “devastating disaster.” Most critical is that noncompliance by Limited Liability Companies and Corporations can lead to “piercing the corporate veil,” which puts business owners’ personal assets at risk. (More on that later!) Before I get into the penalties for noncompliance, let’s first take a moment to discuss what it is exactly. What is Noncompliance in Business? Nearly [...]

December 26th, 2019|Categories: Ongoing Management and Protection|

How to Start a Dropshipping Business

Statistics indicate that a third or more of e-commerce brands use dropshipping as a way to provide products to customers. If you've been thinking about starting an online store but don't want to deal with the costs and hassle of maintaining inventory, you may find the dropshipping business model a viable approach. Ready to learn more about dropshipping as a way to fulfill customer orders? Let’s talk about what it is, some points to consider about the business model, and how to start a dropshipping business. What is Dropshipping? Dropshipping is an order fulfillment [...]

December 18th, 2019|Categories: Startup and Launch|

2020 S Corp Election Deadline – Now Is the Time to Talk With Clients

A brand new year is ahead, which means you’re probably fielding questions from your business clients about how they can improve their tax situation. This especially may be true of clients who operate as sole proprietorships, partnerships, or LLCs. While the pass-through tax treatment and 20 percent deduction on qualified business income (thanks to the 2017 tax code changes) might have helped them, they might still be feeling the sting of paying self-employment tax on all of their profits. So, now is an excellent time to talk about the advantages of the S Corporation [...]

December 11th, 2019|Categories: Ongoing Management and Protection|

What is a Certificate of Registration?

If you’re an accountant, attorney, or in the business of otherwise professionally advising entrepreneurs, you may have had clients inquire about what they need to do to expand their companies into other states. One of the most important steps involved in the process is to file a “certificate of registration” in the additional states where LLC or corporation wishes to conduct business. You may have heard it called by other names, such as “foreign qualifying” or filing a “certificate of authority.” Filing a certificate of registration means that the LLC or corporation wants to [...]

December 11th, 2019|Categories: Ongoing Management and Protection|

How to Legally Franchise a Business

Subway, Snap-on Tools, MaidPro, ACTIONCoach. They're all very different types of businesses with one significant thing in common—they began as small businesses and increased their revenue exponentially by franchising. If you've considered how to grow your business by leaps and bounds without starting and running dozens or hundreds of locations yourself, you may have wondered how to franchise a business. In this article, you'll learn more about what franchising means, how to determine if franchising makes sense for your business, and what's involved in franchising a business. What Does Mean to Franchise a Business? [...]

December 4th, 2019|Categories: Growth and Expansion|

How a Shareholder Loan Affects Your Taxes

If you’re a principal or shareholder of an S-corporation, you already know the many tax advantages the structure provides you—and the few disadvantages you have to deal with. Being part of an S-corp means your shareholder assets are protected and you can take advantage of pass-through taxation and other tax benefits, making the S-corp entity a good choice for both you and the business. But what happens when the corporation needs an influx of money? The business may need to replace an expensive piece of equipment or grab a larger lease space that suddenly [...]

December 1st, 2019|Categories: Ongoing Management and Protection|

Setting Up LLC Partnership Agreements

The Limited Liability Company (LLC) business structure is one of the most flexible and simple business entity types that entrepreneurs may choose. LLCs aren't usually required by states to have an LLC partnership agreement; however, it's something to consider–especially when an LLC will have multiple owners (a multi-member LLC). What Is an LLC Partnership Agreement? An LLC partnership agreement (also called an LLC Operating Agreement) lays the ground rules for operating a Limited Liability Company and protects the legal rights of its owners (called members). It’s written by the LLC’s members and describes the [...]

November 27th, 2019|Categories: Startup and Launch|