The Launch Blog: Expert Advice from the CorpNet Team
Tax Saving Features of Corporations, S Corporations, and LLCs
I regularly speak to business owners about entity types and their potential impact from a tax perspective. A while back, I created a webinar for accountants (and other professional services providers that work with businesses) on the topic of business structures and taxes. It is focused on the possible tax advantages and disadvantages of C Corporations, S Corporations, and Limited Liability Companies (LLCs). In this article, I’ll break down the important considerations that I discussed in that presentation. Benefits of Business Incorporation Overview of the C Corporation, S Corporation, and [...]
How to Properly Handle Your Company’s Annual Meeting Minutes
Businesses that have incorporated as a corporation or formed a limited liability company (LLC) must carefully document their compliance activities. For example, when a corporation holds its annual general meeting (a.k.a, annual shareholder meeting), it must keep a record on file for regulatory compliance purposes. Most states require that C Corporations (including those that have elected for S Corporation tax treatment) hold a general meeting for their shareholders every year. Usually, they are also required to hold at least one meeting with their board of directors yearly. Businesses structured as an LLC may need [...]
How to Find the Right Niche for Your Business
How many times have you heard about a new business idea and said to yourself, “I wish I’d thought of that!”? We’ve all been there. But business ideas don’t just spring up out of the blue. Most successful business concepts are a result of months (or years) of thorough market research, financial considerations, and fine-tuning the idea. Today, when consumers have so many options at their fingertips, a generic business idea has little chance of survival. If you want to build a unique business, you need to narrow your focus and look for an [...]
10 Ways to Promote Your New Business
Excited to start your new business in the coming year? Whether you’re forming your company as a sole proprietorship or a Limited Liability Company (LLC), promoting a new business takes strategizing and fresh ideas. Otherwise, it’s challenging to get your new business noticed. Here are 10 ways to promote a new small business in 2021. Business Name Not to be overdramatic, but your business’s name could mean the difference between failure and success. You want to pick a name that not only tells consumers (whether B2B or B2C) what your company does but also [...]
Incorporating a Business 101
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.
Maintain Business Compliance to End the Year in Good Standing
For many of you, 2020 can’t end quickly enough. Whether your small business struggled (or is still struggling) through the coronavirus pandemic, you suffered some personal loss, or even if you pivoted and found a silver lining, the beginning of a new year always brings prospects of a fresh start and new opportunities. However, just to make sure you end the year with all your legal ducks in a row, we’ve put together a year-end compliance checklist to set you off on the right path. And to make compliance as easy as possible, we've [...]
11 Strategies for Growing a Business in 2021
Uncertainty is not unfamiliar territory for business owners. However, this past year has brought a significant amount of it to entrepreneurs everywhere and in nearly all industries. Many companies are facing serious challenges. While survival may be their short-term goal, focusing on paths to growth can help position them for success long-term. Developing sound strategies for growing a business, executing those strategies, and streamlining processes are all part of the equation that makes a tremendous difference, whether in an environment of consistency vs. unpredictability and of abundance vs. scarcity. Let’s take a look at [...]
What is Payroll?
Payroll is the term used to refer to the various tasks and responsibilities businesses must perform to pay their employees accurately and on time. It encompasses calculating wages and salaries; preparing checks; withholding taxes and other deductions; reporting and paying taxes to the appropriate federal, state, and local agencies; and more. Businesses must handle payroll correctly because it impacts their net income and can result in additional fines, fees, and penalties if not managed according to federal, state, and local rules. Because there are legal and financial implications with payroll, it’s wise for business [...]
Best Business Books of 2020
Abraham Lincoln once said, “My best friend is a person who will give me a book I have not read.” While I cannot give you these books, I can tell you about them. My list of favorite 2020 business books will offer information or inspiration (or both) to help you start or grow smarter and faster. Building for Everyone: Expand Your Market with Design Practices from Google’s Product Inclusion Team The premise of this book, written by Annie Jean-Baptiste, the head of product inclusion at Google, is that it is [...]
Filing Annual Meeting Minutes Before Year End
Depending on a business’s entity type and the state it’s registered in, its owners may be required to hold annual meetings and record minutes from those meetings. Does that requirement apply to your company? In this article, I'm going to explain what annual meetings and annual meeting minutes are to help you get on the path to determining if you must fulfill those important business compliance tasks. If you're a professional services provider that coaches or gives direction to business owners, this information may be helpful to your clients, so feel free to share [...]
10 Legal Documents You Must Have to Start a Small Business
If starting a new business is on your 2021 New Year’s resolution list, we’re here to help you begin on the right (and legal) path. Here are 10 must-have legal documents you need to start a new business. 1. Business Plan Technically, a business plan is not a “legal” document, nor is it required to start a business, but developing a business plan before you attempt to secure financing, look for office space, or even pick a business name, is highly recommended. Creating your plan at the beginning forces you to assess your goals [...]
What You Need to Know About the Flexibility Act and PPP Loan Forgiveness
There’s good news for recipients of the CARES Act Payroll Protection Program’s (PPP) loan. The loan, which provided funds for small businesses to retain employees through the pandemic, has been altered with more generous terms for forgiveness. The Flexibility Act was signed into law on June 5, 2020, and amends the CARES Act, changing PPP loan terms and requirements. Here’s how to make sure you follow the new rules for forgiveness. How the Flexibility Act Modified PPP Forgiveness The amount of money each business received from the Payroll Protection Program was based on the number of [...]
What You Need to Know About the EIDL Application Process and Document Requirements
If you haven’t yet applied for an Economic Injury Disaster Loan (EIDL), you have until December 21, 2020 to submit your application. There is no need to apply again if you’ve already applied, as the loans are vetted on a first-come-first-serve basis. At the latest count, the U.S. Small Business Administration (SBA) has approved 3,612,236 EIDL applications, totaling $191,994,805,796 for small businesses affected by the pandemic. Unfortunately, so many small businesses continue to suffer losses, so the need for relief funding is ongoing. Let's do a recap of the Economic Injury Disaster Loan eligibility [...]
Articles of Incorporation vs. Articles of Organization
If you're thinking about starting a business, you’ll want to research which business entity type will be most advantageous to you. As you go through that process, you will discover that various documents and filings need to be submitted to the state to form a limited liability company (LLC) or corporation. Articles of incorporation and articles of organization are among them. Articles of Incorporation An articles of incorporation (sometimes called a “certificate of incorporation”) is a form that states require to set up a corporation (C Corporation). When a company's articles of incorporation are [...]
What are Articles of Organization?
Have you decided to operate your business as a Limited Liability Company (LLC)? If you answered yes, you must comply with your state's requirements for registering your company. Those responsibilities include filing an articles of organization (sometimes called a certificate of organization or certificate of formation) with the state government. The articles of organization is a legal document containing important information about the business. The Secretary of State office must approve the document for the LLC to be recognized as a legal entity. Why Articles of Organization are Important for an LLC Filing articles [...]