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The Launch Blog: Expert Advice from the CorpNet Team
The Right Way to Terminate a Partnership Agreement
There are many reasons why you'd want to terminate a partnership agreement. The goals of one or both partners have changed, your working styles are incompatible, or there are fundamental disagreements about business operations and decisions. Whatever the reason, the partners must understand and follow the correct procedures and regulations for partnership termination, so all parties are legally separated from liability. What is a Partnership? A partnership is a legal entity where two (or more) people own and operate a business, and each partner owns a percentage of the assets and liabilities of the [...]
Professional Corporation Vs. Professional LLC
A professional corporation and a professional LLC are business entities that licensed professionals may wish, or be required, to form. Generally, professions that form professional LLCs or professional corporations include: Attorneys and law firms Accountants and CPAs Physicians Engineers Architects Psychologists Chiropractors Dentists Veterinarians Social workers Real estate agents In this article, I'll explain some of the characteristics of the professional LLC (PLLC) and professional corporation (PC) business structures, show how they are similar, and show how they differ from each other. I’ll also discuss some of the potential pros and cons of each. [...]
Fathers Know Best: Entrepreneurial Dads Share Their Business Wisdom
Some people are lucky enough to grow up in an entrepreneurial family. I am one of the lucky ones. I learned so much from working with my grandfather at his small businesses when I was younger. I mean, what could be better than working at an ice cream store? Inspired by that, my husband Phil and I make sure we share the lessons and joys of entrepreneurship with our children. With that in mind, and in honor of Father’s Day, we talked to several entrepreneurial fathers to find out what they learned from their dads [...]
Kentucky Annual Reports: When They’re Due and How to File Them
In Kentucky, limited liability companies, C corporations, limited partnerships, and business trusts must file an "annual report" with the Kentucky Secretary of State office. Kentucky annual reports allow the State to provide accurate information to the public about the business entities registered there. Registered entities must file their annual report by June 30 each year—even if they had no business activity or income. Businesses operating as sole proprietors or general partnerships do not have to file annual reports in Kentucky. When Annual Reports Are Due in Kentucky The Kentucky annual report due date, regardless [...]
As a Business Owner, Can I Have Multiple LLCs?
Once entrepreneurs taste what it's like to be their own boss and carve their own career path, some decide to pursue starting multiple businesses. Depending on the situation, owning multiple Limited Liability Companies (LLCs) might make sense. Which leads to the question, how many LLCs can someone have? The short answer is there are no particular limits on how many LLCs someone may form, provided they meet all of the eligibility criteria to be an LLC member and comply with all of the federal, state, and local government rules and regulations for operating an [...]
What Is a Certificate of Authority?
You may have heard the term Certificate of Authority, but what is it? Well, it can refer to a few different things! I'll discuss the various types of Certificates of Authority in this article to give you some general information about what they are and when they are typically required. I encourage you to check with your attorney and accountant or tax advisor for legal and tax advice to determine if your business needs any of them. 1. Conducting Business in Another State Certificate of Authority is known as a foreign qualification when speaking of [...]
Michigan Annual Report Filing for LLCs and Corporations
The state of Michigan requires all business owners of limited liability companies (LLC) and corporations to file an annual report. An annual report is a filing that helps ensure the state's records about a business entity are accurate. Michigan has specific due dates for filing annual reports, so entrepreneurs need to stay on top of the deadlines and get their paperwork turned in on time. Submitting annual reports is one of the compliance tasks required to keep business entities in good standing with the state. In this post, we’ll cover general details about Michigan’s [...]
The Corporate Veil: What it is and Why You Don’t Want to Pierce it
What Is Piercing the Corporate Veil? Businesses that are registered as limited liability companies (LLCs) or corporations provide their owners with protection against being held personally liable for the company’s debts and claims. That legal shield of separation between a business and its owners is known as the “corporate veil.” Under that shield (under most circumstances) the owners’ personal assets (home, property, bank accounts, retirement savings, etc.) cannot be taken to settle debts and lawsuits brought against the business. However, personal liability protection is not guaranteed if entrepreneurs do something (or fail to do [...]
What Business Owners Should Know About the Arkansas Annual Franchise Tax
The Arkansas Secretary of State requires some business entities to report and file Annual Franchise Tax each year. The Annual Franchise Tax is a privilege tax that limited liability companies (LLCs) and corporations must pay for the opportunity to conduct business in Arkansas. The obligation to pay the tax begins the year after the business entity was formed and must be filed each year by May 1. Businesses may file and pay their Annual Franchise Tax as early as January 1. Arkansas LLCs LLCs (limited liability companies) and PLLCs (professional limited liability companies) must [...]
What You Should Know About Delaware Annual Reports and Annual Tax
Business entities in the state of Delaware have various reports and filings they must submit to the Delaware Division of Corporations each year. Delaware Limited Liability Companies don’t have to file an annual report, but they do have to file to pay an Annual Tax each year by June 1. Businesses that are registered as a corporation in Delaware must file a Delaware Annual Report every year by March 1, and most must also pay a Franchise Tax fee yearly. These requirements apply whether a Delaware corporation operates in the state of Delaware or [...]
What is a Business Statement of Purpose for an LLC or Corporation?
When starting a limited liability company or corporation, businesses in most states must provide a written statement of business purpose in their formation documents (articles of incorporation or articles of organization). The business purpose statement describes why, and for what legal purpose, will the LLC or corporation exist. This is not the same as a company's mission or vision statement, which businesses often leverage when seeking financing, attracting customers, and rallying employee morale. In most states’ articles of incorporation and articles of organization, the purpose statement is a brief explanation of what business activities [...]
What are Texas Annual Franchise Tax Reports?
Texas Comptroller Annual Franchise Tax Reports Requirements If you have a business in the Lone Star state, you may be wondering if you must file a Texas annual franchise tax report and pay a franchise tax. The state’s report filing requirements vary according to the type of business entity, so it’s important to research what obligations your business does (or does not) need to fulfill. Most domestic entities (for example, companies registered as LLCs or corporations in Texas) and foreign entities (companies registered in a different home state but conducting business in Texas) need [...]
What Is a Statutory Agent?
“A rose by any other name would smell as sweet.” ~ Juliet (in Romeo and Juliet by William Shakespeare). Such is also the case with a statutory agent. More commonly known as a registered agent, a statutory agent is an individual or entity appointed by a Limited Liability Company, S Corporation, C Corporation, or other legal business entity to accept legal documents, government correspondence, and compliance paperwork on its behalf. Other names for a statutory agent include agent for service of process and resident agent. Statutory agents are critical for keeping statutory (state-registered) business [...]
CorpNet Recognized as One of the Fastest-Growing Companies in California
CorpNet is proud to announce that it has made Inc.’s prestigious “Inc. 5000 Regionals” list in 2021 as one of the fastest-growing private companies in the state of California. Out of the 250 companies to receive the honor in the state, CorpNet was named number 213 on the list. Collectively, this year's award honorees demonstrated 137 percent median growth, had $6.7 billion in total revenue, and added 17,666 jobs in the state. Where companies ranked on the list was based on percentage growth of their annual revenue from 2017 to 2019. CorpNet achieved 65 [...]
Does Your Business Have to File a Georgia Annual Report by April 1st?
Business entities that are registered with Georgia's Office of the Secretary of State must file a Georgia annual report each year. The due date for filing Georgia's annual report is April 1st. What is an Annual Report? The correct terminology for an annual report is actually "annual registration." However, many people refer to it as an "annual report" because that's what the annual filing is called in many states. Throughout this article, you'll see that I use both terms to mix things up a little for your reading pleasure! Businesses required to file a [...]