The Launch Blog: Expert Advice from the CorpNet Team

What Is a Statutory Agent?

A statutory agent, more commonly known as a registered agent, agent for service of process, or a resident agent. It 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. Statutory agents are critical for keeping statutory (state-registered) business entities in compliance with a state’s laws, which is why states require business entities to designate one. This is done when completing their registration forms to conduct...

Legal Document with Signature and Pen

How to Find Your First 10 Accounting Clients

Searching for the first clients for your startup accounting business might seem like finding a needle in a haystack (or, for you Harry Potter fans, like finding a Horcrux in the Room of Requirement). In reality, however, it can actually be pretty simple, thanks to powerful apps and social media marketing. Or, you might have better luck finding your first ten accounting clients the old-fashioned way, via face-to-face interaction. Better still, why not combine both types of marketing to find those first customers? If you're looking to start or grow your accounting firm, I'd like to share...

Concept for multi ethnic business team

DBA vs. LLC: What’s the Difference?

If you’re starting a new businessm adding new locations, or adding business lines, you are likely wondering if registering a DBA or forming an LLC is the best route to travel. A DBA is an assumed (fictitious) name that an existing business has received approval to use when conducting business. An LLC is a registered business entity. Both options provide a way to operate under a business name other than a company’s legal name. But in addition to that similarity, they have significant differences. Choosing one or the other affects a company’s costs, compliance requirements, and other...

Cartoon Man Comparing Positive and Negative

Is a Farm LLC Really Necessary?

Starting and running a farming business provides the opportunity and the freedom to forge your own professional path. There’s hard work involved and any seasoned farmer will tell you 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, illness, accidents related to the use of large equipment, or unseasonable freezing weather. That’s why it’s critical to consider what...

Three Cows Looking Down

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. 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. And they shouldn’t take this lightly, because the business structure chosen will affect their tax obligations and...

Uber-App-Screen-Shots-320x202

7 Real Reasons Why You Need a Dedicated Business Bank Account

Whether you operate a Sole Proprietorship, Partnership, Limited Liability Company (LLC), Limited Liability Partnership (LLP), or Corporation, how you manage your finances is a vital aspect of running your business. While using your personal bank account for business might seem like the simplest solution, it’s not a good idea for a variety of reasons. Mixing your business and personal finances can result in problems ranging from tax consequences to your business appearing to be unprofessional. Let’s take a deeper dive into some reasons why keeping your business and personal bank accounts...

Bank Building Exterior

Do You Have a Domestic or Foreign LLC?

A domestic and foreign LLC refers to the state where the LLC is created. Registering your business as a foreign LLC (also known as a foreign qualification) is required under certain circumstances when you operate your business outside of the state in which you’ve formed your LLC. The purpose of registering is to meet the regulatory and tax requirements of the foreign state. Despite the term "foreign", a foreign LLC operates domestically within the United States. Your LLC isn’t considered foreign in the state where you initially registered it, only in the states where you’ve expanded its...

US Map of States With Connecting Dots

LLC vs. C Corporation

Is it better to form a Limited Liability Company (LLC) or a C Corporation? Many entrepreneurs ask that question as they work through the many facets of transforming their dream of business ownership into a reality. The business structures have similarities and differences, as well as advantages and disadvantages, so it’s important to consider all of them when deciding on the right business entity type for your company. So, how do LLCs and Corporations compare? 1. State Registration Both LLCs and Corporations are formed by filing registration forms with the state. The paperwork required,...

Legal Document and Pen Cartoon Image

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. Businesses operating as Sole Proprietors or General Partnerships do not have to file. Kentucky annual reports allow the State to provide accurate information to the public about the business entities registered there. Registered entities must file their report each year—even if they had no business activity or income. The report due date, regardless of entity type, is June 30 and businesses may file anytime between...

Kentucky Highway Sign

7 Things to Know About Florida’s Annual Report

If you have incorporated in Florida or formed an LLC in Florida, your deadline for filing your Annual Report is May 1, 2021. Here are 7 facts that you need to know to ensure that your corporation or LLC remains compliant in the state of Florida. 1. You Must File Whether Your Business Has Changed or Not While the purpose of the Annual Report is to ensure that the Florida Department of State, Division of Corporations has your company’s most updated information, you still have to file the document, even if you have no changes since last year. 2. You Can Change Several Pieces of Information...

Florida Written in Sand

Can a Single-Member LLC Be an S Corporation?

A single-member LLC can be taxed as an S Corporation if it meets the IRS’s eligibility criteria. In fact, both single-member and multi-member Limited Liability Companies can elect to be treated by the IRS as either an S Corporation or a C Corporation if they meet the requirements. IRS's S Corporation Qualification Criteria: Be a domestic corporation or an entity eligible to be treated as a domestic corporation. And not be an ineligible corporation (such as certain financial institutions, insurance companies, and domestic international sales corporations. Have only allowable shareholders...

S Corp Sales Page on Computer Monitor

Businesses Incorporated in Texas Need to Fill Out an Annual Report By May 15

Before you form an LLC or incorporate a business in Texas, it’s important to know your reporting responsibilities in the years to follow. One important ongoing compliance requirement is filing your Annual Report by May 15th each year. New business entities must file their first Annual Report by May 15th of the year following their year of formation. For example, an LLC formed in December 2024 must file its first annual report by May 15, 2025. If your Texas corporation or LLC is no longer functioning as a business, you must file a final franchise tax report within 60 days of when you end...

Welcome to Texas on Store Window

How to Obtain a Certificate of Existence for Your Georgia Business

If you own a Limited Liability Company, C Corporation, or other registered business entity in Georgia and you want to open a business bank account, expand your business into another state, seek funds from investors, or conduct certain other business activities, you’ll need to have a Certificate of Existence. A Certificate of Existence, known in some states as a Certificate of Good Standing or Certificate of Subsistence, is a document obtained through the Corporations Division of the Office of the Secretary of State. It verifies that your business is properly registered; up to date on...

Georgia State Flag

West Virginia Annual Report: Are You in Compliance?

Most types of businesses operating in West Virginia must file an annual report with the Secretary of State Office to keep their company records updated. The deadline for submitting the report, along with the associated filing fee, is July 1 each year after the initial registration of the business entity. Business owners in West Virginia (and those wishing to expand operations from another state to WV) can benefit from talking with an attorney and accountant or tax advisor about whether they need to submit an annual report. Moreover, consulting with trusted professionals can shed light on...

West Virginia State Capital

Company Applicant vs. Beneficial Owner

The Corporate Transparency Act’s Beneficial Ownership Information Reporting Rule went into effect in January 2024, leaving many business owners wondering: Are they required to submit a Beneficial Ownership Information (BOI) Report? What’s the difference between beneficial owners and company applicants, and what information does a reporting company have to share about them? Although certain entities are exempt, most small Corporations, Limited Liability Companies (LLCs), Limited Partnerships (LPs), Limited Liability Partnerships (LLPs), Limited Liability Limited Partnerships (LLLPs), and...

Digital Checkmark

Certificate of Subsistence: What It Is and Why You Might Need One

If you own a business that’s registered with the state in which you operate, such as a Limited Liability Company, a C Corporation, or a Limited Liability Partnership, it’s likely that at some point you’ll be asked to provide a Certificate of Subsistence. A Certificate of Subsistence, which in some states is known as a Certificate of Good Standing, a Certificate of Existence, or a Certificate of Status, is a document from the state that verifies a business is indeed operating; is properly registered; and is in compliance with federal, state, and local laws. While specific information...

Illustration of a Man Signing a Certificate

How to Hire Temporary Employees

If the bed-and-breakfast you own and operate runs at full capacity for the months of July and August and the work is too much for you to do on your own, you might consider hiring temporary employees to help. The same goes for a consulting firm that just landed an important six-month assignment for its biggest client, or a building contractor who agreed to take on a large-scale renovation project. Temporary workers account for only about 2% of total nonfarm employment in the United States, according to the Bureau of Labor Statistics, but employers in many industries rely on temporary...

Temporary Workers in Greenhouse

How to File Taxes as a Limited Liability Partnership

If your startup will have more than one business owner, you have several choices for how to legally structure your company.  In today’s post, I’ll discuss the Limited Liability Partnership (LLP), which is a type of partnership that isn’t as widely known as the General Partnership or Limited Partnership business structures. The following information will help you understand what an LLP is, how an LLP is taxed, and the basic steps for creating one. Before we get into all that, I want to remind you that the type of business entity you select will affect just about every aspect of launching...

Bullhorn with Tax Tips

Obtain Asset Protection for Your Business

One of the main reasons to create an LLC or to incorporate revolves around asset protection. The business structure legally separates the assets of the ownership from the assets of the company. The corporation may be sued (and even go bankrupt) without loss of personal property by the ownership. As your first line of defense, I encourage you to consider the legal structure of your business. If you’re operating as a sole proprietorship (or general partnership), you’re more likely to put your personal belongings in jeopardy than if you formally register your business as a different type of...

Gold Piggy Bank Under Umbrella

Tax Benefits of Incorporating

Tax implications are among the most important factors to think about when deciding on a business entity type. Some business owners are attracted to the simplicity of pass-through taxation, which is how a sole proprietorship, partnership, LLC, and S Corporation are taxed. But for others, the tax benefits of incorporating as a C Corporation offer more financial advantages. A C Corporation is a business entity independent (both legally and from a tax perspective) of its owners (called “shareholders”). As such, the company is responsible for reporting its profits and losses on its own income...

Money Saved in a Jar

Choosing a Business Structure

Choosing a business structure for your company is one of the most crucial first steps to starting a business. Your business entity type has legal, financial, and administrative implications, so it’s important you get started with the best entity for your situation.Some of the factors that will influence which business entity type you select include: Where you plan to conduct your business Wanting to have limited personal liability for your business activities Whether you will have a partner or an investor Your expected earnings and deductions Desire to minimize your self-employment tax...

Couple in Discussion

Do You Need an LLC for Your Rental Properties?

Most builders and real estate investors understand the importance of protecting personal assets and optimizing their tax situation. One way to address both concerns is by choosing the right business structure for holding rental properties. Many property developers and investors choose a Limited Liability Company (LLC) for their rental properties because the LLC provides asset protection and tax flexibility. LLCs are separate legal entities from their owners (called “members”). They can have one member (single-member) or more than one member (multi-member). By setting up individual...

For Rent Sign in Front of Vacation Home

Can I Use a Home Address for My LLC?

Using a home address to register an LLC or incorporate a business is something many entrepreneurs think about doing. That’s understandable because many new businesses start their journey in the entrepreneur's home or garage, which allows the business to avoid office rent, unnecessary utilities, and long commutes. This not only allows more time to focus on growth, but it can also help a company turn a profit faster as it ramps up. Does this lack of address impact the business negatively? Do you need a physical address for your business? Is it legal to use your home address for business...

Woman With Question Marks

How to Legally Franchise a Business

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.

World Map With Franchise Businesses Marked

How Pennsylvania Is Changing Annual Reporting in 2025

Starting in 2025, Pennsylvania will retire its decennial report requirement and instead require many business entities to file annual reports. Going from reporting every ten years to every year is a result of 2022 Act 122, which Governor Tom Wolf signed into law. The new reporting rule and revised annual report dates apply to the following types of business entities in Pennsylvania: Domestic Business Corporations - June 30th Foreign Business Corporations - June 30th Domestic Nonprofit Corporations - June 30th Foreign Nonprofit Corporations - June 30th Domestic Limited Liability Companies...

Pennsylvania State Flag

Should You File a BOI Report Amid the CTA’s Questionable Constitutionality?

You’ve likely heard buzz about the U.S. District Court for the Northern District of Alabama’s March 1, 2024, ruling that the Corporate Transparency Act (CTA) is unconstitutional because it oversteps Congress’s legislative authority. As a result, plaintiffs in the National Small Business United (NSBU) et al. v. Yellen case may pass (for now) on filing Beneficial Ownership Information (BOI) reports to the Financial Crimes Enforcement Network (FinCEN). My team at CorpNet has talked with many concerned and confused business owners. They want to know if this means they don’t have to file a BOI...

Constitution-and-American-Flag

What Is an Anonymous LLC?

While it may sound mysterious and intriguing, an anonymous LLC (also known as a private or confidential LLC) is like a regular Limited Liability Company, except its members are not publicly identified by the state. The names, addresses, and contact information for members remain private and do not become part of the public record or get published on the state website. Not all states grant LLC owners anonymity. But depending on the circumstances, business owners in a state that prohibits anonymous LLCs may be able to form one in a state that does allow them. Discussing your needs and...

Male and Female Profile Silhouettes

How Often Does an LLC Pay Taxes?

If you’re considering starting a Limited Liability Company (LLC) or restructuring your business as an LLC, it’s important to know what taxes you’re responsible for, when your taxes are due, and how to file taxes for your business entity. Keep in mind that an LLC’s tax obligations can vary greatly. Multiple factors affect an LLC’s tax filing responsibilities. For example: Does the LLC have one sole owner (Single-Member LLC)) or two or more owners (Multi-Member LLC)? Has the LLC elected to have S Corporation or C Corporation tax treatment? What are the state and local income and sales tax...

Cartoon of Financial Reports and Calculator on Desk

Most Popular Franchise Businesses

If the thought of starting your own business seems overwhelming, there’s an option you could consider to streamline the start-up process and make it more workable. Instead of starting from scratch to build an independent business, you could consider franchising. Franchising is a business model in which an independent party buys into an established business and opens and runs their own location. It’s a popular model because it enables the established business to grow while giving an entrepreneur just starting out the advantage of being associated with a known company. The franchisor—the...

World Map With Franchise Businesses Marked

How Do You Pay Yourself as a Sole Proprietor?

Many small business owners start their companies as Sole Proprietorships. The business structure offers setup simplicity, cost-effectiveness, and minimal business compliance requirements. To determine if a Sole Proprietorship is right for them, entrepreneurs should consider the pros, cons, and nuances associated with it. In this article, I’ll discuss what a Sole Proprietorship is, how sole proprietors pay themselves, how to pay taxes in a Sole Proprietorship, and examine some potential benefits of switching to an LLC instead. What Is a Sole Proprietorship? The IRS defines a Sole...

Man Holding a Paycheck

Subscribe to Newsletter

Practical business and financial insights, lessons, perspectives, and know-how brought right to your inbox.

Thank you for subscribing!

100% satisfaction guaranteed or we will refund 100% of our service fees with no questions asked!