Ongoing Management and Protection

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Ongoing Management and Protection

CorpNet’s blog posts offer a wealth of information for navigating through the ongoing management and protection of startup and business operations. Our articles are written by industry experts who have the experience to help you avoid common and unnecessary mistakes.


What Is IRS Form 2553?

IRS Form 2553 (Election by a Small Business Corporation) is the form that a corporation (or other entity eligible to be treated as a corporation) files to be treated as an S corporation for federal tax purposes.

The IRS has specific criteria that entities must meet to qualify for S Corporation election. Here’s an overview of their requirements:

  • Must be a domestic corporation or a domestic entity eligible to elect to be treated as a corporation
  • Must timely file Form 2553
  • Must have no more than 100 shareholders (or LLC members).
  • Shareholders […]
2021-02-24T06:06:05-08:00February 24th, 2021|Categories: Ongoing Management and Protection|

What Is IRS Form 8832?

IRS Form 8832 (Entity Classification Election) is the form an eligible business entity uses to elect federal income tax treatment other than its default treatment.

Eligible entities include:

  • Limited Liability Companies (LLCs)
  • Partnerships (a business entity that has at least two members and is not a corporation)

According to the IRS, a corporation is usually not considered an eligible entity unless:

  • It is an eligible entity that previously submitted Form 8832 to be an association taxable as a corporation. The IRS may then allow it to use Form 8832 to change its classification.
  • It […]
2021-02-15T06:43:45-08:00February 15th, 2021|Categories: Ongoing Management and Protection|

What is a Corporate Resolution?

A corporate resolution is a formal record of a corporation's board of directors' decisions and actions on behalf of the company. States require incorporated companies to use corporate resolutions for recording major business decisions. The company's board of directors must vote to approve resolutions either during board meetings or in writing. 

2021-02-08T08:34:14-08:00February 8th, 2021|Categories: Ongoing Management and Protection|

What Business Owners Need to Know About Filing Taxes in 2021

It may be hard to believe, but tax season will soon be here again. A lot has changed, tax-wise, in the past year due to new coronavirus-related legislation.

Here’s a quick look at what business owners need to know about filing their taxes in 2021 and how to make sense of the latest pandemic-related tax incentives.

Sole Proprietorship

A sole proprietor does not have any legal separation from their business’s property and liability. Therefore they file a Schedule C (IRS Form 1040) “Profit or Loss From Business,” and it’s considered personal income. The deadline is […]

2021-02-17T11:59:56-08:00February 3rd, 2021|Categories: Ongoing Management and Protection|

The S Corp Election Deadline is Right Around the Corner

March 15, 2021 is the deadline for electing S Corporation tax status for your Limited Liability Company (LLC) or C Corporation. There are a lot of tax advantages that come with the S Corp election, so this date should be on your radar. Let’s explore what the S Corp election is, why you would want it, and how you can request it.

S Corporation Election Deadline

For the S Corp election to be valid for 2021, existing LLCs and C Corporations (with a tax year that began on January 1) will […]

2021-02-12T06:16:12-08:00February 3rd, 2021|Categories: Ongoing Management and Protection|

How Should Real Estate Investors Structure Their Businesses?

Owning investment properties can be exciting and lucrative. However, investments in real estate, whether vacation rentals, long-term rentals, or properties for resale, can also create liabilities. That’s why it’s critical for real estate investors to wisely choose how they will structure their businesses.

For example, a renter might trip on an unstable staircase. A guest could slip on an uneven sidewalk. Faulty electrical wiring could shock a tenant or cause a fire. Or a slow leak in a building’s plumbing might cause mold that affects a tenant’s health.

Accidents happen and they can potentially […]

2021-02-01T07:25:00-08:00February 1st, 2021|Categories: Ongoing Management and Protection|

What Is the Difference Between Sales Tax and Sellers Use Tax?

Whether you sell products or services in one state or many states, it’s imperative to understand your business’s sales tax compliance requirements. To correctly register a business in a state and then file and the proper sales tax, you need to know the difference between sales tax and sellers use tax and how nexus affects your obligations.

Sales Tax

Sales tax is a “transaction” tax paid by a consumer for a product or service and is a percentage of the sales price. Although not all states charge a sales tax, it is the seller’s […]

2021-01-29T04:47:20-08:00January 29th, 2021|Categories: Ongoing Management and Protection|

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 […]

2021-01-05T07:29:56-08:00January 5th, 2021|Categories: Ongoing Management and Protection|

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, […]

2020-12-27T14:08:18-08:00December 18th, 2020|Categories: Ongoing Management and Protection|

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 […]

2020-12-11T01:56:03-08:00December 7th, 2020|Categories: Ongoing Management and Protection|
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