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 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 […]

2021-04-09T04:54:37-07:00April 7th, 2021|Categories: Ongoing Management and Protection|

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) […]

2021-04-09T04:55:59-07:00March 29th, 2021|Categories: Ongoing Management and Protection|

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 Georgia […]

2021-03-23T06:57:06-07:00March 23rd, 2021|Categories: Ongoing Management and Protection|

Florida Annual Report: 7 Things You Must Know

If you have incorporated in Florida or formed an LLC in Florida, your deadline for filing your Annual Report is May 1. Here are 7 facts that you need to know to ensure that your corporation or LLC remains compliant in the state of Florida. You Must File an Annual Report Whether Your Business Has Changes 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.

2021-03-23T07:10:39-07:00March 23rd, 2021|Categories: Ongoing Management and Protection|

California LLC Franchise Tax Waived in First Year

Legislative Update Gives Exemption to New California Limited Liability Companies

LLCs registered to do business in California must pay an annual franchise tax of $800 to the state’s Franchise Tax Board (FTB). However, to relieve some of the financial pressures amid the pandemic for newly formed businesses, California Governor Gavin Newsome signed legislation in 2020 to exempt startups from paying the LLC franchise tax during their first year in business.

This is welcome news for aspiring business owners in the Golden State!

The new rules established by the state’s 2020 Budget Act (AB 85) exempt […]

2021-03-08T07:09:05-08:00March 8th, 2021|Categories: Ongoing Management and Protection|

S Corporation Election Considerations for Corporations and LLCs

Have you been thinking about whether your business might benefit from being an S Corporation? I presented a webinar for accounting professionals about the S Corp election not too long ago. Within that presentation, I covered information of value to entrepreneurs in all fields. In this article, I will share that insight with you in hopes that it will help you gain a deeper understanding of what it means to be an S Corporation.

What Is an S Corporation?

The S Corporation is not a business structure in itself. […]

2021-03-05T06:02:16-08:00March 1st, 2021|Categories: Ongoing Management and Protection|

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|
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