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.

Hiring Family Members in a Small Business

I’m often asked if it is advantageous for a small business to hire family members. Some entrepreneurs have asked if hiring relatives presents legal issues, while others have asked if it is ethical. Whether you believe this practice is good business or nepotism, there are a lot of companies hiring relatives in full-time and contract positions.

In the U.S. today, there are 5.5 million family-owned businesses, employing 63% of the American workforce. That adds up to many family business owners working with family members. These scenarios could be fraught with angst or, if […]

2021-09-07T11:25:08-07:00September 7th, 2021|Categories: Ongoing Management and Protection|

How to Reinstate a Revoked 501(c)(3) Status

As a 501(c)(3) nonprofit, an organization does not have to pay federal income tax on its profits related to its business purpose. That’s an important advantage as it allows organizations to keep more of their profits and use them to further their causes. However, if a nonprofit organization fails to file the required reports and 990 series returns to the IRS, the IRS will revoke 501(c)(3) status. This revocation will negatively impact the nonprofit in multiple ways.

Fortunately, the IRS does provide a path for nonprofit organizers to reinstate their revoked 501(c)(3) status. […]

2021-08-31T10:29:50-07:00August 31st, 2021|Categories: Ongoing Management and Protection|

What Is an Annual Franchise Tax Report?

Not all, but some states require business entities to file an annual report and pay a franchise tax each year. While the name suggests that a franchise tax report might only apply to businesses that are franchises, that’s not the case!

A franchise tax is a fee that companies pay for the privilege of being registered or organized in the state. As a registered business entity, a company gains personal liability protection for its owners, certain tax deductions, business name protection, and possibly other benefits. In exchange for this protection, the state serves […]

2021-08-31T05:37:18-07:00August 24th, 2021|Categories: Ongoing Management and Protection|

Filing an Intent to Use Trademark Application

Choosing the perfect business or brand name is only half the battle when starting a new venture. You need to protect that name from getting stolen or misused. But what if you haven’t started using the brand name yet? The good news is even if your website is still under construction and marketing materials are still at the printers, you can apply for protection with an intent to use trademark application.

What is a Trademark?

In its most basic definition, a trademark is a word, phrase, symbol, design, or combination of these elements identifying the source […]

2021-08-24T09:03:22-07:00August 24th, 2021|Categories: Ongoing Management and Protection|

How to Revoke an S Corp Election

Many limited liability companies (LLCs) and C Corporations choose to be taxed as S Corporations to lower their tax burden. It’s relatively easy to do as long as the business entity meets IRS requirements and files Form 2553. But what happens if a business owner finds an S Corp hasn’t worked to their advantage? Or perhaps, their situation has evolved, and S Corp status no longer benefits them. Fortunately, in either case, companies can revoke an S Corp election and change back to their original LLC or C Corp tax status.

To […]

2021-08-24T08:43:00-07:00August 24th, 2021|Categories: Ongoing Management and Protection|Tags: |

Back to School, Back to Your Business

Schools will soon be back in session across our country. COVID-19 continues to present challenges — and debates over our children’s learning environment. However, we see some glimpses of our former “normal” as most schools are transitioning from virtual and hybrid classes back to in-person learning.

Also, at this time, business owners who have switched to a virtual workplace are assessing the results and figuring out to what degree they want to continue that model. Entrepreneurs operating companies that primarily do business in-person are navigating how to provide optimal customer service amid […]

2021-08-24T11:41:46-07:00August 24th, 2021|Categories: Ongoing Management and Protection|

Why You Should Keep Business and Personal Finances Separate

There’s a lot of misinformation out there about keeping business and personal finances separate. Truthfully, most entrepreneurs tap into their personal savings to start their businesses, so opening separate bank accounts isn’t their top priority when there are so many other things to handle. However, not maintaining independent business and personal bank accounts can cause all sorts of bookkeeping confusion and tax hassles—and who has the time to deal with all that?

So here are some answers to the most frequently asked questions about having separate bank accounts for personal and business use.

What […]

2021-07-26T09:32:36-07:00July 26th, 2021|Categories: Ongoing Management and Protection|

What Is a Biennial Report?

Most states require limited liability companies (LLCs) and corporations to submit some form of ongoing business entity filing. While many states require these filings annually (i.e., “annual reports”), several require these types of reports biennially (every two years) rather than every year.

A biennial report allows the state’s Secretary of State office (or comparable government office) to keep up to date with a company’s vital information. States also require that businesses pay a fee when submitting the filing.

States set the due dates by which businesses must file their biennial reports. The filing schedules […]

2021-07-26T09:17:51-07:00July 26th, 2021|Categories: Ongoing Management and Protection|

Noncommercial vs. Commercial Registered Agent

If you’ve been considering forming a business (or already have started one), you’ve probably have heard the term registered agent. Alternate names include statutory agent, agent for service of process, or resident agent.

A registered agent is a designated party located within the state that a business has authorized to accept “service of process” (notice of lawsuits) and essential correspondence from the state on its behalf.  Essentially, there are two types of registered agents – commercial and noncommercial.

So, what’s the difference between a commercial and noncommercial registered agent? And which one should […]

2021-07-06T09:20:47-07:00July 6th, 2021|Categories: Ongoing Management and Protection|

What Are Like-Kind Exchanges?

If you’re a property owner, you probably know how a like-kind exchange works, but in case the term is new to you, here’s what you need to know.

According to the Internal Revenue Service (IRS), a like-kind exchange (also called a 1031 exchange) is:

When you exchange real property used for business or held as an investment solely for other business or investment property that is the same type or like-kind.

The 1031 exchange, named for Section 1031 of the U.S. Internal Revenue Code, permits a property seller to avoid paying capital gains taxes on […]

2021-07-06T09:29:21-07:00July 1st, 2021|Categories: Ongoing Management and Protection|
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