Coronavirus Relief for Small Business Owners - Apply Today

Ongoing Management and Protection

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 You Need to Know About Filing a Delaware Annual Report

Businesses that are registered as a corporation in Delaware must file a Delaware Annual Report every year, and most must also pay a Franchise Tax fee yearly. These requirements apply whether a Delaware corporation operates in the state of Delaware or somewhere else.

With the March 1 deadline for Delaware annual reports and tax payments approaching, time is running out!

Corporations must get moving now to stay compliant with the Delaware Secretary of State Department’s requirements. Although Delaware Limited Liability Companies don’t have to file an annual report, they do have an annual Franchise […]

2020-02-24T11:17:16-08:00February 24th, 2020|Categories: Ongoing Management and Protection|

The Advantages and Disadvantages of a Subchapter S Corporation

Before the advent of the S Corporation in 1958, entrepreneurs had two options for forming a business entity. They could form a partnership or form a C Corporation. But neither of those business structures fulfilled the needs of many people seeking to start their own businesses. To help encourage small businesses in America, Congress and President Eisenhower created the Subchapter S Corporation.

You may be thinking, “That’s really interesting, Nellie, but unless I’m attending a business trivia night anytime soon, why should I care?”

Hang in there—we’re getting to that! Whether you’re a business […]

2020-02-17T15:01:47-08:00February 17th, 2020|Categories: Ongoing Management and Protection|

5 Things to Know About the 2020 S Corporation Election Deadline

The New Year (a.k.a. 2020) is moving along swiftly. Martin Luther King, Jr. Day has passed, the Grammy’s have come and gone, and many a person has already given up on their well-intended New Year’s resolutions. Fortunately, if requesting S Corporation tax treatment for your business in 2020 is on your list of resolutions, there’s still time to make it happen.

Why Consider S Corporation Election?

S Corp election is a tax treatment option available to eligible limited liability companies (LLCs) and corporations (C Corporations). Entrepreneurs should discuss with their attorney and […]

2020-02-17T08:13:34-08:00February 17th, 2020|Categories: Ongoing Management and Protection|

Does Your Business Need a Sales Tax License?

Does your business need to collect sales tax and remit it to the state or local tax authority? And if it does, how do you go about getting a sales tax license? Moreover, what if your business is selling your products across state lines? Do you need to charge and remit sales tax in those states, too?

These are all valid and important questions! We’re going to delve into them in this article to give you some helpful food for thought as you research what requirements apply to your business.

Please keep in mind […]

2020-01-24T06:46:17-08:00January 24th, 2020|Categories: Ongoing Management and Protection|

What California’s AB 5 Means for the Gig Economy

In 2020, the hot topic is California’s Assembly Bill 5, often called the “Gig Economy Bill.” This is because AB 5 makes it difficult to be an independent contractor in California.

Before we examine AB 5 in detail, let’s understand why California legislators passed the bill in their own words:

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1.

The Legislature finds and declares all of the following:

(a) On April 30, 2018, the California Supreme Court issued a unanimous decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 […]

2020-01-15T10:18:56-08:00January 15th, 2020|Categories: Ongoing Management and Protection|

Tax Savings Features of Corporations, S Corps and LLCs Under TCJA

The Tax Cuts and Jobs Act (TCJA), made tax law changes that affected every business. Deductions, depreciation, tax credits, and corporate tax rates will make filing taxes different for you and your clients this year. Generally speaking, most of your business clients will do well under the TCJA, but there are a few tax breaks that have been lowered or eliminated. Here’s what you need to know.

Changes for Corporations

Corporations will feel the biggest impact from TCJA, primarily in a positive way. Pre-TCJA, corporate tax rates were similar to individual tax rates, in […]

2020-01-13T10:02:25-08:00January 13th, 2020|Categories: Ongoing Management and Protection|Tags: |

Remaining Independent Under California’s New AB5 Law

Whether you work as an independent contractor or your business hires independent contractors, California’s new AB5 law, which went into effect January 1, 2020, forces your hand on becoming an employer or an employee depending on how you conduct your business.

The Existing Employee vs. Contractor Designation

Up to now, you’ve probably made sure you’re adhering to the IRS classification rules for independent contractors, which are as follows:

  • Behavioral Control: A worker is an employee when the business has the right to direct and control the work performed by the […]
2020-01-13T11:36:51-08:00January 10th, 2020|Categories: Ongoing Management and Protection|

Help Your Clients Decide if it’s Time to Incorporate or Form an LLC

Among all the decisions and actions a small business may need to take, one of the more important is deciding whether to incorporate or form an LLC.

January is the most logical start date for a new LLC or corporation since it eases the paperwork burden. Your clients can start fresh in the new year with their new legal structure and don’t have to worry about reporting taxes as two different entities for the tax year.

At this time of year, sole proprietors and general partnerships may be wondering if it’s time […]

2020-01-09T14:47:46-08:00January 9th, 2020|Categories: Ongoing Management and Protection|

Can You Change an LLC Name?

The decision to change an LLC name is one not to consider lightly. After all, your business name is one of your most important brand assets. But sometimes, a name change is in order for one of many reasons. Perhaps there was a mistake in your formation paperwork, so you need to correct the name. Or perhaps the name was fine in the past, but now it’s not because it includes the name of a business partner who just retired. Or maybe your business has expanded into other products or services, and […]

2020-01-08T08:03:37-08:00January 8th, 2020|Categories: Ongoing Management and Protection|

Is it Time to Revisit C Corporations for Your Small Business Clients?

For more than a decade, I (and probably you too) have typically advised small businesses to opt for a Limited Liability Company over a C corporation due to its ease of administration and tax advantages. However, the 2017 Tax Cuts and Jobs Act now creates the opportunity for big tax savings for C corporations and should make us rethink our general guidance.

We’ve got a full tax season under our belts since the Tax Cuts and Job Act was enacted. It’s a good time to take a fresh look at corporate structures […]

2020-01-09T14:46:28-08:00January 3rd, 2020|Categories: Ongoing Management and Protection|