The Launch Blog: Expert Advice from the CorpNet Team

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 and consider [...]

"Business compliance" is a phrase that makes many an entrepreneur cringe. But despite the lack of affection for those two words, business owners MUST take them seriously. The possible consequences for noncompliance range from “mild inconvenience” to “devastating disaster.” Most critical is that noncompliance by Limited Liability Companies and Corporations can lead to “piercing the corporate veil,” which puts business owners’ personal assets at risk. (More on that later!) Before I get into the penalties for noncompliance, let’s first take a moment to discuss what it is exactly. What is Noncompliance in Business? Nearly [...]

If you’re an accountant, attorney, or in the business of otherwise professionally advising entrepreneurs, you may have had clients inquire about what they need to do to expand their companies into other states. One of the most important steps involved in the process is to file a “certificate of registration” in the additional states where LLC or corporation wishes to conduct business. You may have heard it called by other names, such as “foreign qualifying” or filing a “certificate of authority.” Filing a certificate of registration means that the LLC or corporation wants to [...]

If you’re a principal or shareholder of an S-corporation, you already know the many tax advantages the structure provides you—and the few disadvantages you have to deal with. Being part of an S-corp means your shareholder assets are protected and you can take advantage of pass-through taxation and other tax benefits, making the S-corp entity a good choice for both you and the business. But what happens when the corporation needs an influx of money? The business may need to replace an expensive piece of equipment or grab a larger lease space that suddenly [...]

Happy holidays! Too soon? Not really, especially because the National Retail Federation (NRF) estimates 2019 holiday retail sales will grow between 3.8% and 4.2% over last year. In dollars, that means between $727.9 billion and $730.7 billion. With numbers like those, your business had better be well-organized for the frenetic holiday season ahead. Here are five ways to make sure your business is positioned to take the holidays by the reins! Get Your House in Order I don’t know about you, but I can always think clearer with a clean office and ample supplies. The holidays [...]

What is an LLC-5? The LLC-5 is a California State form used when a domestic limited liability company formed in another state (or country) wishes to become a foreign limited liability company in California.  The official name of Form LLC-5 is “Application to Register a Foreign Limited Liability Company.” Approval to operate as a foreign LLC is known as "foreign qualification." As a business owner, learning more about the LLC-5 and the process of becoming a foreign LLC in California will serve you well if you're thinking about expanding your company. If you have [...]