The Launch Blog: Expert Advice from the CorpNet Team

5 Reasons to Fall in Love With the LLC

If you’re starting a new business or revisiting your decision to operate as a Sole Proprietorship, you may want to give the Limited Liability Company (LLC) some attention. The LLC legal structure offers advantages that attract entrepreneurs running small businesses in virtually every industry from retail and restaurants to graphic designers, technology, and attorneys. That’s right, even lawyers choose to form their businesses as LLCs. What’s So Crazy Special About the LLC? Plenty. Let us count the ways! Protection of personal assets in the event of legal action – An LLC is a legitimate...

Does an S Corporation Need to File Articles of Organization?

If you’ve spent any time on this blog or researching how to incorporate your business online, you’ve probably found some terms you weren’t really clear on and had questions. What’s the difference between an LLC and a corporation? What paperwork do I need to file annually? What are Articles of Organization, and do I need them? Let’s address that last question and talk about the Articles of Organization. While the LLC and corporation are different, they both provide similar protection and tax benefits. Whether you register an LLC or create a C Corporation you have to fill out an application...

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10 Tips to Making Startup Funding Work for You

Whether you plan to create a crowdfunding campaign, pitch venture capitalists or investors, take out a small business loan, or use your own savings, there are strategies to succeed in your efforts. Here we have 10 tips guaranteed to make your startup funding a success.

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How to Encourage Your Kids to Grow Up to Be Entrepreneurs

My kids have taught me some valuable life lessons that I’ve used as an entrepreneur, and I like to think that a lesson or two has rubbed off on me to them. There’s no guarantee that any of my four children will grow up to become small business owners, though I’d love it if they did. Still, I’m sure that seeing their parents run their own business will plant the seed for entrepreneurship, the way it did for me watching my grandparents own several restaurants while I was growing up. If you’d love to pass on your entrepreneurial passion, try the following suggestions. Get Them Started Early...

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How to Hire the Right People

At CorpNet, we pride ourselves on having a stellar team of employees. Many of our staff has been with us since we launched in 2009. We treat our staff like family, and in return, they do everything they can to help make CorpNet a success.

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Registering a Business Name vs. Trademarking a Business Name

You spend time coming up with the perfect name for your business then you spend lots of money creating business cards, signs, and other marketing collateral. But what happens if someone else is already using that name or the name is soon adopted by another company? When multiple businesses have the same or similar names, potential customers are confused and this leads to lost sales. It happens to many entrepreneurs, and it’s completely preventable. There are two strategies you can use to protect your business name. One is to register a business name and the other is to trademark a...

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Why Your Inactive Business is Probably Costing You Money

Someone once told me that a true sign of a successful entrepreneur is the ability to know when it’s time to throw in the towel and move on. One failed business doesn’t define an entrepreneur. Plus, when one door closes, another usually opens. Closing a business doesn’t just mean selling your assets and calling it a day. You’ve got to go through the requisite steps to ensure your business is legally closed and that you’ve properly wound up your business affairs.  Otherwise, you could be personally responsible for filing annual reports, filing state/federal tax returns, and maintaining...

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6 Tips for Naming Your Business

I can’t tell you how many entrepreneurs I’ve met that didn’t do the research before naming their business. You may think the name you’ve come up for in starting a new business is unique, but what happens if you find out someone else is already using it? If the name is already in use, you’ll have to fight to dominate search results for that name. You may not be able to get the domain name or social media profile names you want. And you’ll risk customers getting confused and taking their business to the other location. You don’t want any of these struggles, do you? Start By Doing Your...

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5 Tips to Smarter and More Efficient Business Meetings

Nobody likes business meetings. So why do we have so many? Unfortunately, they’re a necessary evil when it comes to running a business. Having led my fair share of meetings at CorpNet, believe me when I say I hate meetings as much as my employees. When I see an employee's eyes glaze over and stop listening to what I think is essential material, I take note and I take action. Over the years I’ve devised my own strategies for waking meeting participants up and making the meetings more productive. 1. Meet More, Not Less I know how this sounds, but hear me out. When you meet once a month...

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6 Hiring Mistakes Small Business Owners Make

As you grow your business, you will inevitably need to hire help. If you’ve never been an employer before, there are certain pitfalls you need to avoid that many business owners make. Here’s your guide to what not to do in hiring staff. 1. Not Knowing Your Needs Once you start a business, your responsibilities will grow quickly. You know you need help, but maybe you assume a part-time secretary will fit the bill. Only you need her to take on your social media management, answer the phones, and manage your accounting. You find out too late, only after you’ve hired her, that the job is more...

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Three Tips for Choosing an Advisor for Your Startup

When you run a business, you don’t always know how to make the best decisions. After all, your expertise is in one area, but you might not be well-versed in finance, marketing, management, or growth strategy. That’s where having an advisor for your startup comes in handy. It's important to note that you don't have to have just one advisor for your business. You can build an advisory panel, which would give you access to talented people in all the areas of your business. 1. Identify Your Areas of Weakness The key to success is knowing what you’re not good at. You can’t be an expert at...

Business Meeting

Appointing a Board of Directors

If you’ve decided to form a corporation, congratulations to you! You’re on the right track to protecting yourself and taking your business more seriously. But the work’s not done yet. One of the steps you’ll need to do in the incorporating process is to appoint a Board of Directors. By law, your corporation must have a Board of Directors to represent it and to make decisions on behalf of shareholders. The number of members required will vary from state to state. For example, if you incorporate in California, you’re required to have at least one Board member. Having more can be...

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5 Mistakes to Avoid When Giving Business Gifts

If you’re planning to give your staff, vendors, or your clients presents this holiday season, think twice before you do. Many businesses make gift-giving blunders, which are completely avoidable. Below are the top five business gift mistakes you should avoid this holiday season. Giving an Inappropriate Gift You may not think there’s anything inappropriate about giving a fluffy robe and bath oils to your client or employee of the opposite sex, but he or she might raise an eyebrow. If the gift can in any way be construed as inappropriate, avoid it like the plague. Instead, we recommend you...

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How to Start a Skincare Business

If you plan to start a skincare business, there are several things you'll need to do before you start scheduling customers to come in for facials, waxing, or consultation. Here's a checklist of what you need to know if you want to know how to start a skincare business.

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Multiple Ventures? How to Best Structure Your Multi-Brand Business

It's possible to create a separate business entity for each venture you start. However, this can result in excess paperwork and legal filings. And in many cases, each business may not be earning a significant amount of revenue individually, making the paperwork seem especially tedious. To save some headaches and paperwork, this article provides you with great tips to consider when dealing with multiple business types.

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What Is FUTA Tax?

FUTA tax is among several employment-related taxes that businesses with payroll must pay to the government. FUTA (the Federal Unemployment Tax Act) initiated a program that works along with state unemployment programs to pay benefits to workers who have lost their jobs through no fault of their own. Employers pay the 6% FUTA tax and no portion of the tax is deducted or withheld from employees’ wages or salaries. The first $7,000 paid to each employee during the year (after deducting any FUTA-exempt payments) is subject to FUTA tax. Employers report their tax liability annually on IRS Form...

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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 to...

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Does a Sole Proprietorship Need Liability Insurance?

Many entrepreneurs who are the sole owners of their business (or operate a business with their spouse) choose to operate as sole proprietorships. A sole proprietorship is the simplest business structure to manage, which is why it’s popular with self-employed individuals. The sole proprietor (business owner) and the sole proprietorship (the business) are considered the same legal entity and tax-paying entity. The structure has no ongoing entity compliance formalities because it’s not a registered state entity. And tax preparation is typically easier than with other structures as...

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How Do LLC Owners Get Paid?

As a small business owner, how you pay yourself depends on your business’s legal structure and how you elect to pay taxes. The Limited Liability Company (LLC) is a popular legal entity offering liability protection to its owners (called members), simple compliance requirements, and tax flexibility. In fact, tax flexibility is one of the reasons the LLC is such an appealing option for small business owners. Should an LLC Owner Be on the Payroll? If you’re thinking about starting an LLC, you have several options for how you want to organize your company regarding paying taxes. Whether or...

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What Is the LLC Tax Rate?

Before forming an LLC, many entrepreneurs ask about the standard LLC tax rate to see if this form of entity is a solid option for their new business. This is an excellent question and one that can be best answered by exploring what an LLC is and how it is taxed. The LLC (limited liability company) business entity type is one of the most popular selected by small business owners. It shields the owner’s personal assets from the liabilities of the business and may result in some tax savings to boot. The LLC is an entity formed according to state statute, and it has flexibility in how income...

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Advising Clients About Business Structures

With all the decisions your clients are expected to make when starting a business, which legal structure to choose might not get as much consideration as it should. Most business owners choose to form a sole proprietorship in the beginning, since it’s less paperwork and less costly; many switch entities as their business grows to benefit from the protections provided by a Limited Liability Company (LLC) or C Corporation. But an LLC or C Corp can also choose to elect S Corp status. If your clients come to you with questions about this option, here’s what to know: The C Corporation The...

Accountant Advising Clients

The Best Business Entity for Professionals

In most states, professionals, such as attorneys, doctors, optometrists, certified public accountants, architects, psychologists, and psychiatrists, have fewer choices when it comes to selecting a legal structure for their businesses. Legal entities (such as corporations and Professional Corporations) and the rules that govern them vary state-by-state, so it’s crucial to understand what you need to do to protect your professional company. What is the Difference Between a Corporation and a Professional Corporation? Business owners choose to incorporate their companies primarily for the...

Female Medical Professional

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 is an...

IRS Form 8832

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 do so, they must follow the IRS’s instructions and take care of...

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Is an LLC a Corporation?

Many entrepreneurs wonder if an LLC is a corporation. An LLC is not the same thing as a corporation, but it's easy to get the two business entity types confused. In this article, I’ll explain the difference and highlight some of the advantages these structures have over unregistered entities. Limited Liability Companies and corporations are both types of statutory (state-registered) entities. To create them, business owners must file formation paperwork with the state and pay a registration fee. There may be other tasks as well that state law requires to legally form an LLC or establish a...

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What Business Owners Need to Know About Filing Taxes in 2022

Tax season is right around the corner. A lot has changed, tax-wise, in the past year due to new legislation. Here’s a quick look at what business owners need to know about filing their taxes in 2022. Sole Proprietorship Sole proprietors are unincorporated businesses with no distinction between the business owner and the business. The business owner is responsible for all the business’s debts, losses, and liabilities. Business earnings are considered personal income, and at tax time, they need to file a Schedule C (IRS Form 1040) “Profit or Loss From Business.” The filing deadline for this...

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Stats, Tips, and Steps for Starting a Freelancing Business

If you have marketable skills and knowledge as a self-employed independent contractor, you may wonder if you should freelance, and if so, how you'd go about starting a freelance business. And with the current economic climate of the great resignation and possible recession, freelancing could be a viable option for ensuring financial stability. And an even greater advantage to freelancing is that it brings a lot of benefits that include the flexibility to choose the type of work you do, the ability to decide who you work with, adjustable hours and the ability to set your own schedule,...

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