The Launch Blog: Expert Advice from the CorpNet Team

C Corporation vs. S Corporation

If you have your sights set on incorporating your business, you may be wondering if a C Corporation or S Corporation is the better option. While both are popular choices, nuances exist that may make one or the other more advantageous for your situation. The business structure you choose will affect your company in many ways, including the legal and financial aspects. That’s why it’s critical to do some research and ask for guidance from an attorney and accountant or tax professional when deciding. In this article, I’ll compare the C Corp vs. the S Corp. This review will help you prepare...

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LLC vs. Partnership

When deciding between an LLC vs. partnership as your company's business structure, you'll have many considerations to address. There are ramifications legally, administratively, and financially when choosing a business entity type. Rushing to a decision can have consequences—BIG consequences—so it’s critical to review your options carefully and seek professional guidance such as from an attorney and accountant or tax advisor. An LLC (limited liability company) may be owned by just one person (“single-member LLC”) or by multiple owners (“multi-member LLC”). By the nature of its name, a...

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14 Steps for Starting a Business in Nevada

You have a phenomenal business idea, you’ve done some homework to verify your idea is viable, and now you’re ready to take the necessary steps to make your dream of starting a business in Nevada come true. Starting a business in Nevada offers the opportunity to take charge of your own professional destiny in a state known for entrepreneurial innovation and success. Entrepreneurs find Nevada an attractive state to launch a business for many reasons, including: Accessibility to the West Coast and California markets No state corporate or individual income tax No state franchise tax Financial...

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20 Characteristics of Successful Entrepreneurs

There's a neverending debate on whether entrepreneurs are born or made. I don't claim to be able to make the call one way or another, but I have noticed several characteristics that the most successful small business owners seem to share. Here they are. Whether entrepreneurs are made or born, they all share similar characteristics. How many of these do you possess?

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What is a Statutory Close Corporation?

A Statutory Close Corporation (also known as “Close Corporation”) is a corporation that does not publicly trade stock and is formed under a special statute. This type of corporation is held by a limited number of shareholders. In some states, Close Corporations may have up to 50 shareholders, in others they must have fewer. Shareholders may run their corporation directly without oversight by a formal board of directors or the obligation to hold shareholder meetings, provided they have a shareholders’ agreement in place that eliminates those formalities. Not all states recognize the Close...

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How Much Does It Cost to Start a Business?

Preparation matters when launching a business. And knowing your startup and ongoing costs is among the most important steps of the process. It’s critical for seeking funding, attracting investors, and estimating when you’ll break even and begin turning a profit. But every entrepreneur’s situation is unique, and many factors influence the types (and amounts) of expenses a business will have. So the vague but honest answer to how much does it cost to start a business is it depends. Sadly, many new businesses face dire financial difficulties. According to Lending Tree’s analysis of Bureau of...

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How to Change from a Sole Proprietor to an LLC

It's estimated that over 70% of U.S. businesses operate as sole proprietors. That's not surprising, considering that doing so requires no formal business registration forms, few compliance requirements, and income tax reporting simplicity. But as businesses grow and evolve, their owners may decide to change from a sole proprietorship to an LLC. Many choose the limited liability company (LLC) structure because it offers nearly the same ease of administration as a sole proprietorship while providing some important advantages. In today's post, we'll review these advantages and walk through...

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10 Mistakes to Avoid When It Comes to the CARES Act Funding Relief

With tons of misinformation swirling out there, you may be afraid of making a crucial mistake when it comes to applying for and receiving CARES Act relief funding. Here are 10 mistakes to avoid. Application Mistakes 1. Not Being Prepared Any delay in your application could mean your business gets bumped to the bottom of the list. Have on hand: Basic business and contact information Average monthly payroll costs including employee salaries, wages, and commissions; payment of cash tips; payment of vacation; parental, family, medical or sick leave, insurance premiums, etc. 2019 Tax Forms...

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How to Get Certified as a Women or Minority-Owned Small Business

Small business certification comes in many forms and offers incredible opportunities for business owners to work with and compete with larger businesses for contracts. Federal government agencies and many state and local governments must set aside a percentage of their contracts to small businesses, including women-owned and minority-owned businesses. In today's article, I'll review how you can get certified as a woman or minority-owned small business. How Do I Get Certified as a Woman-Owned Business? There are two types of women-owned business certifications: Women’s Business Enterprise...

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Checklist for a Home-Based Business

Many entrepreneurs start their small businesses in their homes. Without the costs associated with renting or buying office space, it helps keep startup expenses down. Still, business owners running their companies out of their houses must pay attention to many details to position themselves for success. Besides getting office supplies, technology tools, and other necessities, they must make sure they take care of the legal requirements for operating their businesses. Every new company’s needs are unique in some ways, so it’s helpful to talk with an attorney and tax advisor for...

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7 Tips to Help Your Business Survive Through a Recession

Is there a recession on the way? The best and most honest answer is maybe. Some economic signs point to a coming economic downturn, while others, like the nation operating at nearly full employment, suggest otherwise. It may be a cliché, but only time will tell. In the meantime, savvy small business owners should change some of their habits and activities now, so these new behaviors are startling if a recession hits. We explained how to best prepare for a recession, so first, make sure your small business has enacted what you prepped for. Here are some tips for surviving a recession. Is...

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How to Start a Business With a Partner

You’ve heard the phrase "two heads are better than one” and that often rings true for entrepreneurs. Along with the pooled knowledge from multiple brains, having a business partner brings the perks of additional funds, a wider breadth of skills, a built-in support system, and another set of hands to handle tasks. I know a thing or two about all that because I started CorpNet with my business partner and husband, Phil. While not all business partnerships involve spouses, many of the same considerations come into play when contemplating how to start a business with a partner. A Few Things...

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How to Properly Handle Your Company’s Annual Meeting Minutes

Businesses that have incorporated as a corporation or formed a limited liability company (LLC) must carefully document their compliance activities. For example, when a corporation holds its annual general meeting (a.k.a, annual shareholder meeting), it must keep a record on file for regulatory compliance purposes. Most states require that C Corporations (including those that have elected for S Corporation tax treatment) hold a general meeting for their shareholders every year. Usually, they are also required to hold at least one meeting with their board of directors yearly. Businesses...

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What is Payroll?

Payroll refers to the various tasks and responsibilities businesses must perform to pay their employees accurately and on time. It encompasses calculating wages and salaries; preparing checks or paying employees via direct deposit; withholding taxes and other deductions from employees’ pay; reporting and paying taxes to the appropriate federal, state, and local agencies; and more. Businesses must handle payroll correctly because it impacts their net income and can result in additional fines, fees, and penalties if not managed according to federal, state, and local rules. Because payroll...

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How to Start a Tax Preparation Business From Home

Do you already have experience in preparing tax returns as an employee or temp for a tax agency and wish you had more control over your schedule? Or are you looking to capitalize on your math abilities and attention to detail on your own terms? Either way, you may be wondering how to start a tax preparation business from home and if this decision is right for you and your lifestyle. With the complexity and ever-changing nature of the U.S. tax code, I don’t believe it’s a stretch to say that demand will always exist for professional tax preparers. They serve an essential need. Operating an...

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What is the Owner of an LLC Called?

The Limited Liability Company (LLC) business structure is a popular choice for entrepreneurs in nearly all industries because of its simplicity, personal liability protection, and tax and management flexibility. An owner of an LLC is called a member, and an LLC may have one or more members. What LLC members call themselves — i.e., titles for LLC owners — depends on their individual preferences and what is most appropriate for their involvement in operating the business. No specific rules exist for what LLC members may call themselves. Considerations When Choosing Titles In some LLCs, the...

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5 Ways to Lower Your Risk When Starting a Business

It’s important to understand when starting a business: there is no 100% guaranteed way to eliminate the risk that entrepreneurship brings. You can’t be sure your customers will pay you on time. Your employees can quit without notice. Your vendors might deliver damaged products. All of these, among other risks, make it difficult for you to know what’s going to happen tomorrow, much less next year.

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How CorpNet’s Partner Program Helps Professionals Increase Revenue Without Adding Overhead

CorpNet has always been focused on helping entrepreneurs in all industries succeed. We not only offer services to help them save time and money in forming their own businesses, but we also provide a program for accountants, attorneys, and other professionals to enable them to expand their client services and increase revenue. I recently presented two webinars about the CorpNet Partner Program: Increase Revenue & Client Satisfaction Without Increasing Overhead or Staff – Which explains the Partner Program and how it enables accountants to expand their services quickly and with minimal...

Outsourcing to Get Back to Business

Making plans to get your business back on track post-coronavirus pandemic? Here are five responsibilities you should consider outsourcing so you can devote more of your time and energy to the areas where you are most needed. 1. Website Updates and Maintenance Your website is likely the most important marketing tool in your arsenal and yet it also probably gets neglected from time to time—especially in the aftermath of a crisis, such as a coronavirus. Unless you’re into coding and application updates, outsourcing IT tasks such as website fixes is a great place to start delegating. Think of...

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How To Safely Reopen Your Small Business to the Public

As the country makes plans to reopen restaurants, retail, public buildings, and schools, your topmost concern should be the safety and well-being of workers and customers alike. Your reopened business will be scrutinized and the measures you take to reopen safely will go a long way in how your clients and customers feel about supporting your company post-pandemic. The risks are still real so it’s important to be scrupulous in formulating your reopening plan and how you execute it. Below are a few tips and suggestions to help you safely reopen your small business to the public. Three Key...

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What You Need to Know About Sole Proprietorships

By far, sole proprietorships are the most popular form of business ownership. Starting your entrepreneurial journey as a sole proprietorship is also the easiest route for a startup business owner to take as the paperwork and compliance requirements are minimal. However, there are risks inherent in this type of legal structure, too. Here’s what you need to know about sole proprietorships. What is a Sole Proprietorship? By default, states consider a single-owner business (or a married couple who co-own a business) to be a sole proprietorship unless the owner or owners register the business...

Young Female Business Owner

How Do I Legally Protect My Side Hustle?

Most everyone could do with a little more cash these days, and a side hustle is a great way to keep your “day job” or core business and still make extra income. But what happens when your side hustle gains traction, and you want to make sure it is legally protected? When does the Internal Revenue Service (IRS) need to know? What about your state’s Secretary of State or Department of Revenue? Here’s what to know to keep your side hustle on the right side of the law. Is Your Side Hustle a Hobby or Business? Per the IRS, you can distinguish between a business and a hobby by considering the...

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Time to Declare Your Independence

For many, the American dream is all about entrepreneurship. Business ownership is a way to declare personal independence and even though the economy has been a roller coaster lately, it hasn’t quieted America’s entrepreneurial spirit. As a matter of fact, despite the current level of economic uncertainty, the number of EIN applications shows it hasn't slowed new businesses from starting. But startups are not where all the entrepreneurial action is. Current business owners have been busy, trying to keep their businesses running at all costs. Whether you’re a startup entrepreneur or a...

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10 Ways to Create a Successful Brand for Your Small Business

One of the key steps to starting a new company is creating a strong brand. Do it right, and you’ll have a memorable brand that customers line up to do business with. If you are a new business owner, you might not know where to even start. I've been there and I totally understand that feeling. Today I'd like to share ten steps to help you create a great brand for your small business.  1. Understand the basics of a small business brand To craft your brand message, start by asking yourself (and answering) these questions: What does your company do? Can you distill that down to a few...

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The Startup Business Plan: Why It’s Important and How You Can Create One

I think it’s safe to say that nearly all business experts agree that all entrepreneurs can benefit from having a business plan. Why is a business plan important for your startup?   According to a study by Palo Alto Software, entrepreneurs who have a business plan are about twice as likely to successfully grow their business, attract investors, and get loans than those who did not have one. What is it about a business plan that makes it such an essential ingredient for success? Let’s take a closer look! Why a Business Plan Is So Important We’ve all read the stories of million-dollar...

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What are Articles of Incorporation?

If you’ve decided to establish your business as a corporation, you’ll need to fulfill your state’s requirements for registering your company. Among those requirements is filing an Articles of Incorporation (sometimes called Certificate of Incorporation) with the state government. Articles of Incorporation is a legal document containing important information about the company, and it must be approved by the Secretary of State office. Why Articles of Incorporation are Important Filing Articles of Incorporation registers the company as a C Corporation with the state. It makes the business a...

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