The Launch Blog: Expert Advice from the CorpNet Team
Sole Proprietorship vs. LLC
Are you considering starting a business as a solo owner, or will you co-own the business with your spouse? Then, you may be wondering if operating as a sole proprietorship or a limited liability company (LLC) will be the better choice. Keep in mind that there are legal, financial, and tax-related implications when choosing a business structure. Therefore, I encourage you to get guidance from an attorney and a tax or accounting professional as you decide. When an individual (or married couple) starts a business, it is, by default, considered a sole proprietorship. Operating as a sole...
How to Prepare Your Small Business for a Recession
Is a recession on the way? While some economic experts believe a recession is on the way, others, such as the National Retail Federation (NRF), think that although the economy is slowing, consumers are financially healthy and a recession is unlikely in 2022. And the United States is still at nearly full employment. But the recent Small Business Recovery Report by Kabbage from American Express reveals that 83% of small business owners worry that a recession is indeed looming. However, the good news in the report is that 80% of entrepreneurs are optimistic and they believe their small...
10 Strategies for Growing a Business
Uncertainty is not unfamiliar territory for business owners. However, these past few years have brought a significant amount of ups and downs to entrepreneurs everywhere and in nearly all industries. While some companies focused on their short-term goals, other businesses went all-in on securing long-term growth. Developing sound strategies for growing a business, executing those strategies, and streamlining processes are all part of the equation that makes a tremendous difference, whether in an environment of consistency vs. unpredictability and abundance vs. scarcity. Let’s take a look...
10 Ways to Take Care of Your Kids and Your Business This Summer
School’s out! Chances are your kids are celebrating right now because weeks of summer vacation beckon. But, if you’re starting a business or running a business, and you have school-aged children, you’re likely feeling a little conflicted. Entrepreneurs like me, and probably you, struggle a bit in the summer trying to balance our desire to be great business owners and great parents. While I love (and truthfully look forward to) having my kids at home during the summer months, I confess it’s getting increasingly harder to keep them occupied while I’m hard at work. I know this is a struggle...
Virtual Companies and Nexus: What Small Businesses Need to Know
Over the last two years, many businesses have chosen to go virtual, either temporarily or on a permanent basis. But that decision can impact the business’s nexus status. Companies with remote employees in other states may also need to register for foreign qualification, register for payroll taxes in those states, or they may need to start collecting sales tax from places they never have before. Business Compliance Consequences for Pivoting to a Virtual Company Many businesses have pivoted to a remote working model to keep employees safe and many may continue to do so for the foreseeable...
Setting Up a Corporation – Top FAQs
Happy November! We are excited to bring you another post in our monthly FAQ series! When starting a business, one of the first questions an entrepreneur must ask themselves is, "What entity type should I register?" Here at CorpNet, we are often asked to explain the differences between a C Corporation and an S Corporation, how to file a corporation, and even, "What is a corporation?" Top FAQs for Setting Up a Corporation What is a C Corporation? A C Corporation is a standard corporation. It is considered a separate entity from its owners. This means that the corporation is responsible for...
Paycheck Protection Program Loan Checklist
The SBA’s Paycheck Protection Program is an amazing opportunity for small businesses. It provides a 100% forgivable loan to cover payroll, rent, and utilities. The United States government has moved swiftly to get this program funded and operational. And in some cases, a little too quick for the average business owner to keep up with. Small business is the core of CorpNet and our service offering. We’d like to make sure we do everything we can to help business owners obtain PPP loan funds. To do this, we need to make sure you have everything you need to get you Paycheck Protection Program...
What You Should Know About Delaware Annual Reports and Annual Tax
Business entities in the state of Delaware have various reports and filings they must submit to the Delaware Division of Corporations each year. Delaware Limited Liability Companies don’t have to file an annual report, but they do have to file to pay an Annual Tax each year by June 1. Businesses that are registered as a corporation in Delaware must file a Delaware Annual Report every year by March 1, 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. In this post, I’ll cover...
Does Being an LLC or Corporation Help Build Business Credit?
Establishing healthy business credit is essential to ensure a company can thrive and grow. If an entrepreneur doesn’t take measures to establish credit in their business name, they may miss out on opportunities and even pay more than they have to for goods and services. Does a company’s business structure matter? Moreover, does being a Limited Liability Company (LLC) or corporation help build business credit? Absolutely! Operating as an LLC, S Corporation, or C Corporation is one of the most effective ways to begin establishing a credit record in the business name. That’s because those...
Meet the Driver and Doer Behind CorpNet: Nellie Akalp, Founder and CEO
Every person on the CorpNet team has contributed to our continued success. Our recently created series of videos features several of our team members to give you a glimpse of “who’s who” and their take on what they do and why they do it. In this post, we’re thrilled to introduce CorpNet Co-Founder Nellie Akalp and the video that features her. Who Is Nellie Akalp? Nellie loves educating and inspiring entrepreneurs and other business professionals. She finds her inspiration to do so through God and her family. Nellie’s husband, Phil, says that Nellie is the most passionate and committed...
Expanding a Small Business to Another State: What You Need to Know
Extending your small business’s presence across state lines can help your company reach new markets, grow revenue, and boost profits. But how do you expand a small business into another state? And what’s involved in operating a business in multiple states? There are some filing requirements to operate in other states legally and tax-related considerations that need attention. Of course, none of that should be taken lightly, so entrepreneurs should research the requirements of the state(s) where they want to conduct business. It’s also beneficial to consult an attorney and tax advisor or...
Meet the Go-To Person at CorpNet: Milton Turcios, Director of Operations
Every individual at CorpNet brings unique skills and qualities that make them an integral part of our team. This could not be truer of our Director of Operations, Milton Turcios! We’ve recently featured Milton in a video in our series that highlights various CorpNet team members. In this post, we’re introducing you to Milton and the video that shares more about why his co-workers value him so greatly. Who Is Milton Turcios? Like CorpNet’s founder, Nellie Akalp, Milton is the son of immigrants and the first child in his family to be born in the United States. He values the opportunities at...
Meet CorpNet’s Inspiring Senior Account Manager: Amanda Beren
CorpNet’s high-caliber team members, who bring their diverse strengths and talents to work with them every day, fuel our company’s success. No one exemplifies hard work and dedication more than our Senior Account Manager, Amanda Beren. We’ve recently featured Amanda in a video in our series that highlights various CorpNet team members. In this post, you’ll learn more about Amanda and have an opportunity to watch the video that features her. Who Is Amanda Beren? Amanda has worked with CorpNet’s owners, Nellie and Phil Akalp, since our company’s launch — and at the Akalps’ prior business...
Meet the People Behind CorpNet’s Success
We are immensely grateful for our team members’ talents and contributions. They have fueled our growth and remain the key to our continued success in helping aspiring and existing business owners make their entrepreneurial dreams come true. What do our employees love about working at CorpNet? You can see and hear from several of them first-hand in our recent video! Watch now to learn more about how our team-based “like family” work culture empowers and inspires our employees to be the best they can be. We love that they feel valued (because they are!) and appreciate the fun factor that we...
How to Apply for an EIN if You’re Not a United States Citizen
An EIN (Employer Identification Number), also known as Federal Tax ID Number, is a 9-digit number issued by the IRS that the United States federal government uses to identify a business for tax purposes. Every business with employees or registered in the U.S. as a partnership, multi-member LLC (limited liability company), or corporation is required to have an EIN. Foreign companies based in other countries that do business within the U.S. (including e-commerce or as an Amazon seller) must also have EINs to report income and pay taxes. But how do you apply for an EIN if you’re not a United...
Basic Tips for Building Business Credit
A business entity can have its own business credit record and score. Lenders, suppliers, vendors, and even potential customers might check a company’s credit score (which is publicly available) before providing funding or doing business with the company. Business credit stands as a sign of a company’s financial fitness and how responsible it is in handling its money. A business with a good credit history may benefit in several ways. Increased likelihood of getting funding Lower interest rates on loans Lower insurance premiums More favorable terms and payment arrangements with vendors and...
Understanding the Various Types of Nonprofits
What Is a Nonprofit? A nonprofit organization is created to fulfill a charitable, civic, religious, scientific, literary, or educational goal. Nonprofits do not have private owners, nor do they issue stock or pay dividends to shareholders. Aside from founders or staff being compensated a fair wage for their work in a nonprofit, the organization may not benefit individual stakeholders financially. The United States federal tax code recognizes over 30 types of nonprofits. Some nonprofits are either fully or partially tax-exempt, meaning they do not pay certain taxes. Also, some types of...
Does a Real Estate Agent Need an LLC?
Real estate agents, just like other self-employed professionals and independent contractors, should consider how to safeguard their personal assets from business-related liabilities. As a real estate agent, you may wonder if you need an LLC to get that level of protection. Setting up a registered business entity, like a limited liability company, for a real estate business is an excellent first step toward getting peace of mind. Unlike a sole proprietorship (or partnership), an LLC is a separate legal entity from its owners (a.k.a., “members”). So, if a home seller or buyer files a...
Filing Annual Meeting Minutes Before Year End
Depending on a business’s entity type and the state it’s registered in, its owners may be required to hold annual meetings and record minutes from those meetings. But how do you know if that requirement applies to your company? In this article, I'm going to explain what annual meetings and annual meeting minutes are to help you get on the path to determining if you must fulfill those important business compliance tasks. If you're a professional services provider that coaches or gives direction to business owners, this information may be helpful to your clients, so feel free to share this...
What You Need to Know About Work From Home Tax Deductions
According to Global Workplace Analytics, 25-30% of the workforce will be working from home multiple days a week by the end of 2021. Already a trend before the pandemic, remote working became the “new normal” for businesses of all sizes struggling to stay afloat during safer-at-home directives. Today, both employers and employees have found the positives that remote working offers. However, only employers can claim work from home tax deductions on their income taxes. Let's review who can claim work from home tax deductions, what expenses qualify, and how you should calculation those...
What You Need to Know About the Qualified Business Income Deduction
Tax considerations are a significant factor in how entrepreneurs structure their businesses. The qualified business income deduction (or QBI tax deduction) is an important tax deduction that allows eligible businesses to deduct up to 20% of their qualified business income from their taxes. As a provision of the 2017 Tax Cuts and Jobs Act (TCJA), the QBI deduction was intended to help business owners of companies with pass-through tax elections lower their taxable income and receive additional tax benefits. In today's post, we'll cover all the essential details you need to know about the...
Get Your Office Into the Holiday Spirit
I love the holidays. Celebrating with family and friends is very important to me and my husband, Phil. And we strongly believe in sharing that holiday spirit with our employees and contractors. Unfortunately, last year, like many of you, we couldn’t celebrate in person, but we still made sure our employees knew they were appreciated and valued. This year, we’re back to hosting a holiday party. Our company has employees and freelancers located all over the country, and we’re going to bring them here to Westlake Village to get to know one another and celebrate a great year. While it’s...
How to Retire When You Own Your Own Business
How many small business owners think about retirement when starting their businesses? Not many, which is understandable since all efforts are generally focused on growing the business, not leaving the company. However, at some point, all entrepreneurs want to know how do you retire when you own your own business? The answer depends on what the business owner wants from the business, whether other people are involved, state regulations, and how the company is structured. Let’s break it down. Retiring Strategies Small business owner retirement strategies may include: Selling the company to...
How to Formally Close Your Sole Proprietorship or Partnership
Deciding to close a business that you’ve put your blood, sweat, and tears into can be an emotional experience. That’s especially true of entrepreneurs who have operated as sole proprietorships or partnerships. Essentially, they become “one” with their companies, making saying “goodbye” bittersweet even when the time is right for closing. Fortunately, the overall process for closing a sole proprietorship or partnership is relatively uncomplicated (compared to dissolving a corporation or limited liability company). That’s helpful for sure, particularly if you’re aiming to finalize your...
How to Draft Meeting Minutes in the New Year
Along with other annual business compliance responsibilities, corporations (and sometimes LLCs) must hold various meetings and record minutes from those meetings. With the new year ahead, new entrepreneurs and existing business owners need to make sure they understand their responsibility to hold annual meetings and draft meeting minutes. Meetings that Require Keeping Minutes Corporate annual shareholder meeting (sometimes called “annual general meeting”) Board of directors meeting LLC annual member meeting Although not required, many organizations use Robert’s Rules of Order for...
Meet the Visionary Behind CorpNet: Phil Akalp, Founder and CTO
CorpNet could never have achieved what we have without our exceptional team members! We’ve recently created several videos to give you a glimpse behind the scenes of our company and allow you to get to know some of the people responsible for guiding our business and fulfilling our vision. In this post, we’re pleased to introduce CorpNet Co-Founder Phil Akalp and the video that features him. Who Is Phil Akalp? Phil says most people know him as “Nellie’s husband.” The couple has been building companies together for several decades. They sold their first company to Intuit in 2008 for $20...
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 a property sale when the seller reinvests the...
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...
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...
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 a tax and it is managed...
