The Launch Blog: Expert Advice from the CorpNet Team
CorpNet Named to Inc. 5000 List for 2021
CorpNet is proud to announce that it has made Inc. Magazine’s prestigious “Inc. 5000” list for 2021. As an Inc. 5000 honoree, we have been recognized as one of the fastest-growing private companies in America. During a stretch when the economy experienced limited growth, CorpNet achieved 120% revenue growth over the past three years. “I am beyond thrilled about the growth of our company despite the economic uncertainties that have arose recently due to the pandemic.” shared CorpNet CEO Nellie Akalp. “As an entrepreneur, revenue growth is a top priority and I am proud of the strides...
How to Reinstate a Revoked 501(c)(3) Status
As a 501(c)(3) nonprofit, an organization does not have to pay federal income tax on its profits related to its business purpose. That’s an important advantage as it allows organizations to keep more of their profits and use them to further their causes. However, if a nonprofit organization fails to file the required reports and 990 series returns to the IRS, the IRS will revoke 501(c)(3) status. This revocation will negatively impact the nonprofit in multiple ways. Fortunately, the IRS does provide a path for nonprofit organizers to reinstate their revoked 501(c)(3) status. In this...
How to Remove a Member from an LLC
Some limited liability companies undergo ownership changes as their businesses evolve. Members may come or go — either voluntarily or involuntarily — for a variety of reasons. So how do you remove a member of an LLC? Well, that depends! Different circumstances can affect the process and the outcomes for what happens to a member’s ownership interests in the company. Whether an LLC’s members want one of their members gone, a member wants to withdraw voluntarily, or a member passes away, the company must carry out the process lawfully. Ideally, an LLC’s organizational documents or LLC...
Independent Contractor vs. Employee
Before the pandemic (and all the havoc it created), small business owners were in an ongoing pursuit of sourcing the best workers for their company. Deciding between independent contractors and employees was a frequent question and this debate grew as some states considered enacting laws like California’s 2020 AB5 law. In 2021 "The Great Resignation" arrived and millions of employees have since quit their jobs in pursuit of more flexibility and happiness. This mass exodus has intensified the employee vs. independent contractor debate. With businesses settling into the “new normal” of...
Where to Form an LLC for an Online Business
When a limited liability company (LLC) has a physical location, owners usually register their business in their home state because that’s typically where they conduct most of their business. But what about forming an LLC for an online business? Having an online company provides some flexibility when selecting a domicile (home) state. Of course, that freedom of choice brings many questions! States’ LLC laws vary, so it’s important to consider how a state’s rules, regulations, fees, and taxes will affect the business and its owners’ liability risks, financial situation, business...
What is a DBA?
Whether that name is legally registered with the business’s home state or not, every business has a legal name. A DBA (or “Doing Business As” is a name that is different from the legal name of the company. A DBA is also referred to as the “trade name,” “assumed business name,” or a “fictitious business name.” A DBA lets the public know the true owner of a business. DBA laws are consumer protection laws. They exist, so consumers have full transparency on which companies they are transacting business with. In other words, DBAs prevent dishonest business owners from running a company under a...
CorpNet Recognized as One of the Fastest-Growing Companies in California
CorpNet is proud to announce that it has made Inc.’s prestigious “Inc. 5000 Regionals” list in 2021 as one of the fastest-growing private companies in the state of California. Out of the 250 companies to receive the honor in the state, CorpNet was named number 213 on the list. Collectively, this year's award honorees demonstrated 137 percent median growth, had $6.7 billion in total revenue, and added 17,666 jobs in the state. Where companies ranked on the list was based on percentage growth of their annual revenue from 2017 to 2019. CorpNet achieved 65 percent revenue growth in that time...
What Business Owners Should Know About the Arkansas Annual Franchise Tax
The Arkansas Secretary of State requires some business entities to report and file Annual Franchise Tax each year. The Annual Franchise Tax is a privilege tax that limited liability companies (LLCs) and corporations must pay for the opportunity to conduct business in Arkansas. The obligation to pay the tax begins the year after the business entity was formed and must be filed each year by May 1. Businesses may file and pay their Annual Franchise Tax as early as January 1. Arkansas LLCs LLCs (limited liability companies) and PLLCs (professional limited liability companies) must file an...
The Corporate Veil: What it is and Why You Don’t Want to Pierce it
What Is Piercing the Corporate Veil? Businesses that are registered as limited liability companies (LLCs) or corporations provide their owners with protection against being held personally liable for the company’s debts and claims. That legal shield of separation between a business and its owners is known as the “corporate veil.” Under that shield (under most circumstances) the owners’ personal assets (home, property, bank accounts, retirement savings, etc.) cannot be taken to settle debts and lawsuits brought against the business. However, personal liability protection is not guaranteed...
What Is a Certificate of Authority?
You may have heard the term Certificate of Authority, but what is it? Well, it can refer to a few different things! I'll discuss the various types of Certificates of Authority in this article to give you some general information about what they are and when they are typically required. I encourage you to check with your attorney and accountant or tax advisor for legal and tax advice to determine if your business needs any of them. 1. Conducting Business in Another State Certificate of Authority is known as a foreign qualification when speaking of a business entity getting approved to do...
Fathers Know Best: Entrepreneurial Dads Share Their Business Wisdom
Some people are lucky enough to grow up in an entrepreneurial family. I am one of the lucky ones. I learned so much from working with my grandfather at his small businesses when I was younger. I mean, what could be better than working at an ice cream store? Inspired by that, my husband Phil and I make sure we share the lessons and joys of entrepreneurship with our children. With that in mind, and in honor of Father’s Day, we talked to several entrepreneurial fathers to find out what they learned from their dads and what valuable business lessons they’ve passed on to their children. Barry...
What You Need to Know About the EIDL Application Process and Document Requirements
If you haven’t yet applied for an Economic Injury Disaster Loan (EIDL), you have until December 21, 2020 to submit your application. There is no need to apply again if you’ve already applied, as the loans are vetted on a first-come-first-serve basis. At the latest count, the U.S. Small Business Administration (SBA) has approved 3,612,236 EIDL applications, totaling $191,994,805,796 for small businesses affected by the pandemic. Unfortunately, so many small businesses continue to suffer losses, so the need for relief funding is ongoing. Let's do a recap of the Economic Injury Disaster Loan...
What You Need to Know About the Flexibility Act and PPP Loan Forgiveness
There’s good news for recipients of the CARES Act Payroll Protection Program’s (PPP) loan. The loan, which provided funds for small businesses to retain employees through the pandemic, has been altered with more generous terms for forgiveness. The Flexibility Act was signed into law on June 5, 2020, and amends the CARES Act, changing PPP loan terms and requirements. Here’s how to make sure you follow the new rules for forgiveness. How the Flexibility Act Modified PPP Forgiveness The amount of money each business received from the Payroll Protection Program was based on the number of...
How Should Real Estate Investors Structure Their Businesses?
Owning investment properties can be exciting and lucrative. However, investments in real estate, whether vacation rentals, long-term rentals, or properties for resale, can also create liabilities. That's why it's critical for real estate investors to wisely choose how they will structure their businesses. For example, a renter might trip on an unstable staircase. A guest could slip on an uneven sidewalk. Faulty electrical wiring could shock a tenant or cause a fire. Or a slow leak in a building's plumbing might cause mold that affects a tenant's health. Accidents happen and they can...
Everything You Need to Know About Starting a Partnership
What is a Partnership? A partnership is a formal legal entity where two or more parties agree to manage and operate a business and share its profits and losses. Like a sole proprietorship, each partner is responsible for the assets and liabilities of the company. However, in a partnership, the parties create a partnership agreement that dictates ownership, responsibilities, and decision-making authority. While there are no specific filing or registration formalities needed to start a partnership, partnerships must comply with the registration, filing, and tax requirements required of any...
Top FAQs for Small Business Licenses and Permits
When you’re starting a business there’s so much to know, it can be overwhelming. Let us take some of the complexity out of the startup process by answering the top FAQs entrepreneurs have about small business licenses and permits. Is a business license the same as a permit? Although most businesses likely need various licenses and permits to operate legally, a business license and a permit are different. A business license from the city in which your company operates, confirms your business has complied with the city’s rules and regulations for legal operation. Other business licenses...
7 Ways Your Business Can Crush It During COVID-19
Every business owner hopes to reach the peak of business success. You know, when you’re just crushing it—when smooth operations and growing profits allow you to breathe a satisfied sigh of contentment and pride. This year that feeling may seem farther from your reach than ever. A slower economy and a world trapped in daily self-distance protocols may leave you feeling directionless and disconnected. But, remember what Albert Einstein once said, “In the midst of every crisis, lies great opportunity.” Here are seven ways to ride out the pandemic and come out on top. 1. Leverage the Power of...
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 Cal.5th 903...
What Employers Need to Know About Sick Leave During the Coronavirus Crisis
Employers across the nation are feeling the pressure to keep their businesses up and running and profitable during the current COVID-19 pandemic. Whether you’re concerned about hunting down alternate suppliers or keeping employees and customers safe from contamination, there’s a lot on business owners’ plates at the moment. We know staying on top of the information about the pandemic is important to your business, so here’s the latest on sick leave policies during the coronavirus crisis. Before COVID-19 State by state the country is grappling with trying to stop the spread of the...
Florida Annual Report Deadline Extended Due to Coronavirus
Normally, at this time of year, you might find yourself scrambling to file your Florida annual report by the May 1st deadline. A business’s annual report confirms or updates a company’s information in the Florida Division of Corporations' records. The State requires that business entities file an annual report each year to maintain an "active status" with the Department of State. Corporations (for-profit and non-profit), limited liability companies (LLCs), limited partnerships (LPs), and limited liability partnerships (LLPs) must file an annual report. The requirement applies to both...
How to Calculate Your Payroll Protection Program Loan Amount
To help small businesses keep their business going and their staff employed, the federal government passed the CARES Act, which is administered by the Small Business Administration (SBA). One of the most useful parts of the CARES Act is the Paycheck Protection Program (PPP) loan, which encourages small business owners to keep their employees on the payroll. Under the program, the loans will be forgiven if the business only uses the money for payroll, rent, mortgage interest and utilities. Businesses must keep paying their employees for eight weeks. The PPP loans are 2.5 times a company’s...
Don’t Lock Your Credit if You’re Applying for a CARES Act Loan
I'd like to do a very quick public service announcement to alert you of something that can turn into a pretty big mistake. Things are moving so quickly with the CARES Act and Coronavirus relief that I almost didn't catch it myself. If you've locked your credit profile at Experian, Equifax, TransUnion, or another credit reporting agency, you could be in for an unpleasant surprise. By locking your credit profile you are prohibiting banks from doing the due diligence related to the Payroll Protection Program loan or other funding options provided under Coronavirus relief programs. The SBA,...
What Government Loan Program Should You Apply For?
Can’t decide whether you should apply for the Paycheck Protection Program (PPP) loan from the SBA or the Economic Injury Disaster Loan (EIDL) from the U.S. Treasury? Truth be told, many of your fellow small business owners have already turned in their applications for one or both and some are starting to receive their funding. If you’re still trying to sort out the differences or seeing if some of the confusion gets resolved, maybe we can help. Here’s what we know. Paycheck Protection Program (PPP) You probably already know the basics of the PPP, but it bears going over again for...
Adapting Your Business to Remote Activities and Shifting Business Hours
Who would have imagined we would be in the situation we’re facing today? The coronavirus pandemic has turned our world upside down and created an entirely new definition of “business as usual.” Many entrepreneurs, including me, have had to shift their business hours and adapt their companies to working remotely. For business owners not accustomed to handling customers and staff virtually, this pivot to remote work may be especially challenging. Let's explore some ways you can help ensure working remotely will work for your business. 5 Tips for Running Your Business in Chaotic Times 1. Use...
Paycheck Protection Program for the Self-Employed and Sole Proprietors
By now we have all at least heard about the Economic Injury Disaster Loan and the Paycheck Protection Program enough to know what the acronyms EIDL and the PPP stand for. Even the infamous Pandemic Unemployment Program aka the PUA has become part of our daily vocabulary. But what are these programs and how do they work? More importantly, how do they work for us, for our clients, and are they enough to get us through this crisis? Like me, you have no doubt been hunkered down at your desk watching recorded webinars, participating in live webinars, reading from the Treasury and Small...
COVID-19 Relief Funding Alternatives
As of April 16, 2020, the SBA announced all appropriations for the Paycheck Protection Program and the Economic Injury Disaster Loan were exhausted. Small business owners are now in need of COVID-19 relief funding alternatives. Below is a list of some COVID-19 funding options that are still available. SBA Express Bridge Loans (EBL) Eligibility: Small businesses that currently have a business relationship with an SBA Express Lender. Loan Amount: Up to $25,000. Purpose: Support for small businesses experiencing a temporary loss of revenue due to the coronavirus pandemic. The SBA Express...
How Loan Forgiveness Works for the PPP and the EIDL Loan Programs
Now that we are in full swing of the coronavirus pandemic, small businesses across the country are trying to make sense of the CARES Act and how the relief funding can help keep their businesses afloat. One area of confusion seems to be how a business receiving funds from the Paycheck Protection Program (PPP) and/or the Economic Injury Disaster Program Loan (EIDL) will have their loans forgiven. To date, details and information appear to change daily. According to the Small Business Administration (SBA), there will be additional guidance on loan forgiveness within 30 days of March 27,...
9 Tax Benefits in the CARES Act
There are more advantages to the CARES Act than just relief funding that can help your small business save money and those come in the form of tax breaks. Although most of the breaks are temporary, it’s important to take advantage of all that’s being offered to business owners now, so your company has the best chance of coming out of the pandemic healthy and if not profitable, at least in recovery mode. Here are nine tax breaks and benefits you and your employees can take advantage of today. Tax Benefits For Your Business 1. Delayed Payroll Tax Payment As an employer, you can choose to...
Business Ideas for People Who Love the Outdoors
If you love the outdoors and have always wanted to start a business relating to your outdoor passion, now is a great time to take advantage of the country’s desire for outside activities. Here are some outdoor business ideas and trends you need to know to get you running on the right path to business success.
Marketing in the New Normal of COVID-19
Things are different today due to the global coronavirus pandemic. While we may eventually get back to some version of normal, when that happens is subject to much debate. COVID-19 changed how business gets done, from suppliers and distribution to sales and marketing, the world functions in a different way. So while we all adapt to the “new normal”, the messages we send to our customers will have to change. Our customers’ needs have changed, and they have understandably rearranged their priorities over the past few months. They’re more patient and have learned how to do without some...
