The Launch Blog
The CorpNet blog offers expert advice for launching and operating your business. From start up information to ongoing compliance, the CorpNet team keeps you up to date!
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...
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...
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...
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...
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...
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...
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...
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...
How Smart Businesses are Pivoting to Find Success in the Midst of COVID-19
Business owners are constantly moving. Whether it’s tracking new trends, operating the shop, meeting with clients, or attending networking events, you’d think there can’t be one more thing to add to their plates. And then, COVID-19 hit. As business owners ourselves, we saw a new kind of busy that was one of pivoting to meet new demands in a time of crisis. Pivoting business focus is not something unique to the time of coronavirus. Being able to quickly change or redirect a business is one of the hallmarks of entrepreneurship. Fortunately, smart business owners are excellent “pivoteurs,”...
Post-COVID Marketing Strategies for Accountants
Clients need their accountants more than ever in our post-COVID-19 world. Whether it’s getting ready for the extended tax deadline, figuring out how to utilize government relief funds or how to start a new business in a recession, accountants need to make sure their services are in the foreground of their customers’ needs. Here are five post-COVID marketing strategies for accountants to win and keep clients for the long-term. Establish the Business as Post COVID-19 Experts As the economy struggles to get back on track and clients have specific questions on how to file taxes, apply for...
LLC-5 and the California Foreign Limited Liability Company
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 registered a limited...
