The Launch Blog: Expert Advice from the CorpNet Team
Virtual Companies and Nexus: What Small Businesses Need to Know
The coronavirus continues to impact small businesses. 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 [...]
How to Start a Daycare Business
Daycare businesses provide a critical service to working families. Parents and guardians need reliable, responsible child care services to ensure that their children are well taken care of while adults in the household work hard to earn a living. Even during the COVID-19 crisis, with many people working remotely from home, daycares provide a necessary service. Parents still need someone to care for and provide enrichment to their infant and pre-school children. Before starting a daycare, I recommend that you seek resources—such as an attorney, tax advisor, accountant, and business consultant—who can help with [...]
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 [...]
A Mid-Year Business Checklist to Get You Back on Track
Tax season is over (for most of us). So, what’s next for business owners and professional advisors with business clients? With so much disruption and distraction this year, you may have fallen behind keeping up with compliance for business licenses, permits, and identification numbers. Here’s a mid-year business checklist to get you back on track. Federal Tax ID Getting a Federal Tax ID number (or an Employer Identification Number—EIN) is optional if you’re a sole proprietorship, but if your business acts as a Corporation, Limited Liability Company, or a partnership, you and your business clients are required by [...]
How to Start a Restaurant Business
Are you thinking about how to start a restaurant business? Without a doubt, it's an industry that contributes immensely to our economy. According to statistics from the National Restaurant Association, there are over one million restaurant locations in the United States, and they collectively employ 15.6 million people. What I think is especially encouraging about the restaurant industry is that it has a track record of opening the door to entrepreneurship to people with humble beginnings who are willing to work hard and learn. Many people who start a restaurant begin by working in [...]
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. Comparing the LLC vs. Partnership Business Structures 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 [...]
LLP vs. LLC
When you’re starting a small business that has more than one owner, you and your partner(s) may have concerns about your personal liability risks. If this is the case, it would be wise to compare LLP vs. LLC business structures. Limited liability partnerships (LLP) and limited liability companies (LLC) combine some aspects of general partnerships and corporations. As sorts of hybrid entity types, they provide a level of liability peace of mind for their owners while preserving some of the simplicity of operating as a general partnership. Although they have some things in common, [...]
What Kinds of Liability Should Accounting Professionals Be Concerned About Right Now?
Minimizing legal risks to your business has always been important. However, with so much uncharted territory and change within the current environment, it has become especially critical to look out for situations that could become problematic liability issues for your firm. Stephen Covey once said, “If there’s one thing that’s certain in business, it’s uncertainty.” That has never been more accurate than now. With the coronavirus pandemic persisting, nearly every company in every business sector faces uncertainty. As accounting professionals, these times of uncertainty bring a double dose of challenges your way: Your own [...]
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 COVID-19 pandemic has dampened the economy temporarily, it hasn’t quieted America’s entrepreneurial spirit. As a matter of fact, new businesses are starting despite the economic slowdown as evidenced by the recent number of EIN or Federal Tax ID applications for new businesses filed since mid-March (more than 500,000). But startups are not where all the entrepreneurial action is. Current business owners have been busy, trying to keep their businesses running at all [...]
Are Your Accounting Clients Worried About a Recession? Why They Need You Now More Than Ever
As far back as October 2019, half of Americans were already concerned a major recession was on the horizon and now that concern has become a reality, according to top economists. According to the National Bureau of Economic Research, the U.S. economy actually stopped growing in February this year, following an economic expansion that lasted more than 10 years. And, it all happened fairly quickly as the COVID-19 pandemic effectively shut down the economy and compounded unemployment. So, it’s not at all surprising your accounting clients are worried about the recession. It’s up to [...]
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 [...]
Sole Proprietorship vs. Partnership
You have much to think about and many questions to answer when starting a business. One of the most fundamental considerations is what type of business structure is right for you. Often, brand new small businesses choose to operate as a sole proprietorship or general partnership. Would either be a good fit for you? You might be wondering, sole proprietorship vs. partnership—what’s the difference? In this article, I’ll share information about the similarities and differences between the two business structures and some thoughts about other business entity types to consider. This information should help [...]
4 Reasons Why a Recession Is a Good Time for Your Clients to Start a Business
With all the uncertainty in the world right now, you might think your clients are crazy to consider starting a business in 2020, but don’t be so sure. There are numerous examples of successful businesses that started during a recession, including Microsoft and Burger King. Startup entrepreneurs are inherently bootstrappers and agile thinkers, willing to put in the time and effort to hurdle any problem thrown their way, including a weaker economy. The latest survey from SCORE looked at The Impact of COVID-19 on Startups and found 18.4% of startups have scaled their launch [...]
How to Change from a Sole Proprietor to an LLC
Many determined individuals begin their entrepreneurial journey by operating their business as a sole proprietorship. It's no wonder why. As a sole proprietor, the costs to start and legal formalities to maintain a business are less than when registering as other types of business entities. However, there are drawbacks to being a sole proprietor. The most significant downside is that the business owner is personally responsible for all debts and legal liabilities of the company. It's common for entrepreneurs to consider changing from a sole proprietor to an LLC as their business grows and [...]
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 [...]