The Launch Blog: Expert Advice from the CorpNet Team

Does Your Business Have to File a Georgia Annual Report by April 1st?

Business entities that are registered with Georgia's Office of the Secretary of State must file a Georgia annual report each year. The due date for filing Georgia's annual report is April 1st. What is an Annual Report? The correct terminology for an annual report is actually "annual registration." However, many people refer to it as an "annual report" because that's what the annual filing is called in many states. Throughout this article, you'll see that I use both terms to mix things up a little for your reading pleasure! Businesses required to file a [...]

March 23rd, 2021|Categories: Ongoing Management and Protection|

Florida Annual Report: 7 Things You Must Know

If you have incorporated in Florida or formed an LLC in Florida, your deadline for filing your Annual Report is May 1. Here are 7 facts that you need to know to ensure that your corporation or LLC remains compliant in the state of Florida. You Must File an Annual Report Whether Your Business Has Changes or Not While the purpose of the Annual Report is to ensure that the Florida Department of State, Division of Corporations has your company’s most updated information, you still have to file the document, even if you have no changes since last year.

March 23rd, 2021|Categories: Ongoing Management and Protection|

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 [...]

March 10th, 2021|Categories: Startup and Launch|

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 [...]

March 8th, 2021|Categories: Startup and Launch|

California LLC Franchise Tax Waived in First Year

Legislative Update Gives Exemption to New California Limited Liability Companies LLCs registered to do business in California must pay an annual franchise tax of $800 to the state's Franchise Tax Board (FTB). However, to relieve some of the financial pressures amid the pandemic for newly formed businesses, California Governor Gavin Newsome signed legislation in 2020 to exempt startups from paying the LLC franchise tax during their first year in business. This is welcome news for aspiring business owners in the Golden State! The new rules established by the state’s 2020 Budget Act (AB 85) [...]

March 8th, 2021|Categories: Ongoing Management and Protection|

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 business. How Do I Know [...]

March 1st, 2021|Categories: Startup and Launch|

S Corporation Election Considerations for Corporations and LLCs

Have you been thinking about whether your business might benefit from being an S Corporation? I presented a webinar for accounting professionals about the S Corp election not too long ago. Within that presentation, I covered information of value to entrepreneurs in all fields. In this article, I will share that insight with you in hopes that it will help you gain a deeper understanding of what it means to be an S Corporation. What Is an S Corporation? The S Corporation is not a business structure in itself. Rather, [...]

March 1st, 2021|Categories: Ongoing Management and Protection|

What Is IRS Form 2553?

IRS Form 2553 (Election by a Small Business Corporation) is the form that a corporation (or other entity eligible to be treated as a corporation) files to be treated as an S corporation for federal tax purposes. The IRS has specific criteria that entities must meet to qualify for S Corporation election. Here’s an overview of their requirements: Must be a domestic corporation or a domestic entity eligible to elect to be treated as a corporation Must timely file Form 2553 Must have no more than 100 shareholders (or LLC members). Shareholders are individuals, [...]

February 24th, 2021|Categories: Ongoing Management and Protection|

What Is IRS Form 8832?

IRS Form 8832 (Entity Classification Election) is the form an eligible business entity uses to elect federal income tax treatment other than its default treatment. Eligible entities include: Limited Liability Companies (LLCs) Partnerships (a business entity that has at least two members and is not a corporation) According to the IRS, a corporation is usually not considered an eligible entity unless: It is an eligible entity that previously submitted Form 8832 to be an association taxable as a corporation. The IRS may then allow it to use Form 8832 to change its classification. It [...]

February 15th, 2021|Categories: Ongoing Management and Protection|

What is a Corporate Resolution?

A corporate resolution is a formal record of a corporation's board of directors' decisions and actions on behalf of the company. States require incorporated companies to use corporate resolutions for recording major business decisions. The company's board of directors must vote to approve resolutions either during board meetings or in writing. 

February 8th, 2021|Categories: Ongoing Management and Protection|

The Best Business Entity for Professionals

In most states, professionals, such as attorneys, doctors, optometrists, certified public accountants, architects, psychologists, and psychiatrists, have fewer choices when it comes to selecting a legal structure for their businesses. Legal entities (such as corporations and Professional Corporations) and the rules that govern them vary state-by-state, so it’s crucial to understand what you need to do to protect your professional company. What is the Difference Between a Corporation and a Professional Corporation? Business owners choose to incorporate their companies primarily for the personal liability protection it offers the owners and shareholders. In a C [...]

February 8th, 2021|Categories: Startup and Launch|

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 [...]

February 8th, 2021|Categories: Startup and Launch|

What Business Owners Need to Know About Filing Taxes in 2021

It may be hard to believe, but tax season will soon be here again. A lot has changed, tax-wise, in the past year due to new coronavirus-related legislation. Here’s a quick look at what business owners need to know about filing their taxes in 2021 and how to make sense of the latest pandemic-related tax incentives. Sole Proprietorship A sole proprietor does not have any legal separation from their business’s property and liability. Therefore they file a Schedule C (IRS Form 1040) “Profit or Loss From Business,” and it’s considered personal income. The deadline [...]

February 3rd, 2021|Categories: Ongoing Management and Protection|

The S Corp Election Deadline is Right Around the Corner

March 15, 2021 is the deadline for electing S Corporation tax status for your Limited Liability Company (LLC) or C Corporation. There are a lot of tax advantages that come with the S Corp election, so this date should be on your radar. Let's explore what the S Corp election is, why you would want it, and how you can request it. S Corporation Election Deadline For the S Corp election to be valid for 2021, existing LLCs and C Corporations (with a tax year that began on January 1) will need to file [...]

February 3rd, 2021|Categories: Ongoing Management and Protection|
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