The Launch Blog: Expert Advice from the CorpNet Team
Can an H-1B Visa Holder Start an LLC?
People interpret the American dream differently. For many foreigners, it likely represents an opportunity for prosperity and success. Coming to the United States and starting a business is often the start of that prosperity. The United States government allows nonimmigrant alien workers with specialized knowledge to come to America on an H-1B work visa if they’ve been offered a job. But what if the H-1B visa holder wants to start their own company in the United States? Is this allowed? And if so, how is it done? In today's post, I cover how starting a Limited Liability Company (LLC) could...
What Is LLC Service of Process?
When someone sues an LLC, the procedure of delivering the legal paperwork that initiates the lawsuit and allows it to proceed is referred to as service of process. Service of process notifies the LLC of the lawsuit, and it establishes that the court hearing the lawsuit has jurisdiction to do so. The U.S. Constitution’s Due Process clauses in the Fifth and Fourteenth Amendments prevent courts from exercising jurisdiction over a defendant unless proper notice is given, which makes service of process immensely important. Service of process commonly involves the following legal documents:...
10 Ways to Promote Your New Business
Excited to start your new business in the coming year? Whether you’re forming your company as a sole proprietorship or a Limited Liability Company (LLC), promoting a new business takes strategizing and fresh ideas. Otherwise, it’s challenging to get your new business noticed. Here are 10 ways to promote a new small business in 2021. Business Name Not to be overdramatic, but your business’s name could mean the difference between failure and success. You want to pick a name that not only tells consumers (whether B2B or B2C) what your company does but also targets the right customers and is...
How to Find and Compare Registered Agent Service Providers
As a serial entrepreneur with a heart for helping other entrepreneurs, it pains me to see business owners misled by registered agent services providers who offer bargain basement prices. These low-priced registered agents focus on offering the cheapest price possible and they do this by limiting services and hiding incremental fees. They lack customer support, have limited service capabilities, and have inadequate expertise to address customer questions and issues. And at the end of the day, this low-priced service usually comes at the buyer’s expense. Unfortunately, many new small...
What Is a Subsidiary?
The word “subsidiary” gets tossed about a lot in the world of business. But what does it really mean? A subsidiary is a company owned or controlled by another business entity (known as a parent company, holding company, or umbrella company). A parent company might own all of a subsidiary or achieve control by having a majority ownership stake (i.e., over 50%). Because the parent company has a controlling interest, it has a say over its subsidiary company’s governance. For example, the parent company will elect the subsidiary’s board of directors. Although a parent company may influence...
What Is the Difference Between Sales Tax and Sellers Use Tax?
Whether you sell products or services in one state or many states, it’s imperative to understand your business’s sales tax compliance requirements. To correctly register a business in a state and then file the proper sales tax, you need to know the difference between sales tax and sellers use tax and how nexus affects your obligations. Sales Tax Sales tax is a transaction tax paid by a consumer for a product or service and is a percentage of the sales price. Although not all states charge a sales tax, it is the seller’s responsibility to know which states do, to collect the sales tax, and...
What Comes After Incorporation? 12 Steps to Keep You On Track
Congratulations! You have officially registered your Limited Liability Company or Corporation with the state. But now what? What happens next? While forming an LLC or Corporation is a critical first step to operating a formal business entity, there's more work to do to keep it legitimate and in compliance. The tasks and filings vary depending on a company's growth objectives, type of business activities, and location. In this article, I talk about what comes after incorporation and I'll share some of the obligations that entrepreneurs must fulfill. However, keep in mind that your...
Articles of Incorporation vs. Articles of Organization
If you're thinking about starting a business, you’ll want to research which business entity type will be most advantageous to you. As you go through that process, you will discover that various documents and filings need to be submitted to the state to form a Limited Liability Company (LLC) or C Corporation. Articles of Incorporation and Articles of Organization are among them. Articles of Incorporation An Articles of Incorporation (sometimes called a Certificate of Incorporation) is a form that states require to set up a C Corporation. When a company's Articles of Incorporation are...
The What, Why, and How of Incorporating Out-of-State
A lot of entrepreneurs wonder what state should be used to incorporate a new business. Should it be their own state or maybe another state like Delaware or Nevada? There is no easy answer to that question, however, there are definite benefits for some businesses to incorporate in states other than where they conduct business. Let’s look at some examples of why you might incorporate out-of-state and then we'll review a few situations that will require you to register a foreign qualification. Why People Consider Incorporating Out-of-State Many people choose to incorporate their businesses...
How to Legally Start a Food Truck Business
According to IBISWorld, the food truck industry has 25,476 businesses in 2020. Growth in the industry from 2015 to 2020 averaged 8.7%. With the COVID-19 crisis a reality now, arguably, the food truck industry may be better suited than brick-and-mortar restaurants to navigate the challenges. With more people consuming take-out food and spending less time in sit-down establishments, food trucks may appeal to customers' desires for getting good food fast and with less person-to-person contact. In this article, I’ll share insight to get you headed down the right road on your entrepreneurial...
Seven Steps to Creating a Business Emergency Preparedness Checklist
It's an understatement to say the last few years have been tumultuous. Nearly every business has felt the pandemic's economic effects, and many have faced natural disasters such as hurricanes, tornadoes, draughts, and wildfires. With CorpNet's location in southern California, I relate first-hand to the challenges that entrepreneurs have faced. Our office has closed due to wildfires and COVID-19. Fortunately, we have a small business disaster recovery plan in place that has enabled us to continue our operations without sacrificing the quality of our customer service or our ability to meet...
How to Start a Daycare Business
Daycare businesses provide a critical service to working families. Parents and guardians need reliable, responsible childcare services to ensure that their children are well taken care of while adults in the household work hard to earn a living. Before starting a daycare, I recommend that you seek resources—such as an attorney, tax advisor, accountant, and business consultant—who can help with your legal, accounting, and industry-specific questions and decisions. In the meantime, I've created this step-by-step guide that provides key considerations and action steps for starting your own...
Do You Need an LLC for a Hard Money Loan?
Do you need a register an LLC to obtain a hard money loan for your real estate investment? Let's explore the LLC and hard money loans so you can decide. What is a Limited Liability Company? A Limited Liability Company (LLC) is a formal business structure that is the simplest to form and maintain. Creating an LLC offers some of the same benefits as a corporation, without the costs and compliance complexity. Business owners who are looking for personal liability protection, tax flexibility, and management options may find that registering an LLC will be an ideal choice for their company....
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, new small businesses choose to operate as a sole proprietorship or general partnership. Would either be a good fit for you? As you compare the sole proprietorship vs. partnership you'll have lots of questions. 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...
How to Start an Amazon Business
If you've been intrigued by the flexibility and income potential of selling online, starting an Amazon business is probably at the top of your to-do list. There's no denying Amazon's reach and reputation, which is why so many Americans have a strong pull toward launching an Amazon store. If you're on the fence about jumping into the world of Amazon, these statistics will solidify your plan: Amazon receives over 2 billion visits per month Amazon sellers can reach customers in over 180 countries There are over 300 million active Amazon shoppers worldwide Customers complete 28% of their...
How to Legally Start a Nonprofit Business
There is nothing more fulfilling than directing time and energy toward helping others in need. If you're passionate about a cause, you may have wondered how to start a nonprofit business. Some aspects of starting a nonprofit organization are similar to starting a for-profit business, but nuances exist. Incorporating a nonprofit can be confusing and complicated. Let’s dive into what it means to be a nonprofit organization and explore some of the considerations and steps involved in becoming one. Please keep in mind that the information that I'm about to provide in this article is not...
What is a Holding Company?
Many business owners operate multiple businesses and there’s a good reason for that. Once you have one business and business structure in place, it’s much easier to get a new business off the ground than if you had to start from scratch each time. At some point in your entrepreneurial life, you may come upon an idea or opportunity too good to pass up. But you have no intention to stop operating your current business. So, the question becomes how should you structure the new business. Should it be a part of the original business, a DBA (Doing Business As), or a completely separate business...
The Small Business Mid-Year Checklist
How are we nearing mid-year already? If you’re like me, the current business climate has been a whirlwind of trying to keep up on new information, planning for post COVID-19 recovery, and still maintaining running our business operations. Now that we’re approaching the mid-way point of 2020, we think it’s a good time to remind you there are some deadlines you need to keep an eye on and important decisions yet to make. Business Taxes The tax deadline has been pushed to July 15, 2020 which gives individual and business taxpayers more time to prepare to get their acts together. You may have...
Do You Need an LLC or S Corporation When Purchasing Rental Property?
So, you want to be a landlord? Here’s what to know about setting up a rental property business and protecting it with a Limited Liability Company (LLC) or S Corporation. Whether you want to purchase property to rent out on Airbnb or you want to lease office space, it’s important to understand that how you structure the property purchase affects your liability and your taxes. To be clear, we are not talking about merely renting out your home or a room in your house for a short timeframe. According to the IRS, rental income from a short-term period is tax-free as long as the room or house...
When Personal Liability Protection Doesn’t Work for Corporations and LLCs
Did you structure your business as a C Corporation or LLC for limited liability protections? For most scenarios the extra filing requirements, paperwork, and fees are worth it—your personal liability protection helps make sure your assets are protected from the business’s debts and legal issues. And that goes for the corporation’s shareholders and LLC members, too. Creditors can’t come after members’ cars, houses, or personal possessions to pay for attorney fees and unpaid invoices. But it’s called limited liability, which means there are some notable exceptions. Here’s what to know and...
How to Start a Business in West Virginia
A lot of entrepreneurs have decided to start a business in West Virginia and there is good reason. It is centrally located and within an eight-hour drive from major metropolitan areas and it offers some of the country's lowest labor and utility costs. Known as the “Mountain State,” West Virginia’s dependence on its mineral resources has declined in recent years, and it now boasts numerous industries, including aerospace, manufacturing, information technology, and energy production. Plus, its central location makes fulfillment distribution a thriving industry in the state. If you’ve been...
How to Find Small Business Grants
Small business owners often ask if they can obtain a grant for their business. The great news is you can. Small business grants range from a few hundred to thousands of dollars. Each grant has its own guidelines, requirements, and purposes. Getting a grant doesn’t happen overnight. The grant application process can take several months, and you will encounter many other companies competing for the money. Nonetheless, getting a grant award can be just the boost your business needs. One of the best aspects of getting a grant, as opposed to a business loan, is that grant money does not need...
Your Complete Guide to Starting a Business in New Mexico
With the 5th lowest labor costs in the country, according to the newest WalletHub study, the “Land of Enchantment” state boasts a thriving small business community. According to the Small Business Administration (SBA), 99% of all businesses in New Mexico are small businesses. If you’ve been thinking about starting a business in New Mexico, here is a comprehensive look at the many things business owners should know and address to get their businesses up and running. 1. Nail Down Your Business Idea Before spending time and money starting a business, entrepreneurs should do their due...
The State of Small Business Revenue
As a small company, CorpNet understand the challenges small businesses face, especially in an uncertain economy. However, entrepreneurs are resilient and remain the country’s economic backbone. Small businesses account for 99.9% of all businesses in the United States and employ 61.7 million Americans, which accounts for 46.4% of private-sector employees. Over the years, we’ve helped thousands of small business owners start and grow their companies. New business owners have lots of questions, business terminology can be confusing, and they frequently wonder about the true revenue potential...
What Is Form 1065?
Partnerships (and LLCs taxed as Partnerships) must get acquainted with this IRS Form 1065 for U.S. Return of Partnership Income. Form 1065 is an information return that Partnerships use to report their income, gains, losses, deductions, and credits. While Partnerships are pass-through entities and business profits and losses flow through to the partners’ personal tax returns, Partnerships are still responsible for filing Form 1065 to report their financial information to the IRS. Moreover, a Partnership must use the form to prepare Schedule K-1 forms for its partners to identify the...
What Is an Assumed Business Name?
A company might request to use an assumed business name instead of its legal name for conducting business. This is more commonly known as a DBA (Doing Business As). In this article, I’ll explain why business owners might want to use an assumed business name, how to get one, and other important details for anyone considering using an alternate name for their company. Legal Name vs. Assumed Business Name Legal names: A Limited Liability Company’s (LLC) or C Corporation’s legal name is the one that is registered with the state on the entity’s formation documents. A Sole Proprietorship’s or...
Happy Mother’s Day
As a mother of four, I am very well aware of the challenges and pressures of raising kids today, especially while also running a business. I’ve learned a lot over the years—my first two kids were twins—so I had no choice but to learn quickly. In honor of Mother’s Day, I wanted to share some of what I’ve discovered over the past 21 years of being a mom. Be the best version of yourself in front of your children. No matter how you’re feeling at the moment, it's critical that you model healthy behavior. This means showing your kids the importance of being honest and trustworthy, keeping your...
How to Change an LLC’s Ownership Percentage
One of the reasons why entrepreneurs find the Limited Liability Company business structure attractive is that it gives them flexibility in dividing ownership among the LLC’s members. How you determine LLC ownership percentages can be based not only on members’ financial stakes in the company but also on the expertise they bring and the time and effort they spend managing and working in the business. While LLC members can have different ownership percentages, the ownership interests of all members in total must add up to 100%. For example, a multi-member LLC with three members might...
A New Approach to Setting Business Goals
Success means different things to different people. Regardless of how you define it, success depends on your goals and what you want from your business in the months and years ahead. Often, entrepreneurs think of their business goals as achieving specific metrics or dollar amounts. Paying attention to numbers is important, but I believe there’s much more to consider when pondering what success looks like and how to achieve it. As a serial entrepreneur, I can attest to this: your business affects virtually every aspect of your personal life. From your health and interpersonal relationships...
Can You Transfer LLC Ownership?
In the world of entrepreneurship, change comes in many forms and it is inevitable. People who were once robustly passionate about their business endeavors may find new opportunities or face life situations that lead them to focus on other priorities. What can you do if that happens to members of a Limited Liability Company (LLC)? LLC members might decide to transfer the ownership interests in their company for a variety of reasons. Ownership transfer can occur when new LLC members are added, one or more existing LLC members want to sell their shares of ownership, or an LLC member dies or...
