The Launch Blog: Expert Advice from the CorpNet Team

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 potentially [...]

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

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 and 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 [...]

January 29th, 2021|Categories: Ongoing Management and Protection|

What Is a Pass-Through Entity?

A pass-through entity refers to a business that does not pay income tax of its own. Its income, losses, credits, and deductions “pass-through” to each business owner’s personal tax return, where its profits are taxed according to each owner’s individual income tax rate. Sole proprietorships, general partnerships, limited partnerships, limited liability partnerships, limited liability companies, and S Corporations are all pass-through entities. Corporations, and limited liability companies that elect to be taxed as a corporation, are not pass-through entities. Many entrepreneurs choose pass-through business structures for various reasons, including their relative tax-filing ease compared [...]

January 25th, 2021|Categories: Startup and Launch|

Tax Saving Features of Corporations, S Corporations, and LLCs

I regularly speak to business owners about entity types and their potential impact from a tax perspective. A while back, I created a webinar for accountants (and other professional services providers that work with businesses) on the topic of business structures and taxes. It is focused on the possible tax advantages and disadvantages of C Corporations, S Corporations, and Limited Liability Companies (LLCs). In this article, I’ll break down the important considerations that I discussed in that presentation. Benefits of Business Incorporation Overview of the C Corporation, S Corporation, and [...]

January 18th, 2021|Categories: Startup and Launch|

How to Properly Handle Your Company’s Annual Meeting Minutes

Businesses that have incorporated as a corporation or formed a limited liability company (LLC) must carefully document their compliance activities. For example, when a corporation holds its annual general meeting (a.k.a, annual shareholder meeting), it must keep a record on file for regulatory compliance purposes. Most states require that C Corporations (including those that have elected for S Corporation tax treatment) hold a general meeting for their shareholders every year. Usually, they are also required to hold at least one meeting with their board of directors yearly. Businesses structured as an LLC may need [...]

January 5th, 2021|Categories: Ongoing Management and Protection|

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 [...]

January 4th, 2021|Categories: Startup and Launch|

Incorporating a Business 101

As a business owner, the day will come when you inevitably will have to address the legal aspects of your business – and the sooner the better. And, fortunately, the process can be relatively painless and hassle-free. I talk to countless small business owners and freelancers who consider themselves too small to worry about incorporation. After all, you don't have mazes of cubicles…you may not even have any employees. However, incorporation can still be a smart idea even for the self-employed graphic designer or wedding planner and in this post we discuss the benefits of incorporating your small business.

December 27th, 2020|Categories: Startup and Launch|

11 Strategies for Growing a Business in 2021

Uncertainty is not unfamiliar territory for business owners. However, this past year has brought a significant amount of it to entrepreneurs everywhere and in nearly all industries. Many companies are facing serious challenges. While survival may be their short-term goal, focusing on paths to growth can help position them for success long-term. Developing sound strategies for growing a business, executing those strategies, and streamlining processes are all part of the equation that makes a tremendous difference, whether in an environment of consistency vs. unpredictability and of abundance vs. scarcity. Let’s take a look at [...]

December 15th, 2020|Categories: Growth and Expansion|

What is Payroll?

Payroll is the term used to refer to the various tasks and responsibilities businesses must perform to pay their employees accurately and on time. It encompasses calculating wages and salaries; preparing checks; withholding taxes and other deductions; reporting and paying taxes to the appropriate federal, state, and local agencies; and more. Businesses must handle payroll correctly because it impacts their net income and can result in additional fines, fees, and penalties if not managed according to federal, state, and local rules. Because there are legal and financial implications with payroll, it’s wise for business [...]

December 7th, 2020|Categories: Ongoing Management and Protection|

Best Business Books of 2020

Abraham Lincoln once said, “My best friend is a person who will give me a book I have not read.” While I cannot give you these books, I can tell you about them. My list of favorite 2020 business books will offer information or inspiration (or both) to help you start or grow smarter and faster. Building for Everyone: Expand Your Market with Design Practices from Google’s Product Inclusion Team The premise of this book, written by Annie Jean-Baptiste, the head of product inclusion at Google, is that it is [...]

December 3rd, 2020|Categories: Growth and Expansion|

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 [...]

November 30th, 2020|Categories: Crisis Management|

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 eligibility [...]

November 24th, 2020|Categories: Ongoing Management and Protection|

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 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 corporation (C Corporation). When a company's articles of incorporation are [...]

November 23rd, 2020|Categories: Startup and Launch|

What are Articles of Organization?

Have you decided to operate your business as a Limited Liability Company (LLC)? If you answered yes, you must comply with your state's requirements for registering your company. Those responsibilities include filing an articles of organization (sometimes called a certificate of organization or certificate of formation) with the state government. The articles of organization is a legal document containing important information about the business. The Secretary of State office must approve the document for the LLC to be recognized as a legal entity. Why Articles of Organization are Important for an LLC Filing articles [...]

November 16th, 2020|Categories: Startup and Launch|

What are Articles of Incorporation?

If you’ve decided to establish your business as a corporation, you’ll need to fulfill your state’s requirements for registering your company. Among those requirements is filing an “articles of incorporation” (sometimes called “certificate of incorporation”) with the state government. Articles of incorporation is a legal document containing important information about the company, and it must be approved by the Secretary of State office. Why Articles of Incorporation are Important Filing Articles of incorporation registers the company as a corporation (C Corporation) with the state. It makes the business a separate legal and tax-paying entity [...]

November 9th, 2020|Categories: Startup and Launch|
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