The Launch Blog

Whether you operate a Sole Proprietorship, Partnership, Limited Liability Company (LLC), Limited Liability Partnership (LLP), or Corporation, how you manage your finances is a vital aspect of running your business. While using your personal bank account for business might seem like the simplest solution, it’s not a good idea for a variety of reasons. Mixing your business and personal finances can result in problems ranging from tax consequences to your business appearing to be unprofessional. Let’s take a deeper dive into some reasons why keeping your business and personal bank accounts...

A domestic and foreign LLC refers to the state where the LLC is created. Registering your business as a foreign LLC (also known as a foreign qualification) is required under certain circumstances when you operate your business outside of the state in which you’ve formed your LLC. The purpose of registering is to meet the regulatory and tax requirements of the foreign state. Despite the term "foreign", a foreign LLC operates domestically within the United States. Your LLC isn’t considered foreign in the state where you initially registered it, only in the states where you’ve expanded its...

In Kentucky, Limited Liability Companies, C Corporations, Limited Partnerships, and Business Trusts must file an annual report with the Kentucky Secretary of State office. Businesses operating as Sole Proprietors or General Partnerships do not have to file. Kentucky annual reports allow the State to provide accurate information to the public about the business entities registered there. Registered entities must file their report each year—even if they had no business activity or income. The report due date, regardless of entity type, is June 30 and businesses may file anytime between...

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.

That’s the date your Annual Report — also called Franchise Tax Report — is due. Here’s what you need to know to ensure that you stay compliant with the state of Texas.

If you own a Limited Liability Company, C Corporation, or other registered business entity in Georgia and you want to open a business bank account, expand your business into another state, seek funds from investors, or conduct certain other business activities, you’ll need to have a Certificate of Existence. A Certificate of Existence, known in some states as a Certificate of Good Standing or Certificate of Subsistence, is a document obtained through the Corporations Division of the Office of the Secretary of State. It verifies that your business is properly registered; up to date on...

Most types of businesses operating in West Virginia must file an annual report with the Secretary of State Office to keep their company records updated. The deadline for submitting the report, along with the associated filing fee, is July 1 each year after the initial registration of the business entity. Business owners in West Virginia (and those wishing to expand operations from another state to WV) can benefit from talking with an attorney and accountant or tax advisor about whether they need to submit an annual report. Moreover, consulting with trusted professionals can shed light on...

If you own a business that’s registered with the state in which you operate, such as a Limited Liability Company, a C Corporation, or a Limited Liability Partnership, it’s likely that at some point you’ll be asked to provide a Certificate of Subsistence. A Certificate of Subsistence, which in some states is known as a Certificate of Good Standing, a Certificate of Existence, or a Certificate of Status, is a document from the state that verifies a business is indeed operating; is properly registered; and is in compliance with federal, state, and local laws. While specific information...

If the bed-and-breakfast you own and operate runs at full capacity for the months of July and August and the work is too much for you to do on your own, you might consider hiring temporary employees to help. The same goes for a consulting firm that just landed an important six-month assignment for its biggest client, or a building contractor who agreed to take on a large-scale renovation project. Temporary workers account for only about 2% of total nonfarm employment in the United States, according to the Bureau of Labor Statistics, but employers in many industries rely on temporary...

If your startup will have more than one business owner, you have several choices for how to legally structure your company.  In today’s post, I’ll discuss the Limited Liability Partnership (LLP), which is a type of partnership that isn’t as widely known as the General Partnership or Limited Partnership business structures. The following information will help you understand what an LLP is, how an LLP is taxed, and the basic steps for creating one. Before we get into all that, I want to remind you that the type of business entity you select will affect just about every aspect of launching...

One of the main reasons to create an LLC or to incorporate revolves around asset protection. The business structure legally separates the assets of the ownership from the assets of the company. The corporation may be sued (and even go bankrupt) without loss of personal property by the ownership. As your first line of defense, I encourage you to consider the legal structure of your business. If you’re operating as a sole proprietorship (or general partnership), you’re more likely to put your personal belongings in jeopardy than if you formally register your business as a different type of...

Most builders and real estate investors understand the importance of protecting personal assets and optimizing their tax situation. One way to address both concerns is by choosing the right business structure for holding rental properties. Many property developers and investors choose a Limited Liability Company (LLC) for their rental properties because the LLC provides asset protection and tax flexibility. LLCs are separate legal entities from their owners (called “members”). They can have one member (single-member) or more than one member (multi-member). By setting up individual...

If you’re considering starting a Limited Liability Company (LLC) or restructuring your business as an LLC, it’s important to know what taxes you’re responsible for, when your taxes are due, and how to file taxes for your business entity. Keep in mind that an LLC’s tax obligations can vary greatly. Multiple factors affect an LLC’s tax filing responsibilities. For example: Does the LLC have one sole owner (Single-Member LLC)) or two or more owners (Multi-Member LLC)? Has the LLC elected to have S Corporation or C Corporation tax treatment? What are the state and local income and sales tax...

Many small business owners start their companies as Sole Proprietorships. The business structure offers setup simplicity, cost-effectiveness, and minimal business compliance requirements. To determine if a Sole Proprietorship is right for them, entrepreneurs should consider the pros, cons, and nuances associated with it. In this article, I’ll discuss what a Sole Proprietorship is, how sole proprietors pay themselves, how to pay taxes in a Sole Proprietorship, and examine some potential benefits of switching to an LLC instead. What Is a Sole Proprietorship? The IRS defines a Sole...

Filing a North Carolina annual report is a yearly activity that is required to maintain your company's registration as a legal entity in the state. It contains information about the company and is due whether or not the entity is actively conducting business. The only time a company no longer has to submit an annual report is when it has been officially dissolved with the state. Who Must File an Annual Report? The following foreign and domestic companies must file an annual report to the North Carolina Secretary of State: C Corporations Limited Liability Companes (LLC) Limited Liability...

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 Georgia annual registration must do...

The state of Michigan requires all business owners of limited liability companies (LLC) and corporations to file an annual report. An annual report is a filing that helps ensure the state's records about a business entity are accurate. Michigan has specific due dates for filing annual reports, so entrepreneurs need to stay on top of the deadlines and get their paperwork turned in on time. Submitting annual reports is one of the compliance tasks required to keep business entities in good standing with the state. In this post, we’ll cover general details about Michigan’s requirements for...

Many business owners who operate as a Sole Proprietorship or Partnership use a DBA (Doing Business As) name to market their business more effectively and present a more professional image. A DBA can serve a business well, but it’s important to realize it is just a name. A DBA is not a business entity and does not provide any liability or asset protection for entrepreneurs as a Limited Liability Company (LLC) does. What if you’ve been running your business as a Sole Proprietorship or Partnership and you’d like to switch to an LLC but continue using your DBA name? Can you turn your DBA into...

While paying taxes is a certainty for small business owners, there are some options for how you might pay them. The simplest strategy for paying your small business taxes is to make sure money is available when your tax bill comes due. If that is not possible for some reason, you can register for an IRS payment plan that allows you to pay your balance over a specified amount of time, use a credit card to pay your bill, apply for a bank loan, or apply for a business line of credit. Let’s have a look at each of these options. Option 1: Plan Ahead to Pay Your Taxes The taxes you’ll pay are...

If you already have an Employer Identification Number (EIN) for your business but have recently made some changes, you may be wondering if you need a new EIN. Because EINs are used for reporting certain taxes (such as payroll and excise taxes), it’s essential to follow the IRS’s rules for obtaining and using them. Depending on the type of business entity and the circumstances, the IRS may require your business to get a new EIN. Generally, the following situations call for an entity with an existing EIN to apply for a new one: Owners of an existing registered business entity start another...