There may come a time when you decide to expand your business into an additional area of focus or take an online business to a storefront (or vice versa). Can you run both businesses under your existing LLC? The short answer is, "Yes, you can." However, you have other options to consider before jumping in and handling things that way. The route you choose can impact you in several ways (including your liability and tax obligations), so it's critical to do your homework and weigh the pros and cons. I recommend talking with an [...]
You've probably heard that being an S Corporation has some perks. It certainly can for some businesses. Might it be the right option for you? Let's take a moment to chat about all things S Corp so that you can gain a better understanding of what it is and its potential advantages. First, an S Corp isn't a type of business entity; it's a special tax election that an eligible limited liability company (LLC) or corporation may choose. In other words, business owners must decide whether their company will form as an LLC or [...]
Creating a legal entity for your startup will establish much-needed separation between you and your business. Shielding your personal assets is the first and foremost reason to think about incorporating. But let's face it. When it comes down to choosing a business structure, small business owners are typically concerned about one thing: taxes.
Wouldn’t it be nice if content marketing was a science? It would mean you could create a plan, follow the steps, and instantly see amazing results. But sadly, content marketing isn’t a science; it’s more like an art. And that means you can do everything right and still not quite achieve the results you were hoping for. It’s frustrating for startup companies. However, one of the advantages of being a startup is that nothing is quite set in stone just yet. The business is at a stage where processes are flexible and where you [...]
“Dissolution” is the act of formally dissolving (closing) a business entity with the state. It involves far more than just stopping to sell products and services. Dissolution is a process for wrapping up all legal and financial aspects of the business and legally terminating its existence in the state(s) where it is registered. Business owners, and professional services providers who offer accounting, tax, or legal services to entrepreneurs, should know how to legally dissolve a Corporation or LLC. Just like life, running a business has its share of ups, downs, and surprises—and there are [...]
Whether you’re a finance major fresh out of college or have been working in an accounting firm or department for years, I’ll bet you’ve thought about being your own boss. There’s a lot to consider when exploring how to start an accounting business. Let's dig into the necessary steps and mistakes to avoid. Starting an accounting business offers an opportunity to chart your own professional course and enjoy the flexibility and control of self-employment. Of course, there's plenty of research and work involved in the process. You'll want to be thorough and well-informed as you [...]
One of the most important decisions you can make that determines the long-term success of your business is figuring out how to stay on top of your finances. In the beginning, as you get your business up and running, it might seem easier to keep your personal finances and business transactions together in a centralized place. That way, you only need to check one place to track your daily cash flow. As the business grows, however, having a separate business bank account is what you need to set yourself up for long-term financial success. Before [...]
If you have a high level of proficiency, expertise, and experience in a field, you may have thought about how to start a consulting business. Starting a consulting business can be a wonderful career option for individuals who want to leverage their knowledge and skills while enjoying the flexibility and autonomy of self-employment. Even if you don't presently have experience doing the type of work you're interested in, you may be able to achieve your dream with hard work, education, training, and attention to complying with the professional and legal requirements. In today's post, [...]
Despite your best efforts to choose the perfect name for your company, there may come a time when that name no longer is the best fit. Perhaps the business name no longer accurately reflects your brand or there are legal considerations at play. Regardless of the reasons to make a business name change, it’s a process that many entrepreneurs find confusing. The steps involved can vary depending on the business entity type and state of registration. You may not expect ever to have to change your company name but knowing what to expect will [...]
What is a Nonprofit? A nonprofit organization is created to fulfill a charitable, civic, religious, scientific, literary, or educational goal. Nonprofits do not have private owners, nor do they issue stock or pay dividends to shareholders. Aside from founders or staff being compensated a fair wage for their work in a nonprofit, the organization may not benefit individual stakeholders financially. There are 35 types of nonprofits recognized by the United States federal tax code. Some nonprofits are either fully or partially tax-exempt, meaning they do not have to pay certain taxes. Also, some types [...]
What Is a fictitious name? A fictitious name is a name other than your proper legal business entity name that you formally get permission from the state (or county) to use when conducting business. You may also see a fictitious business name referred to as: Doing Business As (DBA) Assumed name Trade name Throughout this post, I will use the terms “fictitious name” and “DBA” interchangeably. At CorpNet, we help business owners throughout the United States file DBAs. Fictitious names can benefit businesses of all types—from sole proprietorships to LLCs to corporations. At CorpNet, [...]
Professionals like you, who help entrepreneurs navigate the challenges of starting and growing their businesses, will likely encounter clients asking about a "Letter of Good Standing." Let's take a moment to talk about what a Letter of Good Standing is and why maintaining a status of good standing is so important. What Does a Letter of Good Standing Mean? A Letter of Good Standing refers to a certificate issued by a state's Secretary of State office (or comparable agency). It verifies that a registered business (e.g., an LLC or corporation) has complied with all [...]
With all the decisions your clients are expected to make when starting a business, which legal structure to choose might not get as much consideration as it should. Most business owners choose to form a sole proprietorship in the beginning, since it’s less paperwork and less costly; many switch entities as their business grows to benefit from the protections provided by a Limited Liability Company (LLC) or C Corporation. But an LLC or C Corp can also choose to elect S Corp status. If your clients come to you with questions about this option, [...]
If you have been considering starting an eCommerce business, you’re exploring an industry with a promising outlook. According to Statista, the number of online shoppers in the United States is expected to reach 230.5 million in 2021.1 However, like starting any business successfully, discovering how to start an eCommerce business requires research, planning, and hard work. Wondering where to begin when starting an eCommerce business? CorpNet is here to help! Let's explore some of the primary considerations you'll need to think about and then walk through the general legal steps for how to start [...]
In the course of running your business, you’ve probably encountered more legal fine print and formalities than you ever thought possible. In this post, we’ll break down the Doing Business As (DBA) to see if your business needs one.