The Launch Blog: Expert Advice from the CorpNet Team

5 Tips to Smarter and More Efficient Business Meetings

Nobody likes business meetings. So why do we have so many? Unfortunately, they’re a necessary evil when it comes to running a business. Having led my fair share of meetings at CorpNet, believe me when I say I hate meetings as much as my employees. When I see an employee's eyes glaze over and stop listening to what I think is essential material, I take note and I take action. Over the years I’ve devised my own strategies for waking meeting participants up and making the meetings more productive. 1. Meet More, Not Less I know how this sounds, but hear me out. When you meet once a month...

Man sleeping in work meeting

6 Hiring Mistakes Small Business Owners Make

As you grow your business, you will inevitably need to hire help. If you’ve never been an employer before, there are certain pitfalls you need to avoid that many business owners make. Here’s your guide to what not to do in hiring staff. 1. Not Knowing Your Needs Once you start a business, your responsibilities will grow quickly. You know you need help, but maybe you assume a part-time secretary will fit the bill. Only you need her to take on your social media management, answer the phones, and manage your accounting. You find out too late, only after you’ve hired her, that the job is more...

Businesspeople Having Meeting In Modern Open Plan Office

Three Tips for Choosing an Advisor for Your Startup

When you run a business, you don’t always know how to make the best decisions. After all, your expertise is in one area, but you might not be well-versed in finance, marketing, management, or growth strategy. That’s where having an advisor for your startup comes in handy. It's important to note that you don't have to have just one advisor for your business. You can build an advisory panel, which would give you access to talented people in all the areas of your business. 1. Identify Your Areas of Weakness The key to success is knowing what you’re not good at. You can’t be an expert at...

Business Meeting

Appointing a Board of Directors

If you’ve decided to form a corporation, congratulations to you! You’re on the right track to protecting yourself and taking your business more seriously. But the work’s not done yet. One of the steps you’ll need to do in the incorporating process is to appoint a Board of Directors. By law, your corporation must have a Board of Directors to represent it and to make decisions on behalf of shareholders. The number of members required will vary from state to state. For example, if you incorporate in California, you’re required to have at least one Board member. Having more can be...

female consultant standing at conference table in business meeting

5 Mistakes to Avoid When Giving Business Gifts

If you’re planning to give your staff, vendors, or your clients presents this holiday season, think twice before you do. Many businesses make gift-giving blunders, which are completely avoidable. Below are the top five business gift mistakes you should avoid this holiday season. Giving an Inappropriate Gift You may not think there’s anything inappropriate about giving a fluffy robe and bath oils to your client or employee of the opposite sex, but he or she might raise an eyebrow. If the gift can in any way be construed as inappropriate, avoid it like the plague. Instead, we recommend you...

Woman Handing Over a Wrapped Gift

How to Start a Skincare Business

If you plan to start a skincare business, there are several things you'll need to do before you start scheduling customers to come in for facials, waxing, or consultation. Here's a checklist of what you need to know if you want to know how to start a skincare business.

Woman Working in Skincare Business

Multiple Ventures? How to Best Structure Your Multi-Brand Business

It's possible to create a separate business entity for each venture you start. However, this can result in excess paperwork and legal filings. And in many cases, each business may not be earning a significant amount of revenue individually, making the paperwork seem especially tedious. To save some headaches and paperwork, this article provides you with great tips to consider when dealing with multiple business types.

Man working at notebook

What Is FUTA Tax?

FUTA tax is among several employment-related taxes that businesses with payroll must pay to the government. FUTA (the Federal Unemployment Tax Act) initiated a program that works along with state unemployment programs to pay benefits to workers who have lost their jobs through no fault of their own. Employers pay the 6% FUTA tax and no portion of the tax is deducted or withheld from employees’ wages or salaries. The first $7,000 paid to each employee during the year (after deducting any FUTA-exempt payments) is subject to FUTA tax. Employers report their tax liability annually on IRS Form...

FUTA Illustration

What Are Texas Annual Franchise Tax Reports?

Texas Comptroller Annual Franchise Tax Reports Requirements If you have a business in the Lone Star state, you may be wondering if you must file a Texas annual franchise tax report and pay a franchise tax. The state’s report filing requirements vary according to the type of business entity, so it’s important to research what obligations your business does (or does not) need to fulfill. Most domestic entities (for example, companies registered as LLCs or corporations in Texas) and foreign entities (companies registered in a different home state but conducting business in Texas) need to...

Welcome to Texas on Store Window

Does a Sole Proprietorship Need Liability Insurance?

Many entrepreneurs who are the sole owners of their business (or operate a business with their spouse) choose to operate as sole proprietorships. A sole proprietorship is the simplest business structure to manage, which is why it’s popular with self-employed individuals. The sole proprietor (business owner) and the sole proprietorship (the business) are considered the same legal entity and tax-paying entity. The structure has no ongoing entity compliance formalities because it’s not a registered state entity. And tax preparation is typically easier than with other structures as...

Man and Woman Looking at Paperwork

How Often Does an LLC Pay Taxes?

If you’re considering starting a Limited Liability Company (LLC) or restructuring your business as an LLC, it’s important to know how often an LLC pays taxes and how to file business taxes for an LLC. As an LLC, your company benefits from receiving personal liability protection without the compliance formalities required of a C Corporation. In addition, the LLC structure is flexible about how LLC taxes are filed. For single-member LLC taxes, the sole business owner can file taxes as a sole proprietorship, a C Corporation, or an S Corporation. Multi-member LLCs, which have more than one...

Cartoon of Financial Reports and Calculator on Desk

How Do LLC Owners Get Paid?

As a small business owner, how you pay yourself depends on your business’s legal structure and how you elect to pay taxes. The Limited Liability Company (LLC) is a popular legal entity offering liability protection to its owners (called members), simple compliance requirements, and tax flexibility. In fact, tax flexibility is one of the reasons the LLC is such an appealing option for small business owners. Should an LLC Owner Be on the Payroll? If you’re thinking about starting an LLC, you have several options for how you want to organize your company regarding paying taxes. Whether or...

Happy Woman Throwing Money Above Laptop

What Is the LLC Tax Rate?

Before forming an LLC, many entrepreneurs ask about the standard LLC tax rate to see if this form of entity is a solid option for their new business. This is an excellent question and one that can be best answered by exploring what an LLC is and how it is taxed. The LLC (limited liability company) business entity type is one of the most popular selected by small business owners. It shields the owner’s personal assets from the liabilities of the business and may result in some tax savings to boot. The LLC is an entity formed according to state statute, and it has flexibility in how income...

Piggy Bank Sitting on Coins

Advising Clients About Business Structures

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, here’s what to know: The C Corporation The...

Accountant Advising Clients

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...

Female Medical Professional

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 is an...

IRS Form 8832

How to Revoke an S Corp Election

Many limited liability companies (LLCs) and C Corporations choose to be taxed as S Corporations to lower their tax burden. It’s relatively easy to do as long as the business entity meets IRS requirements and files Form 2553. But what happens if a business owner finds an S Corp hasn’t worked to their advantage? Or perhaps, their situation has evolved, and S Corp status no longer benefits them. Fortunately, in either case, companies can revoke an S Corp election and change back to their original LLC or C Corp tax status. To do so, they must follow the IRS’s instructions and take care of...

Ripped Document

Is an LLC a Corporation?

Many entrepreneurs wonder if an LLC is a corporation. An LLC is not the same thing as a corporation, but it's easy to get the two business entity types confused. In this article, I’ll explain the difference and highlight some of the advantages these structures have over unregistered entities. Limited Liability Companies and corporations are both types of statutory (state-registered) entities. To create them, business owners must file formation paperwork with the state and pay a registration fee. There may be other tasks as well that state law requires to legally form an LLC or establish a...

Question Marks

What Business Owners Need to Know About Filing Taxes in 2022

Tax season is right around the corner. A lot has changed, tax-wise, in the past year due to new legislation. Here’s a quick look at what business owners need to know about filing their taxes in 2022. Sole Proprietorship Sole proprietors are unincorporated businesses with no distinction between the business owner and the business. The business owner is responsible for all the business’s debts, losses, and liabilities. Business earnings are considered personal income, and at tax time, they need to file a Schedule C (IRS Form 1040) “Profit or Loss From Business.” The filing deadline for this...

Stack of US Tax Forms

Stats, Tips, and Steps for Starting a Freelancing Business

If you have marketable skills and knowledge as a self-employed independent contractor, you may wonder if you should freelance, and if so, how you'd go about starting a freelance business. And with the current economic climate of the great resignation and possible recession, freelancing could be a viable option for ensuring financial stability. And an even greater advantage to freelancing is that it brings a lot of benefits that include the flexibility to choose the type of work you do, the ability to decide who you work with, adjustable hours and the ability to set your own schedule,...

Young Asian Woman Working on Laptop

C Corporation vs. S Corporation

If you have your sights set on incorporating your business, you may be wondering if a C Corporation or S Corporation is the better option. While both are popular choices, nuances exist that may make one or the other more advantageous for your situation. The business structure you choose will affect your company in many ways, including the legal and financial aspects. That’s why it’s critical to do some research and ask for guidance from an attorney and accountant or tax professional when deciding. In this article, I’ll compare the C Corp vs. the S Corp. This review will help you prepare...

Woman Using Hands to Show a Comparison

LLC vs. Partnership

When deciding between an LLC vs. partnership as your company's business structure, you'll have many considerations to address. There are ramifications legally, administratively, and financially when choosing a business entity type. Rushing to a decision can have consequences—BIG consequences—so it’s critical to review your options carefully and seek professional guidance such as from an attorney and accountant or tax advisor. An LLC (limited liability company) may be owned by just one person (“single-member LLC”) or by multiple owners (“multi-member LLC”). By the nature of its name, a...

LLC-vs-Partnership-Text-on-Scale

14 Steps for Starting a Business in Nevada

You have a phenomenal business idea, you’ve done some homework to verify your idea is viable, and now you’re ready to take the necessary steps to make your dream of starting a business in Nevada come true. Starting a business in Nevada offers the opportunity to take charge of your own professional destiny in a state known for entrepreneurial innovation and success. Entrepreneurs find Nevada an attractive state to launch a business for many reasons, including: Accessibility to the West Coast and California markets No state corporate or individual income tax No state franchise tax Financial...

Highway Sign With Nevada Name and State Map

20 Characteristics of Successful Entrepreneurs

There's a neverending debate on whether entrepreneurs are born or made. I don't claim to be able to make the call one way or another, but I have noticed several characteristics that the most successful small business owners seem to share. Here they are. Whether entrepreneurs are made or born, they all share similar characteristics. How many of these do you possess?

Dollarphotoclub_95043063

What is a Statutory Close Corporation?

A Statutory Close Corporation (also known as “Close Corporation”) is a corporation that does not publicly trade stock and is formed under a special statute. This type of corporation is held by a limited number of shareholders. In some states, Close Corporations may have up to 50 shareholders, in others they must have fewer. Shareholders may run their corporation directly without oversight by a formal board of directors or the obligation to hold shareholder meetings, provided they have a shareholders’ agreement in place that eliminates those formalities. Not all states recognize the Close...

Empty Conference Room

Subscribe to Newsletter

Practical business and financial insights, lessons, perspectives, and know-how brought right to your inbox.

Thank you for subscribing!

100% satisfaction guaranteed or we will refund 100% of our service fees with no questions asked!