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 make decisions while taking steps to start your accounting business.

7 Steps to Launch an Accounting Business

1. Choose a Business Name

This sounds like an easy-breezy decision to make, but a lot rides on your choice of a business name. It’s what clients will associate with your brand, and it will be on every piece of marketing content and communications that you produce. Some business owners choose to include their first and last name in their business name (for example, “Amelia Torres, CPA”). Or, they decide to get a little more creative and choose a trade name (e.g., “Horizons Accounting Services”). I recommend doing a corporate name search to ensure no other business is already using the desired name. Knowing this as soon as possible allows you to rethink your name before you’ve spent money on registering the name and creating your marketing materials. A trademark search is also a smart move if you expect to expand your business into other states sometime.

2. Choose a Business Entity Type and Register Your New Business

The business structure has legal and tax implications for an accounting business. One-person accounting businesses and small firms often choose to form either a Limited Liability Company (LLC),  Professional Limited Liability Company (PLLC), or Professional Corporation (PC). If starting an accounting business with more than one owner, accountants often consider the Limited Liability Partnership (LLP) structure. All of these offer some degree of liability protection for the business owner because they are considered a separate legal entity. So, unlike operating an accounting business as a Sole Proprietorship or General Partnership, the accounting firm owner’s personal assets aren’t typically at risk in the event of lawsuits or financial hardships of the business. However, note that business owners are personally responsible for their own acts of wrongdoing or negligence.

Business entities are state constructs, so the requirements and costs to create them vary from state to state. Also, realize that some states will restrict which types of business structures an accounting firm may be. For example, California does not allow accountants to form an LLC. It’s important to review your state’s specific rules. Ways to do that are by looking at the appropriate state agency websites (such as the Secretary of State office) and talking with an attorney.

After you’ve made an informed decision about the legal entity you want for your business, CorpNet can assist you. We can serve as your registered agent (a requirement for LLCs and corporations) and file your business registration paperwork with your state as you start your accounting business.

3. Apply for an Employer Identification Number

An Employer Identification Number (EIN), also called a Federal Tax ID Number, identifies your business for tax filing and reporting purposes. Businesses that have employees or that operate as a corporation or partnership must obtain an EIN. Most banks will require that a business has an EIN before they will open a business bank account for the company.

4. Get the Necessary Business Licenses and Permits

Certified Public Accountants must pass a CPA exam to qualify for a CPA certificate and license to practice. Also, states have their own set of education and experience requirements before they will allow someone to provide services as a CPA. The State Board of Accountancy in your state can provide details about the professional requirements.

State and local municipalities might also require other licenses and permits, too. Possibilities include the following items and others:

• General business operation license
• Signage permit
• Home occupation permit (if operating a business from home)

CorpNet can help you identify your business license and business permit requirements, or you can check with your local government office.

5. Open a Business Bank Account

As an accounting professional, you know this already, but I think it’s worth repeating the importance of keeping personal and business finances separate for both legal and tax purposes. For LLCs and corporations, the separation of personal and business financial assets is required to uphold the corporate veil that protects business owners from the liabilities of the business. After a company is registered with the state and has obtained its EIN, it should have all the information required to open a business bank account and credit accounts.

6. Protect Your Business with Insurance

Forming an official business entity (LLC, LLP, PLLC, PC) limits an owner’s liability related to business debt and lawsuits, but it will not protect personal assets if action is brought against the business owner as a result of that individual’s own actions. An insurance policy can provide additional protection and deliver peace of mind. A knowledgeable and reputable insurance agent who understands the needs of businesses in the financial services industry can help guide you in the types of policies that may be a good fit. Here are some policies that they might discuss:

• Business Owner’s Policy (BOP)
• Professional Liability Insurance
• Data Breach Coverage

7. Put Your Business Compliance Responsibilities on Your Calendar

After starting an accounting business, there are ongoing requirements to fulfill to stay in good standing with the state and local governments. For example, LLCs, PLLCs, and PCs in most states must file an annual report each year and show proof of a valid certification. An accounting business registered as a corporation will have more compliance obligations than an LLC. Besides annual reports, they must hold annual meetings, prepare meeting minutes, uphold bylaws, and follow other rules. The business compliance requirements for each entity type vary by state. To take the mystery out of what needs to be completed and the deadlines by which filings are due, consider using CorpNet’s Compliance Portal. It’s a free monitoring tool designed to help you keep track of your upcoming state filings and fees.

Other compliance duties that most accounting businesses must complete include:

• Renew business licenses and permits
• Keep business and personal finances separate
• Maintaining a registered agent in every state where the business is registered
• Renew business insurance policies
• Formally record major company changes via Articles of Amendment

5 Mistakes to Avoid When Starting a Business

As you navigate how to start an accounting business, you may be wondering about the potential pitfalls that come with the territory. Here are a few snafus that have tripped up other business owners.

1. Rushing into Choosing a Business Entity Type

A hasty decision may have negative legal and financial effects on the company. Therefore, it’s important to get expert guidance from an attorney and research all the pros and cons. Review our Business Structure Chart for a nice comparison table of options.

2. Underestimating Funds Needed to Get Through Slow Times

Accounting businesses have uptimes and downtimes, just like other businesses. As you know, the industry is rather cyclical (think tax time!). Starting an accounting business comes with no guarantees of success. It may take some time to build a base of clients and gain a consistent flow of work. To minimize the stress of money issues, have enough funds available to fall back on when business is slow or you encounter unexpected expenses. The amount you need will depend on various factors (e.g., ongoing operating expenses, loan payments, etc.). Use your financial expertise to crunch the numbers and determine how much of a cushion you’ll need to get through slow periods.

3. Having a Build-It-and-They-Will-Come Mindset

Competing within a crowded field of accounting companies requires more than just existing. Your level of service and expertise may be superior to others in your area, but you will need to find ways to communicate that and raise awareness of your value. Find opportunities to build relationships with other business leaders and community members. Involvement in organizations such as local chambers of commerce, Rotary Clubs, and other networking groups can help you establish a name for yourself and build trust. Another way to demonstrate your industry expertise is to look for volunteer opportunities with business nonprofits, like SCORE, that might welcome presentations on tax tips and other finance subjects.

Leveraging the word-of-mouth power of the internet can help build your brand, too.

• A mobile-friendly website that follows best practices in local SEO for accountants
• Social media (LinkedIn, Facebook, Twitter, etc.)
• Review websites (Google’s local profiles being the most important)

4. Ignoring Opportunities to Leverage Synergies with Other Businesses

Although it can be tempting to go into a “survival of the fittest” mentality, accountants can benefit from leveraging partnerships with businesses in complementary areas of focus—and even with direct competitors. Attorneys, bookkeepers, office furniture consultants, business coaches, and other accountants may be viable sources of referrals. You may be thinking, “Nellie, why would I ask for clients or refer clients to other accountants?” Great question! Perhaps you and the other accountant have different specialties or prefer working with clients in diverse industries. And what if either of you is too busy to take on new clients? Wouldn’t it be nice to have a trusted resource to direct prospects to?

Also, consider free CorpNet’s Partner Program as a way to expand your revenue stream. By either signing up as a Referral Partner or a CorpNet Reseller, you will provide additional value to your clients while adding income to your bottom line. You get a commission, and your clients get expert business formation and compliance filing services at great rates.

5. Submitting Compliance Paperwork That Has Errors or Is Late

As I mentioned earlier, ongoing compliance filings and other responsibilities must happen accurately and on time to keep a business in good standing. When business owners fail to pay attention to detail or drag their feet in submitting filings, they may face fines, penalties, and even suspension of their businesses. That’s a less-than-ideal situation! Don’t let it happen to you. Sign up for the free CorpNet online monitoring tool so that you’re always on top of upcoming requirements and their deadlines. And, to ensure that your paperwork is completed correctly and submitted to the correct agency, ask us about our business filing services.

Other Resources for Getting Started

Some other authoritative websites and organizations that offer insight into different aspects of how to start an accounting business and how to be successful include:

• American Institute of CPAs (AICPA)
• AccountingWEB
• Accounting Today
• CPA Practice Advisor
• Insightful Accountant
• Internal Revenue Service (IRS)
• Latino Tax Pro
• Professional Association of Small Business Accountants (PASBA)
• SCORE
• Small Business Administration (SBA)

Contact CorpNet for help with all of your business formation and compliance needs. Our expert staff has experience in assisting businesses in all 50 states with business registration paperwork, registered agent requirements, EIN applications, business licenses and permits, and more.

With more than 849 million users, LinkedIn is a powerhouse of social media. While it doesn’t command the 2.9 billion users of Facebook, it is the top location for connecting at a business-to-business level. The social network has established a solid niche for itself by focusing on workforce needs such as finding new business, searching for jobs, and building professional relationships. Plus, if you know the secrets to using it successfully, LinkedIn could be a major revenue generator for your accounting business.

Here are seven tips for getting started with optimizing LinkedIn for accountants, CPAs, and bookkeepers.

Make the Most of Your Profile

Before you start, it’s important to know the purpose behind your profile. First, your profile needs to tell your business story in an attention-getting fashion (think photos, video, and infographics). But since LinkedIn, like all social media, is about connections, your profile should also be searchable.

Here are some tips to make your profile searchable:

• Be concise. Remember, you need to grab the reader’s attention right from the start, so the person will keep reading to see if you offer what they’re looking for. Don’t just describe yourself as a CPA. Write, “I am a CPA specializing in luxury real estate.” Forget generic adjectives like “hard-working” that can apply to any type of business. Use current keywords related to your CPA expertise, such as “individual retirement account” or “international accounting standards.” Then make sure to use the same keywords again in the “Skills and Experience” section of your profile.
• Toot your own horn. Be sure to list all your degrees, certifications, and professional accomplishments. Even if you’re currently working on a certification or degree and haven’t yet finished, include the information in your summary.
• Name drop. Don’t be shy about listing some of your best clients and their industries. This is especially important if your accounting business specializes in a specific industry or industries.

Also, once you have a profile, you can create a separate Company Page for your business, if you want to keep them separate. If your company name is different from your name, it would be a good idea to have both in case people search for your business.

Connect and Then Connect Some More

On LinkedIn, people in your network are called connections. Connections are categorized by degree—first-degree, second-degree, third-degree, and fellow members of your LinkedIn groups.

• First-degree connection: There is a direct connection between the two of you because either you have accepted an invitation or the other person has accepted your invitation.
• Second-degree connections: Connections made by contacting connections of your first-degree connections.
• Third-degree connection: Connections made by contacting connections of your second-degree connections.
• Fellow members of your LinkedIn Groups: The two of you are connected only by being a part of the same LinkedIn Group.
• LinkedIn Member: If none of the other categories apply, you can still add another LinkedIn member to your network by sending them a personalized invitation to connect.

LinkedIn for accountants, like all professions, is about building connections—and not just accounting connections. Connect with professionals from different backgrounds and industries who could be potential clients, vendors or business partners. What you do with those connections comes next.

Discuss Shared Interests

Once you made a connection, you need to nurture it and build a bond. Discuss trends, learn about new industries, and share your expertise. The more you share and interact on LinkedIn, the more likely a connection is to remember you. Any connection can ultimately lead you to more business opportunities.

Warning: LinkedIn is full of users who connect and immediately start throwing sales pitches. Don’t be that kind of user. Social media is about the connection you make at a personal level. Social media isn’t a billboard shouting an advertising message.

Stalk Your Competitors

Go ahead and connect with accounting competitors. Not only can you keep an eye on how they are interacting and where they’re getting leads, you can also reach out to their connections to build your own network.

Follow LinkedIn Influencers

LinkedIn influencers comprise a global collective of more than 500 of the world’s leading thinkers and innovators. Influencers are selected by LinkedIn and becoming an influencer is by invitation only. Follow influencers in the accounting industry and you’ll be exposed to thought-provoking content, trends, and ideas. Plus, you’ll be able to engage with other members via the comments section, which is another way to find connections with similar interests.

Engage With LinkedIn Groups

Joining LinkedIn Groups helps your visibility grow exponentially. Be sure to join Groups that clients and potential clients belong to, as well as Groups related to the accounting industry. Type in the Group name or keyword in the search box and click the button. Then select Groups on the left to narrow your search to Groups. Click the Join button for Groups that interest you. Usually, you will be accepted to a Group immediately, but sometimes groups have stricter privacy settings in place. In this case, you’ll need to wait a few days to be approved.

When commenting or posting in a Group, build credibility by providing expertise and sharing valuable insights. Don’t just try to sell your services and promote your business—offer something of value.

Here are a few accounting-related LinkedIn Groups to check out:

• AICPA Tax Practitioners
• Accounting | Finance | Professionals | World Finance Network
• Marketing for Accountants, CPAs, EAs, Bookkeepers and Tax Professionals
• Tax Professionals

Share Content

Content marketing not only helps you increase SEO, but it also helps build your expertise and therefore your connections. Post regularly to your company page and/or profile page. The best ways to engage readers with your posts are by mentioning specific people, including photos and/or video, or getting a conversation going by asking for feedback. You should also go beyond just posting advice and information and get a little bit more personal.

LinkedIn suggests the following kinds of personal stories you can share:

• Did you give a talk to a group lately or volunteer somewhere?
• Something you learned lately, maybe from a mentor
• A good book or movie you’ve seen
• Current events
• A productivity hack you’ve discovered
• Your favorite part of your day
• How to achieve work/life balance

You can control who sees your posts and who can’t by using the dropdown menu below the Share box. If your post is set to Public, your post may appear on the home pages of your first-degree connections and the home pages of your second- or third-degree connections if shared, commented upon, or liked by your first -degree connections. It will also appear in content search results, your recent activity page, and your public profile.

Partner With CorpNet

As a bookkeeper, accountant, or consultant, your clients can now depend on you to maintain their business filings and corporate compliance. Become a CorpNet Reseller or a Referral Partner and let our team of dedicated business filing experts help you grow your business.

Whether you’re an accountant, tax advisor, coach, or consultant, your clients inevitably turn to you for insight into improving their business’s bottom line. One question they might ask is, “What is the best business structure?”

You need to be ultra-careful in advising customers about this because offering legal advice without a license to practice law is unlawful. However, you can give insight pertinent to your certified area of expertise and credentials, and of course,  you may direct clients to the right resources for legal guidance.

And after a client has decided on a business structure, you can help them make the transition by preparing and submitting the necessary forms on their behalf. It is not considered the practice of law to file business registration and compliance paperwork for clients. Moreover, by doing so, you can increase revenue for your business and provide additional value and convenience to your customers.

Let’s take a quick look at some of the considerations your clients must contemplate when selecting the best business structure to meet their needs.

Key Factors to Consider When Choosing an Entity

• Owners’ Liability Risks – How much personal legal and financial risk an owner is willing to assume will influence which legal entity type to choose. Some types of businesses have a greater potential to run into litigious situations and significant debt than others. Formally registering a company as an entity separate from its owners offers a higher degree of personal liability protection than operating an unincorporated business.
• Tax Impact – How the IRS, states, and other tax authorities apply taxes to business profits varies according to a company’s legal structure. Some structures (known as pass-through entities) are set up to have taxes flow through to the business owner’s personal tax returns, while others result in the business paying taxes as its tax-paying entity. Under some structures, business owners pay a larger percentage of their earnings for Social Security and Medicare taxes. Your clients will want to weigh their options carefully to determine which scenario will offer them the best tax outcomes.
• Ownership and Management Flexibility – Different business structures have different ownership structures. When more than one owner is involved, things can get complicated, so it’s critical for clients to understand the advantages and disadvantages of their options.
• Growth Potential – Some structures are better suited than others for entrepreneurs who foresee needing to raise capital to fuel growth and expansion. In addition to considering the opportunity to sell stock, some structures generate more confidence and credibility when approaching investors and lenders.
• Costs and Complexity – Another detail business owners will want to keep top of mind is how much it will cost to file formation paperwork and fulfill ongoing compliance requirements. Some structures have simple and few obligations, while others come with more complicated (and costly) formalities.
• Succession Plan – Hopefully, your clients are also thinking about their business in the long term. What will happen to the business after they die? What if a business partner decides to leave the company? Some business structure types cease to exist after an owner passes away, while others live in perpetuity.

Business Structures Your Clients Might Register

Now that I’ve set the stage for what clients should think about, let’s look at a few of the most popular business entity types to give you more insight into each.

Sole Proprietorship

A one-person (or married couple’s) business will automatically be regarded as a Sole Proprietorship if it’s engaged in commercial activities but not registered as a business entity. A sole proprietorship doesn’t have to file formation paperwork with the state, nor does it have any formal compliance requirements to fulfill. However, it may need licenses and permits depending on the type of business it conducts and where it’s located. Also, if the owner chooses to use a fictitious name, it must file a DBA to provide products or services under a company name that doesn’t include the owner’s legal name(s).

A Sole Proprietorship is legally and financially considered the same entity as its owner. This means the owner is personally held liable for debts and legal obligations of the business. So, if the business can’t pay its bills or someone sues the company, the owner’s house, vehicles, bank accounts, and other property could be at risk. Another drawback of a Sole Proprietorship is limited financing opportunities. The company may not sell shares of stock, and lenders might not be interested in funding the business. So, sole proprietors may need to depend on their savings account, home equity loans, and assistance from family to fund big-ticket purchases like property, equipment, etc.

As an unincorporated business, a Sole Proprietorship reports its business profits on the owner’s individual income tax return. Because all income and losses flow through to the individual level, the owner must also pay 15.3% in self-employment taxes (12.4% Social Security and 2.9% Medicare taxes) on the business’s profits.

Partnership

A Partnership, when two or more people own a business, is an attractive option for entrepreneurs who want minimal compliance formalities. Like a Sole Proprietorship, a Partnership is an unincorporated business. Owners (partners) divide profits and report them on their individual income tax returns. Partners must also pay self-employment taxes on their share of the profits.

Partners typically work with an attorney to create a Partnership Agreement that sets forth how profits get divided and details about what happens if any of them retires, wants to get out of the business, declares bankruptcy, or dies. Some partnerships have a buy-sell agreement in place, as well, to ensure that the company can continue to operate if something happens to one of its partners or if a partner decides to leave.

Partnerships come in several varieties:

• General Partnership – The partners in a General Partnership manage the company and assume personal responsibility for the business’s finances and legal obligations.
• Limited Partnership (LP) – In a Limited Partnership, there are general and limited partners. While general partners take an active role in the business’s daily operations, limited partners typically have a financial interest without managing the business’s activities. The general partners are the owners who assume personal liability for the business.
• Limited Liability Partnership (LLP) – An LLP is similar to a Limited Partnership. The primary difference is that every partner has limited liability and is personally protected from the debts and legal issues of the business.

Limited Liability Company (LLC)

An LLC offers its owners (a.k.a. members) the benefit of limited personal liability while maintaining compliance simplicity. Some refer to it as a hybrid between a Sole Proprietorship and a Corporation.

A Limited Liability Company may be a single-member or a multi-member LLC (if more than one member). Multi-member LLCs can have an unlimited number of members. The business structure offers choices in how it’s managed. An LLC may be member-managed (its owners run the day-to-day operations) or manager-managed (the owners hire someone to manage it or appoint one or more of its members to handle business operations). LLC members usually create an LLC operating agreement defining individuals’ roles and responsibilities.

From a tax perspective, the IRS will view an LLC as a pass-through entity. As such, its profits and losses get passed through to its members rather than the company paying corporate taxes. Like owners of Sole Proprietorships and Partnerships, LLC members must pay self-employment taxes on business profits.

However, an LLC has some tax flexibility. Members can instead elect to be taxed as an S Corporation. I’ll explain more about S Corporation tax treatment later in this article, so keep reading!

With a single-member LLC, the business dies with the owner unless provisions in the LLC operating agreement state otherwise. Multi-member LLCs also may have a limited life if any members leave or pass away. Some states will require members to dissolve the LLC and form a new one with new members if there isn’t a buy-sell agreement establishing the rules for transferring ownership.

C Corporation

A Corporation, sometimes called a C Corporation, is a legal entity separate from its owners and provides the most personal liability protection for its owners (shareholders). C Corporations also may take some deductions that other business entity types may not. It costs more to incorporate than to form other business structures, and corporations have more oversight, record-keeping, and reporting responsibilities to stay in good standing and operate legally. Some compliance requirements that C Corporations must fulfill include designating a board of directors, holding directors’ and shareholders’ meetings, adopting bylaws.

Corporations may sell stock to raise funds. Because they are independent entities, they can remain active even when individual shareholders leave, die, or sell their shares of stock.

A C Corporation pays taxes on its profits, files its own income tax returns, and is legally liable. In many cases, corporate profits get taxed twice — something referred to as double taxation. When the company makes a profit, the Corporation pays tax at the corporate income tax rate, and then the profits paid as dividends to shareholders are taxed again on shareholders’ personal tax returns at the applicable income tax rates. If a C Corporation meets the eligibility requirements, it can elect S Corporation tax treatment to avoid double taxation.

In addition to the C Corporation, other forms of Corporations may be an option depending on the state where a company is registered:

• Benefit Corporation (B Corp) – A Benefit Corporation is a for-profit corporation that exists to serve a societal or environmental mission, contributing to the greater good in addition to generating a healthy bottom line. Examples of some well-known certified Benefit Corporations include Kickstarter, Ben & Jerry’s, and Patagonia.
• Closed Corporation – A Closed Corporation is usually run by a small group of shareholders without a board of directors. Rules vary by state, but typically, a Closed Corporation may not participate in public trading of stock.
• Nonprofit Corporation – A Nonprofit Corporation is organized for charitable, religious, educational, scientific, or literary work. It may apply to the IRS and state to be exempt from paying federal and state income taxes on its profits.

S Corporation

An S Corporation is a tax election option rather than a business structure in its own right. C Corporations and LLCs can elect to be treated as S corporations for tax purposes (by filing IRS Form 2553) if they meet IRS eligibility requirements.

Federal income tax obligations for an S Corporation pass through its owners. Therefore, C Corporations that choose the S Corporation election avoid double taxation because profits are taxed only at the shareholders’ personal level. The advantage for LLCs that elect S Corporation tax treatment is that not all business profit is subject to self-employment taxes. Instead, members pay themselves wages through the company payroll and only pay self-employment tax on that income. Profits paid to LLC members as distributions are not subject to Social Security and Medicare taxes. State rules for how taxes are applied to S Corporation profits vary.

S Corporations can have a maximum of 100 shareholders (or members in the case of an LLC), and other restrictions also apply. An LLC or C Corporation that chooses an S Corporation election must fulfill its underlying entity’s compliance requirements.

How to Help Your Clients Register a New Business

How can you help your clients make informed decisions while avoiding the risk of giving them guidance you’re not legally authorized to provide? First and foremost, ensure you only provide advice within your realm of expertise and the authority of your licensure and credentialing. So, as a licensed accountant or tax advisor, you may educate and advise on how a business structure will affect your clients’ tax obligations. However, you may not advise about the liability ramifications associated with any business entity type.

Examples of questions a licensed accountant can safely answer include:

• Will pass-through taxation, S Corporation tax treatment, or taxation as a C Corporation be most beneficial financially to a client who is forming an LLC?
• What options does a General Partnership have if its owners want to lower their self-employment tax burden?
• Which states offer the most favorable tax rates for a Corporation?
• What does the client need to do to register their business entity for payroll taxes?
• If a client has multiple businesses, how should they structure them for optimal tax outcomes?

Examples of questions when you should recommend clients seek the advice of an attorney:

• What are the personal liability advantages of changing from a Sole Proprietor to an LLC?
• What should clients include in their operating agreement?
• Which state will offer the most favorable legal environment for a corporation?
• Is the client legally responsible for submitting a BOI Report?

Enroll in the CorpNet Partner Program

Now that you have a basic understanding of what the types of questions you can answer and guidance you can give without venturing into the troubled waters of unauthorized practice of law, let’s explore how you can help your clients with their formation and compliance filings after they’ve decided on their ideal business structure.

As I mentioned earlier, it’s not considered the practice of law to file business documents for your clients. Fortunately, CorpNet has a program in place to allow you to assist your clients with business formation and compliance, opening a new stream of revenue for your business — with minimal effort on your part and at no cost to you. You can enroll for free in the CorpNet Partner Program as a Reseller or Referral Partner.

As a Reseller Partner, you can private label our services and offer incorporation, LLC formation, and corporate compliance filings in all 50 states. Our intuitive online portal makes it easy for you to submit requests, and CorpNet takes care of all the rest behind the scenes. Our portal also allows you to track filing and reporting deadlines, so you can help your clients stay on top of their upcoming responsibilities and offer your assistance as those due dates approach. You get discounted pricing on our services and then set your pricing to your clients as you wish.

As a Referral Partner, you refer your customers to CorpNet, and we work directly with them on their filings. You can earn a commission on the service value or request us to pass the savings to your clients instead.

Best of all, you can participate in both programs if you wish, selecting which services you want to resell and brand as your own and which you’d like to refer your clients directly to us for.

Here’s a list of some of the filings you can help your clients complete through the CorpNet Partner Program:

• Incorporation of C Corporations, Professional Corporations, Nonprofit Corporations (Articles of Incorporation)
• Registered Agent Designation (CorpNet provides Registered Agent Services in all 50 states)
• Business Name Searches and Reservations
• Fictitious Name Registration (DBA)
• Beneficial Ownership Reporting
• Business License and Permit Applications
• Foreign Qualification (to conduct business in other states)
• EIN Applications (IRS Form SS-4)
• 501(c)(3) Filings
• Initial and Annual Reports
• Sales and Use Tax Permit Registrations
• State Payroll Tax Registration (State Unemployment Insurance and State Income Tax)
• Articles of Amendment (changes in company name, address, etc.)
• Annual Meeting Minutes
• Entity Conversions (changing from one business entity type to another)
• Certificates of Good Standing

CorpNet even has customizable, turn-key marketing resources for digital and print marketing:

• Brochures and checklists
• Website content
• Email copy
• Digital banner ads for website and social media

Contact us today to learn more about the CorpNet Partner Program and the powerful way it will help you help your clients while boosting your business’s bottom line!

What if you could increase customer satisfaction while increasing your revenue and profits? Even better, what if you could accomplish both objectives without increasing your workload or adding staff?
In a recent webinar, we explored the benefits of helping clients manage the burden of incorporation, LLC formation, registered agent services, and annual compliance requirements. We also explored CorpNet’s Partner Program and showed how CPAs, accountants, and bookkeepers can easily add these services to their existing advisory offerings.

I answered some excellent questions from the audience at the end of the webinar, and I’ll share them—along with some other helpful Q&As—later in this article.

Business Formation Requirements

Whether your clients are in the process of starting or growing a business, they might wonder about the steps involved in legitimately forming a business entity or the tasks they need to complete on an ongoing basis to keep their existing business entity in good standing. Some of their inquiries may flow naturally into your area of expertise, while others may require you to align clients with other resources. For example, a business owner should talk with their attorney to get the lowdown on legal requirements for their specific type of business and their location.

And for clients who have already consulted with you and their lawyer to determine legal and tax-related details, you can enhance customer trust and loyalty by giving them a way to save them time and money on their business formation and compliance filings.

How? By signing up your accounting firm or professional services practice in the CorpNet Partner Program. We created our program for business professionals like you who aspire to create a new revenue stream without overwhelming yourself and your team members. With Reseller and Referral Partner options, the CorpNet Partner Program offers flexibility—and it’s free to join with no setup or annual fees.

You can partner with us and get wholesale discounted pricing as a white-label Reseller of our business filing and corporate compliance services, or you can become a Referral Partner and refer your clients to us, receiving a referral fee for each sale. We provide you with all the resources you need, including turn-key digital marketing assets, a portal to track your clients’ filing and reporting deadlines, and expert support.

I’ll share more about it later in this post. Right now, let’s discuss various business filings your clients may need assistance with:

• Changing Their Business Entity Type – Perhaps you’re working with a sole proprietor who wants to protect personal assets while running her company. Or maybe the owners of a multi-member LLC (Limited Liability Company) have decided they want to be able to sell stock to raise funds to expand their business. In these situations and others, your clients must submit documentation to legally form or change their business entities. Examples of business formation paperwork by business entity type include:
  • Articles of Organization – For LLC registrations
  • Articles of Incorporation – For Corporations
  • Certificate of Conversion – To convert an LLC to a corporation
  • Election by a Small Business Corporation – S Corporation election
  • Certificate of Authority – For foreign qualification to operate an LLC or corporation outside of the state in which it was formed
• Obtaining an EIN – As you advise your clients that they’ll need an EIN (Employer Identification Number) to hire employees, set up a bank account, and file their taxes, they may ask about the cost and where they get one. EINs are free of charge from the IRS.gov website or clients can pay a third party a fee to apply for one on their behalf.
• Applying for Business Licenses and Permits – Many of your clients may need specific business licenses and permits to operate their companies at their locations legally. The requirements will depend upon where they are and what they do. Some businesses might require federal, state, county, and local licenses and permits, so it’s essential that their owners check to find out what requirements apply to them.
• Designating a Registered Agent – Your LLC and corporation clients must assign a registered agent to receive service of process (state and federal correspondence, legal notices, corporate filing notifications, and other important paperwork) on their behalf. Maintaining a registered agent is a critical ongoing business compliance requirement.
• Filing a Beneficial Ownership Information Report – The Corporate Transparency Act (CTA) includes a Beneficial Ownership Information (BOI) Reporting Rule that requires most business entities (domestic and foreign) operating in the United States to file a BOI report to the Financial Crimes Enforcement Network (FinCEN). This new reporting requirement went into effect on January 1, 2024. Entities subject to the rule must file a BOI report to disclose any individuals who own 25% or more of their company or who have substantial control over the business. Businesses formed or registered to do business on or after January 1, 2024, must also report their company applicant (the person who submitted the entity’s formation paperwork and—if applicable—the individual who directed the filing.
• Registering for State Payroll Taxes – If a business hires employees, it must register with the appropriate state tax authorities to fulfill state income tax and unemployment insurance requirements. Registering for these tax accounts enables employers to withhold state income tax from employees’ paychecks, report, and remit them to the state. In most states, only employers are responsible for paying into state unemployment insurance (SUI) programs. While they are predominantly an employer responsibility, entities must register to set up an account with the state to report and pay into SUI.
• Submitting Annual Reports – Some states require LLCs and corporations to submit annual reports or “statements of information” so that companies’ vital information is up to date in state records. In the states requiring them, the deadline may be annual, every two years, or on some other schedule. Sometimes, the filing deadline for an annual report may be aligned with the deadline to file other state taxes.
• Closing a Business – When clients have decided to cease doing business, they must officially notify the state(s) in which they operate their companies by submitting Articles of Dissolution. If they do not formally end their entity’s existence with the state, they continue to bear the responsibilities of filing reports, paying taxes, and performing other compliance tasks even if they haven’t been actively conducting business.

Use CorpNet’s Partner Program to Help Your Clients

You and your clients will benefit from our program when you sign up for our Reseller Partner or Referral Partner options. Either way, you can make additional income for your accounting business and reduce business compliance issues for your clients. Moreover, your clients will have peace of mind that their business and compliance filings (in any state) will be completed accurately and on time.

Option 1: CorpNet Reseller Program

When you sign on as a CorpNet Reseller, you can increase your professional services revenue by offering to prepare and complete your clients’ business filings related to incorporation, the formation of an LLC, S Corp election, BOI report filing, business license and permit applications, annual reports, and more.

No matter in which state your clients are doing business, you can submit filings through CorpNet on their behalf. Behind the scenes, we work as your silent fulfillment partner. You’ll get all the tools you need to ensure success—private label services, a dedicated account manager, marketing templates, and personalized service. Rest assured, we will never contact your clients without your consent. We do all the work behind the scenes while YOU get the credit!

You receive discounts on our retail rates, and you resell our services as your own at whatever rates you choose.

All fees for all products and services published on the CorpNet website represent our retail rates. We can send wholesale pricing to you when you sign up for the program and after we’ve onboarded you. You can then charge your clients whatever fees you see fit for the services you order from us when serving your clients.

Option 2: Partner with CorpNet as a Referral Partner

As a CorpNet Referral Program partner, you can refer clients to a trusted resource for incorporation, LLC filings, registered agent services, and annual corporate compliance and monitoring in any state. You refer your client to us, and we’ll do all the work and send you a commission check. Or, if you like, you can waive your commissions and have us pass the savings to your clients instead.

To make the referral process seamless, we assign you a dedicated account manager to respond to your needs and treat your clients with exceptional service. Even though we are handling all orders directly with your customers, we are happy to keep you apprised of the status of your clients’ filings (with their permission, of course!).

Option 3: The Best of Both Worlds

You may participate in just one or both programs to optimize your clients’ experience and your opportunities to increase professional services revenue.

For instance, you could be more hands-on and perform as a Reseller for key clients with whom you want to interact more frequently while exercising the Referral option for transactional or lower-spend clients. Or you might select the Reseller or Referral options based on the type of filing. If you’re unsure which will be more advantageous in particular scenarios, we can help walk you through the decision-making process.

Webinar Q&A Session With Attendees

Is this considered an unauthorized practice of law?

It is not considered the practice of law to file business registration and compliance paperwork on behalf of your clients. You may also advise your clients on which entity to choose from the standpoint of your area of licensed expertise. For example, an accountant or tax advisor can offer insight from a tax implications perspective. Of course, if your clients need legal or tax advice and you’re not qualified and credentialed to provide it, they should get guidance from a licensed professional when determining which entity they should choose. After they’ve gotten that direction, forms may be submitted by an attorney, the client, or the client’s representative (like you with the help of CorpNet). You can help your clients save time and money as you get the job done quickly and accurately through CorpNet’s services and seamless process. It’s a win for your clients and you as you increase professional services revenue for your business.

Who can be a Corpnet Partner? How can I utilize this service when I’m only a bookkeeper? I’m not a CPA or tax professional.

Our most successful partners are usually individuals who consult or advise small business owners and startups. Types of partners include:

• CPAs, accountants, bookkeepers
• Quickbooks advisors
• Lawyers who assist clients who own businesses
• Estate planning experts
• Business coaches

Services professionals who offer advisory services to businesses are good candidates to participate. We screen prospects to ensure a good fit for program participants and CorpNet. The best relationships are fruitful and beneficial to all parties.

Should I be a CorpNet Reseller or a Referral partner?

You can be both! Many of our CorpNet Partners participate in our Reseller and Referral Partner programs. For example, you could resell and brand our services as our own when working with your key accounts while referring other customers directly to us to handle the transaction.

When do I get paid my commissions?

CorpNet calculates commission on the last day of the following month for any given period. We usually issue commission checks within 72 hours of that day. Thus, if you refer clients to CorpNet and they make a purchase in month 1, we will calculate all sales, refunds, and commissions due for that month 1 period on the last day of month 2. Then, your commission check is mailed out in the first week of month 3.

What if I don’t get credit for a sale that SHOULD have been my referral?

Call us at 1-888-449-2638 or email us at partners@corpnet.com …and we’ll make it right. Remember, we want you to be a happy partner. We want you to be excited about the services you offer your clients through CorpNet.

How do you keep track of referrals?

A cookie is stored on your user’s device when a user clicks your link with your unique partner ID. All purchases made at corpnet.com from that device will list you as the referral source. Once you become a CorpNet Partner, you will receive a program overview and support document from your dedicated account manager, including all this information for your review and reference.

Do you help set up Non-Profit Corporations and for tax-exempt status?

Yes, we do, and we can assist with the set-up of any type of Non-profit Corporation in any of the 50 states. We can also help you file for their 501(c)(3) tax-exempt status!

Is the price the same for a Single Member LLC, a Multi Member LLC, an S Corporation, and a C Corporation?

Our package prices (from basic to all-inclusive) are the same across the board for all business formations.

What is the suggested price we can charge our clients for the service?

As a Reseller Partner, you are free to charge whatever price you want and mark up our prices as high as you like. As a Referral Partner, the price your clients will pay is based on the rates disclosed on our website.

Do you provide guidance and marketing materials to help me promote your services to my clientele?

Yes! We have a variety of marketing materials readily available. Reseller Partners receive white-label design versions to brand the materials as their own (or co-brand them with CorpNet):

• Marketing brochures (providing an overview of the formation and compliance services)
• Checklists (giving clients a rundown of common tasks and requirements when starting a business)
• Website content (for a dedicated page about the filing services you offer)
• Email copy (for an e-newsletter to your clients)
• Digital display banner (to add to your website or social media platforms)

Other Resources:

• FAQs (about the potential tax-saving benefits of LLCs and Corporations)
• Client questionnaires (to help your clients determine their needs before creating an LLC or Corporation)
• Articles, webinars, and videos (to augment your knowledge and educate your clients)
• Interactive Business Structure Wizard tool (to help your clients home in on the business entity type that might best suit their needs)
• Free Business Name Search tool (to help you and your clients determine if their desired business name is available)
• Portal with compliance checks (to stay aware of your clients’ upcoming compliance responsibilities and due dates)

What about non-compete and non-disclosure between my firm and yours?

Our Corpnet Partner Program Terms of Use and Affiliate Agreement includes information about non-compete and non-disclosure.

For you to provide me with white-label services for my clients, is there a minimum monthly sales volume I must meet to qualify for the option? I’m still building my practice.

There is no minimum requirement whatsoever. That is the beauty of our program!

Is it possible to move a client’s existing registered agent over to CorpNet?

Yes, absolutely—any time, any day, and in any state! Just provide us with the list of your clients, and not only can we switch over their existing registered agent to us, but we will also do a complimentary business compliance check at the time we switch them over.

Does CorpNet file on the county level as well?

Yes, we can handle any type of county-required filing in any of the 50 states that require a county filing, including “Doing Business As” (fictitious name) filings.

Can you help clients who are foreign investors buying rental property in the United States?

CorpNet can assist any foreign business owner or professional wanting to form a USA business entity.

If a client doesn’t know what business structure they should choose, will you recommend the business type?

CorpNet is a document filing service and CANNOT provide you with legal, tax, or financial advice. That said, we have plenty of resources, content, and tools available at your fingertips to help individuals make informed decisions about which business structure might be most beneficial for them. For example, our Business Structure Wizard—which attorneys and accountants created—can assist you by taking you and your clients through a series of questions based on their specific needs and business requirements.

Also, an accountant, CPA, or tax professional can advise clients on the business type they should consider forming based on which will offer the most favorable tax outcomes.

If I usually direct my clients to an attorney, would my clients benefit from CorpNet’s services instead?

Lawyers are not required—and in many situations, not necessary—to file these types of documents. Often, we can save your clients time and money by getting filings done faster and with lower service fees than attorneys.

Does CorpNet require a Power of Attorney (POA) for our customers to receive your services?

No, we do not require a POA for our filing submissions because we use the client’s credentials as a scrivener when we submit applications on their behalf. This avoids the additional roadblocks in the client experience that occur if we were to submit applications as a “third party.”

Does CorpNet guarantee its services?

CorpNet is committed to providing service excellence! We offer a satisfaction guarantee, providing a refund of our service fees (this does not include refunds for state and government fees) if you are not satisfied with our document filing services. Visit our CorpNet Guarantee page for more details.

Do you have checklists to help our clients know their formation and compliance responsibilities?

Yes, we have a plethora of free guides and checklists available. Here’s a sampling of what you’ll find on our website.

• Starting a Business Checklist
• Free DBA Free Guide
• Free Incorporation Guide
• Free LLC Guide

How does CorpNet keep my clients’ information secure?

We use online and offline security technologies, procedures, and organizational measures to help protect customer’s information against loss, misuse, unauthorized access, disclosure, alteration, and destruction.

• Data is encrypted when transmitted over the internet to our website.
• We have layered firewalls and other security technologies to help prevent unauthorized access to our systems.
• We enforce robust password protection protocols on our computers, and employees are kept up to date on our security and privacy policies.
• The servers that store consumer information are maintained in a secure environment with appropriate security measures.

Please visit our Privacy Policy page for additional information about how CorpNet manages data.

Do CorpNet’s services compete with what I already offer in my accounting business?

Answer: We do not offer services that compete with accountants and payroll services providers. Moreover, CorpNet will never sell you or your clients’ information to third parties.