The Launch Blog: Expert Advice from the CorpNet Team

The decision to change an LLC name is one not to consider lightly. After all, your business name is one of your most important brand assets. But sometimes, a name change is in order for one of many reasons. Perhaps there was a mistake in your formation paperwork, so you need to correct the name. Or perhaps the name was fine in the past, but now it's not because it includes the name of a business partner who just retired. Or maybe your business has expanded into other products or services, and the name no longer accurately reflects what you do. Another reason you might consider changing...

Does your business need to collect sales tax and remit it to the state or local tax authority? And if it does, how do you go about getting a sales tax license? Moreover, what if your business is selling your products across state lines? Do you need to charge and remit sales tax in those states, too? These are all valid and important questions! We're going to delve into them in this article to give you some helpful food for thought as you research what requirements apply to your business. Please keep in mind that all I share here is for discussion purposes. For professional tax guidance,...

Business compliance is a phrase that makes many an entrepreneur cringe. But despite the lack of affection for those two words, business owners must take them seriously. The possible consequences for noncompliance range from mild inconvenience to devastating disaster. Most critical is that noncompliance by Limited Liability Companies and Corporations can lead to piercing the corporate veil, which puts business owners’ personal assets at risk. Before I get into the penalties for noncompliance, let’s first take a moment to discuss what it is exactly. What is Noncompliance in Business? Nearly...

Economic Nexus The Supreme Court ruling on the South Dakota v. Wayfair case in 2018 changed how out-of-state retailers collect and remit sales taxes in each state. At a minimum, states can mandate that businesses without a physical presence in a state and with more than 200 transactions or $100,000 in-state sales can be required to collect and remit sales taxes to the state where the goods are purchased. Because sales tax regulations vary by state, each state has its own rules, registration process, and tax rate for out-of-state retailers that reach economic nexus in that state. In most...

Just as a Social Security Number identifies an individual taxpayer, an Employer Identification Number (also known as an EIN, Federal Tax ID Number, or FTIN) is a nine-digit number that identifies a business entity. In addition to the IRS and other tax authorities using EINs to track payments, reports, and other filings, other government agencies, financial institutions, and even vendors may ask for a company’s EIN when opening accounts, approving loans, or engaging in transactions with the business. While a business entity can have only one EIN, a business owner can request more than one...

In this article, I’ll discuss the potential consequences for professional tax services providers and their clients (taxpayers) when tasks get forgotten and tax deadlines have been missed. I’ll also touch on options for resolving late filing and payment issues with government agencies.

If your business plans to sell products or services, most states will require you to obtain a seller’s permit. This seller's permit can also be called a sales tax license or sales and use tax permit. The process and fees for obtaining a seller’s permit vary by state, as do the rules for remote sellers. States that require a seller’s permit or sales tax license will require businesses to collect sales tax on products and services sold to customers living in their states. This tax will then be reported and remitted to the state on a predefined schedule. Failure to collect and remit sales...

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, we help...

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. 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 of the state's rules for conducting business in that state. "Good...

If you are considering electing S Corporation status you might wonder how this will impact your existing LLC or C Corporation. One question that comes to mind quickly is the continued ability to use LLC or Inc with a business name. S Corporation election is a tax classification, it does not change a business’s legal structure. Limited Liability Companies and C Corporations that elect S Corp status remain the same underlying business entity and retain their legal business name. Therefore, a Limited Liability Company may use "LLC" (or another limited liability company designator allowed by...

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 help alleviate some of the stress if ever you do...

When entrepreneurs want to expand their businesses, they face the important decision of how to structure that growth. One approach is to form a separate company under another registered business entity. Some restrictions exist and small business owners may be wondering if an S Corporation can own an LLC (Limited Liability Company). The answer is yes and in today's article, I’ll shed some light on what S Corporation ownership of an LLC means and how an S Corporation may benefit from being a member of an LLC. What is an LLC? A Limited Liability Company is a business entity that provides...

Creating a budget as a freelancer shouldn’t be any harder than it is for any other small business. And yet, the rollercoaster ride of finding and keeping clients, collecting invoices, marketing your business, and juggling all of this yourself can create major budgeting headaches. Income predictability is a challenge unique to freelancers. Fortunately, there are many simple steps you can take better learn how to budget as a freelancer. Keep Business and Personal Finances Separate Even if you used personal assets to start your freelance business, it’s important to create a clear boundary...