The Launch Blog: Expert Advice from the CorpNet Team
What You Need to Know About the Flexibility Act and PPP Loan Forgiveness
There’s good news for recipients of the CARES Act Payroll Protection Program’s (PPP) loan. The loan, which provided funds for small businesses to retain employees through the pandemic, has been altered with more generous terms for forgiveness. The Flexibility Act was signed into law on June 5, 2020, and amends the CARES Act, changing PPP loan terms and requirements. Here’s how to make sure you follow the new rules for forgiveness. How the Flexibility Act Modified PPP Forgiveness The amount of money each business received from the Payroll Protection Program was based on the number of...
How Should Real Estate Investors Structure Their Businesses?
Owning investment properties can be exciting and lucrative. However, investments in real estate, whether vacation rentals, long-term rentals, or properties for resale, can also create liabilities. That's why it's critical for real estate investors to wisely choose how they will structure their businesses. For example, a renter might trip on an unstable staircase. A guest could slip on an uneven sidewalk. Faulty electrical wiring could shock a tenant or cause a fire. Or a slow leak in a building's plumbing might cause mold that affects a tenant's health. Accidents happen and they can...
Everything You Need to Know About Starting a Partnership
What is a Partnership? A partnership is a formal legal entity where two or more parties agree to manage and operate a business and share its profits and losses. Like a sole proprietorship, each partner is responsible for the assets and liabilities of the company. However, in a partnership, the parties create a partnership agreement that dictates ownership, responsibilities, and decision-making authority. While there are no specific filing or registration formalities needed to start a partnership, partnerships must comply with the registration, filing, and tax requirements required of any...
Top FAQs for Small Business Licenses and Permits
When you’re starting a business there’s so much to know, it can be overwhelming. Let us take some of the complexity out of the startup process by answering the top FAQs entrepreneurs have about small business licenses and permits. Is a business license the same as a permit? Although most businesses likely need various licenses and permits to operate legally, a business license and a permit are different. A business license from the city in which your company operates, confirms your business has complied with the city’s rules and regulations for legal operation. Other business licenses...
7 Ways Your Business Can Crush It During COVID-19
Every business owner hopes to reach the peak of business success. You know, when you’re just crushing it—when smooth operations and growing profits allow you to breathe a satisfied sigh of contentment and pride. This year that feeling may seem farther from your reach than ever. A slower economy and a world trapped in daily self-distance protocols may leave you feeling directionless and disconnected. But, remember what Albert Einstein once said, “In the midst of every crisis, lies great opportunity.” Here are seven ways to ride out the pandemic and come out on top. 1. Leverage the Power of...
What California’s AB 5 Means for the Gig Economy
In 2020, the hot topic is California’s Assembly Bill 5, often called the “Gig Economy Bill.” This is because AB 5 makes it difficult to be an independent contractor in California. Before we examine AB 5 in detail, let’s understand why California legislators passed the bill in their own words: THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) On April 30, 2018, the California Supreme Court issued a unanimous decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903...
What Employers Need to Know About Sick Leave During the Coronavirus Crisis
Employers across the nation are feeling the pressure to keep their businesses up and running and profitable during the current COVID-19 pandemic. Whether you’re concerned about hunting down alternate suppliers or keeping employees and customers safe from contamination, there’s a lot on business owners’ plates at the moment. We know staying on top of the information about the pandemic is important to your business, so here’s the latest on sick leave policies during the coronavirus crisis. Before COVID-19 State by state the country is grappling with trying to stop the spread of the...
How to Calculate Your Payroll Protection Program Loan Amount
To help small businesses keep their business going and their staff employed, the federal government passed the CARES Act, which is administered by the Small Business Administration (SBA). One of the most useful parts of the CARES Act is the Paycheck Protection Program (PPP) loan, which encourages small business owners to keep their employees on the payroll. Under the program, the loans will be forgiven if the business only uses the money for payroll, rent, mortgage interest and utilities. Businesses must keep paying their employees for eight weeks. The PPP loans are 2.5 times a company’s...
Don’t Lock Your Credit if You’re Applying for a CARES Act Loan
I'd like to do a very quick public service announcement to alert you of something that can turn into a pretty big mistake. Things are moving so quickly with the CARES Act and Coronavirus relief that I almost didn't catch it myself. If you've locked your credit profile at Experian, Equifax, TransUnion, or another credit reporting agency, you could be in for an unpleasant surprise. By locking your credit profile you are prohibiting banks from doing the due diligence related to the Payroll Protection Program loan or other funding options provided under Coronavirus relief programs. The SBA,...
Florida Annual Report Deadline Extended Due to Coronavirus
Normally, at this time of year, you might find yourself scrambling to file your Florida annual report by the May 1st deadline. A business’s annual report confirms or updates a company’s information in the Florida Division of Corporations' records. The State requires that business entities file an annual report each year to maintain an "active status" with the Department of State. Corporations (for-profit and non-profit), limited liability companies (LLCs), limited partnerships (LPs), and limited liability partnerships (LLPs) must file an annual report. The requirement applies to both...
What Government Loan Program Should You Apply For?
Can’t decide whether you should apply for the Paycheck Protection Program (PPP) loan from the SBA or the Economic Injury Disaster Loan (EIDL) from the U.S. Treasury? Truth be told, many of your fellow small business owners have already turned in their applications for one or both and some are starting to receive their funding. If you’re still trying to sort out the differences or seeing if some of the confusion gets resolved, maybe we can help. Here’s what we know. Paycheck Protection Program (PPP) You probably already know the basics of the PPP, but it bears going over again for...
Paycheck Protection Program for the Self-Employed and Sole Proprietors
By now we have all at least heard about the Economic Injury Disaster Loan and the Paycheck Protection Program enough to know what the acronyms EIDL and the PPP stand for. Even the infamous Pandemic Unemployment Program aka the PUA has become part of our daily vocabulary. But what are these programs and how do they work? More importantly, how do they work for us, for our clients, and are they enough to get us through this crisis? Like me, you have no doubt been hunkered down at your desk watching recorded webinars, participating in live webinars, reading from the Treasury and Small...
COVID-19 Relief Funding Alternatives
As of April 16, 2020, the SBA announced all appropriations for the Paycheck Protection Program and the Economic Injury Disaster Loan were exhausted. Small business owners are now in need of COVID-19 relief funding alternatives. Below is a list of some COVID-19 funding options that are still available. SBA Express Bridge Loans (EBL) Eligibility: Small businesses that currently have a business relationship with an SBA Express Lender. Loan Amount: Up to $25,000. Purpose: Support for small businesses experiencing a temporary loss of revenue due to the coronavirus pandemic. The SBA Express...
How Loan Forgiveness Works for the PPP and the EIDL Loan Programs
Now that we are in full swing of the coronavirus pandemic, small businesses across the country are trying to make sense of the CARES Act and how the relief funding can help keep their businesses afloat. One area of confusion seems to be how a business receiving funds from the Paycheck Protection Program (PPP) and/or the Economic Injury Disaster Program Loan (EIDL) will have their loans forgiven. To date, details and information appear to change daily. According to the Small Business Administration (SBA), there will be additional guidance on loan forgiveness within 30 days of March 27,...
9 Tax Benefits in the CARES Act
There are more advantages to the CARES Act than just relief funding that can help your small business save money and those come in the form of tax breaks. Although most of the breaks are temporary, it’s important to take advantage of all that’s being offered to business owners now, so your company has the best chance of coming out of the pandemic healthy and if not profitable, at least in recovery mode. Here are nine tax breaks and benefits you and your employees can take advantage of today. Tax Benefits For Your Business 1. Delayed Payroll Tax Payment As an employer, you can choose to...
Business Ideas for People Who Love the Outdoors
If you love the outdoors and have always wanted to start a business relating to your outdoor passion, now is a great time to take advantage of the country’s desire for outside activities. Here are some outdoor business ideas and trends you need to know to get you running on the right path to business success.
Marketing in the New Normal of COVID-19
Things are different today due to the global coronavirus pandemic. While we may eventually get back to some version of normal, when that happens is subject to much debate. COVID-19 changed how business gets done, from suppliers and distribution to sales and marketing, the world functions in a different way. So while we all adapt to the “new normal”, the messages we send to our customers will have to change. Our customers’ needs have changed, and they have understandably rearranged their priorities over the past few months. They’re more patient and have learned how to do without some...
How Smart Businesses are Pivoting to Find Success in the Midst of COVID-19
Business owners are constantly moving. Whether it’s tracking new trends, operating the shop, meeting with clients, or attending networking events, you’d think there can’t be one more thing to add to their plates. And then, COVID-19 hit. As business owners ourselves, we saw a new kind of busy that was one of pivoting to meet new demands in a time of crisis. Pivoting business focus is not something unique to the time of coronavirus. Being able to quickly change or redirect a business is one of the hallmarks of entrepreneurship. Fortunately, smart business owners are excellent “pivoteurs,”...
Post-COVID Marketing Strategies for Accountants
Clients need their accountants more than ever in our post-COVID-19 world. Whether it’s getting ready for the extended tax deadline, figuring out how to utilize government relief funds or how to start a new business in a recession, accountants need to make sure their services are in the foreground of their customers’ needs. Here are five post-COVID marketing strategies for accountants to win and keep clients for the long-term. Establish the Business as Post COVID-19 Experts As the economy struggles to get back on track and clients have specific questions on how to file taxes, apply for...
Are Your Accounting Clients Worried About a Recession? Why They Need You Now More Than Ever
As far back as October 2019, half of Americans were already concerned a major recession was on the horizon and now that concern has become a reality, according to top economists. According to the National Bureau of Economic Research, the U.S. economy actually stopped growing in February this year, following an economic expansion that lasted more than 10 years. And, it all happened fairly quickly as the COVID-19 pandemic effectively shut down the economy and compounded unemployment. So, it’s not at all surprising your accounting clients are worried about the recession. It’s up to you then...
LLC-5 and the California Foreign Limited Liability Company
What is an LLC-5? The LLC-5 is a California State form used when a domestic limited liability company formed in another state (or country) wishes to become a foreign limited liability company in California. The official name of Form LLC-5 is “Application to Register a Foreign Limited Liability Company.” Approval to operate as a foreign LLC is known as "foreign qualification." As a business owner, learning more about the LLC-5 and the process of becoming a foreign LLC in California will serve you well if you're thinking about expanding your company. If you have registered a limited...
Remaining Independent Under California’s New AB5 Law
Whether you work as an independent contractor or your business hires independent contractors, California’s new AB5 law, which went into effect January 1, 2020, forces your hand on becoming an employer or an employee depending on how you conduct your business. The Existing Employee vs. Contractor Designation Up to now, you’ve probably made sure you’re adhering to the IRS classification rules for independent contractors, which are as follows: Behavioral Control: A worker is an employee when the business has the right to direct and control the work performed by the worker, such as when and...
What Entrepreneurs Should Know About Calculating Sales Tax for Business
Confused about how to calculate sales tax for business? Learn about recent sales tax legislation, tools for calculating sales tax, and more.
Accounting Franchises: Are They Really Worth the Money?
Traditionally, when you think about starting an accounting business, you envision building the business from scratch and all that entails—doing market research, financing your startup, differentiating your business in the marketplace, etc. But there’s another option you may not have considered: buying a proven concept of accounting franchises. There are a number of accounting franchises available, some of which you may have heard of and some you likely haven’t. The decision to start an accounting business on your own or with the support of a franchise system depends on what kind of...
Don’t Let Poor Accounting Firm Management Stifle Your Growth
What barriers to business growth is your accounting firm facing? Although the answers to that question might vary from industry to industry, I’m sure most boil down to similar sentiments. I know in my business, bandwidth can be a barrier to growth—but not bandwidth in the technical sense. Instead, we’re sometimes limited by our own bandwidth and how much our team can accomplish with the time and resources we have. Sometimes we manage our bandwidth well, and sometimes we don’t. There were times we tried to take on a task we should have outsourced, or skimped when a tech upgrade would have...
Five Side Hustle Options for Single Moms
Throughout my career, I’ve managed all kinds of people with all kinds of living situations. Out of all my employees, I’d have to say single moms are among the hardest working and most dedicated — no matter what life challenges are thrown at them. Making enough money to support yourself and your children as a single mom while still handling all of the childcare duties yourself is one of life’s biggest challenges. For some single moms, the traditional 9-to-5 job may not fit their schedule (nor sufficiently pay their bills). One way around this: Start a side hustle that allows you to earn...
How to Become a Virtual Bookkeeper
Coming from the corporate world, leasing office space seemed like the obvious choice when I started my own company. But after 18 months of commuting to an office and paying rent and other overhead expenses, my two partners and I realized the cost—and time—savings of transforming into a virtual business. Luckily, we all had space to work from our homes, and with the right equipment, we made the transition to being a virtual business without a hitch. If you’re just starting out or, like us, tired of paying for office space, there is another option: Become a virtual bookkeeper. With the...
Do I Need a Business License to Sell on Amazon?
Entrepreneurs who want to sell their products through Amazon’s marketplace face many of the same opportunities and challenges as brick-and-mortar stores. Naturally, they have a lot of questions about launching and running an online business. It’s exciting to think of the possibilities but often daunting to figure out where to start, what to do, and where to turn for help and direction. One of the things these business owners want to know is, “Do I need a business license to sell on Amazon?” Regardless of whether an Amazon seller has formed an LLC or corporation or is operating as a sole...
Do I Need a Startup Advisor?
A startup advisor can be invaluable to help you navigate through startup pitfalls, structure your company, find funding or scale up your business for profitable growth. I recommend a startup advisor -- provided you can devote the time to make the most out of your advisor’s expertise, talents, and connections. If you just go through the motions without leveraging what your startup advisor has to offer, then it will be a waste of time. But if you are committed to accepting advice and mentoring, and you pick the right startup advisor, you can accelerate your business’s success. So exactly...
Small Business Tax Advice and Survival Guide
Tax season comes to all businesses big and small, and can be a headache no matter how well you think you’ve prepared. For a small business owner wearing many (or all) hats in the business, it’s an unwelcome extra task sure to cause late hours and frayed nerves. To handle the additional workload during tax season, CorpNet offers some small business tax advice and presents our Tax Season Survival Kit for business owners. Step 1. Gather All Necessary Documentation The first step in preparing for taxes is gathering any necessary documentation. Ask your tax accountant for the list of figures...
