The Launch Blog: Expert Advice from the CorpNet Team
Start a Small Business in Texas in 10 Steps
The Lone Star state attracts entrepreneurs because of its business-friendly environment, minimal tax burden, reasonable cost of living, robust infrastructure, and other factors. If you’ve been wondering how to start a small business in Texas, this article will walk you through some of the most important steps. As you explore entrepreneurship opportunities in Texas, make sure you seek the legal, accounting, and tax advice you need from licensed professionals. This article is for informational purposes only and is not meant as legal, tax, or financial guidance. 1. Write a Business Plan Have...
Can You Have Multiple Businesses Under One LLC?
There may come a time when you decide to expand your business into an additional area of focus or take an online business to a storefront (or vice versa). These shifting operations lead business owners to wonder if they can have multiple businesses under one LLC. The short answer is, yes, you can operate multiple businesses under one LLC. However, before you jump in, you have multiple options to consider. The route you choose can impact you in several ways (including your liability and tax obligations), so it's critical to do your homework and weigh the pros and cons. I recommend talking...
Increasing Client Satisfaction in Accounting Firms
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...
BOI Reporting Requirements By Business Entity Type
As the deadline approaches for reporting companies to submit their BOI report to FinCEN, many business owners are still questioning if they need to file a report. I field that sort of inquiry a lot when presenting webinars on the topic and the answer is often related to the type of business entity utilized by the business. If you're new to the subject of BOI reporting, you can reference one of my earlier articles to come up to seep quickly: How the Corporate Transparency Act Affects Your Company What Is a BOI Report and Do You Need to File One Company Applicant vs. Beneficial Owner Do...
Nexus and State Reciprocity
Nexus and state reciprocity are important topics for business owners and employees, as they can have tax implications for both parties. These topics might seem confusing until you understand the context in which they apply, so let’s break them down for a closer look. Having nexus means that a business is connected to a state in some way. When a business has nexus in a state, it can trigger the need for the business to register to collect and pay taxes there. But whether a business has nexus is not always clear, as there’s no common definition of what nexus is or what having it means....
CorpNet Awarded Inc. 5000 for 2024
CorpNet is proud to announce that it has made Inc.’s prestigious Inc. 5000 list in 2024 as one of the fastest-growing private companies in the country. This is the seventh year CorpNet has been honored. CorpNet's Inc. 5000 profile can be found at https://www.inc.com/profile/netcom. "Iit is a honor to have our company named on the Inc. 5000 list! The 2024 recognition secures our seventh year and I am beyond proud of the team behind this award. As CorpNet rapidily grows our entire staff has continued to provide excellence in service and support to our customets. It's that dedication to the...
When Do You Have Nexus in a State?
Every business that sells products and services beyond its home state or has a location in another state should understand the meaning of nexus. As a business owner, it is important that you know what nexus is, why it is important, and if you have nexus in other states. I recently presented a webinar on this topic for CPA Academy, and I want to share the information here as well. If you’re an accountant or tax advisor, knowing how to determine nexus in a state will help you when offering guidance to your clients. If you’re a business owner, having a grasp on nexus and its implications for...
Legal Requirements for Hiring Employees
Small businesses hire nearly half of all private sector employees in the United States, with about 61.6 million people working for more than 33 million businesses across the country, according to the U.S. Small Business Administration (SBA). If you’re a small business owner who has hired one or more employees, or you’re getting ready to add a new employee, you should be aware of some rules that apply to hiring and paying workers. Let me walk you through some important legal requirements to help you avoid mistakes when hiring employees. 1. Obtain an EIN Before hiring one or more...
Can I Use a Home Address for My LLC?
Using a home address to register an LLC or incorporate a business is something many entrepreneurs think about doing. That’s understandable because many new businesses start their journey in the entrepreneur's home or garage, which allows the business to avoid office rent, unnecessary utilities, and long commutes. This not only allows more time to focus on growth, but it can also help a company turn a profit faster as it ramps up. Does this lack of address impact the business negatively? Do you need a physical address for your business? Is it legal to use your home address for business...
What Is a Registered Agent?
Many business owners will ask themselves what is a registered agent and then question if they really need one. The answer to both questions is yes! A registered agent is a person or company with the authority to accept service of process (legal documents and government notices) on behalf of a business. When selecting a registered agent, the business must designate one who has a physical location within the state where the business is registered to operate. What Does a Registered Agent Do? A registered agent (also sometimes referred to as a resident agent or statutory agent) has an...
How to Legally Dissolve a Corporation or LLC
Just like life, running a business has its share of ups, downs, and surprises, which is why there are many different reasons why business owners may want to dissolve their LLC or Corporation. Dissolution, the act of formally dissolving (closing) a business entity with the state, involves far more than just ceasing to sell products and services. Dissolution is a process for wrapping up all legal and financial aspects of the business and legally terminating its existence in the state(s) where it is registered. Business owners and professional services providers who offer accounting, tax, or...
Creative Tax Deductions for Small Businesses
Paying taxes is a necessary task for small business owners, but there are ways to minimize the amount you must turn over to the government. While you’ve certainly heard of tax deductions, and hopefully are taking advantage of some, there are some lesser-known deductions you may not be aware of. Because many small business owners don’t take full advantage of the tax deductions they’re legally entitled to, I thought it would be a good idea to look at some creative deductions that apply to many small businesses. A Closer Look at Business Tax Deductions Small business owners who are busy...
Hiring Remote Employees in Another State
The number of employees working remotely increased dramatically in recent years, turning the traditional workplace model on its head. It’s estimated that by 2025, 22% of Americans will be fully remote. While many employees love the flexibility of working remotely, employers have discovered advantages in hiring remote workers, as well. Since those employees can work from anywhere, employers get the advantage of a bigger pool of potential workers. If employees work from different time zones, the workday can be extended for clients across the country. It also can save employers money on...
Legal Requirements for Hiring Out-of-State Employees
While hiring out-of-state employees can provide many benefits for your business, doing so presents some challenges you should consider before moving forward. Compliance laws vary, but every state has regulations pertaining to hiring, payroll, taxes, benefits, and other practices you’ll need to follow. If you plan to hire out-of-state employees, it’s a good idea to begin the process well ahead of time, as it requires preparation such as researching, communicating with state agencies, and preparing and filing applications. Registering for payroll tax in a different state can be particularly...
How to Keep Your LLC or Corporation in Good Standing
When you’re faced with the daily challenges of operating a business, details concerning compliance issues can easily be overlooked. You should be aware, however, that allowing that to happen can result in serious consequences. Once you’ve registered your Corporation, Limited Liability Company (LLC), or other business entity registered with the state, you’re responsible for complying with all applicable rules and regulations. Doing so is known as business compliance, or corporate compliance if your business is a corporation. Remaining in compliance enables you to run your business normally...
Setting Up Payroll for an LLC or Corporation
Payroll involves far more than just cutting a paycheck to employees. It entails calculating work hours, wages, salaries, benefits, wage garnishments, and withholding and paying employment-related taxes. So, what do business owners need to know about setting up payroll for an LLC or corporation? In today’s post, we’ll cover all of this and more. Seven Key Steps for Getting Started The account registrations needed, steps necessary, and forms required to set up and administer payroll are similar regardless of the business entity type. My recent article, What Is Payroll? offers detailed...
Nexus FAQs for Accountants and CPAs
As you work with business clients who sell their products and services over state lines, “nexus” is a little term with big implications. Recently, Milton Turcios, CorpNet’s VP of operations, hosted a Facebook Live event featuring Elisa Reyes, principal and CPA at the accounting firm HCVT, that addressed the topic of nexus. Below, we’ve assembled a list of helpful FAQs, inspired by the live event, to give you a go-to resource for answers to some of the questions you and your clients may have about nexus and how it affects a business’s tax responsibilities. For even more insight, I...
Noncommercial vs. Commercial Registered Agent
If you’ve been considering forming a business (or you’ve already started one), you’ve probably heard the term “registered agent” but may not be familiar with what it means. A registered agent is a designated party that a business has authorized to accept service of process (notice of lawsuits and other legal actions) and essential correspondence from the government on its behalf. Alternate names for a registered agent include statutory agent, resident agent, and agent for service of process. There are two types of registered agents: Commercial registered agent Noncommercial registered...
How Do I Legally Protect My Side Hustle?
With many people struggling to keep up with inflation and insufficient wage growth, side hustles are becoming increasingly common. In fact, MarketWatch, a website that provides business news, financial information, and stock market data, reported in May 2024 that 54% of Americans took on part-time jobs during the past year to supplement their primary incomes. A job on the side might help cover necessary expenses or provide some extra fun money, but there are some financial and legal implications you’ll need to consider if you’re thinking of getting started or already working in one. Legal...
What Is a Certificate of Authority?
The idea of a Certificate of Authority can be confusing, as the term has several different applications. The most common type of Certificate of Authority is a document that authorizes you to legally conduct business in a state other than where your company is based. Other types of Certificates of Authority are industry related and required for a specific purpose or to conduct business within a particular industry. In addition, I should note that while Certificate of Authority is a common name for this document, it varies from state to state. In California, for instance, the document is...
Dissolutions and Moving Your Business to a New State
If you’re planning to close your business—either close it altogether or close it in one state and move it to another—there’s a process you must follow. The exact requirements and process can vary depending on your entity type, state, location in the state, the types of products or services you provide, and other factors. In this article, I’ll break down the key considerations by business structure to give you an idea of what’s involved. For more information about the tasks you’ll need to address when winding up your business, talk with your attorney and accountant for guidance specific to...
What You Need to Know About Sole Proprietorships
Sole Proprietorships are the most popular business structure in the U.S., accounting for 76.2% of all businesses, according to the U.S. Census Bureau. Many entrepreneurs love Sole Proprietorships because they’re simple to start and compliance requirements are minimal. Business income and losses are reported on your personal tax return, meaning that tax requirements are fairly simple. And because you don’t have to file the business with your state, you can avoid registration fees. While there are many advantages to a Sole Proprietorship, there also are some significant risks you should...
The CPA’s Guide to Assisting Clients with Business Compliance Issues
As a CPA, you probably find that clients sometimes inquire about more than just their business’s taxes and finances. With a strong connection between their money and all other aspects of their companies, they may toss you questions about a variety of business compliance issues that aren’t in your normal area of focus. You need to exercise caution in responding because your insight shouldn’t take the place of proper legal counsel or human resources guidance. However, having a working knowledge of diverse compliance topics can help you aid your clients’ understanding of certain issues and...
What Is a Biennial Report?
Most states require Limited Liability Companies (LLCs) and Corporations to submit some form of ongoing business entity filing. While many states require these filings annually (i.e., annual reports), several require them biennially (every two years). A biennial report allows the Secretary of State office (or comparable government office) to keep up to date with a company’s vital information. States also require businesses to pay a fee when submitting their filing. Each state sets its own due dates for companies to file their biennial reports, so deadlines vary from state to state....
Should You File a BOI Report Amid the CTA’s Questionable Constitutionality?
You’ve likely heard buzz about the U.S. District Court for the Northern District of Alabama’s March 1, 2024, ruling that the Corporate Transparency Act (CTA) is unconstitutional because it oversteps Congress’s legislative authority. As a result, plaintiffs in the National Small Business United (NSBU) et al. v. Yellen case may pass (for now) on filing Beneficial Ownership Information (BOI) reports to the Financial Crimes Enforcement Network (FinCEN). My team at CorpNet has talked with many concerned and confused business owners. They want to know if this means they don’t have to file a BOI...
Starting a Business in Retirement
About 4.1 million Americans will turn 65 in 2024, signaling the start of what’s being called the “Peak 65” zone. By 2030, all baby boomers (people born between 1946 and 1964) will have turned 65, a common age for retiring. While many people view retirement as a goal to be achieved, not everyone is ready to stop working when they turn 65. Surveys show that many seniors are worried about having enough money saved to see them through retirement. A recent AARP survey revealed that 33% of respondents reported not having enough money saved for retirement, while another 31% are not sure if...
Help Clients Choose What Is the Best Business Structure Without Fear of Unauthorized Practice of Law
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...
Do I Need a DBA If I Use My Own Name?
A Doing Business As (DBA) name—sometimes called a fictitious business name, assumed name, or trade name—is necessary when conducting business under a name other than a company’s legal name. DBA laws help protect consumers by ensuring the public has a way of knowing who the individual or company behind a fictitious name is. You might wonder…if you use your own personal name as your business name, do you need to register it as a DBA name? The short answer is: If the business owner’s name is considered the legal name of the company, then a DBA is not required. But when is that the case?...
Can Your LLC Have the Same Name as One in a Different State?
You probably know that your Limited Liability Company (LLC) can’t have the same name as another business in your state, but what about a business in a different state? That’s a question you’ll need to think about if you’re considering expanding your LLC into other states. An LLC is required to be registered in every state in which it conducts business, meaning you’ll need to perform a name availability search in each one. Remember that rules regarding business names vary from state to state, so it’s important to check with the Office of the Secretary of State or comparable agency’s...
Tax Registration: What Your Business Needs to Know
Whether you’re a business accountant serving entrepreneurs or you’re a business owner, it’s critical to understand sales and employment tax registration and ongoing requirements. Federal payroll taxes are the same no matter where a business is located, but state employment taxes and sales taxes differ according to tax rates in the various states. I presented a webinar for CPA Academy on this topic, and this blog article will cover what I discussed. So, get ready for a lot of helpful info about various types of employment taxes, payroll tax registration and processing, sales and use tax,...
