The Launch Blog: Expert Advice from the CorpNet Team
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,...
Can a CPA Set Up an LLC for a Client?
As a seasoned accounting professional, you have earned your clients’ trust and respect. Because your business clients know they can count on you to handle their accounting and tax matters, they may wonder about other ways you can assist them. For instance, someone might ask if you can help them set up an LLC or handle other business filings. Fortunately, that’s a perfectly feasible request for CPAs to fulfill. No legal requirement exists for business owners to ask an attorney to file their business formation or compliance documents. If entrepreneurs don’t feel confident about preparing...
How to Find a Registered Agent for Your LLC
If you have a Limited Liability Company (LLC) or other business that’s registered with the state, you must have a registered agent designated to receive legal correspondence and other documents on its behalf. If your LLC operates in more than one state, you’ll need a registered agent in every state where you’re registered to conduct business. In this article, you’ll learn how to find a registered agent you can trust to accept and process important legal documents quickly and accurately. It’s important to have a registered agent you can rely on, as mishandling summonses, subpoenas, tax...
The Best States to Form an LLC for Privacy
For various reasons, people sometimes want to form a business while keeping their identities private. That can be accomplished by registering an anonymous LLC, sometimes called a private or confidential LLC. States that allow these types of LLCs do not publicly identify the names, addresses, or contact information for members, allowing them to shield their identities. An entrepreneur may want an anonymous LLC to hide a business from an employer who doesn’t know the employee is planning on leaving their position, or so as not to disclose the purchase of real estate. Some people simply...
Partner Program Marketing Resources to Help You Build a New Revenue Stream
The CorpNet Partner Program allows CPAs, accountants, bookkeepers, and other financial and tax professionals to create an additional revenue stream for their businesses while building trust and loyalty with their clients. By enabling you to resell CorpNet business formation and compliance services — or get a commission when you refer clients to CorpNet — you can augment your income and maintain a steadier bottom line when the crazy-busy tax season has passed. As a Reseller, you collect the necessary information from your clients, and CorpNet prepares their forms and submits them behind...
Single Member LLC vs. Multiple Member LLC
Although the primary difference between a single-member LLC (SLLC) and a multi-member LLC may be obvious (the first has one owner and the second has two or more), these variations of the Limited Liability Company business structure have other nuances to consider. They share many characteristics, but there’s more than just the difference in the number of owners to ponder when deciding whether one or the other might be a good fit for your business. Choosing between a single-member LLC vs. a multi-member LLC or other business entity type involves thinking about ownership, personal asset...
The Benefits of Incorporating a Business
If you’re getting ready to launch a company or are already up and running as a Sole Proprietorship, you might be thinking about formally incorporating the business. Forming a Corporation might sound daunting, and it does require some actionable steps to get it registered and in compliance with the state, but the benefits of incorporating far outweigh any effort involved. In this article, we’ll explore those benefits and I’ll outline the basic steps of getting registered as a Corporation. But first, let’s review exactly what it means to incorporate a business. You can technically operate a...
Four Common Types of Corporations
Incorporating a business provides many benefits for companies of all types and sizes. The process requires filing paperwork and paying a fee to have the state recognize the business as an official entity. Before deciding on a specific type of Corporation, you should think through several considerations that include: Where business will be conducted Wanting to have limited personal liability for business activities Whether the business will have a partner or an investor The company’s expected earnings and deductions Desire to minimize self-employment tax obligation Business goals Tolerance...
How to Start a Business in Georgia
In 2024, personal finance company WalletHub ranked Georgia as the second-best state in the country for business formation. Reasons include one of the highest rates of entrepreneurship, a prevalence of interconnected businesses, exceptional growth potential, and a low corporate tax rate. If you’re thinking about starting a business in Georgia, there are some factors specific to that state that you’ll need to consider. In this article, I’ll walk you through everything you need to know to get your business up and running. 1. Fine-tune Your Business Idea Before you start filing paperwork and...
What to Look for in an Accounting Partner Program
Whew! You made it through the crazy-busy tax season, and I hope you and your fellow accounting professionals are enjoying some much-deserved time to relax. With the lion’s share of your firm’s revenue secured in the first four months of the year, you may now be considering ways to augment your services and keep cash flowing. Enrolling in a partner program may be an ideal answer! A partner program provides an opportunity to create additional revenue streams for accounting and CPA professionals. So, after high tax season has passed, accountants can continue to earn income steadily all year...
Member Managed vs Manager Managed LLC
Of the more than 30 million small businesses in the United States, 35% are Limited Liability Companies (LLCs), according to the Small Business Administration. LLCs are a popular business entity for a number of reasons. They’re relatively easy to get up and running and normally not overly difficult to maintain in terms of licensing, filing annual reports, and performing other tasks necessary to remain in compliance. They provide flexibility in how the business is taxed and shield members from personal liability. Also, LLC members are able to decide how the company will be managed. An LLC...
Is State Unemployment Insurance Required?
At any time, a percentage of the labor force is unemployed for various reasons. According to the United States Department of Labor, 6.4 million (3.8%) people across the U.S. were unemployed in March 2024. State unemployment insurance is a critical support program that helps individuals who lose their jobs through no fault of their own, providing a source of income while they search for another position. Since 2007, there have typically been two to five million active UI claims on any given day, according to data from the Bureau of Labor Statistics. During the pandemic, claims rose to...
What Is a Statutory Agent?
A statutory agent, more commonly known as a registered agent, agent for service of process, or a resident agent. It is an individual or entity appointed by a Limited Liability Company, S Corporation, C Corporation, or other legal business entity to accept legal documents, government correspondence, and compliance paperwork on its behalf. Statutory agents are critical for keeping statutory (state-registered) business entities in compliance with a state’s laws, which is why states require business entities to designate one. This is done when completing their registration forms to conduct...
How to Find Your First 10 Accounting Clients
Searching for the first clients for your startup accounting business might seem like finding a needle in a haystack (or, for you Harry Potter fans, like finding a Horcrux in the Room of Requirement). In reality, however, it can actually be pretty simple, thanks to powerful apps and social media marketing. Or, you might have better luck finding your first ten accounting clients the old-fashioned way, via face-to-face interaction. Better still, why not combine both types of marketing to find those first customers? If you're looking to start or grow your accounting firm, I'd like to share...
