The Launch Blog: Expert Advice from the CorpNet Team
Options for Paying Small Business Taxes
While paying taxes is a certainty for small business owners, there are some options for how you might pay them. The simplest strategy for paying your small business taxes is to make sure money is available when your tax bill comes due. If that is not possible for some reason, you can register for an IRS payment plan that allows you to pay your balance over a specified amount of time, use a credit card to pay your bill, apply for a bank loan, or apply for a business line of credit. Let’s have a look at each of these options. Option 1: Plan Ahead to Pay Your Taxes The taxes you’ll pay are...
CorpNet Awarded Inc. Pacific Regionals for 2024
CorpNet is proud to announce that it has made Inc.’s prestigious Inc. Regionals Pacific list in 2024 as one of the fastest-growing private companies in the country. This is the third year CorpNet has been honored in the regional awards. With a healthy 259% 2-year growth, CorpNet made a significant move from position 75 to 56. CorpNet's Inc. profile can be found at https://www.inc.com/profile/netcom. “I am beyond proud of the continued growth our company has achieved in the last year and our ability to secure a spot on the coveted Inc.5000 Pacific Regionals list in 2024. Our team continues...
Tax Season Survival Kit for Accountants
No matter what your industry, you know when your busy season is about to start. For accountants, it’s tax season, where you can generate half your annual revenue or more for your accounting during these busy months. But how do you handle the extra workload during tax season without losing your sanity? Our tax season survival kit for accountants can help. 1. Create a Game Plan You can’t go into any battle without a plan if you hope to win. The same goes for tackling tax season. Meet it head-on by developing a plan to guarantee the best outcome for success. The more preparation you put into...
The S Corp Election Deadline is Right Around the Corner
The S Corporation election deadline for LLCs and C Corporations is March 15, 2024. So, if you’re considering changing your limited liability company or C Corporation tax treatment from its default status to an S Corp, time is of the essence! To be considered an S Corporation for tax purposes in 2024, existing LLCs and C Corporations must file their election within two months and 15 days (within 75 days total) after the start of their 2024 tax year. For example, a company with a tax year that began on January 1, 2024, must file IRS form 2553 no later than March 15, 2024. Entrepreneurs who...
Do I Need a New EIN?
If you already have an Employer Identification Number (EIN) for your business but have recently made some changes, you may be wondering if you need a new EIN. Because EINs are used for reporting certain taxes (such as payroll and excise taxes), it’s essential to follow the IRS’s rules for obtaining and using them. Depending on the type of business entity and the circumstances, the IRS may require your business to get a new EIN. Generally, the following situations call for an entity with an existing EIN to apply for a new one: Owners of an existing registered business entity start another...
How to Become a Successful Solopreneur
If you find joy in working on your own, managing day-to-day operations while scheming grand plans for the future, you may have what it takes to become a successful solopreneur. While there have always been solopreneurs, the concept of a person forming and growing a business on their own has become more widely recognized in recent years, emerging as a legitimate and popular way to work. Let’s take a little time to explore the solopreneur business model, starting with a look at exactly what it means to be a solopreneur. What Is a Solopreneur? A solopreneur, as you’ve probably figured out,...
4 Must-Have LLC Documents
If you’re considering forming a Limited Liability Company (LLC), you’re likely drawn to the business structure because it provides personal liability protection for the business owner, the simplicity of pass-through tax status, and ease of administration thanks to minimal ongoing compliance responsibilities. These advantages and others have made the LLC a top choice for entrepreneurs everywhere. While it’s relatively uncomplicated to start a business as a Limited Liability Company, there are several important documents you must pay attention to when registering an LLC. 1. Articles of...
Should a Single-Member LLC Have an Operating Agreement?
If you’re the owner of a single-member LLC, you may be wondering if you need an operating agreement for your business. It’s a valid question. You may assume that since you are the sole owner you probably don't need an agreement. After all, you are in complete control of the business. But this assumption is incorrect. While you might be tempted to forego an LLC operating agreement, I encourage you to consider otherwise because there are some significant advantages to having one. An LLC operating agreement may be a new term for you, so I want to explain a few details about LLC operating...
LLC vs. S Corp vs. C Corp
Yes, operating a business as a sole proprietor or general partnership offers simplicity, but that comes at the cost of not having a separation between you as an individual and your company. Are there other options? There are alternate options that include popular entity types like the Limited Liability Company, C Corporation, and S Corporation. For entrepreneurs who want to protect their personal assets and have tax flexibility, registering as a legal business entity, such as an LLC, oS Corpo, or C Corp, is well worth exploring. Continue reading because I’m going to break down the basics...
Is a Multi-Member LLC Right For You?
The multi-member LLC is a Limited Liability Company with more than one owner. It is a separate legal entity from its owners, but not a separate tax entity. A business with multiple owners operates as a general partnership, by default, unless registered with the state as an LLC or corporation. Would it make sense for you to form your business as a multiple-member LLC? To arrive at that answer, you need to consider how choosing that business entity type will impact you legally, administratively, operationally, and from a tax perspective. I encourage you to speak with an attorney and...
Do You Need Annual Meeting Minutes for Corporations and LLCs?
What business owners should know about annual meeting minutes for corporations. What are they, who must have them, and how do you create them?
10 Legal Documents You Must Have to Start a Small Business
If starting a new business is on your 2022 New Year’s resolution list, we’re here to help you begin on the right (and legal) path. Here are 10 must-have legal documents you need to start a new business. 1. Business Plan Technically, a business plan is not a “legal” document, nor is it required to start a business, but developing a business plan before you attempt to secure financing, look for office space, or even pick a business name, is highly recommended. Creating your plan at the beginning forces you to assess your goals and resources, strategize a road map for success, and determine...
Business Name Restrictions: What to Know Before Registering Your Business
One of the most exciting initial tasks to tackle when starting a business is brainstorming names for your company. It’s also one of the most critical to-dos; your company’s name will be the foundation of your brand, so you need to consider it carefully. As you embark upon the process of deciding what you will call your company, there are some business name restrictions you should be aware of. Every state has its own set of rules regarding what is and is not allowed in business names. Most states will not allow a business to: Include business entity identifiers such as “Incorporated,”...
How to Start a Small Business on Etsy
Etsy has given artists, crafters, and collectors a highly visible online marketplace for selling their own-made arts and crafts, vintage items, and crafting supplies. Are you a talented, hands-on individual with a vision of offering your creations to customers across the United States or even beyond? Then you have probably wondered how to start a small business on Etsy. I can understand why! Here are just a few data points that I find exciting: The number of active buyers on Etsy has increased steadily over the years, going from 9.3 million in 2012 to over 46.3 million in 2019. The number...
How to Legally Start a Marijuana Business in California
With the legalization of marijuana for adult recreational use in California, it’s an exciting time for the state’s business community. The law brings many opportunities for entrepreneurs interested in producing and selling cannabis and cannabis products. CorpNet is working with aspiring cannabis business owners in California. We’ve found many are struggling to “weed” through what they need to do to legitimately start their companies. And I’m not surprised. There’s a lot of information out there, and much of it is confusing! Are you facing the same challenge in starting a marijuana...
How to Start a Restaurant Business
Are you thinking about how to start a restaurant business? Without a doubt, it's an industry that contributes immensely to our economy. According to statistics from the National Restaurant Association, there are over one million restaurant locations in the United States, and they collectively employ 15.6 million people. What I think is especially encouraging about the restaurant industry is that it has a track record of opening the door to entrepreneurship to people with humble beginnings who are willing to work hard and learn. Many people who start a restaurant begin by working in the...
Does an LLC Get a 1099?
Many freelance professionals and independent contractors operate as Limited Liability Companies (LLCs). The requirements for when a business should send a 1099 form to an LLC vary, as does the 1099 form to send. Generally speaking, this is when LLCs should or should not receive a 1099: When a single-member LLC is taxed as a Sole Proprietorship or a multi-member LLC is taxed as a Partnership, any business that pays the LLC $600 or more for services in the year must send it a 1099-NEC (Nonemployee Compensation) form. If a business has sold $5,000 or more of consumer products to an LLC for...
The Alabama Business Start Up Guide
With a relatively low tax burden and low cost of labor, Alabama is the 14th fastest-growing state in the United States. It's becoming the sweetheart state for business start-ups. If you’ve been thinking about forming a business in Alabama, here is a comprehensive look at the many things business owners should know and address to get their new Alabama businesses up and running. 1. Fine-tune Your Business Idea Before spending time and money starting a business in Alabama, entrepreneurs should do their due diligence to ensure their business concept has the potential to succeed. A feasibility...
How to Legally Franchise a Business
If you've considered how to grow your business by leaps and bounds without starting and running dozens or hundreds of locations yourself, you may have wondered how to franchise a business. In this article, you'll learn more about what franchising means, how to determine if franchising makes sense for your business, and what's involved in franchising a business.
What is a C Corporation?
A C Corporation is a legal structure for a company that is authorized by the state to conduct business. Its owners, who are referred to as shareholders, are taxed separately from the business, and in most cases cannot be held personally responsible for business debt and legal issues. A C Corporation can have an unlimited number of owners, but not every C Corporation is a large company. Many small businesses incorporate and operate as C Corporations, which are known as general, for-profit corporations. If you hear someone talking about a corporation, they’re most likely referring to a C...
What Is a Publication Requirement?
Some states require business owners to publish a notice in a local newspaper after they form or make certain changes to their business entities. States’ publishing requirements help inform the public about new business entities and significant changes to existing entities. If you’re considering starting a business you’ll want to make sure you abide by your state’s publication requirement laws. States with business entity publication requirements include: Arizona (LLCs, Corporations) Georgia (Corporations) Nebraska (LLCs, Corporations) New York (LLCs) Pennsylvania (Corporations) Several...
The Advantages and Disadvantages of a Subchapter S Corporation
Before the advent of the S Corporation in 1958, entrepreneurs had two options for forming a business entity. To help encourage small businesses in America, Congress and President Eisenhower created the Subchapter S Corporation. In this post, I’m going to run through some of the S Corporation pros and cons to consider.
Breaking Down Paycheck Withholdings and Deductions for Employees
Ready to hire? Becoming an employer is a big responsibility. One of your primary tasks is to pay and withhold the correct employment taxes, and you’re accountable for explaining that process to your employees. Here’s what you need to know about breaking down paycheck withholdings and deductions for your employees.
How Many LLCs Can You Have?
As an eager and enterprising entrepreneur, you may set your sights on multiple business ventures and wonder if one person can own multiple LLCs. Fortunately, no federal or state limits exist on the number of LLCs someone can own. However, aspiring business owners should know that other factors could prevent them from having ownership interest in multiple LLCs.
Eleven Disadvantages of Choosing a Sole Proprietorship
A Sole Proprietorship is the most popular business structure in the U.S., with nearly three out of four businesses operating as one. But if you’re running a Sole Proprietorship or thinking about starting a business that will operate as one, it’s important that you’re aware of some significant disadvantages to this business model. Let’s start by reviewing the basics of Sole Proprietorships, and then I’ll outline 11 disadvantages that might make you reconsider choosing that entity type for your company. How a Sole Proprietorship Operates A Sole Proprietorship is a simple business structure...
Payroll Taxes 101
Whether you’re a Sole Proprietor with only a handful of workers or a corporation with hundreds of employees, you are responsible for collecting and paying employment taxes to federal and state tax agencies. However, while federal payroll taxes are the same no matter where your business is located, state and local payroll taxes differ according to the jurisdiction’s laws and tax codes. Payroll taxes can be confusing and overwhelming to new business owners. In today’s article, I’ll break down the types of payroll taxes to help you understand what they are and what you need to consider....
S Corporation Election Considerations for Corporations and LLCs
Have you been thinking about whether your business might benefit from being an S Corporation? I presented a webinar for accounting professionals about the S Corporation election not too long ago. Within that presentation, I covered information of value to entrepreneurs in all fields. In this article, I will share that insight with you in hopes that it will help you gain a deeper understanding of what it means to be an S Corporation. What Is an S Corporation? The S Corporation is not a business structure in itself. Rather, it is a special federal income tax election option for eligible...
As a Business Owner, Can I Have Multiple LLCs?
Once entrepreneurs taste what it's like to be their own boss and carve their own career path, some decide to pursue starting multiple businesses. Depending on the situation, owning multiple Limited Liability Companies (LLCs) might make sense. Which leads to the question, how many LLCs can someone have? The short answer is there are no particular limits on how many LLCs someone may form, provided they meet all of the eligibility criteria to be an LLC member and comply with all of the federal, state, and local government rules and regulations for operating an LLC. In this article, I’m going...
How to Proactively Manage Small Business Compliance
Besides going through all the proper steps to set up a business, understanding and following through with ongoing compliance requirements is immensely important. I regularly address small business compliance considerations in my writings on the CorpNet blog and webinars that I present to accounting and tax professionals. Compliance is mission-critical to entrepreneurial success, so in today's post, I am sharing a comprehensive list of many of the requirements business owners should be aware of. Realize that business compliance requirements vary depending on where a company is located, the...
Tax Saving Features of Corporations, S Corporations, and LLCs
I regularly speak to business owners about entity types and their potential impact from a tax perspective. A while back, I created a webinar for accountants (and other professional services providers that work with businesses) on the topic of business structures and taxes. It is focused on the possible tax advantages and disadvantages of C Corporations, S Corporations, and Limited Liability Companies (LLCs). In this article, I’ll break down the important considerations that I discussed in that presentation. Benefits of Incorporating If you’re operating your business as a sole...
