The Launch Blog: Expert Advice from the CorpNet Team
How to Start a Business in Wisconsin
If you're considering starting a new business in Wisconsin, there are a lot of reasons why this is a great option. Wisconsin offers a robust business ecosystem with a skilled workforce, business-friendly policies, and a central location in the U.S. It provides a high quality of life, support from local organizations, access to research and innovation, and proximity to major markets. The state’s industry clusters, access to capital, and economic development incentives make it an attractive choice for entrepreneurs. Start-up businesses are core to my heart and our services here at CorpNet....
A Guide to Small Business Taxes
No matter the type of business you operate, taxes are among the expenses you must anticipate and budget for. While not the most pleasant aspect of running a company, business taxes require an entrepreneur’s attention and follow-through because penalties exist for not reporting and paying them on time. Here’s a look at some federal, state, and local taxes small business owners should understand and prepare for. Federal Business Taxes Federal Income Tax Businesses must pay income tax on their taxable earnings. The income tax rate depends on how the business is structured. At the time of...
How to Appoint a Registered Agent
Appointing a registered agent for your business entity isn’t terribly difficult, but it does require a little effort on your part. Whether you’re starting a brand new business and need to designate a registered agent for the first time or you want to change your existing registered agent services provider, it’s important to do it right. Here are the five steps to guide you through the process. 1. Compare and Choose a Registered Agent While some states allow individuals or business owners to serve as registered agents, that’s often not the wisest path. States have minimum requirements for...
What Is an Agent for Service of Process?
An agent for service of process is an individual or business that accepts important legal and government notices on behalf of an LLC or Corporation. More commonly known as a registered agent, designating an agent for service of process is a requirement for LLCs, Corporations, and some other registered business entities. A state will require a registered business entity to have a registered agent if the business is located in (or is foreign-qualified to operate in) the state. If a Corporation or LLC is located in one state and conducts business in others, it must have a registered agent in...
What Is Form 1023?
Filing formation paperwork with the state is just one step required to start a 501(c)(3) tax-exempt nonprofit organization. Federal income tax exempt status isn’t automatic. A nonprofit must file Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, with the IRS to request federal income tax exemption. The form is quite long and involved, so it can be helpful to talk with an accounting professional for guidance as you prepare to complete it. The obvious benefit of 501(c)(3) status is being exempt from paying federal income tax. Also,...
How to Start a Freelance Business
Starting a freelance business can put you on a path that leads to autonomy, creative freedom, and the opportunity to shape your professional destiny. Freelancing is not much different than building a small business, however, as a freelancer you work for yourself and you are considered self-employed. While your primary role is to work part-time for clients via projects or ongoing retainers, just like any other business, building a brand as a freelancer is also important. Of course, building a freelance business has additional challenges. It requires meticulous planning, strategic...
What Taxpayers Need to Know About the IRS’s Extended Tax Deadline
Due to the severe winter weather conditions that impacted much of California and parts of Alabama and Georgia, the tax deadline for 2022 individuals and businesses, the Internal Revenue Service (IRS) extended its tax deadlines to October 16, 2023. Some parts of Georgia were additionally affected by Hurricane Idalia—see below for updated tax filing information if you live in the impacted areas. In addition, October 16 is the final deadline for this year for those taxpayers who filed for regular tax extensions last April. That day is fast approaching, and with no additional extensions...
What Is a DUNS Number and How Do You Get One?
A Dun & Bradstreet (D&B) D-U-N-S® Number is a unique nine-digit number assigned to a company to help potential lenders, partners, and suppliers assess the business’s stability, creditworthiness, and other qualities. Having a DUNS Number can help a company build a business credit history and demonstrate its credibility. A company’s DUNS number identifies it as unique from any other company in the Dun & Bradstreet Data Universal Numbering System database. DUNS Numbers are assigned through D&B’s proprietary verification process for confirming a company’s information. D&B...
Can You Get a Startup Loan for Your Small Business?
Starting a small business is exciting, but that alone is not enough. Achieving your goals will often require a long list of needs with money being at the top of that list. While most startups are self-funded, many entrepreneurs want and need a small business loan. Obtaining a startup loan makes it easier to turn your business ideas into viable companies. They provide a solid financial foundation to build a business and make it easier to weather the initial challenges and uncertainties of a startup. Startup loans provide new small businesses with: Cash infusion - Having more available...
What Is FICA?
Business owners who hire employees must withhold, deposit, report, and pay Social Security and Medicare taxes per the Federal Insurance Contributions Act (FICA). FICA taxes are applied to all of an employee’s taxable compensation, which includes salary, wages, commissions, bonuses, and certain fringe benefits. Eventually, an employee’s pay remitted to FICA (and the monies paid by their employer) will benefit the employee in the future. Social Security tax provides financial benefits to retired individuals, disabled Americans, and survivors of deceased citizens. Medicare tax funds the...
Fall Tips To Help Your Business Have A Strong End-Of-Year Finish
Although most of the year has already passed and we’re now into the autumn season, don’t panic if your business has fallen a little bit behind on its goals. It’s not too late to make changes that can help lead to a strong finish in 2023. Whether you’ve just started your business or have been running yours for years, the key is to take action sooner rather than later—and to focus on efforts that will improve your bottom line now and into 2024. Nurture Customer Relationships If you’ve fallen out of touch with some customers, now’s the time to reconnect. Just be careful to do so with their...
How to Sell Your Business Idea to Investors
Whether you’re in the early stages of a startup or looking to scale your existing business, the one hurdle many small business owners face is obtaining funding. While entrepreneurs in some industries may have an easier time, typically, it is challenging to sell your business idea to investors. Convincing someone to invest in your business is not just about showing potential profitability. There’s a whole process involved. You have to sell your vision, team, and ability to execute. Here’s a step-by-step guide for small business owners interested in selling their business ideas to...
How Do I Maintain a Business?
After a business is up and running, it's critical to maintain it by fulfilling all of the required business compliance tasks on time. Of course, businesses grow and evolve over time, and therefore, the actions they must take to maintain a business entity also may change. Fortunately, CorpNet is here to help you learn how to manage your business effectively every step of the way. What are some of the business considerations entrepreneurs should keep in mind? Below, I’ve listed several situations where changes in a business will involve business compliance filings. 1. Hiring employees...
What is a Registered Office?
You'll likely encounter some unfamiliar terms when forming and managing your business. One phrase is a registered office, which refers to the physical address where a company receives service of process, which are legal documents and government notices that need immediate attention. Compliance can be confusing, so let's review what a registered office is and why you may need one. Common Law vs. Statutory Entities One of the first things you need to do when starting a new business is to decide on a business structure. There are two different types of business structures that would pertain...
Can an LLC Owner File for Unemployment?
Can an LLC owner file for unemployment? The quick answer is yes, but not in every situation. There are advantages to owning a Limited Liability Company (LLC), with tax flexibility, serving as one of the major benefits. How you elect to structure your LLC for tax purposes is what makes the difference in being able to file for unemployment. What is the Unemployment Insurance? Payroll taxes are incurred at the state and federal level. Employers must register for the appropriate tax accounts to hire employees, to process payroll, and to file returns. Unemployment Insurance Tax (UI) is a...
A Guide for Starting a Business in Maryland
Maryland’s strategic location on the east coast of the U.S. is within easy reach of major metropolitan cities like Washington, D.C., Baltimore, Philadelphia, and New York City. This proximity can give your business access to a large customer base and supply chain networks. In addition, Maryland is home to several top-notch universities, research institutions, and a highly educated workforce. You can tap into this talent pool to find skilled employees in various fields, from technology and healthcare to finance and biotechnology. Today's post is a thirteen step guide to starting a new...
How to Withdraw Money From an LLC
How does a Limited Liability Company (LLC) owner withdraw money from their business? Whether these funds are for personal use or it is considered compensation from the LLC, how they may do that depends on three things: Whether the Limited Liability Company is a single-member LLC or multi-member LLC How the LLC is treated for tax purposes Whether the LLC member actively works in the business As with all other legal and tax aspects of operating a business entity, it’s important to withdraw money from an LLC correctly. Getting guidance from an accounting professional will help ensure you...
Checklist for Launching a New Business in Indiana
Launching a new business in Indiana can be a smart move due to the state’s favorable business environment. Characterized by relatively low corporate taxes, reasonable regulatory requirements, and a comparatively affordable cost of living, Indiana’s central location gives it easy access to a broad customer base. The state also boasts a skilled and diverse workforce supported by renowned universities and vocational institutions, providing a talent pipeline for various industries. Below is a checklist of what you need to know to start your Indiana business. 1. Fine-Tune Your Business Idea...
What Is IRS Form 2553?
IRS Form 2553 (Election by a Small Business Corporation) is the form that a corporation (or other entity eligible to be treated as a corporation) files to be treated as an S corporation for federal tax purposes. The IRS has specific criteria that entities must meet to qualify for the S Corporation election. Here’s an overview of their requirements: Must be a domestic corporation or a domestic entity eligible to elect to be treated as a corporation Must timely file Form 2553 Must have no more than 100 shareholders (or LLC members). Shareholders are individuals, estates, exempt...
A Guide for Starting a Business in Colorado
Colorado’s economy is just as varied and unique as its people and landscape. Tourists flock from around the world to experience Colorado’s scenery, recreational adventures, and cultural activities. In addition, Colorado has a long successful history of ranching, farming, and mining. Today, Colorado’s Front Range, which stretches from Fort Collins to Pueblo, is a hub of financial services and home to one of the nation’s busiest airports. Energetic communities of entrepreneurs collaborate with top-notch educational institutions to fuel cutting-edge industries like aerospace, biochemistry,...
What Is an Executor of an LLC?
An LLC executor is a designated person or business entity that an LLC’s members appoint to handle certain legal and tax-related aspects of their business at various stages of its existence. An executor might assist LLC members through the business formation process, helping to complete and file the required paperwork with the Secretary of State office and other agencies. LLC members might also rely on the executor to prepare and file business compliance filings necessary to keep the LLC In good standing with the state. After a member dies or LLC members decide to close their company, an...
Why Small Businesses Fail
Owning a small business is the American dream. But sometimes, despite all the hard work, that dream turns into a nightmare and businesses don’t make it. Understanding why small businesses fail can be as crucial as knowing the secrets of those that succeed. Being aware of the signs of business failure can help you spot when you need to take immediate action to keep your business going. Here’s what to avoid. 1. Lack of Experience The challenge: Many new entrepreneurs have no prior business experience or are unfamiliar with the industry of their startup. They may not understand the basics of...
Back to School, Back to Your Business
With autumn approaching, many entrepreneurs and other professionals with school-age children face a double dose of challenges. Back to school brings break-neck fall schedules packed with events and extracurricular activities that demand parents’ time. And as kids adjust to the new norm, adults must play catch up professionally as they take stock of the business responsibilities they may have put on the back burner during the summer. Below are some tips to help you and your family survive and thrive while working through the transition. Back to Business 1. Time to Focus If you’re an...
What Is a Certificate of Formation?
If you’re considering starting a business as a Limited Liability Company (LLC), you’ll want to become familiar with the term “Certificate of Formation.” Sometimes called Articles of Organization or Certificate of Organization, a Certificate of Formation is the legal document LLC owners (members) must file with the state to form their business entity. By filing a Certificate of Formation, LLC members provide the state with the information it needs for deciding to approve or disapprove a company as a registered entity. Each state has its own requirements for forming an LLC, and the...
Should I Be My Own Registered Agent?
The owner of a Limited Liability Company (LLC) or Corporation might consider being their own registered agent since it eliminates the cost of contracting another party to accept service of process and other official notifications on the business’s behalf. However, while legally you may be allowed to be your own registered agent, it’s likely not the best option. Why? Let’s talk about a registered agent’s responsibilities and the valid reasons for entrusting those duties to a commercial registered agent rather than taking them on yourself. What Does a Registered Agent Do? A registered agent...
Registered Agent Options for Non-Citizens
If you’re a foreign entrepreneur wishing to start a business in the United States, I expect you may have many questions about the process. Non-citizens can own a U.S-based Limited Liability Company (LLC) or C Corporation, and like U.S. residents, non-resident business owners must comply with federal, state, and local rules and regulations to legally form and operate a business entity. Among those requirements is designating a registered agent in the state where the foreign owner registers their company and other states where it will conduct business. What Does a Registered Agent Do? A...
What is a Corporate Resolution?
A corporate resolution is a formal record of a corporation's board of directors' decisions and actions on behalf of the company. States require incorporated companies to use corporate resolutions for recording major business decisions. The company's board of directors must vote to approve resolutions either during board meetings or in writing.
A Guide for Starting a Business in Michigan
If you’ve been thinking about starting a business in Michigan, you're in good company. With plentiful resources, incentives, and loans, Michigan is home to 902,000 small businesses that represent 48.3 % of the state's workers. Michigan offers one of the best pro-business environments in the country and provides businesses with the support they need for expansion and growth. Bloomberg ranks Michigan first in state economies with a population over 2 million and CNBC ranks the state in the top ten for the overall business. We'd like to help you get started with your Michigan small business,...
What is a BOC-3 Process Agent?
The BOC-3 federal filing designates process agents to accept legal documents on behalf of transportation companies. The process agent company must list the process agents in all other states where the company conducts business.
Time is Running Out on $1 LLC and DBA Filing in Colorado
Since July 1, 2022, the filing fees required to be paid for the registration of new businesses within Colorado have been reduced to $1. This savings includes the formation of a Limited Liability Company (LLC) and initial tradename registrations (DBAs). Colorado Business Fee Relief Act from July 1, 2022 provides for the waiver of such fees until June 30, 2023. Now is the time to take advantage of these savings! The waiver will end at 12:00 PST on June 30, 2023. That just leaves a few hours left to take advantage of this business formation discount.Grab Your SavingsHow Does This Affect...
