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Small Business Insights: Filing an Initial Report

Posted on February 20th, 2012 by Joey Donovan Guido

Category: Entrepreneur, How To Information, LLC, S-Corp, Small Business, Start A Business

Small-Business-Initial-Report There’s a good chance you’ve never heard of an Initial Report filing. Although it’s very similar to a small business Annual Report, it is by far the lesser known of the two.

One of the main reasons for this is that it’s required by less than a dozen states (at the time of writing this article). Another reason is that it’s due rather quickly after a small business owner forms an LLC or S corp — typically between 30-120 days — depending on the state. This doesn’t leave a small business owner with a lot of time to get a handle on all there is to know about their newly formed business.

If you haven’t heard of an Initial Report, fret not. The following article will provide you with a good understanding of what it is, and whether or not you need to file one …

What States Currently Require an Initial Report Filing?

Ten states currently require that an LLC, S corp or C corp submit an Initial Report filing:

Alabama
Alaska
California
Connecticut
Georgia
Missouri
Nevada
New Mexico
Oklahoma
Washington

What Needs to be Included in the Initial Report Filing?

Typically, the report must include the following information:

Your current business address. If this changes, don’t worry. You can update your address in your Annual Report.
The name and address of your current Registered Agent. If you haven’t designated a Registered Agent, there’s a good chance it’s you. It’s a good idea to gain a clear understanding on what a Registered Agent is, so you can determine whether or not you want to delegate this responsibility to a company (like BizFilings) who is adept at handling this requirement.
Name all of your current officers, directors and members. Since the Initial Report filing is due so early in the existence of your small business, you man not have all of these players in place before you have to file. Again, no problem. Simply update this info when you submit your Annual Report.
You’ll also have to clearly state your business activity.

Each state is different. We strongly advise that you check with your home state, as well as any states in which you have a Foreign Qualification (additional U.S. states where you conduct business), to ensure that you include all required information and fees in your submission.

Speaking of Fees, What Does it Cost?

Generally speaking, Initial Report filing fees range from $30 to over $100, depending on the state. This will also be true with your Annual Report and your County Filing (if either, or both, is required).

What Happens if you Fail to Submit an Initial Report?

If you fail to file your Initial Report, your small business could fall into what is commonly known as “bad standing.” If this happens, your small business could incur additional state fees. You could also face a revoked business status, or the state could choose to dissolve your business — taking away the benefits of your company formation — including limited liability protection.

I’m sure you’ve noticed that many of the details mentioned are contingent on each particular states requirements. Something else to keep in mind is that there may be different contingencies in place depending on which type of business formation you’ve chosen. If you formed a for-profit corporation (S corp, C corp) or an LLC, these ten states may require that you file an Initial Report. If you’re a nonprofit company, you won’t have to file.

There are two main reasons why these states require new small businesses to file an Initial Report. It gives them accurate information pertaining to your business, and it provides the state with additional revenue.

What is an Annual Report?

This is a question that’s asked by many new small business owners, as well as aspiring business owners, year after year. Understanding what an annual report is, as well as when it’s due, can help your small business remain compliant.

And, if you’re still deciding on your small business formation, understanding your companies potential annual report obligations (as well as its potential tax obligations) can go a long way in helping you clarify which choice is best for you.

Depending on the state you incorporate in, an annual report (also referred to as an annual statement) may be due if you’re a Limited Liability Company (LLC), S corp, C corp, nonprofit company, Limited Liability Partnership (LLP) or Limited Partnership (LP). Although many states require the filing of an annual report, some require biennial reports, while others require no report at all.

The best way to determine your company’s due date would be to visit the Secretary of State’s website for your home state, as well as each state in which you’ve Foreign Qualified (an annual report will be due in each). Sometimes searching online for your state’s “Department of State” can also bring you to the information you need.

In addition, small businesses that utilize us as their Registered Agent can view their annual report deadline, as well as a wealth of other information, through BizComply (a web based application that’s included in our Registered Agent Service).

Typically, annual reports ask for certain business information, which again varies by state. Commonly requested information includes:

The current principal business address
Names and addresses of the management of business (directors and officers for corporations and members/managers for LLCs). This would also include any management changes
Number of shares of stock a corporation has issued is also required
Who is your current Registered Agent?
An annual report fee, which varies greatly by state. In some instances there is no charge, however the typical range is between $50 — $400

In addition to providing the state with current business information, annual reports also serve another purpose — they generate additional revenue streams for the state. Regardless of your opinion on this, remaining compliant is the recommended way to go in order to keep your business running smoothly without any potential compliance problems.

Filing Your Annual Report Late, or Failing to File

Most states will attach a late fee to an annual report that has not been filed on time. There are some cases where the late fee is waived for nonprofit corporations.

In many cases, failure to file an annual report by a certain date will result in the administrative dissolution or revocation of the business entity on the state’s records. Reinstatement is possible, but at an additional cost (not to mention the time it will take to fill out a reinstatement application).

Demystifying the DBA (Doing Business As) Registration

Posted on February 13th, 2012 by Joey Donovan Guido

Category: Entrepreneur, How To Information, Incorporate a Business, Small Business, Small Business News

DBA

There are many reasons why a Doing Business As (DBA) filing may be a good choice for a company. In this article, we’ll define what a DBA is, what it’s not, and cover the major reasons you might want to consider filing for one.

What is a DBA?

A Doing Business As filing is an official, public way to register one’s company name with a state or a local jurisdiction (such as a county). It allows a sole proprietor or a company (LLC, S corp, C corp …) to do business under a different name. DBAs are also referred to as an assumed name, fictitious business name or trade name. There are no limits to the number of DBAs a business can register.

What a DBA is Not

DBAs are not the same as forming a business. If you file for one without first forming an LLC, S corp, or some other type of company formation, you will be perceived as a sole proprietor by the state you’re doing business in. In this case, it’s legal for you to conduct business, but you won’t have any limited liability protection.

Forming a business like an LLC or S corp typically grants the owner of a company limited liability protection, which is one of the major benefits of forming a company. If you’ve formed an LLC in a particular state, you can then file for a DBA name and retain your limited liability protection. That being said, if you plan on growing your business into additional states, you’ll need to Foreign Qualify in each respective state before filing your DBA. If you don’t, each state you have not Foreign Qualified in will perceive you as a sole proprietor.

Why File for a DBA?

To follow are seven of the top reasons why business owners file a DBA. Please note that these reasons may vary depending on a business type.

To transact business under a different name
To transact business under a name other than the official name of the company or sole proprietorship. A DBA allows a sole proprietor, corporation or LLC to name the business something other than the legal name, which in the case of a sole proprietor is the name of the individual.

New name for new business activity
Often a Doing Business As name is used when a company wishes to enter a new line of business or to market a new product or service. As a corporation or LLC, you may eventually expand to a new area not represented by your current business name, and having a more relevant name could be beneficial.

Domain name as DBA
A DBA can be filed in order for a company to transact business under the company’s domain name. This is especially helpful when your company name is not available as a domain name.

Open a business bank account
Banks typically require sole proprietorships and general partnerships to have a DBA before opening a business bank account.

Additional business credibility
Having a DBA can lend additional credibility for sole proprietorships and general partnerships.

Public notification
Filing a Doing Business As notifies other businesses that the name is in use, as the DBA name becomes part of the public record.

A prospective client requires a DBA to award you a job
Some clients may require you to have a DBA in order to contract with you. If you’re a freelance graphic designer, for example, and you bid to do work for a local corporation, you may be required to have a DBA — but it’s more common that you’d be required to incorporate your business.

Please note that the reasons listed above may vary in relevance to your company depending on your business type. We strongly advise speaking with your accountant or attorney to determine whether or not filing for a DBA is the right choice for your business.

Filings a DBA can be tricky. Depending on the state, there are times when paperwork and fees are filed on the local or county level, while other times a particular state may require a filing with a state agency — instead of or in addition to — the county. Some states/counties may require you to publish with a local newspaper, providing public notice of the Doing Business As filing.

Tips for Small Business Branding: Creating a Winning Website

Posted on February 10th, 2012 by Joey Donovan Guido

Category: Entrepreneur, Grow a Business, How To Information, Marketing, Small Business

CreatingaWinningWebsite In a previous article, we focused on the importance of choosing the right small business name, and how this choice is the first of many branding decisions that will either add to, or take away from, the image and ultimate success of your business.

Today, I’d like to take a look at another facet of branding that plays a key role in the success of your small business: your website.

Before we get started, let’s take a look at a component that should be visible on every page of your online presence — your logo …

Logo Design

Rumor has it that a picture is worth a thousand words. If the name of your company is important, just think about how important your company logo or graphic is. When it comes to branding, your logo is at least as important as your company name. Your job is to make sure it’s eye catching and memorable — and that it supports your business name, products and overall philosophy. In other words, it’s not something you want to decide on quickly, and unless you’re an artist you’ll probably need some professional help.

Creating a Website

The question isn’t will your small business have a website, the question is what will it look like?

Every small business will have a different budget, which will in turn determine the caliber of web designer you hire to create your site. But there are some core elements that every successful website needs to have:

It Needs to Look Good
Keep your website’s design clean and uncluttered, and make sure your company name and logo are prominently, yet tastefully, on display. A small budget is no excuse to create a website that’s unfriendly or unattractive. If you want to grow a business, it needs to look nice.

It Needs to be Easy to Navigate
Your website has to have seamless function. Navigation bars and drop-down menus need to be designed with clarity and simplicity in mind, and they need to work well. It’s often tempting to want to create web pages that are very dense. Resist this temptation, or your web pages may be perceived as complex and confusing. On your website, it should be easy to find stuff, easy to pay and easy to find help. Think about the user experience. It will certainly be on the minds of your customers.

Killer Content
The copy (often referred to as content) on each page needs to contain certain components. It needs to speak in a voice that’s clear, and that your customers can relate to. Copy needs to be written in a way that’s engaging and relevant to the reader, and the benefits of your products or services need to be highlighted (and truthful). There’s also a need to have an SEO (Search Engine Optimization) strategy in place to ensure that the search engines can easily find your website.

According to Jon Wuebben, the author of Content Rich, SEO is, “the practice of using a variety of techniques to improve a site’s ranking on the searcch engines. These things could include editing or adding HTML code and working with site navigation features and employing linking strategies.” SEO also involves the frequency, quality and placement of keywords and keyword phrases. Reading the suggested articles in the next section will shed more light on SEO.

It Needs to be Google Panda Compliant
Have you heard of Google Panda? In a nutshell, Google Panda is an algorithm that filters websites into two groups — sites it likes and sites it doesn’t like. The sites that Panda “likes” are upgraded in Google’s search results, while the ones it doesn’t like get downgraded. It’s critical that you understand the contingencies that Panda has in place. For a detailed analysis, please read the following articles:

These are some of the best practices to keep in mind when creating a winning website. Design, function, content and SEO all play a pivotal role in how your website will rank with the infamous Google Panda.

If this all seems daunting, you are not alone. But if you take it one step at time, you’ll have a website that serves you, and your customers, well.

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How to Name a Business: The Importance of Branding

Posted on February 8th, 2012 by Joey Donovan Guido

Category: Entrepreneur, How To Information, Launch My Business, Small Business, Small Business News, Start A Business

HowToNameABusiness

What’s in a Name?

Years ago, some companies would name a business that began with ABC or 123, so they’d be at the beginning of a yellow pages listing.

It wasn’t a good idea then, and it’s still not.

Why? Because names like ABC Plumbing aren’t memorable, nor are they descriptive of one’s company.

When you’re thinking about how to name a business, it’s important to take the time to consider a few key questions to help you arrive at the right choice. Remember, your company name is the first of many branding decisions that will either add to, or take away from, the image and ultimate success of your business.

Six Basic Questions to Ask Before You Name a Business:

What are the main benefits of the products or services my company offers, and how can I have this be evident in my company name?
Is there a single, meaningful benefit I can highlight that’s shared among all products/services?
Do I want my customers or clients to perceive the company as cool, techie, serious, smart, funny, snarky? In other words, what type of image do I want to imbue into the minds of my customers?
Should my company name be directly attached to me? If I’m a designer (even if I’m not famous yet), I’m going to want my products to be synonymous with me.
Will the company name I choose lend itself to compelling branding — both in content and aesthetically? I want my products, Website and business cards (to name a few things) to engage and connect with customers and potential customers.
Is my company name simple and easy to “get,” or is it complicated? Simple sticks.

Some of these questions may be hard to gauge so early in the process, but discussing these points with a trusted group of friends or business associates can help you effectively name a business — as well as define your company’s branding in a multitude of ways. The last thing you want to do is form a company with a boring business name, or one that has a negative connotation that you didn’t notice yourself. You’ll also want to ask your trusted group if the name you’ve chosen is engaging and relevant to them.

State Name Check
Once you’ve decided on potential names, it’s time to see if it’s available in the state you want to incorporate. We offer a free service called State Name Check, which is a preliminary check to see if your preferred name choice is available. All information is kept confidential, and there’s no commitment to incorporate your business with BizFilings. Results will be e-mailed to you within two business days.

Click here to see if your preferred business name is available.

Please note that a name check conducted before the incorporation documents are submitted is considered preliminary. The final determination of availability rests with the state, once the state has reviewed your incorporation documents and business purpose.

We’re Here to Help
Whether you need assistance with a state name check, or have questions about forming a business, feel free to give our customer service team a call between 8am and 7pm CST, at 800-981-7183. You can also visit our Contact Us page to speak with us via Live Chat during the same days and times. Or, send us an e-mail anytime. We’re always happy to help.

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Staples Small Business PUSH Contest

Posted on February 6th, 2012 by Joey Donovan Guido

Category: Entrepreneur, Grow a Business, Promote My Business, Small Business, Small Business News

Win a free TV commercial to promote your business with Staples’ Small Business Push Contest.

How it Works
Create a 15-second video that includes your small businesses name, description and location of your business, as well as what makes your business unique.

That’s a lot to pack into a mere 15 seconds, but making the effort to create the best video possible gives you more than a chance to win one of Staples five grand prizes — it also gives you an opportunity to gain a greater understanding of your small business.

Who’s Eligible
According to Staples, the contest is “open to legal residents of the 48 contiguous U.S. and D.C., who are 18 years of age and older as of date of Entry and who are employed at a small business.”

Staples defines a small business as, “a privately owned corporation, partnership, LLC or sole proprietorship; a for-profit business; having less than 50 employees; and must not be a franchise. Certain types of businesses are ineligible.” Please refer to the Entry Guidelines listed on Staples Official Rules page for more details.

How to Enter
Visit Staples’ Contest Page on Facebook. Click “Like” to gain full entry into the contest page and complete the on-screen registration form. Finally, you’ll have to upload a video or record a video via a Webcam (“Video”). Be sure to include your small businesses name, a description and location of your business, as well as what makes your business unique. Videos may be no longer than 15 seconds, and must be no larger than 20 MB. Visit the Official Rules page for a full list of technical requirements regarding your video.

The Deadline
Contest ends at 11:59 p.m. EST on March 14, 2012.

Public Voting
In addition to being judged by a contest sponsor, Staples has included a public voting component to the contest. “All eligible Videos will be posted to the Gallery during the Contest Period for viewing/voting by the general public. Once posted, Sponsor reserves the right to remove an Entry, in their sole discretion if they find the Entry violates the Official Rules in any manner. Visitors will have the opportunity to visit the Gallery each day and vote for their favorite Entry. Limit one vote per person per day. Voters must be legal residents of the 48 contiguous U.S., who are 18 years of age or older.”

Prize Details
There will be five (5) Grand Prize Winners. Each winner can choose from either of the following packages:

1) $50,000.00 worth of broadcast TV advertising in winner’s local TV market, and a $500 copy and print bundle (awarded as a Staples Gift Card).

2) $40,000.00 worth of broadcast TV advertising in winner’s local TV market, a $500 copy & print bundle (awarded as a Staples Gift Card), and $10,000 to help offset taxes (awarded as a check).

For more info on prize details, public voting rules and determination of grand prize winners, please visit the Official Rules page.

Best of luck in the contest and with your small business!

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Small Businesses Resources, Part 1: The Association of Small Business Development Centers (ASBDC)

Posted on February 1st, 2012 by Joey Donovan Guido

Category: Entrepreneur, Grow a Business, How To Information, Small Business, Small Business News, Start A Business

Small-Business-Resources If you’re an entrepreneur, or small business owner, there’s a very good chance that you can benefit from getting involved with the Association of Small Business Development Centers (ASBDC).

They provide excellent resources — both locally and nationally — for networking, funding ideas, free forms, community connections and much more.

In a Nutshell …
“America’s Small Business Development Center Network is the most comprehensive small business assistance network in the United States and its territories. The mission of the network is to help new entrepreneurs realize their dream of business ownership, and assist existing businesses to remain competitive in the complex marketplace of an ever-changing global economy.” — ASBDC

To make full use of the resources the ASBDC provides, it’s a good idea to take a look at both their national website, as well as the local website.

ASBDC National Website
Here, you’ll find an abundance of resources including:

The ASBDC Blog

A gateway to special offers, discounts and opportunities

Free webinars from ASBDC partners

Helpful links for small businesses regarding information, products and services

Business resources for veterans of America’s Armed Forces

Disaster assistance

There’s also an annual conference which, “brings together over 1,400 Small Business Development Center (SBDC) professionals, trainers, consultants, management, and administrative personnel.” The 2012 annual conference is September 11th.

Let’s Talk Local (SBDC)
Each local small business development center (SBDC), offers unique opportunities for entrepreneurs and small business owners based on the needs of each individual state and city.

There are programs in place focusing on topics like startup business solutions, youth entrepreneurship programs and veterans business programs — to name a few. Some local SBDCs offer networking events that bring small businesses together. Of course, attending classes or presentations will also give you the opportunity to meet other business owners — making your professional circle larger and stronger.

Local SBDC websites are chock-full of information, but you can also call to speak to someone the old-fashioned way — by phone. I have spoken to my Wisconsin SBDC, and I can honestly say that the representative I spoke with was extremely knowledgeable, pleasant and happy to answer questions and offer direction to relevant resources.

As an entrepreneur or small business owner, you need every edge you can find to build and maintain a successful business. The SBDC is an excellent place to find this.

Related Links:
SCORE
SBA.gov
Startup America

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The Basics of Forming a Nonprofit Company

Posted on January 24th, 2012 by Joey Donovan Guido

Category: Entrepreneur, Form My Business, Start A Business

The-Basics-of-Forming-a-Nonprofit-Company Forming a nonprofit company can be confusing. There are steps that must be taken on both the state and federal level — some of which require an expert’s understanding of incorporation forms. This is especially true when it comes to 501(c)(3) registration.

But before we get ahead of ourselves, let’s take a look at the basics of forming a nonprofit company, so we can glean a better understanding of the process …

What is a Nonprofit Company?

The name “nonprofit” is a tricky one. It often lends itself to visions of hard working philanthropists who get paid small salaries. And although this is sometimes the case, many nonprofits are huge, very profitable companies. The difference between for-profit and nonprofit companies comes down to one thing: how profits are distributed. In the for-profit world, profits can be legally redistributed to shareholders. Not so for nonprofit entities, which need to apply profits back into the organization.

How to Form a Nonprofit Company on the State Level
Although nonprofit companies adhere to state laws that are different than those of standard corporations (LLCs, S corps and C corps), the business formation process is very similar. Three things you’ll need to do are:

File nonprofit Articles of Incorporation with the state, along with applicable state filing fees.
Provide a detailed business purpose: In your Articles of Incorporation, you need to provide a detailed explanation of what the nonprofit is being created to do/provide. The IRS will consider this information as it reviews your application for tax-exempt status.
Include specific tax-exempt language in your articles of incorporation. Typically, the IRS looks for this if you file for tax-exempt status.

How to Form a Nonprofit Company on the Federal Level
Speaking of tax-exempt status, there’s a misconception that creating a nonprofit corporation means the nonprofit is automatically tax-exempt. Not true. Once you’ve formed your nonprofit on a state level, you’ll need to file for tax-exempt status (if it’s something you’re seeking) with the IRS. This means filling out and submitting form 1023 with the IRS, who must approve your request. If your 1023 form is approved by the IRS, you will then have what is called 501(c)(3) status, making your company tax exempt.

Other things to keep in mind:

The IRS requires filing fees. The standard filing fee is $750. A reduced filing fee of $350 is available to nonprofits who expect to have, or have had, gross revenue under $40,000 for the first four years combined
Some states that also require a state-level tax-exempt status filing
There are many additional IRS nonprofit classifications other than 501(c)(3). It’s important to make sure that you’re filing for a classification that suits the needs of your company.
The IRS requires a plethora of financial information, which you may not have at the inception of your nonprofit corporation.

The Difficulties with Form 1023
When filing for tax-exempt status, we highly recommend utilizing an expert to complete form 1023. This form has the reputation of being the most difficult form created by the IRS, and if it’s not filled out correctly your tax-exempt status may never come to be. Form 1023 is approximately 30 pages long — without the schedules and attachments. The IRS estimates preparation time of over 100 hours for completion, and IRS approval can take anywhere from a couple months to around a year, depending on the number of written follow-up questions the IRS has and how quickly you provide answers.

It’s critical that you use a reputable company to complete this form, one that’s experienced with filing 1023s. We typically refer our customers to The Foundation Group.

What does tax-exempt status mean?
Being tax-exempt means that the net profits of the nonprofit organization are exempt from federal income taxes. Certain states allow state-level tax-exempt status, and in such cases, the net profit is also exempt from payment of state income taxes.

Tax-deductible Donations
Many companies that are approved for 501(c)(3) status, can accept donations and contributions from individuals and businesses. In turn, the persons or businesses that are contributing to the nonprofit corporation may claim their donation as tax-deductible* — which of course is a big selling point when seeking contributions. (*The IRS determines which types of 501(c)(3) entities are permitted to do this.)

Have Questions?
If you have questions, or would like assistance with forming a nonprofit company, feel free to give our customer service team a call between 8am and 7pm CST, at 800-981-7183. Or, send us an e-mail anytime. We’re always happy to help.

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Don't Judge Your Small Business Based on the State of the Economy

Posted on January 13th, 2012 by Joey Donovan Guido

Category: Entrepreneur, Grow a Business, Leadership, Marketing, Small Business, Small Business News

Small-Business-State-of-the-Economy If you’re an entrepreneur, or a small business owner, it might be tempting to run your business based on the state of the economy.

When the economy is bad, there can be a tendency to want to play it safe in the decisions a small business owner makes. This is true across the board — from products, to marketing, to the types of people that are hired.

Playing it safe, especially in a poor economic climate, may seem like the best way to help your small business survive. The problem is that safe thinking leads to products and services that are merely acceptable. But when customers are being more careful than ever with how they spend their money — they’re looking for something that’s exceptional, not acceptable.

Survival mode rarely leads to innovation or growth. Instead it leads to mediocrity, because fear of making a mistake leads to ultra-conservative decisions.

I’m not saying to throw caution to the wind, but settling for acceptable when you’re capable of exceptional is never a good idea. Nor is it the most fun, profitable or fulfilling choice.

There’s no doubt that there’s a higher volume of work and effort involved with reaching exceptional. But the results are worth it — for your customers, your employees, your bottom line and the future of your company.

It’s time to move your small business out of survival, and into exceptional.

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Archive for the ‘Entrepreneur’ Category

Small Business Insights: Filing an Initial Report

What States Currently Require an Initial Report Filing?

What Needs to be Included in the Initial Report Filing?

Speaking of Fees, What Does it Cost?

What Happens if you Fail to Submit an Initial Report?

We’re Here to Help

Filing an Annual Report: An Overview for Small Business Owners

What is an Annual Report?

Filing Your Annual Report Late, or Failing to File

We’re Here to Help

Demystifying the DBA (Doing Business As) Registration

What is a DBA?

What a DBA is Not

Why File for a DBA?

We’re Here to Help

Tips for Small Business Branding: Creating a Winning Website

Logo Design

Creating a Website

How to Name a Business: The Importance of Branding

What’s in a Name?

Staples Small Business PUSH Contest

Small Businesses Resources, Part 1: The Association of Small Business Development Centers (ASBDC)

The Basics of Forming a Nonprofit Company

What is a Nonprofit Company?

Top Ten Questions to Consider when Incorporating

We’re Here to Help

Don't Judge Your Small Business Based on the State of the Economy

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