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Archive for the ‘Corporation’ Category

Year Starts Off with a Slew of Optimistic Reports for Small Business

Posted on January 7th, 2011 by The BizFilings Team
Category: Business Inspiration, Corporation, Grow a Business, Small Business, Start A Business

The first week of 2011 has already started with a bang for the small business sector and the economy in general, as a number of significant studies released this week paint a picture of a rapidly improving economy – perhaps faster than many originally anticipated.

On Monday, the Institute for Supply Management released its monthly survey of manufacturing output, noting growth for the 17th consecutive month in a critical economic sector that employs one out of every six U.S. private workers.

Then, on Tuesday, the Small Business Administration announced it has supported more than $12 billion in loans to small businesses since the passage of the Small Business Jobs and Credit Act last September.

Wednesday, ADP’s National Employment Report revealed the addition of more than 297,000 private sector jobs last month, led chiefly by small and medium-sized businesses – a massive gain over November’s addition of only 92,000 jobs.

Finally, ComScore released its review of the 2010 holiday shopping season, claiming consumers spent more than $32.6 billion, marking a 12 percent increase over 2009 and the biggest shopping season on record.

While few expect these optimistic trends to continue uninhibited through 2011, they do start the year off on a good note for entrepreneurs forming a corporation.

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Pushes for Renewable Energy Policies Addressed with New Year

Posted on January 5th, 2011 by The BizFilings Team
Category: Business Inspiration, Corporation, Green Businesses, Grow a Business, Small Business, Start A Business, Work For Myself

The American southwest may turn out to be a hub of green energy innovation and entrepreneurship, as the new year has brought renewed vows on energy policy from the region’s leaders.

In Arizona, newly elected governor Janice Brewer has pledged to develop a solar industry to become “the envy of the world,” according to the Solar Home & Business Journal.

Meanwhile, recently inaugurated California governor Jerry Brown has vowed to continue the state’s push toward a 33 percent renewable energy market by 2020, providing substantial incentives to green tech entrepreneurs forming a corporation in the Golden State.

“As Californians we can be proud that our state leads the rest of the country in our commitment to new forms of energy and energy efficiency,” the governor said in his inaugural address. “I have set a goal of 20,000 megawatts of renewable energy by 2020 and I intend to meet it by the appointments I make and the actions they take.”

However, New Mexico is dealing with a more divided approach toward its renewable energy policy. While the state legislature has been pushing for a cap-and-trade program similar to that of California’s, newly elected governor Susana Martinez has promised to oppose such efforts, asserting the move will harm business growth and job creation.

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New Year May Mean Time to Incorporate

Posted on January 4th, 2011 by The BizFilings Team
Category: C-Corporation, Corporation, Grow a Business, Incorporate a Business, Incorporation, LLC, S-Corp, Small Business

As 2011 gets under way, borrowing among the country’s small businesses is up, unemployment is expected to fall slightly for December, consumer spending is increasing and manufacturing activity is accelerating.

Accordingly, small businesses need to ask themselves a few questions: Is it time to start hiring? Should the marketing budget be expanded? If so, when? Should the company begin a more proactive social media presence? Is it time to get incorporated? If so, does the business need a registered agent service? What about corporation vs. LLC?

If small businesses begin to receive greater access to capital and outside investors – as they are expected to, thanks to initiatives such as the recently enacted Small Business Lending Fund – then it is important for owners to protect their personal assets through a business entity such as an S Corp, LLC, C Corp or other classification.

“The end of the year is a great time to think about the administration of your business,” Charley Moore, founder and CEO of Rocket Lawyer, told Inc. magazine. “Think about your corporate structure and consider if incorporating at this time will give you a new year of different tax treatment, or protect your company as it goes into a new phase.”

Determining what entity suits your small business is dependent on a number of factors including growth rate, investment, size of staff and assets – both liquid and illiquid. Owners should consult legal or filing experts to determine if the time is right to form an LLC or corporation.

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Attention Independent Fashion Designers: Strut Your Stuff for a Chance to Win

Posted on November 30th, 2010 by Joey
Category: Business Inspiration, C-Corporation, Corporation, Grow a Business, Incorporate a Business, LLC, Marketing, Promote My Business, Small Business, Start A Business, Work For Myself

fashionAre you an aspiring designer itching to make your mark? Well, we have just the thing.

Blazetrak and Nolcha, a leading platform for independent fashion designers, have teamed up to launch a contest that will give one designer a once-in-a-lifetime opportunity to participate in Nolcha Fashion Week: New York in February 2011.

Fashion designers are invited to take part in this online competition by submitting up to six photos of your best work through Blazetrak now through Dec. 17, 2010. You will then be officially entered and guaranteed a review by Nolcha’s team of experts. Images can be drawings, models wearing garments and just garments.

According to www.fibre2fashion.com, the winning fashionista will receive: complimentary exhibition space for awesome exposure at the Nolcha Fashion Lounge: New York; a two-hour consultation regarding target, retailers, supply chain, breakeven and scale of the line by Global Purchasing Group; free membership to Afingo.com plus featured spotlight and interview; a complete business formation package by BizFilings.com for you to form an LLC or form a corporation; and a sourcing package that includes premium level membership to Source4Style, including complimentary swatches and sourcing consultation.

The winning fashion designer will debut live on Ustream on Jan. 17, 2011.

So what are you waiting for? Spread the word. Do you know of any other contests like this targeting independent business owners?

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Deciding on a Business Entity Classification

Posted on November 30th, 2010 by The BizFilings Team
Category: C-Corporation, Corporation, Grow a Business, Incorporate a Business, Incorporation, LLC, S-Corp, Small Business, Start A Business, Work For Myself

Forming a company requires an idea, but once the idea is translated into a legitimate business entity of forming an LLC or incorporating a business, challenges arise and decisions need to be made.

According to the World Bank, the U.S. ranks eighth in the world for ease in registering a new business, behind Australia, New Zealand, Singapore and others, averaging a span of six steps and six days to become legitimate. China and Brazil, on the other hand, impose some of the most challenging bureaucratic obstacles to incorporating a business, with an average 37 and 120 day process in China and Brazil, respectively.

The U.S. business registration process is not the most efficient one, but it is certainly above average. Most entrepreneurs are intimidated by the process of choosing a business entity. Limited liability companies (LLC), corporations and S corporations are a few examples of business entities, but they all serve the basic function of protecting an individual proprietor or owner from legal or financial debts.

“The decision is more complicated than it may seem: What the government leaves in one pocket, it takes from another,” writes Inc. magazine. “So sit down with a lawyer and accountant to weigh the options in light of your individual tax situation.”

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Top 5 Things Small Business Owners are Thankful for this Thanksgiving

Posted on November 24th, 2010 by Joey
Category: Business Inspiration, C-Corporation, Corporation, Form My Business, Grow a Business, Incorporate a Business, Incorporation, LLC, Small Business, Start A Business

Around Thanksgiving time last year, my then 5-year-old nephew, Jack, was asked to write down three things he was most thankful for. Here’s what he put in this order:pizza_opt

  1. God
  2. My family
  3. Pizza

I’m with him on the pizza.

OK, so besides pizza, what are small businesses thankful for?

I would have to agree with the five items that www.network.businessofsoftware.org listed, which include:

  1. Internet. The worldwide Web has certainly sprung open a host of doors and windows of opportunity for small businesses. Not to mention, the Internet has helped support small business growth. “The Internet has given entrepreneurs the freedom and the ability to start new businesses with minimum investment with the help of virtual office/team, online communication, online management of resources and business functions, and a lot more,” according to the Business of Software website.
  2. Social Media. Information can now be transmitted and gathered instantly using tools like LinkedIn, Facebook and Twitter. Social media also lends the opportunity for small businesses to ignite the popularity of an idea within hours – putting a whole new spin on public relations.
  3. Knowledge-Based Economy. As the Business of Software list points out, “The competition has shifted from being size-based to knowledge-based. More and more small businesses are able to compete with larger companies purely based on knowledge that they can easily share. The Internet has leveled the playing field to such an extent that a single person company can run like a 1,000-employee global organization.”
  4. Global Access. Once again the Internet enables small business owners to access worldwide vendors and customers. As an example, companies like BizFilings, have played a big role in helping small businesses to form a corporation or form an LLC no matter where they are located.
  5. Affordable Services and Technologies. Many small businesses are empowered with services and technologies that cater specifically to their needs at affordable prices. Websites such as www.toolkit.com share tools and expertise with small business owners at no charge.

What other services and products are you thankful for? We’d love to hear from you!

Oh, and Happy Thanksgiving!

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When is the Best Time to Incorporate Your Small Business?

Posted on November 17th, 2010 by Joey
Category: Corporation, Form My Business, Incorporate a Business, Incorporation, LLC, Small Business, Start A Business

stocksealThere are many reasons why you may consider incorporating your business. The primary ones include:

  • Protecting your assets
  • Gaining tax advantages
  • Building credibility

But when is the best time to form an LLC or form a corporation?

This is the million dollar question. If you are a small business owner already up and running, a principal advantage to incorporating immediately rather than waiting until the beginning of the New Year, is to minimize the risk to your personal assets. The longer you remain unincorporated, the longer you are exposing yourself to unwanted losses.

Additionally, it is just as significant to consider that a mid-year incorporation typically results in excessive time and expense to file two tax returns. However, that will most likely be diminished by the self-employment taxes you save by incorporating before the end of the year.

Incorporation experts, like us here at BizFilings, often encourage entrepreneurs who are considering incorporation at the end of the year to delve deeper into exploring the advantages of a delayed effective date.

Some states accommodate business owners to choose a date one to two months in the future for when your business will officially be formed as a corporation or an LLC. This action enables you to manage your paperwork in 2010 and to ask for an effective date in January 2011.

Here are a few ways a delayed effective incorporation date can benefit small business owners:

  • Saving money. By delaying the date of incorporation, business owners can avoid being taxed and avoid filing an annual report in the current calendar year.
  • Saving time. By filing before the end of the year, you can avoid getting your filing stuck in the backlog that may occur at the beginning of the year. So if you were to order with us now, many states will allow us to indicate an effective date of January 1, 2011 on the Articles. If you wait until the beginning of January to order, you may not get filed until mid-January or later.

Learn more about delayed effective date filing through www.BizFilings.com.

When did you incorporate your small business and why?

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What Are the Advantages of Incorporation in Nevada for Small Business Owners?

Posted on August 10th, 2010 by Joey
Category: Corporation, Form My Business, Incorporate a Business, Incorporation

Las-Vegas-blog-photoNevada is really not just known for gambling and the world’s oldest profession.

Along with Delaware, Nevada is recognized for its favorable business climate for corporations to set up shop.

Some of the primary advantages of incorporating your small business in Nevada include:

  • Taxes. Nevada provides a no-income-tax haven for corporations.
  • Cost. The state-filing fees are lower than other states most of the time.
  • Anonymity. Nevada accommodates “bearer shares” for added privacy for shareholders. These are defined as shares of stock in a corporation that certify the “bearer” is the holder  – rather than registering the stock in an individual or corporation name.
  • Residency. Officers, members, managers, directors and shareholders do not need to be residents of the state of Nevada.
  • Business courts. Nevada’s system of business courts specialize in hearing business lawsuits. They are geared at helping avert situations that are disruptive to businesses. These courts manage very complex cases and provide rulings on issues that are business related.

When deciding on which state is best for the formation of your small business, seek the advice of your attorney or accountant. But remember, if you incorporate in Nevada but transact business in another state, you will most likely have to foreign qualify your business in that state. And as far as taxes go, small business owners are welcome to reap the rewards of the no-income-tax haven, but a solid business presence is necessary. Translated this means that you must have employees, property and an office – the whole nine yards.

It is best to do thorough research on benefits and drawbacks before making the final decision.

Have any of you incorporated in Nevada? What do you consider to be advantages and disadvantages?

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Is a Single-Member LLC the Option for You?

Posted on July 6th, 2010 by Joey
Category: Corporation, Form My Business, Incorporate a Business, Incorporation, LLC, Small Business

stocksealAs a small business owner, you may wonder what the advantages and disadvantages are of forming your business as a single-member limited liability company (SMLLC). 

Essentially, an SMLLC can be defined as operating an LLC with only one owner. Under current IRS obligations, an SMLLC that is not classified as a corporation will be classified as a disregarded entity, which is taxed as a sole proprietor for income taxes. Translated this means, that the SMLLC member simply reports the income and expenses of the LLC on his or her own Form 1040 on Schedule C, under his or her own Social Security number. The SMLLC does not have its own tax return. Small business owners should consult with a lawyer or accountant in case your state has an income tax. This way you’ll be able to determine if a return has to be filed for any state income tax.

Similar to all LLCs, an SMLLC is designed to protect against personal liability. But there is lingering concern as to whether a member of an SMLLC will be granted equal protection from liability as a member of an LLC with multiple members. The biggest risk with an SMLLC is that certain courts have not deemed SMLLCs as separate entities; dismantling their purpose to protect the assets of the LLC from the creditors of the member.

 The LLC may be the newest form of business organization in the United States – coming into existence in the 1980s and 1990s – but it still bears advantages of combining the liability protection of a corporationwith the tax treatment of a partnership. Considering to divvy out even two percent of your company aptly positions you to enjoy the advantages of forming as an LLC.

The bottom line is that you need to go over your options with a lawyer or accountant to discuss possible issues in determining what formation works best for you.

Is your business currently classified under SMLLC status? If so, why did you choose to form your business as an SMLLC?

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Filing Articles of Organization

Posted on March 18th, 2010 by Heather
Category: Corporation, Incorporate a Business, LLC, Small Business, Start A Business

Every venture has a moment of creation. When forming a limited liability company (LLC) or corporation, every business entity must file articles of organization with the state in which the business is being incorporated. Once the articles are accepted by the state there is a blinding flash of light, and lo, your business exists!

When forming an LLC, this crucial document is called the articles of organization. In the case of the corporation, it’s usually called “articles of incorporation.” Either way, they establish the same general who-what-when-where-why-how of the new business.

Standard forms for the articles of organization (for an LLC) are available from each state. The business owner can fill in the necessary information on the form. Ideally, however, the articles of organization for an LLC will be tailored to the business owner’s specific requirements, since no two situations are identical.

Regardless of the situation, articles of organization include these four main elements at minimum:

  • Name, principal location and purpose of the business
  • Agent for service of process
  • Classes of ownership interests
  • Initial managers and owners

But Wait! There’s More!

Yes, your company will officially exist in the eyes of the state when the articles of organization are filed, but there are a few more documents you might want to consider before your new business is ready to go out into the world.

The small business owner operating an LLC should also have an LLC operating agreement, which includes a buy-sell agreement (In a conventional corporation, bylaws take the place of an operating agreement, and the buy-sell agreement will be a separate document from the bylaws.)

Most states do not require that an LLC adopt an operating agreement. Do it anyway. An LLC operating agreement provides the owners with formal guidance on issues such as voting, management and division of profits. Without this guidance, it is much more likely that disputes among the owners will arise and that piercing of the veil of limited liability will be applied by the courts. And no one wants that.

Have you filed your articles of organization?

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