MyCorp FAQs: Does my Online Business Have to Collect Sales Tax?

All businesses pay a federal income tax, whether its as its own entity or through the income tax of the owner. But, sales tax is a completely different story. Sales tax is determined by each individual state and the requirements for multiple state businesses are often complicated. sales taxThose requirements get further complex when you are an online business as you may not have any physical presence in the state itself. Whether or not your online business has to pay sales tax all depends on the states’ definition of one word: nexus.

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MyCorp FAQs: How do I start collecting payroll taxes?

The IRS, nearly every state tax agency, and even some cities require employers to withhold a certain amount from their employee’s paychecks to cover income tax, social security, and medicare obligations. payroll taxesThese are payroll taxes, and it’s your responsibility, as a small business owner, to collect and send them in. The amount varies from state to state, and in some cases city to city, but there are three main steps to collection.

Calculate
Everyone you hire fills out a W-4, which gives you some basic information like family size and other deductions. Continue reading

MyCorp FAQs – What do you need to know about payroll?

Payroll may seem like a straightforward topic, but there is a lot more to it than just tracking hours and cutting checks. Unfortunately a lot of small business owners don’t realize that and, before they know it, they’re up to their ears in tax forms and reports they’ve never even heard of. Calculating, and staying on top, of payroll can actually be pretty complicated, especially if you don’t have a background in accounting. payroll system So what do small business owners absolutely need to know about setting up a payroll system?

You must withhold taxes

The federal, state, and local governments can all levy tax on income, and it is your responsibility as an employer to withhold the necessary amounts from your employee’s paychecks and send that into the proper agency. Continue reading

Business Basics: The First Few Steps After Incorporating

We talk a lot about the awesome benefits of incorporating or forming an LLC. We also talk a lot about maintaining a business. But what about that middle ground, when you’ve already incorporated but just barely?shutterstock_141838129

Here are a couple moves you can make as a small business owner who’s recently incorporated:

Protect your intellectual property.

The best way to go about doing this is to invest in a trademark. With an official trademark your business’s brand is fully your own. Once you’ve filed a trademark with the USPTO, no one else can legally use your company’s logo, designs, symbols, phrases, or whatever it is that you want to protect. Continue reading

Business Basics: Reinstatements

Reinstatement is what you have to do to get your business out of an inactive or bad standing with the state. And this time of the year, we’re getting tons of requests and questions about reinstatements from people who let their corporation or limited liability company to lapse, but want to get things rolling again before we get too far into 2015.
Reinstatement Luckily, the reinstatement process is pretty straight-forward, though depending on the reason for the lapse, it can get a little pricey.

How does a company become inactive, or get put in bad standing?
There are a few different ways this can happen. But one of the most common reasons behind a bad-standing is simply the business’s owner forgetting to pay their annual fee. Continue reading

Business Basics: Privately Held Companies

Welcome to the first ‘Business Basics’ of the year! We are starting 2015 off strong by looking at privately held companies. The structure of privately held business is often misunderstood. People wonder what distinguishes a privately held company from a publicly one, or believe that any business run by a non-government entity constitutes a private company. That isn’t the case, and so to clear up any confusion, we’ve answered some of the more commonly asked questions we get about private companies. Privately Held vs Public Company

What is the difference between a privately held company, and a public one?

A privately held company is also known as a ‘closed company,’ because the ownership of the business is closed. In other words, you can’t just decide to buy a chunk of the business off of the market. Continue reading

Business Basics: End of the Year Prep

The end of the year is right around the corner, and every year we hear small business owners panicking about December’s rapidly approaching end, wondering what they have to do to end the year right. Not to worry – ending the year is actually pretty easy, as long as you don’t wait until the last minute to get everything done! So if you haven’t already, start thinking about…
End of Year Prep

Submitting any filings or dissolutions

Some of the most common questions we are asked revolve around the best time to form an LLC or incorporate. And while there are no ironclad answers to those questions, the beginning of the year is normally a good time to send in that paperwork. Deadlines and renewal dates are easier to remember, staying on top of your taxes is simpler, and you can even file your paperwork early and miss the beginning of the year rush if you opt for a delayed filing. Continue reading

Business Basics: Dissolutions

Business Entity ChoiceIn today’s BB segement, we’ll be going over the basics of dissolutions. What they are, why someone would want one, and what to do if you accidentally dissolve when you didn’t want to.

First of all, what is a dissolution?

A dissolution is a formal closure of a business with the state. A corporation or LLC must file articles of dissolution in order to complete the termination of a business. Upon being dissolved, the business will no longer need to file annual reports, pay state fees, taxes, or be seen as active in the eyes of the state.  Continue reading