Business Basics: Reasonable Compensation

This week we are looking at reasonable compensation, a legal necessity for anyone running a Corporation. Reasonable compensation is connected to one of the most fundamental parts of working for a company – getting paid – and yet it’s so widely misunderstood. When you form an Corporation, you create a separate, legal entity that ‘earns’ money. You then pull your wage from those earnings and pay whatever payroll taxes you owe. reasonable compensation

In order to close a loophole wherein those running the corporation could ask for an extremely low salary, pay next to no payroll taxes, and then close the wage gap with distributions, the IRS requires that all corporate officers and executive be paid ‘reasonable compensation.’ But what constitutes reasonable compensation is a little more murky.

Who needs to be concerned with reasonable compensation?

Anyone that is runs, or helps run, a C-Corporation or S-Corporation must be reasonably compensated for their work. Continue reading

Announcing our New Partnership with Paychex!

MyCorporation has spent the last fifteen years working tirelessly to help entrepreneurs realize their dreams and start their own businesses. Our mission has always been to make the lives of small business owners just a little bit easier. And it is with that mission in mind that we are proud to announce our new partnership with Paycheck Accounting Online℠!

payroll services

Paychex

Since its founding in 1971, Paychex has been a proven leader in payroll outsourcing, and today Paychex helps over half-a-million businesses to easily monitor and handle payroll, benefits, and human resources.

And now MyCorporation customers can start using Paychex for only $4.99/month for the first 3 months, with the rate increasing to a mere $19/month after that. All you have to do is sign up through this page and complete your business profile, and Paychex will start helping you handle your payroll, allowing you to focus on what you do best – running your business.

We are really excited for this partnership, and know our clients will love working with Paychex.

ABCs of Small Business Industry: C is for Construction

The construction industry has had a rough few years. After the economy dipped and the Great Recession began, a lot of construction and housing projects were suspended or shut down, and the industry was easily one of the hardest hit. Because of this, many are apprehensive to start their own construction firms, and while construction is slowly picking up, one of the biggest concerns entrepreneurs in this industry have is how to protect themselves if the economy dips again. Construction IndustryBut if you start off on the right foot, and take a few precautions, you can run a successful business in the construction industry.

How do you start a construction company?

Construction is a bit different than other industries. For one, you can’t just file for a ‘Doing Business As’ name and start building houses. Continue reading

Five Great Reasons to Start Your own Business in 2014

20 Ways to Kick Stress to the Curb and Have Fun with Your StartupFor many people, owning their own business is a dream they’d really like to make into reality—sometimes, all that is needed is a little more information. We’re halfway through 2014, but there is still time to get the ball rolling. If you are still reticent in making that final decision, here are five great reasons to start your own business this year. Continue reading

ABCs of Small Business Industry: B is for Business Services

This week we are looking at an industry very near and dear to MyCorporation – Business Services! This is a fairly broad industry, but essentially companies in it help other businesses. That could mean filing paperwork, providing tech support, processing data… the list goes on and on. Businesses helping businesses – what could be better? If you’re considering forming your own company in the business services industry, we’re here to help you out!

business services

Where do you start?

Since business services is such a broad category, it’s kind of hard to answer this question. At the very least you need a ‘Doing Business As‘ name, and should consider filing for an Employer Identification Number. You’ll also need to have all your permits and licenses in order. Unfortunately the ones you need really depend on what other industries you fall into. A tech support company, for example, would need different permits and licenses than a remote office administrator service.

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7 Ways Social Media Can Take Your Business from Good to Great

7 Ways Social Media Can Take Your Business from Good to GreatIn the early days of the internet, the extent of digital marketing for most businesses was deciding whether to bother setting up a company website or not. These days it’s rare to find a business of any size without its own website and the rise of the social media has brought with it a new way to engage with existing and potential new customers. Make social work for you by using these 7 tips to take your business from a good online presence to a great one!

1. Spread brand awareness

According to research from the Pew Research Center, 73% of online adults now use at least one social media site. Facebook remains the undisputed leader with almost one and a quarter billion monthly users – more than 1 in 6 of the global population. Other sites like Twitter and Instagram are also huge and 42% of adults online now use multiple social networking platforms. A social media marketing campaign or presence offers the potential customer to reach a vast new audience across a range of demographics and expand your customer base.

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6 Ways New Business Owners Can Save Money When Starting Up

6 Ways New Business Owners Can Save Even More Money Starting UpIf you’re a brand new small business owner just bursting out of the starting block, how you decide to save money matters. Even if you’ve gotten off to a good start, and revenues are flowing in, every dollar you save goes directly to the bottom line. In order to maximize your savings, keep the following six tips in mind.

1) Score Free Office Supplies

If you typically pick up your office supplies from your local office supply retailer, understand that there are ways to score supplies for free. Enroll in the store’s rewards program and wait for 100% cash back sales. You buy the supplies at full price, then receive the amount you spent in the form of a rewards certificate, usually issued the following quarter. Common free items include printer paper, pens, notebooks, folders, staplers, and scissors.

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ABCs of Small Business Industries: B is for Builders (and General Contracting)

5 Safety Precautions to Practice While Relocating to a New OfficeWe’re onto our next ‘B’ in our “ABCs of Small Business Industries” installment! Today’s ‘B’ is for builders (or,  general contracting)! If you’ve dreamed of construction since you were organizing your building blocks as a young child, now might just be the perfect time for you to make your move. Not sure where to start? We’ll help you out. Continue reading

Business Basics: Return on Investment (ROI)

Welcome back to business basics! In case you’ve forgotten, every week we take a look at a basic business concept in order to try to help new business owners better understand it. This week, we are covering Return on Investment, or ROI – a fairly straightforward, but often misunderstood, part of running a business! Though you may think you know all about ROI, you could be using it incorrectly. But first… ROI

What is ROI?

Return on Investment, or ROI, is pretty easy to grasp – heck, the definition is right in the name. It’s whatever return you get after your invest in some part of your business. So if you hire 2 new salespeople, a basic measurement of ROI will be the money they bring in, minus their wages. Continue reading