Last Minute Tax Organization Tips!

With only 11 days left until April 15th arrives, small business owners and entrepreneurs everywhere are scrambling to get their federal and state taxes filed and sent along to the IRS with California doing the most scrambling of all. CohnReznick recently reported in one of their company newsletters that for LLCs and Corporations in California that fail to file their tax returns on time, they may wind up paying a $2,000 penalty as issued by the California Franchise Tax Board.

Don’t endanger your overall tax position – take our CEO Deborah’s tips into consideration when it comes to getting your taxes prepped and sent on their way. Best of all, these tips can be applied to the years to come beyond the 2013 tax year and once they’re in place will make filing taxes in the future much easier and more organized.

1) Make sure you have your documents prepared.

It’s never a good idea to walk into your tax preparer’s office with piles of paperwork scattered all over the place or worse, with nothing ready at all. Prep your documents several months in advance so they’re ready for April 15th.

2) Stay organized over the course of the year rather than waiting until last minute.

Tax season is the last place you want to fashionably late to – by keeping all of your documents and paperwork organized with a bookkeeper or safe within a cloud storage system, you can ensure that you won’t be going on a frenzied hunt for receipts.

3) Respond quickly to a notice and demand to file.

You only have 60 days which can go by pretty quick! Set up a reminder service (like MyCorp’s IncGuard) to keep you on track – this system sends monthly reminders about annual reports, quarterly tax returns, year-end notices, and much more!

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Thumbtack.com's Friendliest States for Small Business

Ever wonder what states are the most business friendly? Or which ones have the most transparent steps to creating a registered business?

Thumbtack.com:
Linking local service professionals to potential customers

A quick Google search will reveal a myriad of studies, articles and opinions on that very question. But Thumbtack.com, in partnership with the Kauffman Association, actually interviewed over 6,000 small business owners to see where individual state ranked in terms of business friendliness. And they uncovered some extremely interesting facts. For example, there were substantial difference between how supportive men and women thought certain states were; women entrepreneurs in Iowa were half as likely to rate their state as supportive of them as men were. And small business care almost twice as much about licensing regulations as they do about tax rates when ranking their state!

This type of insight is extremely important, and highly useful, for entrepreneurs researching possible states to incorporate in. Popular opinion is usually that the state with the lowest tax rate was always the most business friendly, but that old supposition has been blown out of the water thanks to Thumbtack.

The most business friendly states, with all of the metrics considered, were Idaho, Texas, Oklahoma and Utah while California, Hawaii, Rhode Island and Vermont were awarded a failing grade.

Thumbtack.com has released all of this information both in the form of an interactive map. If you’d like to look at the raw data, the link to that information is at the end of the “Survey findings and summary” section.

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Simpsonian Wisdom: Taxes

This is not the first time we’ve decided to impart advice to our lovely readers based on the wisdom of Matt Groening and the Simpsons Team. Sure they entertain, but they have a message.

A message we typically dredge up from the depths of the episode and then spell out for you underneath a video clip.

Sadly for little Otto, there will be no Metallica concert this April 15th. I'm Kent Brockman.

MyCorp is clicking into tax season with the rest of the business world, so we only thought it fair to bring the lovable misfits from Springfield back to see what they have to say on the subject. You’ll be hard pressed to find anyone who enjoys doing their taxes, except maybe for Ned Flanders, but hopefully a bit of humor will take the bite out of the process.

Or maybe it will just give you an excuse to procrastinate. That’s almost as good.

Be Prepared, like Homer!

Homer very rarely finds himself prepared for any of life’s little challenges, but we see quite a bit of maturity in the lovable head of the Simspons family. Sure, he is doing his taxes on a toilet and maybe toilet paper isn’t the best medium on which to draft your returns. But he’s saved the returns from year’s past! And he is consulting them to ensure consistency!

What a guy that Homer Simpson. As long as he remembers he has to file taxes every year, he is prepared. Now the question falls upon you, dear reader.

Are you as prepared as Homer Simpson? Hopefully you are! But if you aren’t, now is a terrific time to start sorting through that box of old receipts and getting everything in order.

What the heck are you even paying?

The finger thing – it means taxes!

The citizens of Springfield have never proven themselves to be the most educated group of people, at least politically. All you have to do is sing a song and you can sell them Monorail, so it is no surprise this little debate devolved fairly quickly.

Now you don’t want to be like them, do you? Unsure what they are paying for, going through the motions and yelling at politicians. Acting out your frustration by driving up to the IRS and booing.

The general public is woefully uneducated when it comes to taxes. Either they stop by their accountant sometime in February to let them deal with the looming April deadline, or they frantically try to figure out what forms they have to fill out and whether or not the pencils they bought for their home office count as a business deduction.

Make a point to do a bit of that old book learnin’ and try to demystify the tax season. Even if you have a magnificent accountant and you never think twice to look over what they filled out in those little boxes, it would probably do everyone good if we stopped treating taxes like theoretical physics.

Taxes will follow you wherever you go

Sadly, we don’t have a video for this one, so you will have to use your best Kennedy impersonation and a little bit of imagination.

When some foolhardy Hollywood producers decide to film Radioactive Man in Springfield, Quimby makes sure that the town gets their fair share of the production budget. And then some.
Director: [covering his eyes] We’re shutting down production.
Assistant: Yeah, well, we only have $1000 left anyway.
Quimby: Uh, there’s a $1000 leaving town tax.

Uncle Sam is waiting at every restaurant, shop, and place of business with his hand out. Occasionally the state government locks him out in the cold, but typically local politicians are all lining up for their cut of spending dollars.

Some of the larger cities are now forcing local restaurants to charge ‘meal taxes’ to diners in an attempt to fatten up their coffers. After all, tourists have to eat somewhere and who better to benefit from humanity’s need to feed than city politicians?!

If you decide to take your tax return and buy a vacation, try enjoy as much of it as possible by researching the tax laws of your destination of choice. Cities like Virginia Beach or Chicago are going to hit you where it hurts when you go out for dinner, and states like New York and Louisiana depend more on sales tax than on state tax for funding.

So, while the last thing you may want to think about after tax season is tax, we want to make sure you aren’t taking your return from Uncle Sam and handing it to someone like Diamond Joe Quimby.

And now that you’re done wasting time in Springfield, go do your taxes!

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Location, Location, Location…

When starting a new entity, entrepreneurs often worry about if their business can take off in their home state. Can a new business be successful where they are located? The answer is YES. A niche in the marketplace can be found almost anywhere. It’s up to the entrepreneur to create a business that serves the marketplace effectively. No matter where you are, making the business tailored to the niche will create value for the customers and success for your business.

If you are targeting your business to serve a specific industry, there may be certain locations which are hubs for that industry. For example, Silicon Valley is the home of many ground breaking technology companies. Detroit has long been a hub for the automotive industry in the U.S. and New York City and San Francisco remain the financial capitals. That being said, many newly energized cities are up and coming homes for a variety of industries. Potential clients and customers are within reach and finding a new city to do business may make you a leader in an up and coming marketplace.

Start your business with MyCorporation, figure out how your company can add value, and then get out there and find clients who can use your services (they’re everywhere)!

Here is an article that breaks down some these energized locations: http://www.entrepreneur.com/magazine/entrepreneur/2010/august/207496.html#

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What is a trademark? What is a copyright?

Many people often confused copyrights and trademarks or use them interchangeably when they actually protect different things. Copyrights typically protect original works of authorship such as novels, movies, songs, computer software and poetry. Copyright does not protect facts, ideas, systems, domain names, names, titles or slogan. Trademarks on the other hand protect a word, phrase, symbol or design that identifies and distinguishes the source of goods of one party from those of others.

To find out more about our trademark & copyright offers, click here.

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What's in a brand?

Forming a corporation or LLC is one step in the development and protection of a brand. Protecting your company name with the Secretary of State in which your corporation or LLC is formed does not necessarily mean that your trademark or brand name is avaiable on a nation-wide basis.

If you’re building a brand, which may go beyond the formation of a corporation or LLC, then considering a trademark search is a good way to go. A good example is our own company. Our corproate name is “My Corporation Business Services, Inc.”, but our brand name is “MyCorporation.com.” We do business under our brand name, it’s simpler, it’s more catchy, and it’s more well known. For that reason, we made sure the name was available on a nationwide level – that it can be used without conflicting with another company.

To evaluate whether there are other companies using your brand, a trademark search is the way to go. It’s a great first step in the process because it’s better to make sure the brand name is available before you invest in the brand only to discover it’s already in use.

A brand can be a company’s biggest asset – look at Amazon, Nike, McDonands. It’s often not the products, but the brand names with which we are familiar. Familiarity often results in customer loyalty, and it all starts with the brand.

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Is my Corporate/LLC Name Protected?

Customers often inquire whether the reservation and filing of a corporation protects the name of the business. While it may protect the business name with the Secretary of State in the state where the corporation or LLC is filed, it does not necessarily protect the name as a trademark.

Trademarks can include any words, phrases, symbols or designs that identify and distinguish the source of the goods. There are numerous advantages to securing federal registration of a trademark. Perhaps the most important advantage is that federally registered trademarks are national in scope, regardless of the actual geographic use of the mark. Hence, trademark protection will protect your business name, which is distinct from filing for a corporation or LLC with the Secretary of State.

To find out more about trademark registration and the advantages of trademark protection, click here.

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Need help finding a CPA?

Let us assist you in finding the right CPA for you and your business at no charge.

We know that many of our customers need help with issues involving accounting and taxes. At no cost to you, we can help you find a qualified Accountant that understands your business.

We have a network of over 450,000 CPAs to help you find a good match based on your location and services requested. We will have up to 5 Accountants contact you to discuss your needs. You are in no way obligated to use the services offered by any CPA – simply hear what they have to say, and the decision is yours.

Click here to submit your information to get matched with a CPA.

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Business and Tax Savings

As business owners prepare for tax season, many sole proprietorships begin to consider the tax benefits of incorporating or forming an LLC. Similarly, business that are incorporated are looking to maximize their tax savings – especially during this tough economy.

The IRS states that any “ordinary and necessary” business expenses can be subtracted from your business income prior to being to taxed. Here’s the interesting part: Your business does not even have to make a profit for your expenses to be deductible. You must only establish a “profit motive.” Under the Internal Revenue Code, a “profit motive” is presumed if you earn any net income in any three out of five business years. Furthermore, the general rule is that as long as the expense is made for business (not personal) purposes, you can deduct it from your business income.

Business tax deductions you should consider include the following:

  • Auto expenses
  • Expenses of going into business
  • Education expenses related to business or trade
  • Legal & professional fees
  • Business entertaining & travel
  • New equipment & software

To ensure that you don’t miss large deductions that could save you a great deal of money, it is wise to consult with an income tax professional.

So make what many consider to be a difficult time of year into a painless …here’s to tax season!

Tax Time Tips

As tax time is right around the corner, here are some things to remember:

  • Be sure to gather all the necessary documents/info to file both personal and business taxes
  • File any required quarterly taxes
  • Decide whether or not to elect S-Corporation status for 2010 (the deadline is March 15th)
  • File all required annual reports with the Secretary of State.
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California Secretary of State Information

California Secretary of State

The California Secretary of State, Corporations Division, is the California state agency that will process a filing for forming a corporation or an LLC (limited liability company) in California. The Office of the California Secretary of State offers the following corporation and LLC filing services:

California Secretary of State Contact Information:
California Secretary of State
1230 J Street
Sacramento, CA 95814

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