Tag Archives: advice

R is for Registered Trademark and Copyright

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This week’s letter-based-topic might seem like a stretch since, really, the subjects are trademarks and copyrights – neither of which begin with an r. But putting registered in front of those terms is not just a cop-out that a lazy writer has used to fit with a weekly theme. There are actually very important distinctions between registered and unregistered intellectual properties.

Technically, you do not have to register trademarked or copyrighted property. An unregistered trademark simply needs the little ™ symbol next to it and, voilà, the property is unofficially trademarked. You can even establish a proprietary right to the mark by using it in the market.

The same general principle is also applicable to copyrights. When the United States signed onto the Berne Convention in the late 80′s, it effectively agreed to see an author copyrighting his or her work as an automatic right. That means that, thanks to the Berne Convention, no registration is required to copyright something in the United States.

However, it would behoove anyone looking to protect their intellectual property to register a trademark or copyright with the United States government. Though you, technically, do not have to register, doing so really bolsters the legal protections afforded to you as the creator of whatever intellectual property that needs protection.

An unregistered trademark, for example, may afford you a small area of geographic protection, ensuring none of your local competitors will be able to rip-off your intellectual property. That protection, however, is limited, which means that your mark could be used somewhere else in the country or, depending on how far apart the two parties are, the same state. The extent to which you can pursue litigation for trademark infringement is also limited, unless you register. To make matters worse for those who forgo registration, the United States typically prefers a first-to-file system, rather than a first-to-use, meaning if someone beats you to the USPTO, they may be able to claim the mark as their own as they registered it first.

Registered and unregistered copyrights have similar distinctions. As mentioned above, you do not have to register a copyright – there is an international understanding of an artist’s natural right to own their work. However, if you want to pursue litigation, you have to register with the United States Copyright Office. In fact you cannot even claim statutory damage unless you registered for a copyright before the infringement took place so, just like with a trademark, make sure you register your intellectual property.

It is all too easy to rationalize not registering a trademark or copyright. You are, after all, afforded some protection for unregistered intellectual properties, and pursuing registration can be costly and time-consuming. But seeing your property used for someone else’s gain and not being able to do anything about will be far more distressing than the registration process ever could be. So when you begin to use intellectual property that can qualify for a trademark or copyright, begin the registration process immediately and protect those properties.

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Business Basics: Registered Agent Services

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Welcome to our weekly Business Basics post! This week we decided to explore a service that nearly every Corporation and LLC uses – registered agents. If you are thinking about forming an LLC or incorporating your business, you will need to find a registered agent. But what exactly do they do again?

What is a registered agent?

A registered agent is the person, or in some cases the company, that a business designates to receive service of process if there is a summons or a lawsuit. Since incorporating or forming an LLC helps to separate your personal and professional lives, and provides fiscal and legal liability protections, the state cannot simply serve you with legal paperwork. LLCs and corporations are, after all, their own, separate legal entity. So a registered agent acts as the impartial receiver of those legal notices. States will also sometimes send renewal reminders and notices to your registered agent, helping you to stay on top of what you need to file to stay compliant with state regulations.

Do I need one?

Nearly every, single state requires that LLCs and corporations doing business within its borders designate a registered agent, so yes it is very likely that, legally, you must have a registered agent. But, beyond the legal considerations, having a registered agent also helps you to maintain a bit of privacy. Having legal paperwork delivered directly to your place of business can wind up raising some eyebrows. There are considerations to be made for office-morale as well – after all, if you are working for a corporation that keeps getting notices and letters from attorneys, you might not have much confidence in the company. A registered agent helps create a sphere of privacy, so that you and your attorney can handle any pressing legal matters without causing a panic.

Can I act as my own?

It all depends on where you do business. As we mentioned above, having a registered agent that is separate from your business will provide a bit more privacy. However, some states do allow members of LLCs, or directors of corporations, to act as the business’s registered agent. Minnesota, as an example, does not require any business formed in the state to name a registered agent, though the company does have to list an address where a person who represents the company can be found. However, all fifty states have registered agents offering their services so, if you do want to name one, you are always able to.

Where can I find one?

Most states actively maintain a list of registered agents who are allowed to provide such a service within their borders. Just look up your state’s secretary of state or department of corporations – chances are that there is a list of active registered agents somewhere on the site. MyCorp is also happy to provide you with our own registered agent services, and we are able to do so in all fifty states!

Having a registered agent is extremely useful, and even if the state you do business in does not require you to have one, it is still a good idea to contract somebody as your registered agent, just to help maintain a bit of privacy. Just make sure that whoever you do hire stays in contact with you, as any and all important paperwork from the state will likely come to them first. The last thing you want is to miss a deadline because your registered agent never got around to calling you!

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10 Ways Small Businesses Can Start Saving Money Right Now

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Whether you are an entrepreneur who’s just starting out or a seasoned small business owner, you probably have one thing in common. Chances are you want to cut the costs of doing business. In addition to increasing profits, this allows you to reinvest in your own success. There are a number of creative ways that entrepreneurs can cut their costs. Here are ten strategies that will help you slash expenses quickly and efficiently.

Turning off computers
Energy costs can be a major line item each month. A simple way to save on electricity is to turn off computers or laptops when you’re going to be away from your desk for an extended period of time. If you know you’re in meetings for several hours or leaving the office for the day, why not turn off your computer? You can also consider an automatic device that turns of items at given times of the day, such as overnight. Doing so will save money and prolong the life of your computers and laptops. It’s a win-win for cost conscious companies.

Switching out light bulbs
Most of us have made the switch from traditional incandescent light bulbs at home to help save on energy costs, but what about at work? CFLs may have a higher upfront cost than incandescent bulbs, but the cost savings in the long-term is worth it. They last up to ten times as long and use 2/3 less energy than traditional light bulbs.

Automatic hand dryers
Do you find that your business goes through paper towels like they’re going out of style? Why not make the switch to automatic hand dryers? They also have a higher upfront cost, but they significantly cut down on the cost of paper goods. Newer automatic hand dryers are also energy efficient, using less electricity than older models.

Equipment restoration
If your business uses certain electronic or manufacturing equipment to develop products, you should consider equipment restoration to help save money. Perhaps some of your machines have stopped working entirely due to electrical failure or certain functions no longer work? Look into companies that can help get your machines up and running again. The cost will most likely be significantly lower than replacing the machines with new equipment.

Download free software
If you’re in the market for a new software program, there are numerous free resources available to budget-conscious business owners. If your software costs are getting out of control, consider looking at free or open source software. Many companies offer free trials of their programs, or entirely free options for the life of the software. So do your research, and look into alternatives to costly programs. For example, Open Office is a good possibility if you’re considering purchasing Microsoft office.

Multiple bids
If you are hiring a vendor for a particular project or working with a consulting service, it’s a good idea to get multiple bids. Don’t just hire the first company you come across because chances are you may be able to get a better deal by shopping around. A good rule of thumb is to obtain at least three bids for projects before you make a final decision. You don’t necessarily have to go with the lowest bidder, but always get quotes from vendors to compare!

Outsourcing
If you’re on a shoestring budget, look into outsourcing some of your business. Sites like Elance and Guru are good places to find freelance web designers, writers, and programmers. Often, working with an independent consultant is less expensive than hiring a full-time employee or working with a firm.

Go virtual or share space
A smart way that small businesses are cutting costs is by taking their operations virtual. If you can work out a situation where employees telecommute, then you don’t need to worry about the high cost of renting office space. If full-time telecommuting is not an option for your business, look into shared space office space. A communal office space can be much less costly than individual offices.

Google Voice
Google offers a number of free or low-cost tools for businesses. Google Voice allows you to quickly and easily set up a business phone line and voice mail without the high cost of working with a telecommunications company to get started. If saving money on communication costs is a priority for your business, try out Google Voice.

Reuse and recycle
This one probably goes without saying, but it is worth mentioning. Always make sure you reuse your scrap paper, print on both sides of the page whenever possible, and avoid printing out every email message you receive. It’s also a good idea to recycle paper and toner cartridges. Some large office supply companies offer special discounts on certain products for businesses that take advantage of their recycling programs.

There are a number of strategies for cutting costs for your business. While some strategies such as switching out old light bulbs carry a higher upfront cost, they are great money savers over the long-term. Whether you’re just starting out or you’re a seasoned entrepreneur, saving money for your small business should be a top priority.

About the author: Carl Petoskey’s vast knowledge in the business industry stems from his 15 years writing and working for various small businesses. When he’s not writing, you can find him covering LWG Consulting or other companies focused on bettering small business owners.

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Business Basics: Benefit Corporations

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One of the main reasons we chose to start this blog was to help explain the facets and aspects of business that typically get overlooked. To help us do this, we decided that, every Tuesday, we are going to post a new “Business Basics” piece to discuss subjects that readers, despite being aware of, may not know much about. With that in mind, one of the first subjects we are going to look at is the Benefit Corporation.

What is a Benefit Corporation?

Benefit corporations are a fairly recent, though the practice of chartering a particular mission for a corporation has existed for centuries. Early American corporations were occasionally given a particular public service to fulfill – things like building bridges or maintaining roads. However, the modern benefit corporation is a bit different – instead of merely fulfilling a public service, it has to produce a distinguishable social good for society.

Let’s say that you create a company with a particular social mission in mind – donating ten percent of profits to wetlands preservation, for example. If you wanted to incorporate your business and raise money through selling shares, you would have to give up some control of your company to the shareholders. That could mean that, instead of continuing its social mission, the company merely focuses on producing the maximum amount of profit. Creating a benefit corporation, however, will help ensure your company can continue its social mission, even if that mission cuts into profits. Unfortunately, benefit corporations are not universally recognized, though 12 states have, as of this posting, enacted legislation recognizing Benefit Corporations.

How do you create one?

Requirements vary from state to state, but typically creating a benefit corporation is very similar to the regular process for incorporation. However, along with filling out a standard Articles of Incorporation, you typically have to include some sort of statement attesting that your corporation is a benefit corporation, along with the specific public benefit, or benefits, your corporation will pursue. You can also elect to become a benefit corporation, though doing so usually requires that you amend your governing documents and get approval from the shareholders.

Are there any special regulations or rules for Benefit Corporation?

Benefit corporations are legally required to create a positive impact on society and the environment, and most states require that benefit corporations find a third-party standard to measure that impact. Happily there are many groups that provide a free assessment service, and there isn’t any particular standard that benefit corporations must adhere to. After receiving the assessment, the benefit corporation’s directors create an annual benefit report that they make public and send to the shareholders. Some states also require an independent ‘benefit director’ to sit on the board and prepare a statement on how well the corporation is adhering to its social and environmental mission.

Any benefits?

Except for protecting a corporation pursuing a social mission instead of maximizing profits, there aren’t really any legal or tax benefits to creating a benefit corporation. However, creating a benefit corporation can help you attract socially minded investors. In 2011, the Institutional Shareholder Service compiled a report that states investors are increasingly “incorporating social and environmental considerations into” their decisions. Having a recognized benefit corporation can give you an edge with these types of investors. Just make sure you are committed to your ideals before choosing to form a benefit corporation – in most states that recognize the structure, anyone with more than a 5% share in the company can enact benefit enforcement proceedings if they feel the company is not adhering to its social mission.

Though they can be a bit confusing, the recognition of benefit corporations is a great development in the business world. If anyone reading has further questions, just ask them in the comment box below and we will try our best to answer them!

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M is for… MyCorp!

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Ok maybe you saw this coming, maybe you had ‘M’ all figured out way back at “E is for Entrepreneur,” but can you blame us? Having pride in your small business is a good thing. And wanting to share a little bit about your business in order to educate and entertain your customers is also a good thing.

So let me take you back to when (‘M’ is for) MyCorp started to become what it is today. Deborah came onto the team in 2004 not by hopping on board as the CEO, but as vice president of legal and business affairs. Not until 2009 did Deb purchase the devision, becoming the CEO of MyCorporation.

Today, MyCorporation is known as a leading provider of online document filing services for clients who wish to form a corporation or limited liability company.

But that’s not all we file! MyCorp helps small businesses to: file Corporations, LLCs, DBAs (Doing Business As), Amendments, Corporate Compliance, Dissolutions, Foreign Qualifications, Reinstatements. We also obtain Certificates of Good Standings and Certified Copies of Articles for your company. We offer corporate supplies such as Leather Binders, embossers/seals, stock and member certificates, and customized Operating Agreements / Minutes and Bylaws.

For over ten years, we have happily helped small business clients and real estate investors incorporate their businesses in a reliable and affordable manner, and have loved every second of it. We’re in the business of small businesses and we wouldn’t want to be anywhere else.

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6 Benefits of Foreign Non-Residents Filing Corporations or LLCs in the United States

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It’s a question that’s much more commonly asked than you think – are there any benefits to non-U.S. residents filing corporations or LLCs in the United States or is the process so complicated that it’s best to avoid doing it? The answer is the procedure is fairly similar to what residents of the United States experience filing and that yes, there are a series of great benefits that come in doing so.

1) Limited Liability Companies (“LLCs”) are popular business structures for partnerships and individuals, due to the attractive tax and legal benefits, and personal liability protection that they afford. As a non-U.S. citizen, incorporating a business in the United States is generally similar to the procedure required for a U.S. resident. Because U.S. citizenship and residency are not necessary, non-U.S. citizens are welcome to start or expand on American soil without jumping through any more hoops than a U.S.-born business owner.

2) Company incorporation in the United States is administered at the state level —not the federal level — for both foreign nationals and U.S. citizens. The process will differ from state to state but is generally comprised of two steps: 1.) applying to register in that specific state and 2.) establishing a registered agent with a valid, physical address in the selected state.

3) For foreign businesses, an Individual Taxpayer Identification Number (ITIN) will satisfy the requirement that each business must have a taxpayer number. The Internal Revenue Service (IRS) issues these tax processing numbers to individuals who have to pay U.S. taxes but are not eligible for a Social Security number. Residents and non-resident aliens as well as foreign nationals fall into this category.

4) To receive pass-through profit distributions, a foreign citizen may form a limited liability company. In contrast, all profit distributions (called dividends) made by a C corporation are subject to double taxation. (Under US tax law, a nonresident alien may own shares in a C corporation, but may not own any shares in an S corporation.) For this reason, many foreign citizens form a limited liability company (LLC) instead of a C corporation.

5) A foreign citizen may be a corporate officer and/or director, but may not work in the United States or receive a salary or compensation for services provided in the United States unless the foreign citizen has a work permit (either a green card or a special visa) issued by the United States.

6) If you intend to open a bank account in your home country or if a local company or government office will require proof of the formation of your U.S. Corporation or LLC, you may need to have the company formation documents certified with an “Apostille” or “Certificate of Authentication”. An Apostille, which is an agreement between countries to accept each other’s documents) is only available if your country is a member of the Hague Convention.

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L is for Legal Structure

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We are back with our ABC’s of business – hopefully you didn’t miss us too much! This week the letter is L, and how could we not take that as a sign and talk about a couple of our favorite legal structures? Many business choose to putt around as a sole proprietorship, clinging onto their default structure.
However, choosing to forgo an incorporation or LLC formation may put your personal property at risk if the business does not work out. To avoid this, consider incorporating your business, or forming an LLC.

C-Corps

A corporation and LLC are both legal entities – that means that the business has its own debts and property, separate from your own. However, corporations can be further broken down into two different tax entities, a C-Corp and an S-Corp. The longtime standard, a C-Corp is one of the most commonly chosen types of tax entities. Creating a C-Corp allows those running the business to sell shares to raise revenue, and those with shares can collect dividends. However, C-Corps are prone to double taxation. The IRS will tax the corporation’s revenues in the form of corporate tax, and the shareholders will have to pay tax on their dividends. In order to avoid this, a business owner can choose to elect an S-Corp status

S-Corps

If a C-Corp qualifies by having fewer than 100 shareholders, all of whom are US citizens and are distributed profit and losses according to their interest in the business, it can elect to be taxed as an S-Corp. An S-Corp has a pass-through tax structure, meaning it does not pay any income tax. Instead, the shareholders simply report their profits and losses in their income tax returns. However, both C-Corps and S-Corps are costly to form and maintain, and are highly regulated. If the pass-through structure sounds like something worth pursuing, but you don’t want to form a Corporation and elect S-Corp status, you can form an LLC.

Limited Liability Companies

LLCs are the new kid on the block – they provide the pass through taxation benefit, do not require any annual meetings, and can be formed and run under the leadership of one person. Plus they still provide the sought after separation of personal and business debt. LLCs come with a bit of flexibility as well, as they can choose to be taxed as a Corporation if they qualify. For most this choice will make zero financial sense, but in some cases Corporate tax law might be a better fit for their needs. The drawback is in the novelty of the LLC. There is no uniform law like there is for corporations  and states will vary on how they view and treat LLCs. Still, LLCs offer many of the benefits of incorporation with fewer drawbacks, and are a very popular choice for legal structure.

Now this is just the tip of the iceberg – we put out an info-graphic back in August that goes into a bit more detail, and looks at newer structures like the B-Corp. Every business, and business owner, is different, so if one of these structures sounds like something you’d like to pursue, talk it over with a professional first just to make sure its benefits are applicable to your business. But, for the most part, choosing a legal structure is an excellent step in ensuring that your future, and the future of your business, is a bit more secure.

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How to Get the Most Out of Your Marketing Dollars

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Don’t let your marketing dollars get stuck in the vending machine.

It happens to everyone. It’s like a rite of passage. You go to the vending machine to get your chocolate fix and buy a bag of Raisinets. You put your money in the machine but your candy gets stuck on its way out.

You’re bummed out. You weren’t expecting this to happen. You’re faced with the decision of putting more money in the machine to get what you want – or calling some number to complain, (do they ever answer?) knowing you will never get your money back.

Doesn’t it stink when you spend money and you don’t get what you pay for? Or you have to pony up more money when you thought you wouldn’t have to? Especially if it’s for your business!

First off, when you spend money in your business, think of it as an investment. Don’t just think of it as an expense. That way you will be in the mindset of getting a return on your money, which is really what you are paying for.

Let’s pretend you are considering hiring a marketing consultant to redo your whole brand. Here are 5 things you can do as a business owner to make sure you get what you set out to get in the first place.

  • Is the fee a one-time fee or will you pay as you go? How much time does the fee cover? One week, six months, 20 years or as long as it takes to get what you want? It’s important to be really clear about the length of the engagement. That way, there will be no surprises.
  • Does the fee cover advice and implementation? Sometimes you will get advice to do something, and then you will have to go implement the advice and pay again. For example, your marketing person may advise you to create a company brochure. But what if the fee didn’t include the cost to actually create it? You’d have to pay again. Total stinker. You wouldn’t even get your Raisinets.
  • Rounds of edits. Most marketing plans include 2 or 3 rounds of edits. Find out the pricing for each additional round (the 3rd or 4th). Use your edits wisely so you don’t have to spend extra money.
  • Communication updates. So many marketing people are highly creative and have amazing ideas. But occasionally they seem to fall off the face of earth and are nowhere to be found. Make sure your marketing person gives you weekly status updates, so you can track your progress. It’s the worst feeling in the world to pay for marketing, and get no status updates! Try paying as you go for marketing help. That way the marketing person has skin in the game and will need to show up.
  • The scope of the project. You need to be clear on what you are specifically paying for. For example, if you are paying for a website design and a logo, that is all you will receive. If it turns out that you need a Facebook business page, that will be more money. Just make a list of what you are paying for, so you can get what you pay for and stay on track. Wait a minute – don’t make a list. Ask your marketing person to give you a proposal and an outline of what you will get.

There you have it. No more marketing money getting stuck in the vending machine. It’s time for you to get your Raisinets.

Justin Krane, is a Certified Financial PlannerTM professional and the President of Krane Financial Solutions.  His savvy, holistic approach to financial planning allows clients to unite their money with their lives and businesses with sound financial decisions. Using a unique system developed from his studies of financial psychology, Justin partners with entrepreneurs to create a bigger vision for their business with education and financial modeling. Follow Justin on Twitter @justinkrane.

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Happy International Women’s Day!

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Today is International Women’s Day – an event that, over the decades, has grown to be a day of empowerment for women all around the world. As gender equality continually keeps extending from the home to the workplace, it is important to support these young women who have been told that they can do anything that they put their minds to. That support is something our CEO Deborah Sweeney is very passionate about:

“As a mother and a business owner, I have met and grappled with the very same challenges that many women face everyday when attempting to balance their family and their career. Historically, women have not had many role models to show them that this type of balance was even possible – the stereotype was either of the business-driven woman who was too busy for dating or a family, or the contrite housewife. Happily times have changed, and both men and women have shown that it is more than possible to successfully run a business while building, and spending time with, their family. As the next generation of business leaders begins to form and come into its own, those of us who have experience striking a healthy balance between our life at work and our life at home need to give back and help show that young women do not need to choose between having a family and a career. If we make the effort to share our successes, and our hardships, tomorrow’s business leaders will be fully capable of continuing our legacy and moving the gender equality movement forward.”

MyCorporation is proud to help men and women all across the United States begin their own businesses, and wishes everyone reading a very fruitful and empowering International Women’s Day.

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How to Furnish Your Office on a Budget

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Whether your new office is 100 square feet or 1000 square feet long, it’s still going to require furnishing.  Sometimes, though, the office is the last room in the house to get furnished or it’s for a small business that doesn’t have a lot of cash to allot towards furniture and other similar overhead expenses, so the budget is already used up or has very little remaining to spend.  If that’s the case for your home or office, don’t worry – these four tips can help furnish your office on a budget.

1. Utilize Your Current Furniture

Do you have an extra table or picture frames lying around?  Or that weird chair you bought because you loved the fabric but it just hasn’t found its “home” yet?  Having a starting point can lend direction on to the entire theme of the room.  Try reframing and matting a print for a new look.  A spare mirror enhances every room and is easy to decorate a wall without much else.  Scouring through items that you already have or no longer used in other rooms will help furnish an office without any additional money being spent at all.

2. Paint!

Always one of the cheapest and easiest ways to transform anything is with paint: a room, a piece of furniture, or fixtures that are an outdated color.  Ask your local hardware store if they have a clearance paint section.  You can find a gallon, sometimes more than one, or sample paint for accents, on major discount.  If you have an extra table that is a great size, but isn’t in the greatest condition, remember that sanding and painting could bring a whole new life to used furniture.  If you are unsure about whether or not you can paint something or how to paint it, there are numerous how-to articles available online about painting different types of materials to guide you.

3. Buy (Gently) Used Furniture

From the furniture to the rugs to the equipment, you can find slightly used items online as well as in secondhand stores.  Buying pre-loved furniture can especially help with the budget your business has.  Besides electronics, furniture is the next biggest expense in an office’s budget, so why not reduce that by checking out the reputable places that sale items used?  Always remember to check consumer reviews where applicable.  Used office furniture stores often have other items and supplies that are gently used as well to help furnish your office.

4. Plan Plan Plan

Before any purchases are made, assess what you need from your office.  Will you have clients come to your office to visit?  Will you be the only one working from there?  These are questions that need to be answered in order for you to know how much to spend on hardware but also how much seating you will need.  If you are going to meet all your clients in your office, then a conference table may be needed, but if you don’t plan on meeting any clients at your office because it’s in your home, then a desk and chair may be the only furniture you really need.  Also know the measurements of walls and the layout of the room when going to buy furniture – bring a tape measure along with you!

You don’t need millions or thousands of dollars to furnish your home office or small business to make it both purposeful and stylish.  Always remember to look beyond what’s on the outside and see what a room, a piece of furniture or a pretty picture has potential to become.

This article was written exclusively for MyCorporation by Office Pro’s, a leader in used furniture in Atlanta, GA supplying new and used office furniture to small businesses and large corporations all over the Southeast. 

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