This might have been just a little bit obvious, but Corporation is in our name so you have to expect at least a few posts about the topic. We’ve done a C is for C-Corp already that explored the benefits of that particular business structure, but what about incorporation in general? Why put in the effort? What does it offer a small businesses? (more…)
Welcome to March, the month of… nothing really. The year always starts out with so much promise, so much enthusiasm! Then fast forward three months and you’re missing the holidays already and summer just can’t come fast enough. In case this has been your attitude lately, cheer up! The truth is that the economy is looking better and better as the days pass and consumer spending is increasing as a result. This means that businesses of all kinds are finding themselves with more customers and more profit. Many businesses aren’t necessarily feeling the improvements yet but 2011 is predicted to be one step further on the road to economic recovery. Here are some forecasts that economists and analysts alike are making about the economy and finances in 2011. Also included are some tips on how to make the improvements we are seeing work for you. (more…)
Separating your small business from its competitors is crucial, especially in the current economy. Learning how to successfully brand your business will help you achieve this goal. However, with so many new forms of social media, creating a strategy can be difficult. Consider the following questions and answers to learn branding tips that will help you navigate the sea of online communication and effectively develop a branding strategy.
One of MyCorporation’s partners, Roozt.com, teamed up with the Network for Teaching Entrepreneurship (NFTE) to create an exciting opportunity for a group of 35 students in a 10th grade class at Downtown Magnets High School; The students are out to change the world through business!
Specially selected to take part in the first ever Social Venture Competition, this inspiring group of 14- and 15-year-olds are learning the fundamentals of starting their own business, through the lens of social entrepreneurship. (more…)
As Valentine’s Day approaches, let MyCorporation help you give your business the love and attention it deserves. Let Mycorp help you love your business! On February 14th, MyCorp is offering a FREE corporation or LLC from 7am to 7pm in honor of “Love Your Business Day.” In addition, MyCorporation also offers all the products your business needs – free Quickbooks, business cards and a domain name!
On February 14th, love your business by incorporating or forming an LLC to save on taxes and protect your personal assets. As a sole proprietor, your liability for business debt is unlimited. Personal assets such as your home, personal bank accounts, and other valued assets may be at risk. What does this mean? It means that if your business experiences severe financial difficulties, creditors can take away your personal property such as your home, retirement savings, or any other asset you or your spouse own. (more…)
It is no secret that the economy has led many small businesses to think of new, inventive ways to save money. Free social networking sites such as Twitter and Facebook help business to make their presence known in the online community, while saving a great deal of money.
Many other ways exist to save money, such as implementing do-it-yourself legal work. Entrepreneur.com listed MyCorporation as a leader in providing do-it-yourself legal work, which in turn can save your business hundreds on legal fees. MyCorporation also provides similar services such as online incorporation, DBA registration and trademark applications. Here are a few other tips Entrepreneur.com lists for cutting costs in your small businesses:
Once your business is up and running, expanding is the next logical step! A business can never have too many customers, but as the old saying goes, it takes money to make money. Finding the financing for more advertising or creating new products can be tricky and in many cases, an entrepreneur has already tapped into all the usual (and easy!) sources- family, friends, and personal credit cards. Fortunately for the wise entrepreneur, there’s still one major source left: business credit.
1) What is Business Credit? Business credit is very similar to personal credit. It allows a company to get financing under the business entity’s name and is based on an assessment of the business and its finances by established business credit bureaus. (more…)
Once you have an idea for a business, the next step is trying to raise money to make your dream a reality. One of the biggest challenges facing a prospective business owner today is financing. Where do you find the money? How do you get it? For the business savvy owner, there are many different options for finding the money you need to start your own business.
1) Friends and Family
This is the most obvious place to look for financing options. Many loyal friends and relatives are more than happy to put some money into a start-up business when asked by someone they love and trust. Remember, though, to expand your friends and family circle, and don’t just look to your immediate family members and best friends. Make a list of everyone you know, including acquaintances that you see infrequently, and then follow up with those people too. You never know who shares your interests and might want to put some money into a business they believe in. (more…)
The standard “corporation” format used by businesses to protect personal assets and minimize personal liability can also include other types of business entities, including S-Corporations and Limited Liability Companies (“LLC”). The corporation is America’s most popular and oldest form of business entity. However, with the tax advantages of Limited Liability Companies and S-Corporations, other types of business entities are quickly becoming more popular.
An LLC combines the limited liability shield traditionally associated with corporations, the structural and financial flexibility of partnerships, and the tax benefits of “pass-through” taxation. As a pass-through entity, the LLC pays no income tax. Instead, items of taxable income, gain, loss, and deduction pass through the LLC to its owners, and are reported by them on their separate income tax returns. Similar to the corporation, an LLC is recognized as a separate legal entity from its “members.” Thus, an LLC can own property and commit itself to contractual obligations.
IRS Treatment of the One-Member LLC
An LLC with only one member/owner is automatically considered to be a sole proprietorship unless an election is made to be treated as a corporation via IRS Form 8832. Thus, the sole member of an LLC will file Form 1040 (U.S. Individual Income Tax Return), and will include Form 1040, SCHEDULE C (Profit or Loss from Business) with his/her tax returns.
Regardless of how many members the LLC has, the LLC may file an Election to be Treated as a Corporation for Purposes of Taxation (IRS Form 8832). If an election is made to be treated as a corporation, the LLC must file Form 1120 (U.S. Corporation Income Tax Return).
This year’s deadline for electing S-Corporation status is approaching fast – March 15, 2008.Now’s the time to consider whether your corporation should elect “S-Corporation” status. Let’s First Start off with Explaining What an S-Corporation is….An S-Corporation begins its existence as a general, for-profit corporation upon the filing of Articles of Incorporation at the appropriate state office. Once formed, a general for-profit corporation that has not requested “S-Corporation Status” with the IRS will be required to pay income tax on taxable income generated by the corporation. In addition, any dividends distributed to shareholders may be subject to taxation as dividend income to that shareholder as well (hence the problem of “double taxation” that can occur in a ‘Non-S-Corporation’). However, after the corporation has been formed, it may elect “S-Corporation Status” by timely submitting IRS form 2553 to the Internal Revenue Service. Certain states require that your corporation file state-specific forms to qualify for S-Corporation status in that state for state taxation purposes. In addition, S-Corporation status is not available for purposes of state tax liability in certain states. Please contact your state’s taxing authority for further information.Once this filing is complete, the S-Corporation is taxed in a manner similar to a sole proprietorship or partnership, rather than as a separate entity. Thus, the income is “passed-through” to the shareholders for purposes of computing tax liability. Therefore, each shareholder’s individual tax return will report the income or loss generated by the S-Corporation.
Who typically elects S-Corporation status?Most entrepreneurs prefer the S-Corporation structure for the following reasons: · The S-Corporation combines many of the advantages of the sole proprietorship, the partnership, the corporation, and the LLC into one entity.· Unlike sole proprietors and partners in a partnership, shareholders of an S-Corporation are afforded the same level of limited liability and personal asset protection as are the shareholders of a general, for-profit corporation.· In an S-Corporation, shareholders avoid the “double-taxation” common to shareholders of non-S-Corporations because all income or loss in an S-Corporation is reported only one time on the personal income tax returns of the S-Corporation’s shareholders. Where a corporation claims income from a passive investment (e.g. from real estate owned) for three consecutive years that exceeds 25% of the corporation’s gross receipts, S-Corporation status may be terminated by the IRS. Most real estate investors, for example, prefer placing real property in an LLC (Limited Liability Company) rather than an S-Corporation for this very reason (more…)