MyBizWiz, MyCorp’s new business entity wizard, was created to help answer one of our customers’ most commonly asked questions; ‘What type of business entity should I form?’ There are plenty of different factors that need to be considered before making that final plunge. How many people run the business? What sort business is it? Do you have personal assets you’d like to protect?
In order to help new small business owners navigate the often confusing world of legal business entities, MyCorporation chose to build the new MyBizWiz tool. All you have to do is answer a few simple questions about your business, and our entity-choosing wizard will tell you what type of business entity would suit you best. It also gives you a general description of that entity and runs down the basic benefits behind it.
To get started, just click here and answer a few questions. There are no obligations, and we don’t ask for any personal information – MyBizWiz is here to help you choose the best type of business entity for your company!
We’re happy happy to answer any questions you might have about MyBizWiz -give us a call at 1 (877) 692-6772!
North Dakota is easily one of America’s most intriguing states. It was fairly unaffected by the Great Recession, and has one of the lowest unemployment rates of any state. North Dakota is also the only state with a state-run bank, the Bank of North Dakota , and a state-run flour mill, the North Dakota Mill and Elevator, which is also the largest flour mill in the USA. Both of these institutions are carryovers of the Nonpartisan League, a populist political party that did so well in North Dakota that it gave the state a three-party system before eventually merging with the Democrats. North Dakota is also the reason we have a National Park system – its natural beauty inspired Theodore Roosevelt to champion conservation.
North Dakota’s excellent economy makes it a prime state to start a business. So just what do you have to do to start a company in the state? And how do you form a limited liability company or incorporate in North Dakota?
MyCorporation is proud to announce that, after months of hard work and translations, we are officially launching the Spanish version of our site!
Starting your own small business can already be fairly confusing, and bilingual people are usually more comfortable with their native language. So we felt that our bilingual customers would appreciate a Spanish version of our site to make the incorporation or LLC formation process as smooth as possible.
Releasing a spanish version of our site is also something we’ve wanted to do for years as a way to better serve America’s bilingual entrepreneurs. Did you know that, in 2013, 19.5% of new entrepreneurs were of hispanic descent! And 57% of all Hispanic business owners are bilingual!
We’re extremely proud of our new site, and we hope our Spanish speaking customers find it as intuitive and helpful as the English version.
Have any questions about starting your own business? Ready to become an entrepreneur? Give us a call at 1 (877) 692-6772 - we’re happy to help and have several bilingual team members to help answer your questions!
Traditionally, Limited Liability Companies are treated like partnerships. Two or more people get together, found a company, form an LLC, and then start running the business. But there’s more than one way to run an LLC. Member-Managed and Manager-Managed Limited Liability Companies are run very similarly, but there are also some key differences that anyone looking to form an LLC should know.
Member-Managed LLCs are, by far, the more common choice. Each member of the limited liability company is treated as equal to every other member, and everyone shares responsibility for the day-to-day operation of the LLC. Continue reading
Limited Liability Companies were, originally, meant to be a replacement for the standard partnership. In 1977, the IRS ruled that it would treat the very first LLC, a Wyoming-based oil company, as a partnership for tax purposes. That meant any money earned by the company would flow through it, directly to the members of the LLC. It wasn’t until 1988, however, that the IRS chose to recognize all LLCs as partnerships, rather than corporations. LLCs are thus, at the federal level, treated as partnerships, which complicates matters for Single Member LLCs. Single Member Limited Liability Companies thus face challenges unique to its business structure – challenges that anyone considering forming a SMLLC should know about and expect.
What are the differences between a Limited Liability Company and a Single Member LLC?
The main difference is right in the name. A single member LLC only has one member, or owner. Limited Liability Companies were primarily created to protect the interests of everyone involved in running the company. The assets and debts of the company were its own, and the assets and debts of each member was their own. If one member misbehaved and owed creditors money, the creditor could not seize control of the LLC – they could only collect on the proportional share being paid to that owner. Likewise, if the company went bankrupt, the personal assets of the members were safe. Single Member LLCs, on the other hand, are not partnerships and it has been up to the state courts to decide how much protection a single-member LLC should really provide.
This week we’re covering the Land of Enchantment – New Mexico! Though admitted to the union in 1912, New Mexico has, for centuries, been home to the native Navajo, Pueblo, and Apache people. With the fourth-largest native population in the United States, New Mexico continues to be an important center of Native American culture. This culture, along with New Mexico’s stunning natural beauty, are the two of the main drivers of one the state’s biggest industries – tourism.
Along with tourism, New Mexico has a rich deposit of fossil fuel and natural gas, and is home to multiple military bases. In fact, federal spending is one of the biggest sources of revenue for New Mexico. The government of New Mexico is always looking for ways to help small businesses grow, and there are loads of tax incentives available to entrepreneurs in the state! But what does it take to start a small business there? How do you form an LLC or incorporate in New Mexico? And are there any special rules you should be aware of?
What is needed to start your small business in New Mexico?
Anyone that does business in New Mexico has to register with the New Mexico Taxation and Revenue Department, and be issued a CRS Identification number. Your CRS number is used to collect and pay tax on gross receipts. In addition to registering, all new small businesses should apply for a ‘Doing Business As’ name with the Secretary of State’s office so that they can advertise, collect checks, and open a bank account under their business’s name. If you’d like, we are happy to run a free DBA name search on your behalf!
A Limited Liability Partnership is a very interesting type of business structure. Limited Liability Companies already combine the ease of running a partnership with the protection of a corporation, and the IRS originally ruled that LLCs would be taxed as partnerships. So what is the difference between a Limited Liability Partnership and a Limited Liability Company? And which one would be the best structure for your company?
What is a Limited Liability Partnership (LLP)?
We’ll answer the easiest question first. An LLP is very similar to an LLC – both protect the company’s owners from lawsuits and debtors, and both have a pass-through tax structure, meaning anything the company earns passes through it, directly to the owners, without being subject to any corporate income tax. However, a Limited Liability Partnership offers an extra bit of liability protection to each partner. So, just like in a Professional Corporation, the other partners in an LLP will not necessarily be liable for the consequences stemming from another partner’s actions.
Do all states recognize LLPs?
Yes, though the laws recognizing LLPs vary from state to state. The majority of the states have adopted the Revised Uniform Partnership Act, which includes a provision for LLPs stating ‘An obligation of a partnership incurred while the partnership is a limited liability partnership, whether arising in contract, tort, or otherwise, is solely the obligation of the partnership.’ In layman’s terms, that essentially means that the company, and not the individual partners, is responsible for any obligations stemming from contracts or torts. The states that haven’t adopted the RUPA instead opted for their own laws to recognize LLPs, but all follow the same basic pattern.
Corporate seals are a remnant of the middle ages, back when official documents were legitimized by a hot wax imprint of a seal or crest. The practice of ‘sealing’ documents kept on throughout the centuries, though the hot-wax method eventually gave way to rubber stamps and paper seals. Today, corporate law still allows for the use of corporate seals, though they are no longer as important as they once were. This week in business basics we answer a few of the most commonly questions we receive about corporate seals, and let you know if you should get one for your own corporation.
What is a corporate seal?
A corporate seal is essentially a signature for your business. When you incorporate, you turn your business into its own, legal entity. Since a corporation cannot sign anything, a corporate seal is used to mark legal and official documentation. These days, most corporate seals are either rubber stamps or steel embossers, and are normally designed to fall apart if tampered with to help avoid fraud.
Do I need a corporate seal?
From secret supper clubs to the first all clean comedy club in the United States, we recently polled 52 brand new small business owners about the kinds of businesses they were starting in 2014, what makes their start-up so special, and where they plan on taking their company in its first year and beyond!
1. “My name is Corecia and my sister and I are starting a unique business of a secret supper club. The premise is to announce the dinners, open them to 10 couples and its first come, first served by invite only. We already have a growing mailing list and will launch on February 2nd. Shirley’s Diner is named after my grandmother who passed away from cancer 5 years ago on February 2nd. We will be featuring many of her recipes.”
- Corecia Davis-Woo, Shirley’s Diner, @ShirleysDiner1
2. “I have recently started a new business in the speed countermeasure niche. This niche covers anything that can help you avoid getting a speeding ticket including smartphones, CB radios, radar detectors, scanners, and airplane detectors which we cover in our developing blog.”
- Chad Antill, Speed CounterMeasures
3. “Leaving kids in stitches is not so bad if you’re at La Sewing Café! The ultimate fashion design and sewing cafe for kids located in Delray Beach, FL is turning heads across South Florida and also turning 1 year old this month! They say sewing is a dying art but it’s not true. At La Sewing Café, kids get to learn how to sew and bring their fashion designs to life. Who knows – the next Coco Chanel or Gianni Versace might be in the room making popular American Girl doll dresses and using old clothes to create new fashion finds!”
- Alicia Sanchez, La Sewing Café
We are “The Granite State” bound this week in our 50 states of incorporation series on New Hampshire! For those looking to form an LLC or incorporate in New Hampshire, Thumbtack.com has nothing but rave reviews on the state – it nabs an A+ in overall friendliness, ease of starting a business and hiring, health and safety, and tax code.
Infamous for being the birthplace of the Free State Project (which works to educate people on the advantages that come with living in the state) as well as internationally for the New Hampshire Primary in the election cycle, New Hampshire ranks as #31 on Forbes Best States for Business list.
Why so middle ground based for a state giving flying colors to do business in? New Hampshire holds a low unemployment rate, but also suffers from expensive energy and labor costs. As far as taxes go, New Hampshire has no sales tax or income tax reported on an individual’s reported W-2 wages. However, the state does have a controversial property tax, which according to former state senator Jackie Cilley, was noted in 2012 as having the third-highest property taxes in the nation.