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?
This week in our 50 states series we’re on the road to incorporate in North Carolina, also known as the Tar Heel State. North Carolina is home to the company headquarters of Krispy Kreme Doughnuts and Pepsi-Cola and the Great Smoky Mountains National Park.
In the last 50 years or so, North Carolina has transitioned from an economy focused on tobacco, textiles, and furniture crafting, to an economy focused on engineering, energy, biotechnology, and finance sectors. With those transitions, the state has found great start-up success!
According to the Forbes Best States For Business list, North Carolina ranks at #4 of the 50 states to start a business in – right up in the top 5 states! This high ranking can be attributed to its similarly high rankings in labor supply, environment, and growth prospects. Thumbtack.com also gave the state high marks with a steady B+, with high grades in ease of starting a business, health and safety, employment and labor, zoning, and training/networking programs.
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.
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.
We’re headed to the shore for this week’s 50 States – New Jersey is the name of the incorporation game!
New Jersey, bordered by New York, Pennsylvania, Delaware and the Atlantic Ocean, is not only home to the infamous “Jersey Shore” (both as the MTV series and popular vacation destination) but also to the second wealthiest Americans in the United States. It has a population of about 8,881,700 naming it the 11th most populous of the states.
According to Forbes, Jersey’s economy is strongly run by pharmaceuticals, financial services, telecommunications, food processing and tourism. Corporations including Pinnacle Foods, Trump Entertainment Resorts, and Kent International all call the state home to their branding headquarters.
Nevada was born from the discovery of a major silver mine, and its reputation as a state where you can make it rich, and quick, has been well-earned. Home to Las Vegas, Nevada is known for being a place to gamble, and tourism remains its number-one industry. Of course, there is so much more to the ‘Silver State’ than the Las Vegas Strip. Nevada is still home to some of the most active precious-metal mines, and is a major ranching state.
The State Seal of Nevada
Nevada also has a reputation as being a tax haven – the Tax Foundation ranked Nevada as having the third most-business friendly tax laws of all fifty states. Naturally, we receive plenty of questions on how to take advantage of that lax-tax law. If you are considering whether you should incorporate in Nevada, take the following into consideration:
- A few forms are all you need to form a limited liability company or incorporate in Nevada. To help expedite the process, Nevada’s Secretary of State has set up ‘The Silver Flume‘ – an online business portal that allows entrepreneurs to register their business and set up a new business entity. The filing fee for corporations can fluctuate from the minimum of $75 depending on how many shares the corporation will be authorized to issue.
This week’s 50 States series is brought to you by one of the most famous beef, pork, corn and soybean producers in America… none other than Nebraska! Today we’re taking a look at what it means to incorporate in Nebraska.
Nebraska has a population of about 1,860,500 residents and is the 9th least densely populated out of the states. Famous for its intense seasons (for which thunderstorms and tornadoes are quite common), the state also has a prominent agriculture sector. Outside of beef and pork, Nebraska is noted for its freight transport, manufacturing, and insurance sectors as well. And companies like ConAgra, TD Ameritrade, and InfoUSA also call the state home to their headquarters.
As far as starting a business goes, Nebraska is actually a pretty great place to start a business. On the Forbes list of “Best Places to Start a Business” it’s ranked at number six of the 50 states, and on Thumbtack.com, it received a B grade. These scores can likely be attributed to the state’s positive rankings in business costs, economic climate, quality of life, and college attainment. Nebraska also received A+s in regulations, health and safety, employment, tax code, licensing, and training programs.
Not everybody is attracted by prospect of jobs with fat pay packages, especially if they have a desire to live life on own terms. There are numerous examples of people starting small sized ventures at home which blossomed into large companies in long run. PC giant HP’s founders started operating from a garage in Palo Alto and it grew into one of the world’s leading IT giants. If you have an entrepreneur’s spirit and teamwork and customer service skills, starting up your own business may be the best option.
However, you may want to try venturing into lesser known niche areas to make a mark for yourself and the company. Rather than joining an industry laden with cutthroat competition, changing taste of consumers and other hiccups, you may tread into uncharted territories and tap the potential.
2013 was a great year for MyCorp, and easily the best year our blog has had yet. Did you know that, so far this year, we published 308 posts? 308! We’ve always been very proud of our little business blog, and are extremely grateful to everyone out there who has taken the time to click over and read our posts and become regular readers at our site. Since we had such a productive blogging year, we thought it would be fun to look back and pick out a few of our favorite posts from 2013 – here are our top ten:
10. Starting a Business in 2013: An Infographic
Back in June we thought it would be a good idea to take some of the more frequently asked questions we get and spin them into an infographic. Starting a business can be a very confusing process, and we wanted to make our guide as easy to understand as possible. We pared the process down to six steps, and put out a very well-received infographic to help out our readers.
9. Tax Tips for America’s Entrepreneurs
This post was actually written by our friend David Nilssen, the CEO & Co-founder of Guidant Financial. We’ve done a few cross-posts with David, but this one stands out because of how useful it is. Tax season is stressful, but by following David’s advice, it can actually be a straightforward, productive time. You just have to know how to prepare!