delayed filing

Business Basics: Should You Opt for a Delayed Filing?

Procrastination tends to hit business owners hard when it comes to incorporating or forming an LLC. A lot of small business owners resolve to file the necessary paperwork, and then never do. And now they’re facing the end of another year and wondering if it’s even worth filing this late in the game. Believe it or not, it is! But around this time of the year, we usually tell customers to consider a delayed filing over a traditional, immediate action. Delayed filings are the perfect option for businesses owners who know…

They want to form an LLC or Corporation

Forming a limited liability company or incorporating is easily on of the best ways to protect yourself and your personal assets from any debts associated with the business. The government treats corporations and LLCs as their own legal entities, separate from the owner or owners. Any debts it incurs, loans it takes out, or judgments against it are therefore its responsibility and, in most cases, your personal assets will not be seized to pay for those debts. However, forming an LLC or incorporating requires the company’s managers to jump through a few extra loopholes, like paying fees and filing reports annually. Incorporate or form an LLC now, and you may be on the hook for 2015’s fees, even though the company only existed for a month. Plus, depending on your state, you may have to file different returns for the months your business was not its own entity, and the month it was.

That’s where delayed filing comes in. A delayed filing allows you to file the proper paperwork now, and set an “effective on” date a month or so into the future. That way you finish out this year as a sole proprietorship or partnership and, early next year, your LLC or Incorporation is officially approved and formed.

They do not want to be rushed

There is a lot of work that needs to be done at the end of the year. You have to put your books in order, evaluate the staff, and make it through the holiday season. But forming a legal business entity comes with its fair share of responsibilities as well; if you rush through your paperwork, and anything is amiss, the state will reject your filing. We are right at the cusp of December, so take this brief bit of time to make sure your ducks are all in a row – you have a registered agent, a physical address, and a protected DBA name – and then fill out your forms and opt for a delayed filing. That way you won’t have to struggle through all of the normal, extra work that comes in December and January.

They don’t mind waiting a little bit

I know how frustrating it can be to wait on the government to approve your paperwork, but trust me, patience pays off. You actually save a bit of time filing now and opting for a delayed filing instead of filing at the beginning of next year because a lot of businesses wait until the start of the year to send in their forms. State offices get swamped, the delay gets longer, and then you’re stuck waiting until February or March to hear whether your LLC or Corporation was formed. A delayed filing means your paperwork is approved before that rush or, at the very least, that the state will put your paperwork at the top of next year’s pile.

Ready to form an LLC or Corporation? Want us to help you file the right paperwork or opt for a delayed filing? Click here or give us a call at 1-877-692-6772


How I came to be an Entrepreneur: Part 2

This is part two in the series of how I became an entrepreneur.

Although there are several different types of leadership in business, for the most part, there are two different types of roles and people who take them on.  There are those who create projections, understand cash flow, expenses, employee roles, payroll, taxes, and start up costs. And there are the rest of us.  We figure it out, estimate, plan in our heads, see the plan, move forward while creating the plan and bend like a river to accomplish our goals. (more…)


MyCorp Recommends: “The Power of Failure”

A fear of failure can be paralytic, especially to a small business owner or would-be entrepreneur. It means losing all the time, effort, energy, and money risked on an enterprise. But what if someone said that failure was a good thing? That, in fact, feelings of failure and defeat carry the true key to success?

Our good friend Fran Tarkenton argues exactly that in his new book “The Power of Failure“. TarkentonBookFran Tarkenton is no stranger to failing – he helped bring the Minnesota Vikings to the Super Bowl three times during the 1970’s, and each time lost. After turning to business, the first two companies he founded eventually folded. But he didn’t allow himself to be engulfed by that failure and now, as CEO of Tarkenton Companies, is a wildly successful entrepreneur.

Failure, he posits, is a gift that brings incredible power. In “The Power of Failure” Tarkenton shares never-before told stories of his time in the NFL, and the personal, occasionally painful, moments he experienced. Through his own hard-learned lessons and invaluable advice given to him from friends and mentors like Sam Walton and Bernie Marcus, Tarkenton lays out the myths and truths of failure, and how to follow through to success. (more…)


How to Crowdfund Legally

Limited Liability PartnershipStarting a new business is an exciting venture! That is, until the realization of just how much money you will need takes you down a few notches. Before you get too discouraged, know that you have several options available to you.

One of those options is crowdfunding. Crowdfunding is the process of raising small amounts of money from a large amount of people- this can be with the help of friends and family as well as people you don’t know. If you approach it correctly, attracting crowdfunding investors can be just what you need to get your business up and running, as long as you’re careful.

Now, the safest way to go about something that has potential legal implications is to know exactly what is allowed and what isn’t. Law enforcement has never taken “I didn’t know I was doing something wrong!” as a valid excuse.

So what should I steer clear of when crowdfunding? 

Promising Ownership

According to Biz Journals, a crowd funder may receive a reward for their donation once the company is up and running, but they cannot claim any ownership or financial gain in the business. For example, would-be authors can promise crowd fund investors copies of their signed books or acknowledgements for donations, but business owners can’t exchange equity for investments.

If you want to give away equity in exchange for funds, you need to work with accredited investors—people who make over $200,000 and have over $1 million in assets.

Forgetting about Taxes

The funds you get from your crowdfunding efforts are considered taxable income. Don’t forget that you must follow the federal and state tax laws you are subject to. If you plan to go the crowdfunding route, calculate taxes into your financial goals.

Breaking Promises

The typical crowdfunding effort is set up in a way that the person asking for funding promises rewards (not equity) to people who invest. Some crowdfunding sites use an all-or-nothing system where if a person reaches their goal, they keep the funding and must follow through on their promises. If they don’t reach their goal, the money goes back to the investors.

If you reach your goal and fail to follow through with your promised incentives, you could be considered in breach of contract. Unless you want to face a class-action lawsuit, follow through on any promises made during the crowdfunding process.

Where should I look for funding?

If you want to start a company or dive into a project that needs funding, sites like KickStarter or IndieGogo are useful mediums for making money. These have been especially great resources for artistic projects, such as publishing a book, starting a food truck, creating an art exhibit, or designing a new product.

Are there any other rules to keep in mind?

Crowdfunding is subject to rules placed by the Securities and Exchange Commission (SEC) and the Jumpstart Our Business Startups (JOBS) Act- these rules are under constant discussion. As seen on Forbes, here are the rules you must follow if you plan on utilizing crowdfunding for your startup:

  • You can only accept up to $1 million dollars per 12-month period through crowdfunding.
  • If you are starting an investment company or a public-reporting company, you cannot use crowdfunding.
  • Crowdfund investors are only allowed to give a certain amount of money during a 12-month period. For investors who make over $100,000/yr., they can only give 10% of their income or net worth. For those who make less than $100,000/yr., they can only give up to 5% of their income (or up to $2,000, depending on which is greater).
  • You can only find crowdfunding through registered broker-dealers or “funding portals.”
  • You cannot advertise except to direct potential investors to your broker or funding portal.
  • If you complete a crowdfunding crowd, make sure you file the correct reports with the SEC.

The laws surrounding crowdfunding and business startups are complicated. To be absolutely sure you don’t cross any legal lines, talk to a lawyer who works with business law.

Originally from San Jose, California, Erika Remmington is a recent graduate of the University of California, Berkeley in linguistics with a minor in business administration. She enjoys spending her time with her husband and 18 month old daughter. She also enjoys rock climbing and outdoor activities. Legal information from this article was provided by Kitchen Simeson Belliveau Llp.


CRM Solutions and Your Business: A Story Retold

CRM Solutions and Your Business: A Story RetoldWhat does CRM mean anyway? Customer Relationship Management (CRM) is essentially a system that enables businesses to manage data and information pertaining to clients. The aim is to increase sales and offer clients a better service and this goal is achieved by storing information, accounts, leads, and sales opportunities in a central database so that it is easily accessible by all members of the company, especially sales and customer service reps.

But isn’t CRM only available for the use of large firms? Not at all. Not only can small firms afford CRM solutions, but they can also easily integrate them with their existing operations (customer service, sales, and marketing) too. Once customer relationships start to improve, you will automatically generate a greater ROI in the process.

If your small business is ready to take on CRM, read on to find out which tools are the best bet for your business.



7 Ways Social Media Can Take Your Business from Good to Great

7 Ways Social Media Can Take Your Business from Good to GreatIn the early days of the internet, the extent of digital marketing for most businesses was deciding whether to bother setting up a company website or not. These days it’s rare to find a business of any size without its own website and the rise of the social media has brought with it a new way to engage with existing and potential new customers. Make social work for you by using these 7 tips to take your business from a good online presence to a great one!

1. Spread brand awareness

According to research from the Pew Research Center, 73% of online adults now use at least one social media site. Facebook remains the undisputed leader with almost one and a quarter billion monthly users – more than 1 in 6 of the global population. Other sites like Twitter and Instagram are also huge and 42% of adults online now use multiple social networking platforms. A social media marketing campaign or presence offers the potential customer to reach a vast new audience across a range of demographics and expand your customer base.



Why Are Your Designers Leaving You?

Why Are Your Designers Leaving You?Whether your firm is small and speaks to niche-based needs or you are a large company that is trying to be everything to everyone, you won’t get far if you lose designers along the way! A good UX designer is hard to come by, and if you find them and keep losing them, you may need to consider some of the factors going into play as to why you’re losing quality professionals.

You’re Not Paying Enough

Everyone likes to talk about how a great work environment and perks really matter in the workplace, but at the end of the day, it’s all about money. If you are not paying a competitive wage, you are going to find that great professionals may end up at your company, but aren’t going to stay there. Design is an industry that is notorious about underpaying the people who work in it, and if you are guilty of this, word will get around. Make sure that you know what the industry standard is. Depending on the designer that you hire and what their experiences in the field might be, you can be looking at anywhere from $40,000 to $100,000 a year. Good designers expect to get paid for their efforts, and if you do not step up, they’re going to step out!



6 Ways New Business Owners Can Save Money When Starting Up

6 Ways New Business Owners Can Save Even More Money Starting UpIf you’re a brand new small business owner just bursting out of the starting block, how you decide to save money matters. Even if you’ve gotten off to a good start, and revenues are flowing in, every dollar you save goes directly to the bottom line. In order to maximize your savings, keep the following six tips in mind.

1) Score Free Office Supplies

If you typically pick up your office supplies from your local office supply retailer, understand that there are ways to score supplies for free. Enroll in the store’s rewards program and wait for 100% cash back sales. You buy the supplies at full price, then receive the amount you spent in the form of a rewards certificate, usually issued the following quarter. Common free items include printer paper, pens, notebooks, folders, staplers, and scissors.