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.
Are you a small business owner, entrepreneur, or just brimming with advice about the start-up world that you want to share? We want you to come and blog with us!
What started as just a few guest inquiries last spring has become a tremendous success on our MyCorp blog – now we have guest writers from all over the country (as well as outside of the United States) contributing their thoughts and ideas about small business with us. In fact, our program has been such a success that MyCorp recently had the honor of being placed at #11 on a list of the top business blogs that accept guest posts! And while we are absolutely thrilled to be on that list, it’s also been a lot of work getting there as guest blogging is pretty time consuming on the email front.
Until now, our guest-blogging system has essentially been an e-mail address and some generic guidelines. But we’re streamlining the process for 2014 to make it easier on contributors with a revamped system, and are proud to unveil our new article submission process!
Missouri – the “Show-Me” state – is the subject of this week’s 50 states of incorporation, but first we want to show you why Missouri is such a great place to start a business. Missouri has long-been an important economic hub because America’s three great rivers – the Missouri, the Mississippi, and the Ohio – all flow through the state. And though shipping has died down and Missouri is no longer the sole Gateway to the West, the state has shown an amazing propensity towards adaptation, and some of the most successful high-tech companies in the world call Missouri home.
Monsanto, one of the world’s biggest bio-technology companies, is based out of Missouri, as is Boeing Defense, Space & Security, a leading aerospace and defense-research firm. But the company that Missouri is most famous for has to be St. Louis’s Anheuser-Busch. It is, in fact, so loved that Busch’s St. Louis brewery was declared a national landmark in 1966.
Missouri knows how important small business is to the state, and the government offers loads of incentives and programs to help small businesses get started properly. Missouri lists many of the public resources that are available, and it is especially supportive of its agricultural industry; Missouri has 108,000 active farms, the second highest amount in the United States.
Business Basics started out as a way to educate would-be and current entrepreneurs on the basics of running a business, and has slowly morphed into a place where we can try to tackle some of the most common questions we get about the ins-and-outs of business ownership. But, after looking through a few old posts, we were surprised we hadn’t delved into a very, very important part of running a business – protecting your intellectual property! To help rectify this, here is the first post in a series looking at IP protection. This week we are going to look at the trademark.
What, exactly, does a trademark do?
Georgia boasts one of the fastest growing populations, and economies, in America. 15 Fortune 500 companies call Georgia home and, if taken alone, Georgia would have the 28th largest economy in the world. Despite its reputation as the Peach State, Georgia also produces pecans, soy, corn, and poultry. Tourism and culture also make up a major part of the Georgian economy, and a flat corporate income tax of 6% continues to attract new businesses to the state. In fact, according to the Tax Foundation, Georgia’s state and local corporate, income, and sales tax are all low enough that Georgia falls below the national average tax burden. But what does it actually take to form a business in Georgia? And what should you know before incorporating in the Peach State?
Studious readers of our MyCorp blog may recall that, back in June, we covered non-profit corporations in a ‘Business Basics’ post, and answered a few simple questions like what a non-profit corporation was and how to form one. This week, we felt it would be a good idea to tackle one of the most often asked questions about non-profits – how do you run a successful non-profit corporation? Now, it’s impossible to distill what makes a non-profit successful into a 700 word post, but we can point out a few things you can do to help your non-profit succeed.
Draft, and adhere to, a solid mission statement
When you form a non-profit corporation, you have to clearly identify your mission. What, exactly, do you hope to accomplish with this organization? Who do you hope to help? What type of a vision do you have? You may have a few fuzzy answers to these questions running through your head, but you have to absolutely solidify every idea and goal you have before you ever hope to begin raising money. If your ‘elevator pitch’ is a jumbled mess of ideals with no, clear, actionable goals, no one will want to donate to your non-profit. The IRS will also review your mission statement when they decide whether or not to grant your group tax-exempt status.
Welcome to Part 2 of our Business Basics posts on Canada. Last week we took a quick look at corporate law in Canada, and explored some of the major differences between American and Canadian corporate law. If you are thinking about incorporating up north, you should start there as it will give you a basic idea of what to expect in terms of regulations and rules.
This week we are going to shift gears a bit and answer a few of the most commonly asked question about incorporating in Canada.
We’ve talked extensively about how to incorporate a business in the United States, but we have yet to explore the corporate laws of our neighbor to the north – Canada. Since MyCorporation offers incorporation packages for Canada, we thought it would be a good idea to dedicate two Business Basics posts to exploring Canada, with one on corporate law and the other detailing how to actually start a corporation in Canada. So, without further ado, here is a quick look into corporate law in Canada.
Arkansas is known both as ‘The Land of Opportunity’ and ‘The Natural State,’ and these nicknames are truly befitting of a state with as much natural beauty and entrepreneurial spirit as Arkansas. With fifty-two state parks, including Hot Springs National Park, which is the nation’s first national park, and a strong, thriving culture, Arkansas continues to attract tourists from all across America. Arkansas is also known as the birthplace of multiple Fortune 500 companies, including Walmart, Tyson Foods, and Dillard’s.
But even if you are just a small, one-person company operating out of your garage, Arkansas is still one of the best states to found a business for several reasons.