MyCorp FAQs: Do I Need an Employer Identification Number?

An Employer Identification Number, also called an EIN or a Federal Tax Identification Number , is a unique set of digits assigned to a business by the IRS. With it, tax agencies can easily track the financial activity of your company, and make sure that you pay your taxes. employer identification numberBut, if you run a sole-proprietorship, the IRS can already do that using your personal social security number. So in what cases do you need an Employer Identification Number?

When you hire someone

The only time you can really get away with using your social security number is when your business is considered a sole-proprietorship, and you’re the only employee. The IRS figures, in cases like that, the company’s profit flows directly to you, and you pay your taxes from that. But that changes the minute you bring anyone on to help run the company, and that includes a business partner. Once you start hiring, your company must have an EIN.

When you form an LLC or Incorporate

Incorporating or forming an LLC separates you and the business. Continue reading

MyCorp FAQS: Can I Be My Own Registered Agent?

The short answer – yes. But, regardless, it may still be a good idea to hire someone else to be your registered agent. Registered agents exist because of due process. When you turn your business into its own, separate legal entity by forming an LLC or incorporating, you’re effectively giving it a right to due process. registered agentThat means, before a lawsuit can go forward, your business must be properly notified. A registered agent, then, is the point of contact for notifying your business about impending lawsuits.

However, many states use a business’s registered agent as a contact point for other important matters. They’ll send state documents, franchise tax forms, and other reminders to the company’s registered agent, rather than to the company itself, since reaching an established point of contact is a pretty reliable way of getting in touch with the business.

For a nominal fee, you can appoint someone to be that point of contact.

So why wouldn’t you want to be your own registered agent? Acting as your own registered agent will save money, but there are downsides to that choice. For one, a registered agent must have a physical address within the state the company was formed in. So if you formed and do business in a state other than your own, you have to designate someone in that state as a registered agent.

Further, registered agents are the contact point for sensitive matters like lawsuits or summons. Having a registered agent outside your company keeps the office from panicking, like they would if you were served in your own office.

And finally, your registered agent is going to get a lot of important paperwork. It’s their job to keep track of what they receive, and send it along to you. When you run a business, it’s easy to overlook or forget about things like annual reports and fees. A registered agent will really help you from losing track of that important paperwork.

You – or in some states, your business – can act as the registered agent. Or you can hire an outside agency. Just be sure, regardless of what path you choose to follow, that your registered agent is dependable and discreet.

MyCorp FAQs: Should I file in a state with no income tax?

This is easily one of the most commonly asked questions we get. Each state has different rules and regulations when it comes to income tax. Most have both, some don’t collect personal income tax, and a few don’t college corporate income tax. And to a new business owner forming a corporation, forming in a state without a corporate income tax might sound awesome! income taxAfter all, who likes paying taxes?

Unfortunately, things aren’t that cut and dry, and there are good reasons why so many business owners opt to stay in the state that they do business.

You can form a corporation in another state

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How MyCorporation Helps Franchises

Recently we’ve started exploring an often over-looked sector of American small business – franchises. Franchising is a major part of our economy, accounting for 4-5% of the country’s GDP, according to the IFA. It’s also a great way for people to be their own boss and open a business, without having to start from scratch. FranchiseA misconception amongst would-be franchisors, however, is that they’ll get everything they need from the main-office. While that’s partly true, there are a lot of ways MyCorp can help franchisors.

We act as another level of support

When you buy into a franchise, you usually get three things from the head office – a right to use its name, access to its system of success, and some assistance when you first start out. Continue reading

Experts Weigh In: Getting Back to Business After the Holidays

Six Ways to Boost Your Credibility and Close More DealsThe time off requests have slowed down, the holiday parties have been celebrated, and the new year is here! Small business owners everywhere are trying to get their teams back on track and ready to tackle 2015. We asked some of our small business experts how they were getting back into the swing of things. Here’s what the had to say: Continue reading

MyCorporation’s 2015 Small Business Industry Predictions

2015 is officially here! And business forecasters all across the internet are scrambling to their crystal balls to give their predictions as to what is, and isn’t, going to work in the new year. Of course, if you regularly follow our blog, you’d know we beat them by a good month with our infographic “2015 Small Business Industry Predictions.” But just in case you missed it, or you want a refresher as to what we think will be the best industries to start a small business in, here’s a quick rundown of what we think is going to happen.

What industries are going to do well in 2015?

Fastest growing industries

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Our Five Top Posts of 2014!

Happy New Year! 2014 was an awesome year full of growth and renewal here at MyCorp. It was also the best year our blog has ever had! And that’s largely thanks to the slew of guest-posters and small business experts who have been kind enough to contribute. While we could spend hours going over our favorite posts of 2014, we thought our time might be better spent highlighting some of the top posts from this last year.Top Posts of 2014

The Most Viewed – “3 Keys to Crafting the Perfect Logo”

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Business Basics: End of the Year Prep

The end of the year is right around the corner, and every year we hear small business owners panicking about December’s rapidly approaching end, wondering what they have to do to end the year right. Not to worry – ending the year is actually pretty easy, as long as you don’t wait until the last minute to get everything done! So if you haven’t already, start thinking about…
End of Year Prep

Submitting any filings or dissolutions

Some of the most common questions we are asked revolve around the best time to form an LLC or incorporate. And while there are no ironclad answers to those questions, the beginning of the year is normally a good time to send in that paperwork. Deadlines and renewal dates are easier to remember, staying on top of your taxes is simpler, and you can even file your paperwork early and miss the beginning of the year rush if you opt for a delayed filing. Continue reading

The Perks of Participating on Small Business Saturday

We’re huge fans of Small Business Saturday here at MyCorp. Along with offering our own annual promotion for newly minted entrepreneurs, we try and spread word of the event as far and wide. Past Small Business Saturdays have been wildly successful – in 2013, customers spent $5.7 billion at independent merchants during SBS. But if that isn’t enough to convince you to participate, take a look at these other awesome perks! shopsmall1

American Express Promotional Material
Small Business Saturday was actually created by American Express, and the credit card company continues to sponsor the shopping holiday. And so there are tons of perks from AmEx that small business owners can use! They offer free ads and signage to everyone, and if you accept American Express cards, they’ll even put your business on their map so potential customers can find you.

Premier Partner Perks
AmEx has lined up a few premier partners with their own promotions to sweeten the deal for small business owners. You can list yourself on EventBrite, get free signs from FedEx, and free ads from Yelp! Facebook is also a partner, and if you need some social marketing advice to help you promote the big day, there’s plenty of the official page.

Community Support
Most communities really rally around the idea of supporting their local main street merchants. So, at the very least, your local chamber of commerce will probably plan on putting something together for to support and promote Small Business Saturday. Check in with them and see what’s on the agenda, and how you can get your business listed as a SBS participant.

Small Business Saturday is November 29th, so if you haven’t started prepping, start now! You’ll be part of a growing tradition, and reach plenty of busy shoppers. And be sure to check back here to find out what we are offering to new small business owners this Saturday!

ABCs of Small Business Industry: G is for General Contracting

This week we’ve chosen to cover a very important sub-sector of the construction industry, general contractors. Now we did previously cover construction companies in an ABCs of Small Business Industry post. And you may be asking yourself if there are any differences between the two – don’t worry, there are. General contracting is a very specialized industry, with its own host of regulations and policies to follow. So how do you start a general contracting firm? general contracting

First, you need to be a licensed general contractor

Contractors are licensed, typically by the state. And without that license, you can’t offer your services as a general contractor. Licensing requirements vary from state-to-state, but most states maintain a database of active licenses, which the public can search through. Most of the companies looking for a general contractor will also want to see some sort of college training. Continue reading