Month: August 2011

By Maryann Lawrence, Startup Rep, Direct Incorporation

So, you’ve recently incorporated your business. First off, congratulations! Now, it’s time to get down to the business of separating your personal bank account from your corporate bank account. Here are some reasons you’ll want to do so right away.

1. Liability. Failing to separate your business and personal accounts may result in you being personally responsible for corporate debt and liabilities. For this reason alone, it is imperative you keep separate banking accounts.

1. Taxes. Your business income and expenses and your household income and expenses should be completely separated out for tax purposes.  Along these lines, it’s a necessity to create two checking accounts, and pay your bills from the appropriate account so that you maintain proper tax records. This in turn will save you time, headache and unwanted calls from the IRS.

1. Insight. When business and personal accounts are co-mingled, it’s almost impossible to maintain proper records. By separating your business account from your personal account, you will get a clearer picture of your personal and business financial health.

1. Image. Writing checks from a business account helps deliver a clear message to your customers and suppliers that you are a professional and credible business.

Do you have questions about what to do after incorporating your business? Please leave a comment below and I will try to answer them. Thanks!  – Maryann

By Maryann Lawrence, Startup Rep, Direct Incorporation

Last week we covered the cost and process of incorporating a business in California. Today, we’re traveling across the U.S. to share information on incorporating in Florida.

Discover the benefits of incorporating in Florida.
Florida offers an excellent business climate. In fact, it is the 15^th largest economy in the world, according to the Florida DMV. In addition, Florida leads the nation in new business formation. This is due to the many advantages Florida offers business owners:

* Quick incorporation process – 3 to 4 days
* No personal income tax – an average savings of 5.5%
* No minimum capital requirements for incorporating your business
* Separate legal entity status, which normally shields business owners from personal responsibility for business losses
* Land and labor are more affordable in Florida
* Business capital is easier to obtain in Florida

How much does it cost to incorporate in Florida?
The state fee to form an S-Corp or C-Corp in Florida is $78.75, while the LLC state fee is $130. Once your company has been incorporated in Florida, you will pay an annual filing fee of $138.75 to $150.

About Direct Incorporation’s Florida incorporation services.
Direct Incorporation offers three packages to assist you with incorporating in Florida, with prices ranging from $149 to $773. For more information on our Florida incorporation services, click on a link below.

• Standard Package
• Premier Package
• Venture Package

Do you have questions about incorporating your business in Florida? Please leave a comment below and I will try to answer them. Thanks!  – Maryann

 

By Maryann Lawrence, Startup Rep, Direct Incorporation

You’ve finally decided to make it official. You’re moving from moonlighting to a full-time business owner. Congratulations! Now, it’s time to incorporate your business.

Did you know that if you remain a Sole Proprietor, you will have unlimited liability for your business debts? Yikes! As a general rule, moving from Sole Proprietor to an LLC or S-Corp gives you the peace of mind that comes with knowing that your personal assets are protected should someone bring a lawsuit against you.

But which legal structure is right for your business? Let’s review some quick comparisons:

Benefits of LLCs as compared to S Corps

* LLCs are easy to set up and less expensive to start in most states
* There are less rules and restrictions compared to an S-Corp, which may save you on attorney and accounting fees
* An LLC is not required to hold meetings, keep formal minutes or record resolutions. A Corporation is required to do so, which can prove to be cumbersome
* LLCs can distribute profits as they see fit, where an S-Corporation’s profits must be distributed according to the ratio of stock ownership
* LLCs can be member managed, where an S-Corp must be managed by a board of officers

Benefits of S Corps as compared to LLCs

* You may pay yourself a reasonable salary, plus take distributions at a lower tax rate
* You can raise money from the public in the form of corporate stock certificates, if you later choose to revert to an C-Corp and become publicly traded
* The independent life of the Corporation is not dependent on the incapacity or death of a stockholder, as it is with an LLC in some states
* With S-Corps only the salary paid to the employee-owner is subject to employment tax, where with LLCs, the entire net income of a business is subject to self-employment tax
* Depending on the Corporation’s business record, you may enjoy more access to money from lenders

Do you have questions about which legal entity to choose? Please leave a comment below and I will try to answer them. Thanks!  – Maryann

By Maryann Lawrence, Startup Rep, Direct Incorporation

Over the next few weeks we will be reviewing the process for incorporating a business in the most popular states, starting today with incorporating a business in California.

How much time does it take to incorporate in California?
You have two options when incorporating your business in California. The first is the standard route, which takes 10 to 12 weeks to complete. Your other choice is to pay a $65 expedite fee and speed up the process to four to six weeks.

How much does it cost to incorporate in California?
The state fee to form an S-Corp or C-Corp in California is $100, while the LLC state fee is $70. Once your company has been incorporated in California, you will pay an annual franchise tax of $800. In addition, you will need to pay a filing fee of $25 each year.

About Direct Incorporation’s California incorporation services.
Direct Incorporation offers three packages to assist you with incorporating in California.

1. Our Standard Package costs $149 and includes the following services:

* Articles of Incorporation Completion. The preparation and completion of your company’s Articles of Incorporation (the primary document used to incorporate a business), based on the unique needs of your particular company and the requirements of the specific state.
* Preliminary Name Check. Audit of supplied information to ensure compliance with state formation requirements, including your company name choice.
* Real-Time Online Access to Client Resource Center. Check the progress of your order; download copies of relevant incorporation documents.
* Prompt Shipment. Order confirmation and documents will be promptly delivered to your office.
* Notice Documents. Documents sent to you, alerting you to the post-incorporation requirements of your state.
* Obtain Your EIN. (Employer Identification Number) Employer Identification Number obtained upon request (at no additional cost).
* Filing of State Franchise Tax. (if required by state at filing of Articles)
* S-Corporation Assistance. (For S-Corp Clients) Preparation and partial completion of S-Corp election form (2553).

2. Our Premier Package costs $317 and includes the above, plus:

* Boxed Corporate Records Binder. Customized with your company’s name in gold lettering.
* 20 Stock Certificates. Customized with your company’s name.
* Stock Transfer Ledger. Bound in booklet form, which includes 8 pages ruled and printed on ledgerstock.
* Corporate Bylaws. (For Corporations) Can be adopted by your company or altered to fit your company’s needs before adoption.
* Operating Agreement. (For LLCs) Can be adopted by your company or altered to fit your company’s needs before adoption.
* Embossed Corporate or LLC Seal. Custom manufactured with your corporate name.
* Corporate Suite. Provided in convenient e-book format on CD Rom. Legal and practical resources for the new business containing documents, tools, and reference handbooks.

3. Our Venture Package costs $773 and includes the above, plus:

* 3 months of the Business Compliance Program
* Trademark Protection
* Website + Email
* Logo Design

Learn more about incorporating a business in California.

Do you have questions about incorporating a business in California? Please leave a comment below and I will try to answer them. Thanks!  – Maryann

By Maryann Lawrence, Startup Rep, Direct Incorporation

You’ve come up with a great company name. You’ve checked that no other company owns it. Now, how do you protect it from being swiped by someone else? When it comes to protecting your company’s mark, the best defense is a good offense.

1. Register your mark with the United States Patent and Trademark Office.
2. Use your mark correctly. If your company sells products, you will want to use a trademark, or “TM”. If your company sells services, you’ll want to go with a service mark, or “SM”. If you’ve federally registered your mark with the United States Patent and Trademark Office, protect it with a registration mark, or “®”.
3. Use it or lose it. Make sure your advertising contains your name and mark at least once per page.
4. Routinely check search engines to confirm that no one else is using your name. Better yet, consider hiring a watch service to monitor any activity related to your mark.

For more tips on protecting your trademark, check out Inc.’s article, How to Protect Your Trademark From Infringement.

Do you have questions about trademarks, service marks or registration marks? Please leave a comment below and I will try to answer them. Thanks!  – Maryann

 

By Maryann Lawrence, Startup Rep, Direct Incorporation

It’s all over the news. Sarah Palin’s name will soon be trademarked. Alaska’s former governor applied for the trademark earlier this year and, so far, she has passed all trademark hurdles, according to U.S. News & World Report.

According to her trademark application with the United States Patent and Trademark Office, Sarah Palin wants to register her name in two classes:  information about political elections and educational and entertainment services.

This begs the question; can anyone trademark their personal name? Here is where it gets a bit complicated. In order to trademark your personal name, you will have to prove that your name has achieved secondary meaning. In other words, the public needs to have associated your name with a good or service.

For example, celebrities can and often do apply for trademark protection based on the distinctive nature of their name and talent. (They make money off of being who they are.)

For more on trademarking a birth name, check out this great post from the Ohio State Bar Association website.

Do you have questions about trademarks, service marks or registration marks? Please leave a comment below and I will try to answer them. Thanks! – Maryann