What is the difference between a service mark and a trademark?
A service mark is used in connection with services, while a trademark is used in connection with tangible goods. The general terms "mark" or "trademark" may be used to describe both trademarks and service marks.
Do I need to register my trademark?
No. It is not required that you register your trademark or service mark in order to establish ownership rights. Registration of the trademark creates a legal presumption of the registrant's ownership of the mark and the registrant's exclusive right to use the mark in the state commerce in connection with the goods or services described in the application.
Source: http://www.infotaxsquare.com
Tuesday, March 30, 2010
Monday, March 29, 2010
Annual Report
Uses of Annual Report
Information from the annual report is public and forms the core of the State's corporate/ business status reporting system. This information is relied on heavily by the commercial, financial and legal sectors.
Who is the Signing Authority?
Individuals who may sign the annual report are specifically designated. For corporations / LLCs, either the registered agent or a corporate officer may sign. Annual reports for other business types may be signed by any authorized representative.
All corporations and LLCs are required to file annual reports, statement of information or biennial reports, even if no business is being transacted.
Source: http://www.infotaxsquare.com/
Information from the annual report is public and forms the core of the State's corporate/ business status reporting system. This information is relied on heavily by the commercial, financial and legal sectors.
Who is the Signing Authority?
Individuals who may sign the annual report are specifically designated. For corporations / LLCs, either the registered agent or a corporate officer may sign. Annual reports for other business types may be signed by any authorized representative.
All corporations and LLCs are required to file annual reports, statement of information or biennial reports, even if no business is being transacted.
Source: http://www.infotaxsquare.com/
Company Name Reservation
If you are not ready to incorporate or form a limited liability company (LLC), but would like to reserve your business name, Infotax Square offers state Name Reservations. Once a name you selected for your company is available, we can reserve that company name for you for a certain period of time. Allowed reservation time frames depend upon the state. The name of a corporation, LLC, limited partnership (LP), limited liability partnership (LLP) or nonprofit corporation must be distinguishable on the records of the state government. If the name is not unique, or if it is already in use by another business formed in that state, the state will reject the formation documents.
Source: http://www.infotaxsquare.com
Source: http://www.infotaxsquare.com
Why do Anyone need Registered Agent and How much It Cost?
Most states require that a registered agent be listed for the business in the state of incorporation or a state in which it is doing business. The state will suspend any company if it fails to maintain an agent. The purpose of the Registered Agent (sometimes referred to as a Resident Agent) is to maintain a consistent physical legal address in the state in which it is incorporated or doing business. It also will receive governmental and legal correspondence, including your annual report, any delinquency notices and many other documents that your company may be required to respond or take action.
How much does it cost?
Registered Agent fees are $159 per year payable in advance. You may cancel registered agent services at anytime as long as you provide proof that another agent has been named in the state of incorporation or that the business is no longer active. Remember, in order for your business to maintain good standing status it must also maintain a Registered Agent.
Source: http://www.infotaxsquare.com
How much does it cost?
Registered Agent fees are $159 per year payable in advance. You may cancel registered agent services at anytime as long as you provide proof that another agent has been named in the state of incorporation or that the business is no longer active. Remember, in order for your business to maintain good standing status it must also maintain a Registered Agent.
Source: http://www.infotaxsquare.com
Benefits and Necessity of Registering a Trademark
There are numerous benefits to registering a trademark and utilizing the trademark services of a lawyer. Registering a trademark heightens the protection it receives, deters others from using your trademark, and increases the remedies should someone infringe upon the trademark. Using a trademark lawyer increases the likelihood of receiving all of the benefits discussed below.
• Registering a trademark provides greater Protection.
• Registering a trademark deters others from using your trademark.
• Registering a trademark provides the trademark owner with greater remedies.
Source: http://www.infotaxsquare.com/
• Registering a trademark provides greater Protection.
• Registering a trademark deters others from using your trademark.
• Registering a trademark provides the trademark owner with greater remedies.
Source: http://www.infotaxsquare.com/
Friday, March 26, 2010
What is sales tax?
Sales tax is imposed on all retail sales, leases and rentals of most goods, as well as taxable services. In other words a sales tax is a tax on the end-purchase of a good, so it normally does not apply if a sale is for re-sale or for subsequent processing. Sales tax normally a certain percentage that is added onto the price of a good or service that is purchased.
Your sales tax responsibilities as a new business owner, whether you start a business or buy an existing business, will vary depending on the type of organization or entity you operate. Besides state level, estimation of sales tax is also done on municipal or county levels. Payment of state sales tax depends on your sales and your state's regulations.
Normally it is the consumers who are burdened with sales tax. The re-sellers on the other hand, are exempted from sales tax, provided they do not use the goods on which sales tax is levied.
Source Infotaxsqaure
How To get a DBA?
Source infotaxsquare
What is a Corporation?
Shareholders are protected from the corporation's liabilities."Double taxation" frequently occurs, because the corporation is taxed on its profits, and shareholders are also taxed on the distributions they receive, such as profit sharing payments or dividends.
To Read More : What is a Corporation?
Company Name Amendment
Name Amendment reflects changes to the legal name of a corporation, LLC or any other legal entity. Companies are authorized and bound to do business using their legal names filed with the registering State. If a legal entity will be changing its name, for that change approval must be taken from the state before applying that change into the business.
Source Infotaxsquare
Certificate of Good Standing
A Corporation Certificate of Good Standing / LLC Certificate of Good standing is a certificate issued by the Secretary of State’s Office evidencing that a business either corporation, LLC or partnership has complied with the applicable provisions of the laws of the state, is in good standing, and authorized to transact business or to conduct affairs within the state.
Source infotaxsquare
Tuesday, March 23, 2010
Are FEIN and Social Security Numbers (SSIN) both are same?
Similar in purpose to the Social Security Number assigned to individuals, EINs are used by employers, sole proprietors, corporations, partnerships, non-profit organizations, trusts and estates, government agencies, certain individuals and other business entities. The IRS uses this number to identify taxpayers that are required to file various business tax returns. Individuals who are employers may choose to either obtain an EIN or use their Social Security Number for the purpose of reporting taxes withheld on behalf of their employees.
Monday, March 22, 2010
Company Dissolution
Is it necessary to notify every member about the boards meeting?
The corporation must notify each director or shareholders, whether or not entitled to vote, of the proposed members' meeting. The notice must state that the purpose of the meeting is to consider dissolving the corporation.
When Will the Corporation be withdrawn?
The corporation will be withdrawn and its existence ended on the date the Certificate of Dissolution is filed and approved by the State. The Business Corporation Law does not permit the effective date of dissolution to be other than the date of filing of the Certificate of Dissolution by the State.
Who can Sign the Certificate of Dissolution?
The Certificate of Dissolution must be signed by an officer, director, attorney-in-fact or a duly authorized person. The name and title of the signer must be typed or printed opposite the signature.
Sourceinfotaxsquare
The corporation must notify each director or shareholders, whether or not entitled to vote, of the proposed members' meeting. The notice must state that the purpose of the meeting is to consider dissolving the corporation.
When Will the Corporation be withdrawn?
The corporation will be withdrawn and its existence ended on the date the Certificate of Dissolution is filed and approved by the State. The Business Corporation Law does not permit the effective date of dissolution to be other than the date of filing of the Certificate of Dissolution by the State.
Who can Sign the Certificate of Dissolution?
The Certificate of Dissolution must be signed by an officer, director, attorney-in-fact or a duly authorized person. The name and title of the signer must be typed or printed opposite the signature.
Sourceinfotaxsquare
Tuesday, March 16, 2010
What is Women-Owned business?
Federal and state government agencies do not provide any special structure to register or form women-owned companies. There is no special terminology used to form a women-own company with the federal and state. But there are some special programs are available on federal, state and county levels.
There are some agencies helping promote the development of business enterprises and non-profit organizations owned and operated by minorities or women.
You can contact the following organizations for any assistance regarding women-owned business schemes and if any help or grant available.
There are some agencies helping promote the development of business enterprises and non-profit organizations owned and operated by minorities or women.
You can contact the following organizations for any assistance regarding women-owned business schemes and if any help or grant available.
To Read More : What is Women-Owned business?
Monday, March 15, 2010
What is 501 (C) Federal Exemption for Non profit Organization?
According to the Internal Revenue Code, the nonprofit organizations or not-for profit organizations are exempted from a few federal income taxes; like Religious Corporation, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition or Prevention of Cruelty to Children or Animals Organizations and not-for profit organization can take pleasure of this facility.
Source www.infosquare.com
Source www.infosquare.com
Friday, March 12, 2010
What is registered agent?
A registered agent is the person appointed to accept legal documents on behalf of the corporation. If someone sues you, the papers will be served on the registered agent at the "registered office". Some states use the term "resident" agent. Corporations and LLCs must choose a person to act as their registered agent. There are no restrictions regarding who can be a registered agent other than the person must be located and available at a physical street address within the state during normal business hours.
Source http://www.infotaxsquare.com
Source http://www.infotaxsquare.com
Thursday, March 11, 2010
C-Corporation VS S-Corporation VS LLC
If you're incorporating your small business you may have heard that you should "form corporation" or "C-Corporation."
In a C-Corporation, the corporation pays income tax on profits of the corporation. If the corporation pays a dividend to the shareholders, this money is taxed again as income to the shareholders. It may not be as bad as it sounds, though. If you are working for your corporation you should be paid a salary. This salary is deducted from the income of the corporation before taxes, so it will only be taxed once. Depending on the business, salaries may use up most or all of the profit. As long as the salary is not unreasonably high, the IRS should not challenge it. Fringe benefits for employees such as health insurance may also be deducted by a C-Corporation, but not by an S-Corporation. For a profitable and growing company it may be better to be a C-Corporation. In a C-Corporation profits beyond salaries and other deductible expenses can be used by the company for growth rather than being distributed to the shareholders and creating taxable income for them.
An S-Corporation does not have the double level of taxation, corporate and individual, that a C-Corporation has. Instead, profits and losses are distributed among shareholders who report that income or loss on their own federal income taxes. This is the main advantage to electing S-Corporation status.
In a C-Corporation, the corporation pays income tax on profits of the corporation. If the corporation pays a dividend to the shareholders, this money is taxed again as income to the shareholders. It may not be as bad as it sounds, though. If you are working for your corporation you should be paid a salary. This salary is deducted from the income of the corporation before taxes, so it will only be taxed once. Depending on the business, salaries may use up most or all of the profit. As long as the salary is not unreasonably high, the IRS should not challenge it. Fringe benefits for employees such as health insurance may also be deducted by a C-Corporation, but not by an S-Corporation. For a profitable and growing company it may be better to be a C-Corporation. In a C-Corporation profits beyond salaries and other deductible expenses can be used by the company for growth rather than being distributed to the shareholders and creating taxable income for them.
An S-Corporation does not have the double level of taxation, corporate and individual, that a C-Corporation has. Instead, profits and losses are distributed among shareholders who report that income or loss on their own federal income taxes. This is the main advantage to electing S-Corporation status.
To Read More : C-Corporation VS S-Corporation VS LLC
Wednesday, March 10, 2010
Is it necessary to develop a partnership agreement?
A partnership agreement is the key to keep business on track although it is not necessary. It is a common practice that when two or more people work together, they are generally more concerned with their ideas, innovations and creative directions, rather than their legal status. However, it is important to consider and resolve the rights, roles and responsibilities of each member of the partnership in writing before a misunderstanding or dispute arises. Written agreement helps in this regards. Remember a solid partnership should be founded on good communication.
Friday, March 5, 2010
Sole Propietorship
A sole proprietorship is a company with one owner that is not registered with the state as a limited liability company (LLC) or a corporation. In some states, a sole proprietorship is referred to as a DBA (doing business as), as in "José Smith, doing business as Smith Heating and Air Conditioning."
Establishing a sole proprietorship is cheap and relatively uncomplicated. You don't have to file any papers to set it up -- you create a sole proprietorship just by going into business. In other words, if you'll be the only owner of the business you're starting; your business will automatically be a sole proprietorship, unless you incorporate it or organize it as an LLC. Of course, you do have to get the same business licenses and permits as any other company that goes into the same business
Unlike a corporation, a sole proprietorship is not considered separate from its owner for tax purposes. This means the sole proprietorship itself does not pay income tax; instead, the owner reports business income or losses on his or her individual income tax return. Note that all business income is taxed to the owner in the year the business receives it, whether or not the owner removes the money from the business
Legally, a sole proprietorship is inseparable from its owner -- the business and the owner are one and the same. As a result, the owner of a sole proprietorship is personally liable for the entire amount of any business-related obligations, such as debts or court judgments. This means that if you form a sole proprietorship, creditors of the business can come after your personal assets -- your house or your car, for example -- to collect what the business owes them.
A sole proprietor can be held personally liable for any business-related obligation. This means that if your business doesn't pay a supplier, defaults on a debt, or loses a lawsuit, the creditor can legally come after your house or other possessions.
Soruce : http://www.infotaxsquare.com
Establishing a sole proprietorship is cheap and relatively uncomplicated. You don't have to file any papers to set it up -- you create a sole proprietorship just by going into business. In other words, if you'll be the only owner of the business you're starting; your business will automatically be a sole proprietorship, unless you incorporate it or organize it as an LLC. Of course, you do have to get the same business licenses and permits as any other company that goes into the same business
Unlike a corporation, a sole proprietorship is not considered separate from its owner for tax purposes. This means the sole proprietorship itself does not pay income tax; instead, the owner reports business income or losses on his or her individual income tax return. Note that all business income is taxed to the owner in the year the business receives it, whether or not the owner removes the money from the business
Legally, a sole proprietorship is inseparable from its owner -- the business and the owner are one and the same. As a result, the owner of a sole proprietorship is personally liable for the entire amount of any business-related obligations, such as debts or court judgments. This means that if you form a sole proprietorship, creditors of the business can come after your personal assets -- your house or your car, for example -- to collect what the business owes them.
A sole proprietor can be held personally liable for any business-related obligation. This means that if your business doesn't pay a supplier, defaults on a debt, or loses a lawsuit, the creditor can legally come after your house or other possessions.
Soruce : http://www.infotaxsquare.com
Wednesday, March 3, 2010
Advantages of Filing Assumed Name Certificate, Fictitious Business Name or DBA
When you are starting up, you definitely want to keep costs low and the process simple. DBA Filing helps you to do that. You do not have the ongoing maintenance or the costs associated with forming a corporation or LLC. Once your business is running profitably, you may want to convert it to a corporation or LLC
• It allows you as a sole proprietor to use a business name rather than your personal name.
• It allows a single legal entity (corporation, LLC, etc.) to operate multiple businesses without creating a new legal entity for each business.
• Having an Assumed Name gives the business owner some creditability.
http://www.infotaxsquare.com
• It allows you as a sole proprietor to use a business name rather than your personal name.
• It allows a single legal entity (corporation, LLC, etc.) to operate multiple businesses without creating a new legal entity for each business.
• Having an Assumed Name gives the business owner some creditability.
http://www.infotaxsquare.com
Monday, March 1, 2010
Naming an Entity
Choose the name of your entity carefully. It is very important that your name portray the image you want for your new company. Legally, the name you select must not be "deceptively similar" to any existing company or must be "distinguishable on the record" of your state.
For example, if an LLC named Flower LLC exists in your state, you probably would not be allowed to name your business Flour Limited Liability Company. It is possible that the name you select will not be available; therefore, we ask for a second choice on the Entity order form. Additionally, most states require that the name you select show your business is a limited liability company, by including the words "Limited Liability Company," or the abbreviation LLC. If Corporation include the word "Inc”,” Corp" or "Incorporate" , "Corporate".
For example, if an LLC named Flower LLC exists in your state, you probably would not be allowed to name your business Flour Limited Liability Company. It is possible that the name you select will not be available; therefore, we ask for a second choice on the Entity order form. Additionally, most states require that the name you select show your business is a limited liability company, by including the words "Limited Liability Company," or the abbreviation LLC. If Corporation include the word "Inc”,” Corp" or "Incorporate" , "Corporate".
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