Deborah Sweeney, Author at She Owns It

So You Want to Dissolve a Business… by @deborahsweeney

November 12, 2015 by Deborah Sweeney Leave a Comment

by Deborah Sweeney | Featured Contributor

Whether things didn’t work out with your last venture, or you’re just moving on to something new, sometimes businesses close. Unfortunately, a lot of small business owners don’t know that there’s a process beyond simply closing your doors and putting a sign on the door. If you fail to officially dissolve your business with the state when the time come, you could end up paying unnecessary taxes, annual state fees, late fees, and additional charges. To avoid all that, follow these four steps:

File Articles of Dissolution

When a business terminates, it needs to file articles of dissolution (also known as a certificate of dissolution or a certificate of cancellation) to make the close official. If you do not file your articles of dissolution, your business will go on being an active entity in the Secretary of State’s eyes. That means that, legally, your business will need to continue filing its annual reports, paying state fees, and paying taxes, even if you are technically closed. You have the option of doing the paperwork yourself, but many small business owners opt for the use of a filing service to help ensure all the paperwork gets done correctly. If you do choose to file the articles yourself, just be sure to do your research- one incorrect paper could add up to some hefty charges.

Don’t Forget About the Annual Tax Return

Though filing your articles of dissolution will stop you from having to pay any future taxes, you still need to file an annual tax return for your last year of doing business. Even if you didn’t do business for almost the entire duration of the year, you still have to pay for the time you were in business. When filing your final tax return, check the ‘final tax return’ box to notify the state that this is your last one. This goes for your employment tax return as well.

Tell the Necessary People That You’ve Closed

Is your business registered with the state? Contact the state and let them know you’ve dissolved your business. All of the insurance providers associated with your business? Let them know the same. Anyone who has previously worked for or with your business needs to know that you will no longer be there. More than just the people who provided your business a service, like the state and your insurance broker, your partners need to be notified as well. Just a small note or an email letting them know that you’ve enjoyed working with them, but you will no longer be conducting business, is the courteous thing to do.

Try and Make Some Money

Lastly, regain some of the money you may be losing by selling what you can of your business. Everything from office necessities like the break room refrigerator to supplies and company machinery. Just be sure to report all your business assets. Take stock of what you have, and make the most of it.

————————————————————-

Deborah Sweeney – Legal Expert, CEO, MyCorporation.com – Calabasas, CA

As CEO of MyCorporation Business Services, Inc. (MyCorporation.com), Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With her experience in the fields of corporate and intellectual property law, Deborah has evolved from lawyer to business owner. She has extensive experience in the start-up and entrepreneurial industry as she has been involved in the formation of hundreds of thousands of businesses for MyCorporation.com’s customers.

Ms. Sweeney received her JD & MBA degrees from Pepperdine University. She is active in the community and loves working with students and aspiring entrepreneurs. She serves on the Board of Regents at California Lutheran University and is a founding member of Partners of Pepperdine. Deborah has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in the areas of corporate and intellectual property law. Ms. Sweeney is also well-recognized for her written work online as a contributing writer with top business and entrepreneurial blogging sites. She is a regular contributor on Forbes, American Express, Social Media Today, and BlogHer among many others.

Deborah Sweeney

http://www.mycorporation.com

Everything You Need to Know about Registered Agents by @deborahsweeney

September 3, 2015 by Deborah Sweeney 1 Comment

by Deborah Sweeney | Featured Contributor

Starting a business involves making a lot of choices, and with those choices comes the opportunity to do plenty of research. You have to choose the right entity to file your business as, you need to become an expert on small business taxes, and you need to weigh your options when it comes to hiring a registered agent service or being your own registered agent. Consider this your registered agent (or RA) research.

First of all, what is a Registered Agent?

A registered agent is an “agent” of your corporation or LLC. You’re supposed to officially designate this agent at the time of your incorporation or LLC registration in accordance with state requirements. The main role of a registered agent is to act as the representative for accepting Service of Process, and to forward any and all official legal and tax correspondence from the state to you, the business owner. They receive business and legal documents from county, state, and U.S. agencies. These documents include such things as notice of litigation (as mentioned above) franchise tax forms and annual report forms. Basically, a registered agent is an individual or entity who receives documents relating to the corporation. In most cases, having a registered agent, whether you act as your own or hire a service, is mandatory.

Why exactly do you need one?

Once a business is formed on the state level, most jurisdictions require corporations or Limited Liability Companies to designate a registered agent to receive documentation on behalf of the company. You also need one to remain in compliance with state law. If you don’t register and designate an agent your company: can’t legally enter into contracts and gain access to the state court system, is subject to monetary, civil, and possible criminal sanctions, and/or cause your jurisdiction to revoke a business’s corporate or LLC legal status.

Registered Agent Conditions

Your RA must have a physical street address in the state your company is formed. This means no P.O. Boxes. Additionally, the RA must be available during regular business hours to receive service of process. Their name and address needs to be listed on the formation documents of the business and that information is kept on record as the official contact for the company. In fact, registered agent information is considered a matter of public record.

Your Options

A small business owner can definitely act as their own registered agent, just be sure to understand all that that entails, like needing to stay open during standard business hours. You get to save some money and not deal with a third party service, but make sure you’re keeping everything compliant or you stand the risk of falling out of good standing.

You can also hire an outside service to act as your registered agent. Many business owners like this option because it gives them a sense of privacy. Were they to ever be served, the mail wouldn’t be delivered directly to them; it would be delivered to their registered agent. This way, if a document must be served to your company, it will be served to the independent third party, as opposed to serving you with legal and/or personal business documents in the presence of customers, clients, vendors, employees, and neighbors.

——————————————————–

Deborah Sweeney – Legal Expert, CEO, MyCorporation.com – Calabasas, CA

Deborah Sweeney

http://www.mycorporation.com

Can You Sue a Customer For Leaving a Bad Review? by @deborahsweeney

August 26, 2015 by Deborah Sweeney 1 Comment

by Deborah Sweeney | Featured Contributor

Do people love you on Yelp? Hopefully they do, since 90% of consumers who read online reviews say they influence buying decisions. A recent study from Cornell also found that people who read online reviews normally perceive them as an objective factor in their decision-making; despite the fact the individual reviews are highly subjective. Enough bad reviews, especially when a company first starts up, could sink the business.

Understandably, a lot of business owners don’t like how online review sites work. People tend to be more willing to leave a review after a negative experience, so companies with good overall customer service could still suffer. That feeling of powerlessness led some to take legal action against customers who leave bad reviews online, and I’ve talked to plenty of small business owners wanting to know if that was really an option. But the reality of the situation is much more complex than just sending a cease & desist letter to a disgruntled customer.

Is the statement defamatory?

Opinions are protected by the first amendment, be they good or bad. You cannot just sue somebody for saying something mean, even if you felt it hurt your business. The statement has to qualify as defamatory before legal action is even considered. Defamation is a completely false statement of fact that is injurious, and unprivileged. It is up to you to prove that a review is libelous, which you means you have to show it is not an opinion and that it is completely false. So the first question you need to ask yourself is whether or not the review is the customer’s actual experience with, and subsequent opinion of, your company. You and the reviewer may have totally different stories as to what lead to the bad review, but you can’t prove the customer didn’t have a bad experience. But if they write that a cashier punched them in the face and stole their wallet after they walked through the door, and there is surveillance of that day that shows the reviewer never even stepped foot in the business, there may be a case.

Do you have a non-disparagement clause?

Non-disparagement clauses can, in most states, be added to a contract that you require customers and clients to sign before doing business. But they are morally questionable, and in some states illegal – California passed a law at the end of 2014 that barred businesses from drafting contracts that include clauses limiting a customer’s right to make statements about the business online. But a business owner living in a state where non-disparagement clauses are allowed could, theoretically, use those to prevent customers from posting negative reviews, usually by threatening a fine if the clause is broken. But it seems nearly every time a business tries this, they get destroyed in the court of public opinion – just look at what happened to the Union Street Guest House. Further, clauses like that could be painted as unconscionable if the case did wind up in court. Essentially unconscionability means the terms of a contract are unenforceable if they are so one-sided that a reasonable person would never knowingly agree to them. So not only are non-disparagement clauses bad for business, but they inhabit a very grey legal area.

What do you want to gain from this action?

Users who leave reviews that can actually be considered defamation usually cannot be reasoned with. There is no point to responding because any response would essentially be ‘that didn’t happen, and we can prove it.’ Legal action is an option for those reviews, provided the review is injurious to the business. But if you just want to censor everyone who writes negatively about your business, you need to re-examine how you respond to complaints. Sending a cease & desist or taking other legal action, more often than not, slams a company with negative PR. One bad opinion turns into thousands. Rather than intimidate a disgruntled customer into removing their review, reach out and try to solve the problem. Most review sites let business owners respond, and responding to complaints with calm, reasoned answers looks way better than having a lawyer send angry letters.

So can you sue a customer for leaving negative reviews? Yes, in some cases, but most of the time it’s better to just reach out, talk to reviewer, and try solving their problem.

—————————————————————-

Deborah Sweeney – Legal Expert, CEO, MyCorporation.com – Calabasas, CA

Deborah Sweeney

http://www.mycorporation.com

Hiring a Summer Intern? Here is What You Should Know by @deborahsweeney

July 30, 2015 by Deborah Sweeney Leave a Comment

Photo Credit: Vladimir Yaitskiy via Compfight cc

by Deborah Sweeney | Featured Contributor

Good news internship fans – a recent ruling by the US Appeals Court in Manhattan re-affirmed the legality of unpaid internships last week, knocking back a 2013 decision that the interns for certain media companies were due compensation because the businesses benefited from their work. Personally, I’ve always recommended paying your interns, but I understand that isn’t always possible. And, with school out and summer officially underway, many college students are looking for real-world experience. Labor standards for unpaid internships are deceptively simple. The Department of Labor published a handy worksheet on the subject, but the rules are broad, and enforcement is notoriously patchy. Thankfully this recent ruling, and a few other cases, clarifies a few points.

You have to teach them

That is take-away number one for this case. Legal unpaid internships must be tied inextricably to the intern’s education, and the intern must learn more than they would have as a standard employee over the first few months of a new job. Now that doesn’t mean you can’t ask them to pick up coffee, but the vast majority of their work must be a practicum of their broader education. The court case mentioned above shows this is fast becoming one of the biggest litmus tests for the legality of an unpaid internship. A for-profit company thus can’t just saddle an unpaid intern with busywork like answering phones or making copies. You must teach your interns. Social media firms, for example, should cover ROI standards and measurement. Construction companies should cover order fulfillment and jobsite management. When planning an intern’s workload, look at the intricacies of running a business in your industry, and base it on that.

They can’t replace paid employees

Your intern cannot be a free secretary or personal assistant. In fact, they have to be closely supervised at all times. Sticking them behind the front desk or on the phones with some vague instructions to greet and route customers obviously does not meet this requirement. But even if their job is chock full of teachable moments and industry-related education, they still cannot displace a regular employee. A good way to test this is to first figure out under whom you’d like the intern to work. That way they have a direct supervisor, and you aren’t using them in lieu of hiring another employee.

Interns cannot benefit your company

At least from a pragmatic standpoint. Businesses hire interns for different reasons – sometimes it’s an attempt to inject new ideas into the company, other times it’s simply an act of philanthropy. But whatever the reason, a business cannot be the primary beneficiary of an unpaid internship. In fact, if you can prove work was actually impeded, you’re in a good position. This point is what landed the defendants in the cases ruled on last week in trouble. The plaintiffs argued that their employers benefited from their work, so they deserved a paycheck. You thus must make sure that no part of your business is dependent on an unpaid intern – if it is, they are benefiting your company.

As I mentioned before, I’m a big proponent of internships, and while I pay my company’s interns, I see the merit in unpaid opportunities. But, as the argument over whether interns deserve an income rages on, it is up to the providers of these internships to stay abreast as to what is expected. Above all else, ensure that any unpaid internships you offer are, first and foremost, educational. Sticking unpaid interns with your best employees – or even directly under yourself – is a good way to make sure your company meets supervision and teaching requirements. As long as your interns feel they are learning, and are appreciated, you’ll have a smooth summer.

————————————————————–

Deborah Sweeney – Legal Expert, CEO, MyCorporation.com – Calabasas, CA

Deborah Sweeney

http://www.mycorporation.com

How to (Legally) Run a Summer Business by @deborahsweeney

June 10, 2015 by Deborah Sweeney 5 Comments

by Deborah Sweeney | Featured Contributor

Summer is literally right around the corner, and it seems that warm weather and entrepreneurialism go hand-in-hand. Every summer, without fail, I hear about all sorts of new business ideas and ventures popping up. Unfortunately, these businesses are often seen as side-projects, so only a few of summer’s new entrepreneurs treat these ventures as real companies. And, while I know there are plenty of clandestine Etsy and eBay shops operating under the table, you really don’t want to play that game, or your fun summer project could become a nightmarish tangle of fines and late-fees. For anyone thinking about opening up a side-business during the summer, here’s what you need to know to keep everything aboveboard.

Taxes

You really, really do not want to get on the bad side of the IRS. Self-employment tax is no joke, and if the IRS thinks you’re trying to avoid what you owe, you could be audited. And don’t think low sales grant an exemption. Anyone who earns a net of $400 or more during the tax year must report that income, and pay self-employment taxes. Underestimating success is one of the biggest mistakes I see new small business owners make. Trust me – it doesn’t take long to hit that $400 threshold. On top of that, if you expect to owe more than $1,000 in income tax, you also have to send in estimated tax payments. Now, this is not all bad news. Your workspace/office, and even some start-up costs, may be deductible as long as the company made a profit, or was run with the clear intent of making one. Keeping track of your finances and tax obligations, then, is really in your best interest.

‘Doing Business As…’

Making businesses register a ‘Doing Business As’/Fictitious/Trade name is a fraud prevention measure. States require them so that fraudsters aren’t able to hide their identity behind the business, scam people, and then go into hiding. The only time you don’t need a DBA name is when you’re selling a product or service under your legal name. But if you change it slightly, you will need to register. For example, if your name is Jane Doe, and you sell flowers, you can call your shop Jane Doe and avoid filing a DBA name. But if you put Jane Doe’s Flowers in an advertisement or on a sign, you have to file the paperwork. A lot of summer businesses use online storefronts with admittedly cute and clever names, but fail to register them. Remember, once you start selling under that name, you are legally obligate to register the DBA with your state. That registration will also allow you to open up a business bank account, and accept payments made out to the company. So, again, following this rule is a good idea as so much is tied to a DBA.

Licensing

Licensing is vastly misunderstood – unless you’re selling a federally regulated product, like liquor or firearms, a business license is more of a way for your state, and occasionally your city and county, to make a little extra money and keep track of their local economy. Know that city, county, and state governments all keep an eye out for companies doing business without a license by trying to find evidence of business-related activity. Listing your company in a public directory, or putting out any sort of marketing material, even online, could count as business activity. Thankfully registering isn’t too hard. Most states, and even some local governments, put all the forms online. All you have to do is fill them out and send in a check. One important thing to keep in mind, though, is that you may have to file an extra form if the business is operated from a residence.

Taxing, a DBA name, and licensing – those three small hurdles are normally all that set a clandestine business apart from a legal one. My advice is always to run a business like a business. That means keeping good records, reporting income, paying taxes, and filing the paperwork you need to stay on the good side of the local, state, and federal governments. This may seem like a lot of work for a summer business, but trust me; the resulting peace of mind is worth the effort. Plus, you never know – this small summer experiment could wind up being your new career!

————————————————————————————

Deborah Sweeney – Legal Expert, CEO, MyCorporation.com – Calabasas, CA

Deborah Sweeney

http://www.mycorporation.com

Why You Should Be Protecting your Logo with a Trademark Today by @deborahsweeney

April 2, 2015 by Deborah Sweeney 1 Comment

by Deborah Sweeney

They say a picture is worth a thousand words. A logo, then, can tell your customers more about your business than your name, or even the “About Us” section on your website, could ever tell them. Think about your favorite brands: Nike’s swoosh, Target’s bull’s-eye, and Wendy’s freckled cheeks. When we think about these businesses, the first images our brains conjure up are the logos that come with the brands. With so much riding on your company’s logo, it’s important to keep it protected- ensuring that no other company can claim it as their own.

But first things first, what exactly is a trademark? A trademark is used to protect your business’s logo, designs, symbols, phrases, or name so that competitors can’t use the same or extremely similar marks that you do. A trademark is your property. By registering a trademark, you have exclusive rights to use it, and no one else can infringe upon that right. With proper use and enforcement, trademarks will enforce the individuality of your business for an unlimited amount of time.

So why do you need one?

Don’t confuse your customers.

As mentioned above, a trademark makes your logo your legal property keeping other people from using it. Imagine creating a great logo for your business. You’ve been in business for about a year, and the community is really starting to get to know and love your business, largely thanks to the use of your logo. Then a new small business pops up in the same industry, who happened to create a very similar logo. If your logo is not protected, not only will your customers be confused, but if that company were to ever receive any bad press, it could easily be mistaken for yours. Avoid all of this from the beginning, and trademark your logo! Just remember that there’s some leeway when registering trademarks in different states. So Amy’s Bakery in California and Amy’s Bakery in Idaho can both be registered as “Amy’s Bakery” as long as the two have different fonts, color, or use different images. Though, one mark cannot tarnish another or bring about any sort of confusion.

Establishing your brand is important.

Look at the magnitude of the Nike brand. When you think Nike, you think of healthy, active, hard-working, driven people working to better themselves through activity. This concept of activity and hard work correlates strongly with the brand’s logo: the swoosh. Even the logo looks active; like it’s in motion.

When you decide on the logo for your small business, you are dictating the emotion and vibe that will be associated with your business throughout its entire life. The first step to creating a killer brand is a killer logo.

It’s not a difficult process.

The process can be a long one, but is not overly complex. You have to apply to the USPTO (the United States Patent and Trademark Office) and wait about a month for the office to examine your mark and identify any problems with the registration. After the initial month and examination, what you’ve submit enters a 30 day waiting period where upon other people are allowed to challenge your right to register. After this waiting period, the trademark is yours. So besides the application process, it mostly amounts to a whole lot of waiting. Or, if you want to simplify the process even more, lots of small business owners choose to file their trademark through a filing service. These services will prepare the paperwork for you, verify that the mark is unique and not already registered, and carry out all necessary transactions with the USPTO on your behalf.

——————————————————-

Deborah Sweeney – Legal Expert, CEO, MyCorporation.com – Calabasas, CA

Deborah Sweeney

http://www.mycorporation.com

What Small Business Owners Need to Know About Tax Extensions by @deborahsweeney

March 20, 2015 by Deborah Sweeney Leave a Comment

by Deborah Sweeney | Featured Contributor

Tax season is here, and there’s only about a month left until the April 15 filing deadline. With around 20-25% of tax-returns normally filed during the last two-weeks leading up to that date, there are still plenty of people scrambling to get everything in order. When you run a small business, this deadline can be especially difficult to meet given the sheer amount of paperwork you have to deal with. But if you count yourself as one of those rushing to get their returns filed, you should know that the April 15 deadline isn’t as hard as some people believe. In fact, you can file for a six-month extension. Filing an extension isn’t common, but it isn’t unheard of either – the IRS says that, on average, around 7% of filers ask for one every year. If that sounds like something you may be interested, here is a basic rundown of what you need to know about filing extensions.

You need the right forms

What would tax season be without forms? The IRS has a handy page that lists all the different types of extensions you can file, but most small business owners will need Form 4868 for individual returns. In order to qualify, you’ll need to accurately estimate your tax liability and file the form by April 15^th. Of course, there are other types of tax forms that small business owners may be concerned about. If your company is a partnership, you need to file a 1065 and send K-1’s to the partners by the 15^th of the 4^th month following the end of the partnership’s tax year – normally this is April 15^th. Corporations, on the other hand, have to file their forms by March 16^th. But if you missed the important dates for partnerships and corporations, you can also file for an extension with Form 7004.

You still have to pay

A filing extension isn’t meant to give you six months to get the money you owe together. The IRS has payment plans to help with that problem. Rather, it’s to give you time to file your returns properly, so they still want you to send in what you think you owe. But, under normal circumstances, as long as you’ve paid at least 90% of your estimated tax liability when you file your request, and the rest of what you owe by the filing extension, you will not be assessed any penalties or fines. This is far better than the 5% failure-to-file penalty they’ll usually tack on for every month following the missed deadline.

So is it worth it?

That all depends on why you are filing for an extension in the first place. Like I said, a deadline extension isn’t an excuse to not pay what you owe for six months. But nearly every small business owner should be filing estimated tax payments anyway and, by April 15^th, you’ve likely surpassed that 90% mark. Really, the best part about a deadline extension is that it gives you time to really look through your books and maximize your refund. A tax refund is a real boon to a small business, so you obviously want it to be as large as you can get it. So if you’re feeling rushed, and want to spend as long as you can maximizing your refund before filing, an extension could be the answer. Just don’t make a habit of asking for them – most advise sticking to the standard deadlines set by the IRS.

—————————————————————————————-

Deborah Sweeney – Legal Expert, CEO, MyCorporation.com – Calabasas, CA

Deborah Sweeney

http://www.mycorporation.com

3 Things to Remember When Selling a Business by @deborahsweeney

February 20, 2015 by Deborah Sweeney Leave a Comment

Photo Credit: Mattias F via Compfight cc

by Deborah Sweeney | Featured Contributor

There are lots of reasons to sell a business. You could get a great offer you just can’t refuse, you could be reaching an age of retirement and feel as though you’ve accomplished everything you set out to do, or the money could simply run out and the only good choice you have left is to sell. Whatever the reason, there’s a right way and a wrong way to sell your business. For something you poured so much of your heart and soul into, you want to make sure that your business is seen off in the best way possible.

Here are three things to keep in mind to maximize your profits and do your business justice:

Talk to a professional.

As much as you don’t want to have to fork over any more money to someone to help you sell your business, a financial advisor or broker can be invaluable to the selling process. You built your business from the ground up, of course you think you’re the most qualified to sell your business- you know it inside out! But it’s their job to get you the most money possible. Their commission is riding on the transaction as well. They’re going to do their absolute best because it’s not just for you and your business, it’s for them. In the end, the extra money that a financial advisor or broker can earn you will more than cancel out the money you spent on hiring them.

Plan, plan, plan!

As simple as selling a business may seem in theory, there’s a lot that goes into the process. And even though you probably view yourself as the expert of your business, there’s still a good amount of research and prepping that needs to be done. Your potential buyers will want to take a look at your lease, tax forms, balance sheets, permits, and other information regarding the state of your business. Be sure to have all of this on deck along with a clear explanation as to why the numbers are the way they are. With all of this paperwork to get through and organize, I suggest starting to research and organize up to six months prior to actually putting your business on the market. You don’t want to be scrambling at the last minute, in front of your buyers, to find and present the necessary paperwork.

Be confident, but not too confident.

It’s perfectly fine and normal to be proud of your business. You built it all on your own and you know what it’s truly worth. That being said, no one wants to buy from the cocky guy. Saying that your business is worth way more than it really is not only makes you look cocky, but it also makes you look like you don’t have any educated idea about what the current market is like. Just remember to do your research, gain valuable opinions, and be realistic.

———————————————————–

Deborah Sweeney – Legal Expert, CEO, MyCorporation.com – Calabasas, CA

In her ‘free’ time, Deborah enjoys spending time with her husband and two sons, Benjamin (8) and Christopher (6). Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Follow her on Twitter @deborahsweeney and @mycorporation.and Buy More Shoes! After reading my book people kept asking me what they needed to do next. How could they get training? That’s when I became the Founder of The Mine System Of Learning. I wanted to produce courses to help people gain or sharpen their skills so they could claim ownership of their business and say, “Yes! It’s MINE”!

My second book: The Secret Equation To Attracting More Clients – Marketing + P Factor + Video = $$$$ helps businesses find out what makes them different so they can stand out from the competition and attract more clients.

As an Award winning Videographer and Photographer I’ve been published in such places as DIY Bride, Kiss My Tule and the Florida Wedding Atlas. My video expertise has been featured on The American Express Open Forum.

Twitter Facebook Google+

Deborah Sweeney

http://www.mycorporation.com

New Year, New Tax Laws: How They May Affect Your Small Business

January 5, 2015 by Deborah Sweeney 2 Comments

Photo Credit: msjacoby via Compfight cc

by Deborah Sweeney | Featured Contributor

Happy New Year! Hopefully you had a relaxing and calm holiday season, because January is going to be busy. Most of us still need to wrap up everything from last year, get all of our bookkeeping in order, prepare for the quarterly payment due January 15^th, and then the big April tax deadline. And, with all of this extra work, it can be hard to stay on top of how taxes are actually changing this year. Luckily, 2015 shouldn’t be too shocking, but there are some adjustments that you should be aware of.

It’s now easier to save for retirement

The IRS increased the contribution limit for 401(k)s by $500 to a grand total of $18,000/yr. If you’re over 50, your catch-up contribution limit has also increased by $500 to $6,000/yr. And while this may not sound like much, an extra $500/yr over the course of your career could yield significant returns. The IRS also upped the lower-income limits for those eligible for a ‘saver’s credit’ – the amount of this credit depends on AGI and filing status. And, finally, a new type of retirement account called MyRA has been set up by the US treasury to offer those without an employer-sponsored retirement plan a way to more easily save for their golden years.

Nexus standards are being clarified or lowered

Different states have different standards for what constitutes a ‘nexus point’ – the point where a business has enough of a physical presence within a state that they should collect sales tax. 2014 was rife with nexus-related controversies, with Amazon fighting tooth and nail to keep from having to collect sales tax in the states it ships to. Because of this, a few states have either clarified or lowered their nexus point. In New York, any business doing more than $1 Million in sales to New York customers now has to collect sales tax for the state. Last year Texas forced a Utah-based computer and digital program firm to pay 8-years of sales tax after the comptroller proved ‘sufficient contact with, or activity with, the state.’ Nexus laws are broad, and are moving targets, so if you do a significant amount of sales within an outside state, meet with your accountant to ensure you’re meeting any tax-collection requirements. Even an act as innocuous as web-based advertising could be enough to establish nexus in some states.

Health insurance restrictions are harsher

The penalties for not having health insurance are set to increase in 2015. Whereas last year the penalty was the greater of either $95 or 1% of your total income, this year it has been pinned at the greater of $325 or 2% of total income. Further, as of 2015, any employer with fifty or more full-time employees must offer coverage to the company’s employees, and their dependents. If at least one full-time employee receives premium assistance after purchasing health-care on the open exchange, the employer will have to make an Employer Shared Responsibility payment.

Some deductions and credits were extended

Congress once again waited until the eleventh hour to extend over 50 tax breaks that individual filers and small businesses have enjoyed over the last few years. People are again allowed to deduct state and local sales tax, rather than just state and local income tax. Research and new market credits were approved through 2014, as were the 50% bonus depreciation and the $500,000 Section 179 limit. Now there is no telling whether or not any of these breaks will be extended through 2015, so if you can take advantage of them when filing 2014’s return, make sure you do.

2015 shouldn’t see to many radical changes to tax and business law. But it’s important to know what has, and what could, change – otherwise you might find yourself with some serious fines. As always, I strongly recommend you meet with your accountant or another tax professional to review your records from 2014, and to make sure you’ve paid what the IRS and state agencies expect. Then you can start focusing on making 2015 one of your business’s best years.

—————————————————————————————

Deborah Sweeney – Legal Expert, CEO, MyCorporation.com – Calabasas, CA

Deborah Sweeney

http://www.mycorporation.com

Four Popular Myths About Intellectual Property Protection by @deborahsweeney

October 24, 2014 by Deborah Sweeney Leave a Comment

Photo Credit: NEC Corporation of America via Compfight cc

by Deborah Sweeney | Featured Contributor

The average person usually doesn’t know much about intellectual property law. They can probably rattle off what a patent is, or what a copyright does, but that’d plumb the depth of their knowledge. And that’s fine – IP law is notoriously complex. The problem is that so many people continue to believe old myths about intellectual property protection because they don’t know any better. So, to help dispel old rumors and hopefully answer a few lingering questions about intellectual property protection, I decided to breakdown four of the most common myths I hear.

Myth 1. You can patent an idea

You cannot patent an idea – plain and simple. Having an idea doesn’t make you an inventor. You have to show that idea could be made into something – it has to be developed and proven. Now don’t get me wrong, the idea stage is very important, but you cannot just stop there. Otherwise people would be patenting all sorts of outlandish ideas without ever figuring out a way to develop them, and creating something new would be a complete headache.

Myth 2. If you register an IP in the USA, you’re protected worldwide

A United States patent, trademark, or copyright will normally only protect your idea in the United States. Different countries have different laws for intellectual property protection. Thankfully, there are some international treaties that do make protecting IP in foreign countries a bit easier. The World Intellectual Property Organization can help you navigate international patent and trademark protection, and the US Copyright Office has signed treaties with foreign nations to respect foreign copyrights.

Myth 3. Markings and notices are irrelevant

Notices and marking may not be legally required to claim ownership of an IP, but it is still wise to include them. You technically own a trademark once you use it on the market, and a copyright is yours once the artistic work is put down in a tangible form. However, including a notice or marking informs everyone you are claiming ownership of that IP, which makes enforcing that ownership easier and helps you defend against claims of ‘innocent infringement.’ Further, the federal government only allows the use of the ® symbol for trademarks registered with the USPTO and, if you don’t use it, you could forfeit your right to recover damages.

Myth 4. Postmarks can replace patents and copyrights

I’ve been asked if this one is true more times than I can count. Often called the poor-man’s patent, or the poor-man’s copyright, the idea is that if you stick your idea in an envelope and mail it to yourself, you can prove the idea was yours based on the date on the postmark. Not only is this a total myth, it could wind up hurting you. In order to be patentable, and invention has to be actively developed and practiced. All your self-addressed letter would show is that, at some point in the past, you mailed an idea to yourself and then never developed it. As far as copyrights are concerned, you have rights to it the minute it’s put into a tangible form. You should still register it with the US Copyright Office though – postmarks still haven’t been established as valid proof for right of ownership.

Proper intellectual property protection is vitally important, which is why these sorts of rumors are so harmful. Your ideas, brand, and inventions are what your business is built on. Whenever possible talk to a professional, review your IPs, and see what you can do to shield yourself from infringement.

———————————————————————————

Deborah Sweeney – Legal Expert, CEO, MyCorporation.com – Calabasas, CA

Deborah Sweeney

http://www.mycorporation.com