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What Does It Take To Turn A Summer Side Hustle Into A Small Business? by @DeborahSweeney

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by  | Featured Contributor

Summertime and the living is easy — especially when business is booming from your side hustle! If you’ve been running a successful summer side hustle for a few years now, you might want to consider spinning it off into a full-time gig.

What does it take to turn a side hustle into a thriving small business? It’s a much less intensive process than many entrepreneurs may realize, and follows certain step-by-step guidelines. Take a look at the best ways to prepare your side hustle to become its own year-round small business.

1. Draft a traditional or lean business plan.

You might have already created a lean business plan for your side hustle. If that’s the case, it’s time to add more details about the business. If you don’t already have a business plan, it’s also the time to draft one.

Most entrepreneurs choose to draft a traditional business plan or a lean startup plan. The format decided upon often depends on the needs of their business.

Consider a summer side hustle that has been around for several years. It has a proven track record of steady cash flow and offerings that continually appeal to consumers. As this side hustle pivots into becoming a full-time small business, a traditional business plan will provide an objective look into the company’s future.

A traditional business plan outlines the following areas:

  • Executive summary. The ability to explain who you are, what the business does, its industry, location, how it makes money, and why consumers want these goods and services.
  • Business description, concept, and strategy. What do your products and/or services do, and what makes them unique?
  • Industry analysis. A thorough analysis of your brand’s competitors.
  • Market analysis. A thorough analysis of your brand’s target audience.
  • Organization and management. The core responsibilities of your team members (if you have any employed).
  • Financial projections. Tables that provide information about cash flow, projected profit and loss, and a break-even analysis.
  • Financing request. A section specifically created for businesses seeking funding from investors.
  • Other additional information as it pertains to the company, like letters of incorporation and trademark registration documents.

A lean startup plan is a little less intensive, but covers these key areas:

  • Value proposition. A clear statement summing up the value your business brings to its market.
  • Key partnerships, resources, and activities. Information about any partners your business may have and resources that allow the business to create value.
  • Customer segments, channels, and relationships. The ability to define your target audience.
  • Revenue streams. How the business is able to make money.

2. Incorporate the business.

Incorporating a business, even one that starts off as a side hustle, provides the company with tons of valuable benefits. It allows you to build credibility much faster than businesses that do not incorporate, which shows customers that your company is legitimate.

Entrepreneurs may choose from a variety of entities to incorporate their side hustle turned small business. Some of these may include sole proprietorships, partnerships, corporations, and limited liability companies. LLCs, or limited liability companies, often tend to be quite popular with entrepreneurs. The entity is flexible in terms of management and also provides liability protection. This acts as a safeguard between personal and professional assets. In the event of an unforeseen circumstance, like a lawsuit, liability protection ensures that your personal property like cars and houses will not be impacted.

3. Register for trademarks.

Earlier I mentioned that trademark registration documents are generally kept in the appendix of a business plan. Chances are pretty high that your side hustle may have a unique name, phrase, symbol, design, or logo associated with it. This unique mark differentiates your business from competitors. However, if you do not register a trademark the unprotected mark may end up in the wrong hands and be plagiarized by copycats.

Kick off your plans to register your mark by conducting a trademark search. You may do this through the United States Patent and Trademark Office trademark database. This database provides more information as to whether or not another entrepreneur has claimed a mark similar to or the same as your own and if there are any pending marks. If it turns out your trademark is not available, you may need to go back to the drawing board in creating a new one.

However, if the trademark is available it’s highly advised to file a trademark application as quickly as possible. This allows you to register the mark for your business and have the peace of mind in knowing the trademark associated with your brand is exclusively yours.

4. File for any necessary business licenses and permits.

Every side hustle turned business is different with varying needs. Once certain side hustles become full-time businesses, they may require business licenses and permits to operate and remain in compliance. Check in with your local Secretary of State to determine which business licenses and permits your company is required to have by the city and state you do business in. These often vary, depending on the location and industry of the small business.

5. Conduct annual maintenance.

As your side hustle transitions into a small business, you may pick up even more legal necessities along the way like an employer identification number (EIN) and doing business as name (DBA). Remember that businesses incorporated as LLCs and corporations are required to file an annual report. This allows them to communicate any changes made in the business and stay in compliance with the state.

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

As CEO of MyCorporation Business Services, Inc., 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.

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.

 

Should You Incorporate As A Professional Corporation Or Professional LLC? by @DeborahSweeney

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by  | Featured Contributor

When it comes to incorporating a small business, I generally recommend a broad range of legal formations to entrepreneurs. These entities often include limited liability companies (LLCs), partnerships, and corporations. Each entity provides liability protection, which ensures the separation of personal and professional assets. Entities like these are also ideal across industries and occupations. Most entrepreneurs, whether they’re opening a bakery, starting a consulting business, or setting up a clothing boutique, can easily incorporate their business and find that their chosen entity is a good fit for them.

What about entrepreneurs in niche-based industries, like doctors and lawyers? These types of entrepreneurs come with specific practices and licenses. Their businesses are subsequently structured a bit differently and as such, would need to incorporate as either a professional corporation (PC) or professional LLC (PLLC).

Sounds like this describes your current occupation? Keep reading as we dig into what each entity does and why they matter for these types of professions.

Professional Corporation (PC)

What does a professional corporation do?

A professional corporation is a legal structure designed specifically by state law to protect the personal assets of licensed professionals. The entity provides limited liability protection, much like that of a traditional LLC. Your personal assets will remain protected in the event of a lawsuit or other legal obligations.

How does a professional corporation differ versus a traditional corporation? Again, much of the answer is found in what the practice does and its licenses. Shareholders, directors, and officers must all be part of the same profession. Proof of good standing, such as their licenses, must also be provided in order to qualify as a professional corporation.

A professional corporation is an ideal entity for… Businesses that offer professional services that require state licenses. Typically, these include companies that participate in the following activities.

  • Medical services
  • Legal services and representation
  • Accounting and financial services
  • Architectural services

What kinds of professionals benefit from a professional corporation? Take a look at the list below to see if you might qualify to incorporate as a PC.

  • Lawyers
  • Physicians
  • Engineers
  • Doctors
  • Dentists
  • Optometrists
  • Accountants
  • Architects

Are there are any additional benefits to incorporating as a professional corporation (PC)?

One of the greatest benefits to incorporating as a professional corporation is protection from any negligence or malpractice of the practice’s associates.

Many professional services have more than partner and/or owner associated with it. Let’s use the example that a partner working for a medical service caused an injury. Even if it was accidental, there is a possibility that this partner could be the target of a lawsuit. What would happen to the other owners? Would they also be at fault for what the partner caused? No. The professional corporation would step in and shield the assets of the other owners.

Professional LLC (PLLC)

What does a professional LLC  do?

A professional LLC is necessary for professionals that work out of states where licenses are required in order to perform services. Much like a typical limited liability company, a professional LLC will separate a professional’s workplace and personal assets. A PLLC also limited personal liability for claims that are related to the negligence or errors of partners.

A professional LLC is an ideal entity for… Businesses that offer professional services that require state licenses. Sound familiar? All of the aforementioned companies, like those in the medical and accounting industries, may file for a PLLC. The same goes for the listed occupations, including doctors, lawyers, and engineers.

Should I know anything else about incorporating as a professional LLC (PLLC)?

One of the biggest benefits to incorporating as a PLLC is the ability to establish a professional identity for your business and its services. However, it’s important to research whether or not the state you do business out of has authorized PLLCs.

What does that mean? Essentially, you want to make sure that the state has given PLLCs the go-ahead to limit personal liability for claims related to a co-partner’s negligence, so one partner is not solely liable for these claims. Some states provide this legislation. Others do not. Before moving forward with this entity, it’s a good idea to check in with the state you plan to do business in to see if they are authorized to offer PLLC formations.

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

As CEO of MyCorporation Business Services, Inc., 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.

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.

Empowering Women Going through Relationship Challenges: The Untold Stories of Divorce Coaching by Lilly Parks of @naked_recovery

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by Lilly Parks

The good news is that the divorce rates in the US have started dropping since 1990, and have followed a downward trend since then. And thanks to millennials who are doing things differently, the rates will likely continue to decline. This is according to a sociology professor at the University of Maryland, Philip Cohen, in his analysis of the American Community Survey (ACS) data.

Still, the divorce coaching industry is thriving, but not for reasons that you’d normally associate with it.

Divorce coaches make a living out of helping people, cope with the breakdown of a relationship. They also empower these men and women to become better. This makes divorce coaching a rewarding business, what with a bigger cause behind it. But the real reason that lawyers work with divorce coaches is that they’re the ones who take care of the non-legal work that lawyers and their legal staff generally don’t do.

It’s easy to associate divorce coaching as something similar to therapy, which is not exactly far off. But these independent third parties provide more than just encouragement, guidance, and motivation. Their work also covers pre-divorce, during a divorce, and after divorce.

The roles divorce coaches play

Before a divorce
● Assess a marriage to identify if there’s still hope to work on the marriage or if a separation or divorce is the only solution
● Assess the counseling needs of parents and children
● If the decision to get a divorce is final, prepare clients for the upcoming journey
During a divorce
● Help clients work through their financial and personal needs
● Encourage sound decision-making by providing clear information about the divorce proceedings to clarify thoughts and concerns
● Help a client build a personal support system

After a divorce
● Help set goals for the future
● Share the positives of divorce based on their own experiences since some divorce coaches have gone through divorce themselves

How divorce coaching helps and empowers women

● Hand-holding

While your friends and family can provide support, relying on them comes with its own emotional baggage. Family members could be pushing you to take your ex to the cleaners or suggest many ways that you can hurt the other party.
As an independent third party, a divorce coach can create a non-judgmental, patient, safe, and supportive environment for you to get down to what really matters without pressure. Emotions are also excluded.

● Overcome separation

And the emotional turmoil that comes with it.

Grieving the loss of a relationship is one of the many things that women go through following a breakup or divorce. A divorce coach will help you deal with the loss and then help you build your support system.

One of the first things they look into is the immense confusion you are experiencing and then help address your overwhelming emotions and fears.

Part of their job is to discuss major concerns, such as:
● How can you manage financially?
● What will happen to your children?
● How do you break the bad news to your children?
● How do you deal with co-parenting?

With a seasoned divorce coach, you will be able to navigate through the financial, legal, and practical challenges of divorce.

● Grow and learn

There are lessons to be learned following a divorce. But unless someone is guiding you to the right path, you may not see those important lessons. You could get stuck in the grief stage, never to move on from there. You could choose to use alcohol, drugs, and food to cope with the fallout rather than take good care of yourself.

The right divorce coach can help you appreciate the good side of such a horrific experience.
It is possible that you chose the wrong partner. You made mistakes that contributed to the breakdown of a relationship. By identifying what went wrong, you’ll know better next time.

● Help reboot and create a new life

After a divorce, the focus of coaches is to help a client establish a vision and goals for the future, both for the short-term and long-term.

This is how divorce coaching empowers women, especially women who experienced self-discovery and happiness following a relationship breakdown.

Short-term goals may include going on a divorce retreat to learn about mindfulness and meditation. Many women who went on a retreat post-separation came home with a new perspective. They got to know who they really are, which is the greatest gift you can give to yourself. Another goal is to travel a lot, which some women say has helped them re-evaluate their values in life.

A good example of a long-term goal is to live a healthy lifestyle. A study that appeared in the Journal of Women’s Health showed that 80,000 women became healthier after a divorce.

A divorce coach can help you set similar goals for yourself.

If you want to take back your power, you will find a guide and supporter in them.

Once you’ve rediscovered yourself, you can start building a new life, a new career, and a new you.

—————————————————————————————–

Lilly Parks is a Divorce Angel and part of the dynamic Naked Divorce team. She is committed to helping her clients find the path towards healing and has been providing assistance to those who are going through the difficult trauma of divorce for more than 5 years.

 

What Do Entrepreneurs Gain From Incorporating A Business? by @DeborahSweeney

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by  | Featured Contributor

Should you incorporate your business? Is it really necessary to incorporate if you want to run a business? As the leader of a business that specializes in document filing services, I hear the first question asked quite a bit by new and existing entrepreneurs alike. My answer is always a resounding ‘Yes!’ — and not just because it’s what I specialize in doing, either.

The second question is a little trickier to answer. In theory, you don’t have to incorporate a small business. Some entrepreneurs have side hustles that they choose not to incorporate. The reasons for this may vary. The gig, for instance, could be a side project you’re passionate about, but don’t make much money from or have a desire to expand into working on full-time. Another reason could be the incorporation process itself. This is often viewed as too time-consuming and boring to do… so entrepreneurs avoid doing it. However, entrepreneurs may not realize just how many benefits they’re missing out on simply because they chose not to incorporate.

Should you incorporate a business? Yes! Is it really necessary to incorporate? Also, yes! Let’s talk about all the great things you (and your business) gains from getting started.

Liability Protection

If you decide to form a limited liability company (LLC) or corporation for your business, these entities ensure that it receives liability protection.

What does this term mean, exactly? Liability protection maintains a separation between your professional and personal assets. If your business was delinquent on its debt, liability protection would ensure that personal assets, like houses and cars, were not impacted outside of the business.

Are there any entities that do not provide liability protection? The most prominent one is a sole proprietor. Many entrepreneurs incorporate under this entity due to its affordability. Acting as a sole proprietor also ensures that you, the business owner, are in control of the business. This kind of responsibility, however, means that any and everything that can happen — from accidents to product damages — holds you fully accountable. If the thought of unforeseen circumstances keeps you up at night, you may consider switching entities for liability protection.

Building Credibility

How do you feel after you’ve done business with a company that had an “Inc.” or “Corp.” in its name? There’s a bit of added trust that comes with shopping or investing with these types of businesses. Incorporating gives businesses an added boost credibility. This legitimizes the business, making it a win-win for both the company’s reputation and the trust customers are able to quickly establish with it.

Understanding The Structure Of Your Business

It’s not uncommon for an entrepreneur starting a business to ask themselves what type of business they want to own and operate. They have a pretty good idea of what their offerings will be and their given industry. What about the company’s legal structure?

Incorporating does more than provide liability protection, potential tax savings, and establish credibility for a small business. It also provides them with an entity that helps structure the company.

Let’s take a moment to compare and contrast what it means to incorporate as an LLC versus a corporation. An LLC provides a bit of added flexibility in its legal structure, such as the ability to choose an S Corporation as its tax entity. Forming an LLC is also ideal for small businesses that wish to stay small and independent. In the event that you choose to expand and would like to take the business public, you do not need to remain an LLC forever. You may change the entity to a public legal structure like a C Corporation when the time is right.

Corporations, on the other hand, are much more strict legal structures. Entrepreneurs that choose to incorporate as a corporation usually have big plans for their business, like raising capital, going public with an IPO, and expanding worldwide. A corporation would be the ideal entity for this kind of business structure. It allows entrepreneurs to accept money from investors, issue stock, and still keep the company protected through liability protection.

Incorporating Is Just The First Step!

Understanding the entity you want, and need, before incorporating your business ultimately provides it with a great foundation for success.

Don’t forget that you’ll need to check a few legal items off your to-do list after incorporating, too! Apply for basic business licenses that pertain to your company and its offerings, business insurance, an employer identification number (EIN), and any trademarks or copyrights necessary to protect your intellectual property.

———————————————————————

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

As CEO of MyCorporation Business Services, Inc., 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.

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.

How divorce coaching empowers women following a relationship breakdown by Lilly Parks of @naked_recovery

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by Lilly Parks

The good news is that the divorce rates in the US have started dropping since 1990, and have followed a downward trend since then. And thanks to millennials who are doing things differently, the rates will likely continue to decline. This is according to a sociology professor at the University of Maryland, Philip Cohen, in his analysis of the American Community Survey (ACS) data.

Still, the divorce coaching industry is thriving, but not for reasons that you’d normally associate with it.

Divorce coaches make a living out of helping people, cope with the breakdown of a relationship. They also empower these men and women to become better. This makes divorce coaching a rewarding business, what with a bigger cause behind it. But the real reason that lawyers work with divorce coaches is that they’re the ones who take care of the non-legal work that lawyers and their legal staff generally don’t do.

It’s easy to associate divorce coaching as something similar to therapy, which is not exactly far off. But these independent third parties provide more than just encouragement, guidance, and motivation. Their work also covers pre-divorce, during a divorce, and after divorce.

The roles divorce coaches play

Before a divorce

  • Assess a marriage to identify if there’s still hope to work on the marriage or if a separation or divorce is the only solution
  • Assess the counseling needs of parents and children
  • If the decision to get a divorce is final, prepare clients for the upcoming journey

During a divorce

  • Help clients work through their financial and personal needs
  • Encourage sound decision-making by providing clear information about the divorce proceedings to clarify thoughts and concerns
  • Help a client build a personal support system

After a divorce

  • Help set goals for the future
  • Share the positives of divorce based on their own experiences since some divorce coaches have gone through divorce themselves

How divorce coaching helps and empowers women

  • Hand-holding

While your friends and family can provide support, relying on them comes with its own emotional baggage. Family members could be pushing you to take your ex to the cleaners or suggest many ways that you can hurt the other party.

As an independent third party, a divorce coach can create a non-judgmental, patient, safe, and supportive environment for you to get down to what really matters without pressure. Emotions are also excluded.

  • Overcome separation

And the emotional turmoil that comes with it.

Grieving the loss of a relationship is one of the many things that women go through following a breakup or divorce. A divorce coach will help you deal with the loss and then help you build your support system.

One of the first things they look into is the immense confusion you are experiencing and then help address your overwhelming emotions and fears.

Part of their job is to discuss major concerns, such as:

  • How can you manage financially?
  • What will happen to your children?
  • How do you break the bad news to your children?
  • How do you deal with co-parenting?

With a seasoned divorce coach, you will be able to navigate through the financial, legal, and practical challenges of divorce.

  • Grow and learn

There are lessons to be learned following a divorce. But unless someone is guiding you to the right path, you may not see those important lessons. You could get stuck in the grief stage, never to move on from there. You could choose to use alcohol, drugs, and food to cope with the fallout rather than take good care of yourself.

The right divorce coach can help you appreciate the good side of such a horrific experience.

It is possible that you chose the wrong partner. You made mistakes that contributed to the breakdown of a relationship. By identifying what went wrong, you’ll know better next time.

  • Help reboot and create a new life

After a divorce, the focus of coaches is to help a client establish a vision and goals for the future, both for the short-term and long-term.

This is how divorce coaching empowers women, especially women who experienced self-discovery and happiness following a relationship breakdown.

Short-term goals may include going on a divorce retreat to learn about mindfulness and meditation. Many women who went on a retreat post-separation came home with a new perspective. They got to know who they really are, which is the greatest gift you can give to yourself. Another goal is to travel a lot, which some women say has helped them re-evaluate their values in life.

A good example of a long-term goal is to live a healthy lifestyle. A study that appeared in the Journal of Women’s Health showed that 80,000 women became healthier after a divorce.

A divorce coach can help you set similar goals for yourself.

If you want to take back your power, you will find a guide and supporter in them.

Once you’ve rediscovered yourself, you can start building a new life, a new career, and a new you.

 

—————————————————————————————–

Lilly Parks is a Divorce Angel and part of the dynamic Naked Divorce team. She is committed to helping her clients find the path towards healing and has been providing assistance to those who are going through the difficult trauma of divorce for more than 5 years.

My Fast Class in Business Law by Jackie Burke of #tiniluxjewelry

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by Jackie Burke | Featured Contributor 

This month was one of the most challenging and exciting months I have had as an entrepreneur. I had a fast class in business law and realized that I had been burying my head in the sand for too long.

Here’s the backstory: I launched my company, Tini Lux, in November 2017. My company is the first company to sell fashion earrings designed specifically for people with sensitive ears and metal allergies. It has truly defined a new category in jewelry. Prior to Tini Lux, earrings were given labels like “hypoallergenic” and “nickel free,” both of which were essentially meaningless because there are many reasons why earrings can reactions. Now, Tini Lux is a go-to, trusted source for people who want to be 100% sure that their earrings will not cause painful reactions.

When I launched my business, many well meaning people (without business experience) told me that if I could not patent my idea then I would never be successful. I believe this myth comes from watching Shark Tank, where the Sharks regularly ask the entrepreneurs if they have a patent on their invention.

My brand, while innovative and category defining, was not patent-able. That did not deter me though. I could list thousands of brands that do not have patents that are still very, very successful. I knew that the challenge was to build a brand and a destination that people could trust, and if I could do that then the success would follow (and it has).

What I did not realize though, is that although a patent might not be necessary for my company, there were other legal considerations that I was ignoring, like copyrights and trademarks. This all came to a head when I found out that my exact designs were being sold by another designer at Nordstrom! When I found this out I felt frustrated, disgusted, and violated. I am an avid follower of Diet Prada and The Fashion Law had read many articles about designers being ripped off, but I never expected it to happen to me.

I did my research and learned that from a legal standpoint what happened was a copyright infringement.  Jewelry designs are considered artwork under US copyright law.  A person becomes the owner of the copyright of original artwork the moment it is published. So, since my designs were original, I technically owned the copyright and both Nordstrom and this other designer were infringing on it.  Although I did own the copyright technically, in order to bring legal action against these other companies, I needed to officially register my copyright.

I immediately registered my copyrights for all of my original designs and trademarked my business name for my category of goods (jewelry). I contacted both companies with cease-and-desist letters and fortunately my copyrighted designs were removed immediately.  Although it is frustrating that they profited off of my work, I now feel more prepared and am more motivated to continue my efforts.

Now, on top of being a legally registered LLC, I have a registered trademark and copyrights for my original work. Hopefully this will deter other potential copy-cats, but if something like this happens in the future I will now be ready for action.  I am also choosing to be flattered by another designed copying me rather than be angry. After all, imitation is the sincerest form of flattery.

The S Corp Election Deadline is March 15th. What you need to know. by @CorpNetNellie

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by Nellie Akalp

Your LLC or corporation could receive better tax benefits by electing to file as an S Corp. However, with the March 15, 2019 deadline quickly approaching, if you want to be taxed as an S Corp for the 2019 tax year, here’s what you need to know.

S Corp 101

S Corps choose to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S Corps then report the income and losses on their personal tax returns, so they’re taxed at their individual income tax rates. You would elect the S Corp structure in order to avoid double taxation on the corporate income. 

To qualify for S Corp status, your business must meet the following requirements:

  • Be a domestic corporation
  • Have only allowable shareholders
  • May be individuals, certain trusts, and estates and
  • May not be partnerships, corporations or non-resident alien shareholders
  • Have no more than 100 shareholders
  • Have only one class of stock

Because the S Corp isn’t a legal business entity type, just a special election for tax purposes, an S Corp still offers you personal protection from liabilities of debt or lawsuits.

S Corps have some other advantages, such as:

  • They are only required to file once a year 
  • They are not subject to the double taxation of income (once as corporate income and once as dividends)
  • They can sell shares of stock, and 
  • They have perpetual existence, meaning the business continues to exist even if the owner leaves or dies. 

The expenses and paperwork are the same as corporations, such as filing deadlines and expenses related to incorporating and annual fees. You should also consider the limitations on shareholders and stock. Since S Corps are allowed to issue only one class of stock and are limited to 100 shareholders who must be either citizens or permanent residents of the U.S., it may limit your ability to raise capital for the business.

Be forewarned, S Corps tend to attract the attention of the IRS, especially when it comes to salaries and dividend payments to shareholders. If you make any mistakes regarding the filing requirements, you could lose the status of being an S Corp. 

Deadline Approaches

March 15, 2019 is the deadline to file IRS Form 2553 with the IRS to elect S Corporation status for this tax year and future tax years. If you don’t make the March 15 deadline, your business will remain being taxed as a C Corp for the current tax year, and then your S Corp election will be effective for next tax year. 

It is possible to file an extension for S Corp status (IRS Form 7004), but that doesn’t extend shareholders tax deadline which remains April 15. Once the S Corp form has been elected, your company must continue to meet ongoing filing requirements, such as:  

  • Reporting all financial activity on Form 1120S and attaching a Schedule K-1 for each shareholder
  • Withholding federal income tax, Social Security and Medicare taxes from employees’ paychecks (if the company has employees) 
  • Filing IRS Form 941 each quarter to report these withholdings. The form is due four times a year: January 31, April 30, July 31 and October 31. 
  • Filing a Federal Unemployment Tax Return each year using IRS Form 940

Be sure not to miss any filing dates, or you’ll receive a hefty penalty. You could get a pass on paying the penalties if you can show the IRS the failure to file on time was due to a “reasonable cause.” Merely, a lack of funds is not a reasonable cause for failure to file or pay on time. However, the reasons for the lack of funds may be okay.

According to the IRS, reasonable cause is based on all the facts and circumstances in the company’s situation. If your company used all “ordinary business care and prudence” to meet your federal tax obligations, but were unable to do so, this will be considered reasonable cause. Situations such as fire, casualty, natural disasters, the inability to obtain records or death, serious illness, or incapacitation of the taxpayer or a member of the taxpayer’s immediate family would meet the criteria.

Talk to your accountant to see if the S Corp election is a smart choice for your business and then let CorpNet take care of the filing for you.

What The Landscape For U.S. Women Inventors Looks Like by @DeborahSweeney

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This February, the United States Patent and Trademark Office (USPTO) released a report called “Progress and Potential: A Profile Of Women Inventors On U.S. Patents.”

The report opens by sharing the story of Hannah Wilkinson Slater. She is considered to be the first woman that received a U.S. patent for developing a new method of producing cotton-sewing thread in 1793. Hannah’s trailblazing entry into patents sets the tone for the report. “Progress and Potential” takes a closer look at U.S. women inventors named on U.S. patents from 1976 through 2016 and trends and characteristics of their patents. What do women inventors in the United States look like? Let’s find out through the report’s key findings.

Women (still) comprise the minority of patent inventors.

This rings true of Hannah Wilkinson Slater’s era and today’s modern world. Men obtained 32,362 patents between 1790 and 1859. Meanwhile, only 72 U.S. patents were credited to women inventors during that same time period.

Female inventor growth has been on a slow and steady up and up. Patents with at least one woman inventor grew from 7% in the 1980s to nearly 21% in 2016. Patents with at least one woman inventor also expanded from 5% to 14% from 1998 to 2016.

Compared to percentages for men, these numbers are still quite small. However, it’s interesting to note that female-only teams do not drive patent growth. Mixed-gender teams with at least one female inventor are among popular trends in patent inventor teams. They drive patent growth with women more likely to work on larger teams.

Women participate in science occupations at a higher rate than they invent patented technology.

This isn’t a ding at choosing roles in science and engineering instead of becoming a patent inventor. Rather, the study notes that women participate more in science occupations than invent patented technology.

Science and engineering fields have historically produced the most patentable inventions. The less women there are that pursue these fields, the number of patent inventors shrinks.

Studies show that the science and engineering workforce was made of 28% women in 2015. However, just 12% were patent inventors. While there are many factors at play for women to become patent inventors, it’s interesting to note that the participation rate most resembles women patent inventor rate in one field: engineering.

There are more women inventors in tech-intensive states.

Where do women patent inventors reside? Over a four-year period from 2012-2016, a little over 15% of women patent inventors lived in New York. Almost 15% could be found in Massachusetts with 14% in California.

It is not surprising to hear that women inventors reside in three states, particularly California. Progress and Potential notes that states on the coasts host technology clusters. It’s a bit easier to draw a patent inventor to a state that has a robust tech presence and workforce.

Outside of New York, Massachusetts, and California, three other states also account for high women inventor rates. These include Delaware, the District of Columbia, and New Jersey. From 2012-2016, 18% of women inventors with patent grants lived in Delaware. 17% lived in the District of Columbia and New Jersey.

Which state does the women inventor rate matter the most? California. According to the report, this state is home to the most patent inventors.

More patents are developed by entrepreneurs — and more women are pursuing entrepreneurship.

Survey data shows that in 2016, women accounted for 39% of new entrepreneurs. The report also notes that women who pursue entrepreneurship will do so more than they will invent patented technology.

While it may appear as though women are trading in being patent inventors to be entrepreneurs, the survey notes that entrepreneurs do develop many patented inventions. More women consistently become new entrepreneurs, allowing for higher participation in this field.

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

As CEO of MyCorporation Business Services, Inc., 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.

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.

Angel Investors In America: 3 Facts Entrepreneurs Should Know About These Financers by @DeborahSweeney

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You may already know the definition of an angel investor. This is an individual who invests in a startup using a portion of their existing finances. Chances are you may also be familiar with an angel investor’s involvement with a business, too. Most investors, once they have provided a startup with funding, require a stake in the company in exchange. Typically, this stake translates to shares or an equity position.

What you may not realize — or even think about — are the angel investors themselves. Who are these people? According to the Angel Capital Association’s initiative The American Angel Campaign, angel investors invest an estimated $25 Billion in 71,000 startup deals every year. Yet we know very little about these existing angels, or emerging angels. Luckily, research has been conducted and provided through The American Angel Campaign. Their first in-depth report explores what it means to be an angel investor in the United States. Let’s take a look at some of its key findings.

30% of new angels are women.

It’s not exactly a shock to find out that the vast majority of angel investors are men. More women, however, are taking on investor roles. Today, 22.1% of angels are female. 30% of new angels are also women.

While this number may be small for now, it is mighty. Angel investors are more diverse than venture capitalists where studies have shown only 9% of decision-makers at VCs are women. Furthermore, 38% of women entrepreneurs that raised outside capital have specifically wanted to work with women investors. It’s not likely that female angel investors will explode in expansion overnight, but it is likely that as time progresses more women will assume this role and invest in businesses.

Angels are educated, and tend to come from entrepreneurial backgrounds.

Naturally, most entrepreneurs reach out to angel investors for financing purposes. It also helps that the angel has an entrepreneurial background — or at least an understanding of business. 72.8% of the angel investors surveyed in report revealed they hold more than a Bachelor’s Degree. 51% have achieved a Master’s or MBA. At a whopping 57%, business is also stated to be their primary area of study.

Beyond school, the vast majority of angels have also held prominent leadership roles. The five most common careers included CEO of a startup (55%), for-profit company executive (55%), consultant (48%), for-profit company board member (46%), and middle management roles (38%).

There is a lovely line in the report that the angels surveyed are, essentially, “founders funding founders.” They might hail from various industries, but they understand the fundamentals of business and have held leadership roles. This makes them all the more valuable to work alongside bright-eyed startup business owners. Over time, they may even be able to build up a mentor-mentee relationship with their investor. For now, startups have the peace of mind in knowing they are working with accomplished individuals.

Many angels do not live in major cities.

We often assume that in order to get an angel investor’s attention, one needs to live or have a business in New York or California. However, 63% of angels surveyed in the study don’t live in New York City, San Francisco, or Boston. The greatest percentage of angel investors, 16.2% surveyed, reside in one of the Great Lakes states. These include Illinois, Wisconsin, Indiana, Ohio, and Michigan, as noted in their infographic.

Location may play a role in the size of checks written, too. The report reveals that angels outside of New York, California, and New England actually write larger checks compared to angels residing in these states. The median size check for New York, California, and New England is $32,432. Other geographic areas enjoy a bit of a bump — $36,920 — with their checks.

What does this mean for entrepreneurs? The report suggests that it may be beneficial to startups to seek funding beyond states traditionally associated with angel investments. However, it also states that the median check size is $25,000 across the United States. Angel investors, unlike venture capitalists, cannot invest millions into a small business. It’s important that you determine your financing needs and thoroughly understand where the money will go before approaching an angel investor. If you know you need more than what they can provide, a venture capitalist, or perhaps even a small business loan, may be a better fit.

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

As CEO of MyCorporation Business Services, Inc., 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.

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.

5 Tips for Licensing Your Company’s Copyrighted Work by Tina K Gehres of @Business_attys

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by Tina K Gehres 

As businesses of all types and sizes invest in branded content, the need for copyright policing is becoming more apparent than ever. That means not only monitoring for copyright infringement, but also granting licenses for uses deemed valid, viable or profitable. Licensing your materials can help you reach new audiences, gain brand recognition and build lasting partnerships, all while retaining control of your assets. While it is not necessarily difficult to license a copyrighted work, there are many things to keep in mind. The San Diego business attorneys at Gehres Law Group, P.C. offer their most important tips.

1. Know Your Property
Intellectual property isn’t always as straightforward as it may seem. While it is true that common law grants copyright immediately upon publishing a work, a federally registered copyright with the U.S. Copyright Office provides much more protection in the case of a dispute. Consider registering your works prior to licensing them, and remember that they must be in fixed or tangible form in order to be eligible for federal copyright. Works that can be copyrighted include literature, theatre, music, choreography, motion pictures, audio-visual works, architectural works, engineering designs and software code. You are not able to copyright names or slogans; they must be registered instead as trademarks.

2. Create a Clear Agreement
A licensing agreement is an absolute must-have. You can find templates online, but it is recommended to consult a business attorney with intellectual property expertise. They will be able to draft an agreement that is specific to your needs and goals, which may then serve as your own customized template if your circumstances permit. A licensing agreement outlines fees, royalties and any other payments by the licensee. It will also include the term (length), scope, uses, rights, warranties, indemnity, enforcement and other crucial details. In simplest terms, this document ensures you are both paid and protected during the engagement. If you do not have a license agreement and end up in a dispute, courts will typically look to common practices to guide their decisions, which often leaves owners in a less favorable situation.

3. Keep Detailed Records
All licensing agreements should be filed and backed up. If a licensee violates their license terms, accurate documentation will help your attorney settle the dispute either directly with the violating party or, if necessary, in court. It is also a best practice to create a database of your copyrighted and licensed works. This can be as simple as a spreadsheet showing the name of each work, to whom it is licensed and the date the contract expires. With the many calendar tools and integrations available today, you can even set a reminder to renew or renegotiate expiring licenses ahead of time.

4. Use Exclusivity Sparingly
Very rarely is an exclusive license the ideal engagement for the licensor. Yet, many licensees will seek exclusive rights. Understand that once you sign an exclusive license agreement, you will not be able to exercise your rights until they are granted back upon the expiration of the agreement. If you are giving exclusive rights for your copyright, the licensee should be projecting significant revenue to your business through any combination of royalties, fees, advances and minimum guarantees. While non-exclusive licenses can be implied, exclusive licenses must usually be written in order to be valid.

5. Monitor Usage
From a business perspective, intellectual property is a living, breathing organism. As such, license agreements should be monitored consistently to ensure licensees are abiding by the terms. Even in the most concise agreements, miscommunications can occur. It is better to catch a small misstep than an egregious misuse, especially considering the fact that there is an underlying business relationship.

Because of the risks and responsibilities that come with licensing copyrighted work, most organizations seek an intellectual property attorney who can provide reliable counsel in all areas of intellectual property law, including trademark and copyright registration, licensing and litigation. Rather than wait until a problem arises to hire a business lawyer, build a relationship and proactively establish processes to protect your property, brand and business.

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Tina K Gehres is the President and founder of Gehres Law Group, P.C. in San Diego, California. Ms. Gehres holds more than two and a half decades of legal and business experience. Today, she uses her experience to provide legal services to small businesses and individuals and has positioned herself as a valuable asset to all of her clients.