DBA in California
Filed Under: Delaware, INC Knowledge
Tags: Delaware, INC Knowledge
Many of our clients that form Delaware companies are from California. Also, a majority of these businesses are physically operating in California. The reason they form a Delaware company may be because California’s corporate law structure is known for being one of the worst out of the 50 states. So rather than form a California company, they will form a Delaware company and register it to do business in California. For more information on registering as a foreign entity in California, click HERE to see our previous article on this topic.
Also, while operating in California, many of these businesses choose to operate under a different name than what was filed with the Delaware Secretary of State. California states that individuals or entities doing business for profit under a name different from the owner’s full legal name must file a “Fictitious Name Statement” with the county clerk’s office in the county where the business resides. This is called a “Doing Business As” name or “DBA”. Before applying for a DBA in California, they require that you register your Delaware company as a foreign entity in the state of California.
By registering as a foreign entity, you will receive a Certificate of Authority. This will be needed when you register a DBA.
Example of a DBA: let’s say John Slice forms a Delaware company called “John Slice LLC” but he wants to operate in California under the name “Good Guy Delivery Service” instead of using his business’ legal name. In order to use Good Guy Delivery Service, John will need to register that name as a fictitious business name with the county clerk’s office in the county where he resides.
Beware! Filing a DBA does NOT protect you from personal liability the way incorporating does. When we file your LLC or Corporation with the Delaware Division of Corporations it creates a whole new entity, which is separate, in most legal respects, from its owners.
Dissolving Your Company Before the New Year
The 4th Quarter of the year has come around again. For some, it is time to start thinking about your 2012 business goals, however for others it may be time to consider cancelling your company. We file thousands of companies each year and the unfortunate truth is that not all of those companies will continue to operate year after year. While we don’t like to see a business close, we do appreciate the opportunity to serve as your registered agent. For those business that will not be operating in 2012, now is the time to consider a cancellation or dissolution. Cancelling a business now rather than after the first of the year will save you from paying another year of franchise tax.
This is how it works: When franchise taxes are paid in March and June (March for a corporation, June for an LLC) of any year, they are paying the tax for the previous year. So when you paid franchise taxes in 2011, you were paying for the 2010 operating year. These taxes are not pro-rated. If you were open even one day in 2010, you paid the entire franchise tax in 2011. Just like for a business active now, they will owe a franchise tax in 2012 for the current 2011 year.
So when closing your business in 2011, there will be a cancellation/dissolution fee, as well as the franchise tax payment for 2011. This franchise tax payment would typically not be due until 2012, but when you close the company, all taxes are due at the time of the cancellation/dissolution.
Contact Harvard Business Services for help with this service. HBS will prepare a Certificate of Cancellation/Dissolution for signature, and forward via fax or email. Once executed, the Cancellation document will need to be returned by fax or email to Harvard Business Services. Then the Certificate will be filed with the State of Delaware later that day. The State typically takes 3-5 business days to return the receipt of filing. As soon as the approved Cancellation document is available we will forward it to you for your records.
This document is the death certificate for the company. Sometimes banks will ask for it when closing out company bank accounts. You may also be asked by your accountant to provide this document when preparing your taxes, because the IRS will require it with your “Final” tax return.
Best of Both Worlds Deal
Filed Under: Delaware, HBS Announcements
Tags: Delaware, HBS Announcements
Take advantage of $50 off now, and still receive a 2012 filing date!
Until the end of the year, all new company formations are $50 off. So if you need a new Delaware company this year, it’s time to get it done NOW!
However, remember, if you file a new company in 2011 you will have to pay the 2011 Delaware Franchise Tax in 2012. Because of this, some clients prefer to wait until the first business day of 2012 to file their new company to avoid the franchise tax for 2011. If you’re filing an LLC, waiting will save you $250.
However, if you wait to call us to file your 2012 Delaware company until January 2012, the 2011 year-end sale will be over and you won’t be able to take advantage of the $50 discount.
Therefore, we are offering a special deal for clients who want THE BEST OF BOTH WORLDS:
If you place your order for a new company now, to be formed in January, 2012 we will give you the $50 discount AND you will not pay franchise tax until 2013.
When filing online, simply note this after your company name. For example, Company name: ABC, LLC (do not file until 2012). This will make us aware of your intent. You still will be awarded the $50 discount but the company will not be filed with the State of Delaware until the 3rd of January, 2012, the first business day of 2012.
When filing over the phone, just let your agent know. We will be happy check the company name, take your information and payment minus the $50 discount, but hold the filing until 2012. Please note that the $50 discount is only good until the end of the year.
Why Smart Truckers Use LLCs AND Corporations to Protect Themselves
Filed Under: Delaware, INC Knowledge, Limited Liability Company
Tags: Delaware, INC Knowledge, Limited Liability Company
You’re in the business of moving goods from point A to point B. But the vehicle or vehicles that transport those goods are big, heavy, fast and move among vast herds of much smaller and less crashworthy vehicles operated by drivers of questionable skills. The potential for disaster is always present. And if an accident with multiple deaths does occur, you need to have ALREADY taken steps to protect your assets and your family’s financial future.
If you are operating a trucking company as a sole proprietorship, you need to enlist Harvard Business Services, Inc. to help you place each of your trucks into separate Delaware LLC’s and to set up an S-Corp to operate your trucking business. we have specialized in Delaware business formations and helping truckers like you protect their assets for 30 years. (And members of OOIDA get an extra 5 percent off their incorporation order.)
By choosing Harvard Business Services, Inc. as the company to help you make informed decisions about incorporating in Delaware, you’ll join thousands of other savvy business owners who have turned to HBS to help them protect their personal assets.
For more information on incorporating your trucking business, click HERE.
Change of Agent Fees For Delaware Limited Partnerships Slashed by State
Filed Under: Change of Agent, Delaware
Tags: Change of Registered Agent, Delaware
To change the registered agent for an existing Delaware Limited Partnership (LP), the State of Delaware in the past has charged a filing fee of $200 to file the Certificate of “Change of Registered Agent and Registered Office”. This made changing registered agents for an LP almost cost prohibited.
The state has now lowered their $200 filing fee to $50. We at Harvard Business Services are now happy to offer the same cost to change registered agents for an LP as that of an LLC or a Corporation. We will prepare and file this form for our exact cost of $50, plus we’ll give you your first year’s agent fee for only $39. The total cost to change agent is ONLY $89 per corporation, LLC, or LP.
Thereafter, your annual agent fee will be only $50 per company; just think of the money you’ll save! If you have delayed in changing the registered agent for your LP, now is the time. For additional savings, above and beyond the $50/year, we also offer 2 years for $90 or 3 years for $125.
Recently, I wrote a blog entitled, “Do You Know How Much You Are Paying For Registered Agent Service?” It spoke about how some companies overcharge their clients for registered agent service. It explained how other companies bait you in with one price, and then raise the annual fee on you each year. It explained how Harvard Business Service’s $50 registered agent fee is guaranteed for the life of the company, and how one would go about changing their registered agent to Harvard. For a list of our competitors, and their prices, please read this blog article.
To watch our video on the steps to changing registered agents, please click HERE.
