Here are some of the highlights:

-The State of Delaware is now home to 64% of the Fortune 500 companies, up 1% from 2011.

-Overall new entity formations grew 8.9 % in 2012 compared to 13% in 2011.

-New LLC formations grew 10.8%

-New Corporations grew 2.9%

-New Limited Partnerships grew 11%

-90 % of all new US Initial Public Offers were Delaware corporations.  Some of the notable IPOs were Facebook, Kayak, Restoration Hardware and Yelp.

-Division of Corporations revenue of $867.2 million made up 26% of the State’s general fund for 2012 compared to 24% in 2011.

-The Delaware Division of Corporations was hoping to hit the mark of 1 million active legal entities in 2012, which unfortunately did not happen until March of 2013.

-Delaware’s international marketing outreach included worldwide trips and conference leadership promoting the Delaware Advantage to India and South Africa.

Delaware’s total package, combining Delaware’s General Corporation Law and LLC law, Court of Chancery, and Division of Corporations working together, make Delaware the premier home of choice for entities today.

Click here to view the complete report.

Using the Series LLC structure clients can save thousands of dollars. Below we will compare the costs involved to create 10 traditional Delaware LLC’s compared to one Delaware Series LLC.

For the creation of 10 LLCs along with the annual Franchise tax and Registered Agent Fee the following costs would be incurred:

-Creating the LLC using our Standard Formation package at $429 per LLC, total $4290, which is a one-time cost.

-10 annual Franchise tax payments at $250 each for a total of $2500 (every year).

-10 annual Registered Agent payments at $50 for a total of $500 (every year)

Total fee to create and maintain 10 LLCs is $7290 for one year.

While the Delaware Series LLC has the following costs:

-Formation of the Series LLC using our Standard Formation Service $429. Since the Series LLC allows for the creation of each series internally within the LLC agreement, that is it, just 1 fee of $429 to create the Series LLC and add 10 individual series with the Series LLC agreement.

-1 annual franchise tax payment of $250 (every year)

-1 annual registered agent fee of $50 (every yesr)

Total fee to create and maintain the Series LLC is only $729 for one year

The series LLC is not for everyone. Certain regulations must be followed and you must maintain a separate set of accounting books for each series. Also, the Series LLC may not be accepted in every state, so be careful to do a little research if you’re contemplating using this type of entity.

If you need to form multiple LLC entities to hold assets or to operate multiple different types of businesses, consider the Delaware Series LLC. Feel free to reach out to us at 800 345 2677. We would be glad to go over any questions or concerns you may have about the Delaware Series LLC.

Who Must File an FBAR

United States persons are required to file an FBAR if:

- The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and

- The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.

United States person means United States citizens; United States residents; entities, including but not limited to, corporations, partnerships, or limited liability companies created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.

Financial Accounts

All foreign financial accounts with a balance of $10,000 or more at any time during the calendar year must be reported. A financial account includes, but is not limited to, a securities, brokerage, savings, demand, checking, deposit, time deposit, or other account maintained with a financial institution (or other person performing the services of a financial institution). A financial account also includes a commodity futures or options account, an insurance policy with a cash value (such as a whole life insurance policy), an annuity policy with a cash value, and shares in a mutual fund or similar pooled fund (i.e., a fund that is available to the general public with a regular net asset value determination and regular redemptions)”.

You are exempt from filing the FBAR if your financial account had a balance throughout the year (2012) of less than $10,000 USD, and the amount in the account never exceeded $9,999 USD.

Our Service

In order to file the reports in a timely manner, we must receive all the necessary information and payment from you for each company by June 14th. The cost for this service between now and June 14th will be $230 per company per tax year. We will email the form to you for completion. You may then email the form back to us for a review by a filing specialist. We will then confirm if the form is fully completed by email and ask you to courier or mail the original form to us for filing. An original must be sent. Once received, we will UPS the documents to the IRS for filing.

A US tax id number (EIN) is required for this filing. If a number has not yet been obtained for your company, for just $325 we can obtain your tax id number and submit the FBAR filing to the IRS.

If you would like us to assist with the FBAR and/or EIN filing, please contact us at filings@delawareinc.com. Or you may call our IRS specialist Nadine Jordan at 302-645-7400 extension 6129.

Join thousands of entrepreneurs and business owners at the International Franchise Expo, the largest franchise expo in the country. Meet hundreds of proven franchise opportunities.

• Meet over 400 of the top franchises.
• Take Advantage of 70 Free Seminars and In-Depth Symposia.
• Get the help you need in deciding which franchise is right for you.
• Find out what you need to know as new franchisee.
• Discover industries that are new, or that you might not have considered.
• Get advice on the wide range of financial options from experts.
• Talk face-to-face with hundreds of the best franchise opportunities expanding in our area!

To register to attend IFE NYC 2013 click here and use the Promo Code “Harvard”

This is our first year as an exhibitor, and you can come meet Michael Bell, Brett Melson, Andrew Millman and Frannie Esparza in person! We will be giving out brochures, Harvard Business Services Bumper Stickers and happy to answer all your questions. But, that’s not all, were also offering a special discount off all formation packages during the show to incorporate your Delaware LLC or Corporation on location. That’s right we will be able to form your company with you in person right there at the show.

So if you’re in New York City and around the area come stop by and see us at Booth #1013 from 10am to 5pm all three days.

According to www.go4funding.com; “Before a new business owner can raise capital for their start-up, they must first identify the different sources of funding, find one that is most compatible with their needs, and then meet the given criteria of the investor or bank. These crucial steps can mean the difference between successfully raising capital and leaving their new business ideas behind.”

Here are some simple and basic Guidelines

1. Research
2. Identify Sources of Capital
   1. Equity Financing
   2. Debt Financing
   3. Secured vs. Unsecured business loans
   4. Different bank loans and online bank loans
   5. Government Funding and the Small Business Administration (SBA)
   6. What you need before going to an Investor or Bank
   7. Fixed vs. Variable expenses
   8. A Business Plan
   9. Professionalism
   10. Good Credit vs. Bad Credit

To read the complete article, click HERE.

These are all great tips but, before you go to any investor you are going to want to have your company formed and your operating agreement in place. The LLC Agreement whether you are a Single Member LLC or a Multi-Member LLC is generally a good idea to have on file. As stated in our past blogs the Operating Agreement is the legal binding agreement that helps to show the Ownership, Operations and Management of the LLC. The great part about having your company filed here in Delaware is you do not have to provide the LLC Members (Owners) information nor the Operating Agreement to Harvard Business Services or the State of Delaware. To learn more about the LLC Operating Agreement click HERE.

You should also protect your intellectual property with a patent, trademark, or copyright before calling on investors. There are many tips and tricks on “How to Raise Capital”, but in the end it’s about having all your ducks in a row to prove that you’re a smart entrepreneur for Investors who may consider an investment in you and your company.

As an employer, providing the chance to work from home can help you when it comes to snow storms, school closings and even in recruiting great candidates. But if your company deals with secure data, how can you ensure that your out-of-sight employees won’t jeopardize your business’ security? Here are a few strategies to keep in mind.

Use a VPN. A virtual private network, or VPN, allows you to authenticate any user that accesses secure data from a remote location. The VPN uses software installed on the user’s computer to connect to the central database, and relies on a PIN number to ensure that unknown individuals don’t access the remote server without permission.

Protect your employees’ devices. On their own, employees may not make the effort to install security software and upgrading their software versions on a regular basis. If they plan to telecommute, ask them to bring in their devices for inspection, so that you or your IT staff can install anti-malware software, check password strength, and take any other measures necessary to prevent hackers from gaining access to the device.

Create a secure BYOD policy. Many of your employees are likely to have their own smartphones, tablets, and laptop computers—and, as a result, they’re likely to do at least some of their work on their own devices instead of on your company’s equipment, so it’s essential to make sure that they understand what they can and can’t do with company data. Review your existing security policies, and add any measures that might apply to mobile devices and other devices employees commonly use. If certain types of devices cannot be made secure, ban their use for work-related purposes.

Use cloud-based apps when possible. If you’re not fully confident in your own ability to protect data, it can be helpful to pass that responsibility on to cloud-based data storage solutions that are known for excellent security protocols. In this case, it’s even more essential that your employees are using strong passwords; if the app offers two-step authentication it will help make the log-in process even more secure.

Train employees on how to securely use their devices. Your employees may not be aware of the security risks that their online behaviors can pose, whether they’re using their own devices or a work device in an unsecured environment. Create a comprehensive policy that trains them on how to avoid security nightmares by downloading only approved file types; using secure wireless connections; and encrypting data before sending it. It’s important to ensure that employees’ friends and family members never have access to work equipment. Create a set of penalties based on the type of violation, and discuss your policies with employees in a training session.

If necessary, bring in a consultant for help securing your network. If no one on your team has a solid understanding of how network security works and what must be done to protect it, it’s important to seek advice from someone who does. Invest in a consulting session with an IT security consultant. The session may be expensive, but it’s likely to be much cheaper than the cost to your business of a damaging security breach.

This means that if you have a Limited Liability Company or Limited Partnership formed in the State of Delaware, the annual franchise tax must be filed by this due date. This year the June 1 due date falls on a Saturday. However, the State of Delaware will not extend the deadline through Monday. All payment and filing arrangements must be received by the State of Delaware no later than 11 pm EST on Saturday, June 1, 2013.

HBS offers a service to assist with the filing of the annual franchise tax for an additional fee. If you have not paid your Delaware franchise taxes yet, you need to take care of this TODAY! Our website address for making franchise tax filing arrangements is:
www.delawareinc.com/payft/existing

To ensure that all franchise tax filings are taken care of with the State of Delaware by the deadline, we must impose a cut-off time. This will allow us to accurately process all filings in our possession before the deadline.
Our office will be accepting franchise tax payments during regular business hours, on Friday, May 31 from 9 am to 5 pm EST.

On Saturday, June 1 our office will ONLY be accepting online payments until 12 pm EST.

After 12 pm EST on June 1, HBS will no longer be able to take any franchise tax payments in any form. You will need to contact the State of Delaware directly to make payment and filing arrangements.

Their contact details are as follows:
Website: corp.delaware.gov
Telephone: 302-739-3073

If you have any questions about the franchise taxes and the deadline, please telephone our office at 1-800-345-2677 or 1-302-645-7400, extension 6901. You can also email your questions to franchisetax@delawareinc.com.

This year the June 1 due date falls on a Saturday.  However, the State of Delaware will not extend the deadline through Monday.  All payment and filing arrangements must be received by the State of Delaware no later than 11 pm EST on Saturday, June 1, 2013.

If you have not paid your annual franchise tax yet, you need to take care of it right away.

Failure to pay the annual franchise tax by the June 1 deadline will result in a $200 late penalty plus 1.5% monthly interest imposed by the State of Delaware.  This will also render the company in a ceased good standing status.  Additionally, any company that does not pay the annual franchise taxes for three years in a row will be voided by the State of Delaware.  In order to restore the company back into a good standing status, a Certificate of Renewal will have to be filed and the past due franchise tax fees, late penalties, interest, etc. will have to be paid.

Harvard Business Services offers a franchise tax filing service in order to assist you with the filing of the annual franchise taxes for your company.  For a small service fee, we will ensure that the franchise tax filing for the company will be filed on time with the State of Delaware, so there will not be any late penalties or interest fees assessed.

To take advantage of this service and make payment arrangements for the franchise tax fees, visit our secure website at: www.delawareinc.com/payft/existing.  Payment arrangements can be made through Visa, MasterCard, American Express, Discover or PayPal.

You can also telephone our office with your payment arrangements or questions at 1-800-345-2677 or 302-645-7400, extension 6901.  We are also available for assistance via email at franchisetax@delawareinc.com.

Consider this: almost every successful entrepreneur I’ve encountered admits they don’t fully understand some major areas of their business, but they have become successful in spite of that because they have successfully inspired others to handle those essential responsibilities and duties with dedication.

Likewise, former entrepreneurs who have been unsuccessful in business will usually tell you that they failed because they didn’t understand some major area about their business.  In fact, what they usually don’t realize is that they didn’t fail at business; so much as they failed at leadership.

This book is an exciting read, from cover to cover, and should not be overlooked by anyone who is or wants to be a successful entrepreneur. It is an enabling textbook that will produce incalculable self-improvement results for those that desire sustainable business success.

Emilio Iodice’s premise – that leadership skills are learned, compels us to conclude that entrepreneurial success is possible for everyone who understands and effectively dedicates themselves to leadership education.

This is a revolutionary concept when looked at from the conventional standpoint of entrepreneurial success, and I believe he’s right.

The current myth is that success is the result of someone coming up with a “great idea” or doing something “at the exact right time”, or doing something “extremely well”. The press is full of articles swooning over someone who has “achieved” accidental success.

These myths are accepted, even by entrepreneurs who will tell you that there is no real school that can guarantee success as an entrepreneur. They will tell you that they learned everything they know from encountering challenges on the job and listening to someone’s smart advice. Succeeding in a fiercely competitively environment, they contend, is not a profession that can be taught and learned, it is a calling.

They will point out that some of the world’s most successful entrepreneurs are drop-outs from college or high school. Some never even went to school. Education, they assert, is not a factor.

Yet, along comes this carefully researched and meticulously documented folio of 500 pages written by a recognized leader in several fields over a long career, which points out that leadership education is not simply relevant to, but it IS the stuff that makes successful leaders successful.

We are all leaders in one context or another. Now we must admit that our relative success is largely determined by how well we lead, and how well we lead is a matter that can be learned. This book will make you much more aware of your skill level, and will help you become great – if that is your calling.

Profiles in Leadership – from Caesar to Modern Times By: Emilio Iodice, Vice President of Loyola University of Chicago and Director of Loyola’s John Felice Rome Center is available from Amazon.com.

The Small Business Expo is one of the largest and most anticipated national Business Networking Events and Business-to-Business trade shows. Entrepreneurs, Senior Management, Business Decision-Makers, and other Professionals attend our business events to meet vendors whose products and services can grow their businesses, as well as taking advantage of the small business workshops, seminars, and networking events. Expo attendees can also convene with other small business owners and entrepreneurs in the Cyber Lounge and speed networking areas of our events and even watch exciting new product demonstrations!

For more information go to www.thesmallbusinessexpo.com

This is our first year as an exhibitor, and you can come meet me, Michael Bell and Devin Scott in person! We will be giving out brochures, Harvard Business Services bumper stickers and are happy to answer all your questions. But, that’s not all, we are also offering a special discount off all formation packages during the show to incorporate your Delaware LLC or Corporation on location. That’s right, we will be able to form your company with you in person right there at the show.

So if you’re in New York City, come stop by and see us at Booth #237 from 10am to 5pm on May 16, 2013!