Steps to Schedule a Call with Scott Letourneau

Mar 27, 2019 by

Thanks for coming to my website today. If you need support with your important questions about entity formation, sales tax compliance, funding, or other business resources, here are my options below.

1. Free Evaluation and Recommendation Call:

Our first option is a scheduled free call. This is best to for us to understand your situation and make the best recommendation for you.

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Sales Tax Permit Registration Mistakes to Avoid

Mar 21, 2019 by

As an e-commerce seller, you want to avoid sales tax permit mistakes. This is the key part of the process when you are collecting and remitting sales tax.  Yes, some states like Washington and Pennsylvania will collect sales tax, but you still need to get registered and file sales tax returns.

Sales Tax Registration Mistakes to Avoid

Avoid these Costly Sales Tax Registration Mistakes

The process to get registered means obtaining a sales tax license or permit to collect and remit sales tax in the states where you have sales tax nexus. Since the June Wayfair vs South Dakota case, you now have to worry about the economic nexus states in many cases when you sell only 200 transactions in a state.

We have applied for thousands of sales tax permits for clients over the last several years and we wanted to share some key costly mistakes to avoid.

1. Are You Applying for a Sales Tax or Use Tax Number?

 Are you an out-of-state seller applying for a sales tax number or an in-state seller applying for a sales tax number? Each state is different. In some states, it is very clear, if you are an out-of-state seller, you are applying for a use tax permit, some states they combine sales/use tax as one option. Every checkbox takes you down a pathway and may come back to haunt you when audited; just make sure you get it right from the start.

2. Not Taking into Account Time Frames.
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How to Transition from One Company to Two Effectively.

Mar 17, 2019 by

Learning how to transition from one company to two effectively is key to help protecting your net worth.

When starting a business you formed a separate legal entity to separate your personal and business assets, lower your audit of risk, improve your chances for more business credit and convey a more important marketing message. As time goes on and your business succeeds you will want to examine when the time is right to form a separate legal entity to now reduce the liability exposure to your current business.

How to Transition from One to Two Entities and Stay on Track

How to Transition from One to Two Entities and Stay on Track

You may have a successful online internet business and now you are going to introduce a new product to your list that may have more liability associated to it. An obvious one would be if you were looking to invest in real estate. That would definitely be in a separate legal entity from your operating business. Many times I talk to business owners who have been in business for 10, 15 or 20 years and still operating EVERYTHING through one legal entity! That can be very dangerous. That means one lawsuit where the insurance company comes up with an excuse (also known as loophole) where they do NOT have to provide coverage. That means potentially, 10, 15 or 20 years of hard work down the tubes!

Let’s assume you are going to add a second legal entity for part of your business to separate out liability (or maybe you have a different partner on that one). Let’s cover the steps to make this a smooth transition! The easiest way to look at this as if you are starting over with the same steps you used to form your first company. The mistakes come in when you are tempted to take short cuts to save money (like not getting separate business cards, a separate business license)

Here are the steps to transition from one company to two for each company:

  1. Trademark your business name
  2. Form a separate legal entity
  3. Obtain a separate LLC/Corp record book.
  4. Obtain a separate EIN number.
  5. Open a new bank account for the new entity
  6. Proper capitalization from the correct owners (you, another entity, trust…)
  7.  Apply for a business credit card in the name of the new LLC/Corp.
  8. Separate the expenses related to this new entity.
  9. Apply for a business license http://www.businesslicenses.com/
  10. Check with a local professional for other requirements which may include, other state filing requirements with the department of taxation or franchise tax board.
  11. Establish a DBA name to this separate legal entity is required.
  12. Establish a separate set up books. If you are using QuickBooks® or Xero create a new company file for the new company.
  13. Obtain separate insurance if required by the company
  14. Establish a separate payroll account if payroll is required.
  15. If the Entity is in Nevada, and you are operating in another state, take the steps to foreign register in that state you are doing business.
  16. Establish a 5-year business plan (so the entity is not considered a hobby plus a good idea to keep you on track anyway).
  17. Establish new accounts with vendors for the new business. Even if your first company does similar services, it should be separated.
  18. Establish a separate merchant account and the new entity.
  19. Follow LLC or corporate formalities.
  20. Avoid commingling of funds.
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12 Questions to Ask BEFORE Forming a U.S. Entity

Feb 26, 2019 by

These 12 questions below are not only important to ask, but are necessary to get the best answer and support. They apply to all foreign e-commerce sellers looking to establish a U.S. entity. Forming a U.S. company is not as simple as forming a single member LLC with a mail address. There is much more involved. These questions will help keep you on track when working with a U.S. entity provider.

US Company Formation

Ask these 12 questions before forming a U.S. company

  1. Do I Even Need to Form a U.S. Entity as a Foreign Seller?

    This leads to your options to sell in the U.S. as a foreign entity vs the advantages of using a U.S. entity.

  2. How Long will it Take to Form my U.S. Company Correctly?

    You will need to know the factors that will determine the length of time to form your entity, apply for the EIN, establish a bank account, as well as get into compliance with sales tax. Don’t get fooled by “incorporate in 24 hours or less” headlines; these usually lead to costly mistakes.

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Productive or Busy. Which One Are You?

Feb 2, 2019 by

If you are looking for more results in your business there is a real important piece of self-evaluation that must be considered in order to get better results.

That is, asking and reflecting upon this question; are you productive or just busy? Perhaps your goal for better results from your business may mean more income, perhaps it is the same amount of income with more time off, more time with your family.

Increase your productivity and your profits!

Increase your productivity and your profits!

Most entrepreneurs are simply busy, with no clear cut goals and they are hoping the busy activity will somehow lead to results. I know, because I have been there! I used to pride myself in working 14-16 hours days, 6 days a week at least, doing a lot of stuff, mostly just being busy. I know I was jumping from one priority to the next, creating new projects while 10 others were left unfinished.

Did I produce results in my business, yes most certainty but it was not a very effective approach. The mere fact that I worked 14-16 hour days was not what determined that I was busy, there are many, many successful entrepreneurs who work 14-16 hour days and are very productive. Tony Robbins is one of them.

Perhaps your goal is not to be like Tony Robbins, but you may have to agree, he has succeeded in his business. Dan Kennedy is another entrepreneur who is like productivity on steroids. When he works, he works, no interruptions!

First, let’s address some characteristics of someone who is busy and not getting any results in their business. You can calibrate to see if you fall more into this category (hopefully not) vs. the productive category.

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