Did You Know You Can Download Your Old Tax Returns?

Now you can download your individual tax returns from the last few years directly from the IRS. This might be very helpful for all sorts of reasons, including applying for certain small business loans. To get started just go to http://www.irs.gov/Individuals/Get-Transcript

What is an EIN?

An Employer Identification Number (EIN) is also known as a federal tax identification number. An EIN is used to identify a business entity. Generally, businesses need an EIN, for example, to open a business bank account.  You can apply for an EIN in various ways, including online.  This is a free service offered by the IRS.  For more information, see http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Employer-ID-Numbers-EINs

Forming an Entity?  What is the Difference Between the Principal Address and Mailing Address

When forming an entity, it is important to recognize the distinction between the “principal address” and “mailing address.” The “principal address” is the physical location where the company conducts business and must be physical Florida address (i.e. not a P.O. Box).

However, your “mailing address” does not have to be a Florida address or a physical location (i.e. a P.O. Box can be used).  Instead, the “mailing address” is simply a current and good address where you can be reached at any time.

5 Quick Tips About Fictitious Names

1.  A fictitious name means any name under which a person transacts business in this state, other than his legal name.

2.  Registration under the Fictitious Name Act is for public notice only.  It does not affect trademark, service mark, or corporate name rights previously acquired by others in the same or similar name. 

3.  The applicant of the fictitious name is required to advertise the name to be registered at least once in a newspaper.

4.  The newspaper must publish the fictitious name in the county where the principal place of business of the applicant will be located.

5.  A fictitious name registration is valid for a period of 5 years and expires on December 31 of the 5th year.

Do You Have A Written Partnership Agreement? - Some Things to Think About

While a written partnership agreement is not legally required in order to establish a partnership, a well-drafted partnership agreement will allow you and your partners to decide in advance how you would like to handle certain situations when they arise.

Some items that should be covered in your written partnership agreement are:

1.              Each partner’s contribution to the partnership (i.e. time, money or skill);

2.              The allocation of profits, losses, and draws;

3.              Each partners’ authority and management duties;

4.              How to admit new partners;

5.              What happens if there is a bankruptcy, withdrawal, or death of a partner, and

6.              How to resolve disputes such as by arbitration, mediation or in a courtroom.

By having a written partnership agreement, you help to avoid misunderstandings which may occur during the course of your business relationship.  And remember, your partnership agreement does not have to be set in stone, it can always be amended and revised at a later date should events change.

Tuesday's Tip - What is a "No Waiver Clause"?

A “No Waiver” (or “Waiver”) clause is a provision in an agreement which aims to ensure that a party’s failure to enforce its contractual rights, whether intentionally or by oversight, does not result in a waiver of those rights or remedies for their breach.

Tuesday Tip: Subsidiary

A subsidiary is an entity in which another, generally larger company or corporation, known as the parent corporation, owns all or at least a majority of the shares