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Post Archives for Matthew Dochnal

What Does a Delaware Registered Agent Do, Exactly?

By Matthew Dochnal December 1, 2023
office building with multiple stories

Understanding the role of a Delaware Registered Agent is an important part of incorporating a business. Did you know that Delaware law requires every company registered in Delaware to have a Registered Agent? So, if you want to form a Delaware LLC or a Delaware corporation, you will need to know how to meet this […]

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Does My Delaware Company Need a Certificate of Incumbency?

By Matthew Dochnal November 9, 2023

If you have applied for a loan with your corporation as the borrower, you may have heard the term “Delaware Certificate of Incumbency”. What is a Delaware Certificate of Incumbency and when do you need one?   Navigating corporate documentation is crucial for business operations, especially when engaging in financial transactions or significant changes in […]

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Does My Company Need a Corporate Secretary?

By Matthew Dochnal November 7, 2023
a team of business professionals

A Corporate Secretary can be a valuable asset to a corporation as it grows. But what does a Corporate Secretary do, exactly? Are companies required to have one? We dive into the details of what a Corporate Secretary is and why they are important. What Is a Corporate Secretary? A Corporate Secretary is one of […]

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Can I Start More Than One LLC?

By Matthew Dochnal November 2, 2023
company organizational chart

Have you ever wondered if it’s a good idea to start more than one LLC? Well, you’re not alone. Many business owners consider setting up multiple limited liability companies, and there are plenty of reasons why. It’s like having different baskets for your eggs – it can keep them safe. But forming LLCs is not […]

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Does an LLC Need a President?

By Matthew Dochnal October 16, 2023

Limited liability companies, or LLCs are the most popular business entity type for entrepreneurs. Small business owners prefer LLCs due to their flexibility and simplicity. Unlike corporations, the structure of LLCs does not come with strict requirements. LLC owners are free to run their company the way that they see best. This flexibility however often […]

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What Startups Need to Know About the Corporate Transparency Act

By Matthew Dochnal October 3, 2023

In 2024, over 30 million businesses will need to meet new compliance requirements. The Corporate Transparency Act (CTA) takes effect on January 1st and mandates U.S. companies to file Beneficial Ownership Information (BOI) reports with FinCEN. All types of businesses will be impacted by the CTA. However, startups may find BOI reporting requirements especially challenging. […]

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What is FinCEN and What are BOI Reports?

By Matthew Dochnal September 29, 2023

If you run a small business, you’ve probably never heard of the Financial Crimes Enforcement Network, or “FinCEN”. However, starting in 2024, over 30 million businesses in the U.S. will need to get familiar with this government agency. With the Corporate Transparency Act going into effect, businesses of all sizes are preparing for new federal […]

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How to Comply With The Corporate Transparency Act: Tips for Small Businesses

By Matthew Dochnal September 27, 2023

Business entities operating in the United States need to prepare for new compliance requirements taking effect on January 1, 2024. The Corporate Transparency Act (CTA) requires LLCs and corporations to submit BOI reports to FinCEN. These reports contain basic information about a company’s significant owners and important decision makers. Whether your business is a solo […]

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How Does the Corporate Transparency Act Impact Small Businesses?

By Matthew Dochnal August 24, 2023

  In a time where financial transparency is essential, the Corporate Transparency Act (CTA) brings new compliance requirements for U.S businesses. Understanding these new requirements is crucial for business owners, managers, and stakeholders to avoid significant penalties, including fines and jail time. Starting January 1st, 2024, U.S. businesses will need to disclose information about their […]

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What Is a Beneficial Ownership Information Report? New Rules for Business Owners

By Matthew Dochnal August 23, 2023

Starting January 1st, 2024, owners of U.S. businesses will need to comply with new rules. The Corporate Transparency Act (CTA) is a federal law that requires business entities, like LLCs and corporations, to report information about their owners to the Financial Crimes Enforcement Network (FinCEN). These new reports are called “Beneficial Ownership Information Reports”. Honest […]

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What Is a Delaware Public Benefit Corporation?

By Matthew Dochnal August 11, 2023

Many business owners strive to balance running a profitable business with doing good for the planet. As businesses grow, enforcing standards and achieving sustainability goals becomes more challenging. One successful strategy that businesses use to pursue both profits and purpose is to incorporate as a Delaware Public Benefit Corporation, or a “PBC”.   But what […]

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Can a Delaware LLC Do Business in Texas? Texas Foreign Qualification, Explained

By Matthew Dochnal August 3, 2023

If you own a Delaware Limited Liability Company (LLC) and want to start doing business in Texas, you might have questions. Can a Delaware LLC do business in Texas? Absolutely, but there are some steps you need to follow first. This process is called foreign qualification. Foreign qualification may seem challenging, but in this comprehensive […]

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Should I Set Up an LLC Holding Company?

By Matthew Dochnal August 2, 2023

As a business owner or entrepreneur, you may have seen the term “holding company” before. Holding companies are a type of legal structure used by businesses across many different industries. If done right, a holding company can provide unique legal protections that cannot be achieved with just one business entity. Many well-known corporations use holding […]

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My Delaware Company Is ‘Void’: What Do I Do?

By Matthew Dochnal July 12, 2023

If you have a Delaware LLC or Delaware corporation, there are some annual requirements that you need to know about. If you haven’t kept up with these requirements, your company may have gone “void” or “inactive.”  But what does it mean if your Delaware company goes void and what should you do?     Letting […]

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I Formed a Delaware LLC. Now What?

By Matthew Dochnal July 11, 2023

Forming a Delaware LLC through an incorporation service, like IncNow, can be so simple that it leaves people with questions. Many LLC owners ask: What else do I need to do? What are the next steps? What annual fees do I pay? Delaware LLCs are easy to set-up and manage. However, there are some things […]

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Does My Delaware Corporation Need a Stockholder Agreement?

By Matthew Dochnal June 27, 2023
shareholder agreement

Incorporating your business as a Delaware corporation comes with lots of benefits. However, running a corporation the right way can require a lot of paperwork. There are many different types of corporate documents: from by-laws to Annual Reports. One of the most important documents that a Delaware corporation needs is a Stockholder Agreement. A Delaware […]

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9 Mistakes Delaware LLC Owners Make

By Matthew Dochnal
Confused business woman asking questions.

  Delaware LLCs are popular with small business owners because they are easy to set up, understand and manage. However, there are some common Delaware LLC mistakes owners make. The results of these mistakes can range from just an inconvenience to something that hurts the business. Forming a Delaware LLC is a smart move for […]

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Can a Delaware LLC Do Business in New York?

By Matthew Dochnal June 1, 2023
new york city

If you’re planning to operate your Delaware LLC in New York, you may wonder about the necessary steps. Is your Delaware LLC allowed to do business in New York? The answer is yes, but first, you need to complete a foreign qualification. While it might sound complicated, we’re going to break down how to qualify […]

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Can a Delaware LLC Do Business in Other States? A Guide to Foreign Qualification

By Matthew Dochnal May 23, 2023
united states map with pins

A Delaware LLC can do business in any U.S. state, as long as it completes a foreign qualification. Business owners and entrepreneurs use Delaware limited liability companies to do business all over the world. Whether you’re in California or India, operating a Delaware LLC is easy. However, if you’re doing business outside Delaware with your […]

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How to Structure an LLC: Member-Managed vs. Manager-Managed

By Matthew Dochnal May 18, 2023
small business owner packing boxes

When it comes to setting up a business, there are different company types to choose from. One of the most popular is the Limited Liability Company (LLC). An LLC is like a blend of a partnership and a corporation. It offers the owners, known as members, protection from personal liability, similar to a corporation, while […]

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How to Pick a Delaware Registered Agent

By Matthew Dochnal May 9, 2023
customer service representative with a laptop

Anyone starting a Limited Liability Company (LLC) or a corporation in Delaware is required to have a Delaware registered agent. A Delaware registered agent helps your business stay on the right side of the law by making sure you get important legal documents and tax notices. With so many registered agent services out there, it […]

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Why Real Estate Investors Should Form a Delaware LLC.

By Matthew Dochnal May 4, 2023
real estate investing

Forming a Delaware Limited Liability Company(LLC) is a wise choice for real estate investors seeking asset protection and business growth. Real estate investing remains an attractive method for generating income, building wealth, and diversifying portfolios. As with any business venture, it’s essential for investors to carefully evaluate their businesses’ structures to maximize personal asset protection. […]

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Why Online Businesses Should Form Delaware LLCs

By Matthew Dochnal April 28, 2023
ecommerce business

The world of e-commerce and online businesses has grown exponentially in recent years, with digital nomads and internet entrepreneurs seizing opportunities to make a living online. One crucial decision these entrepreneurs face is selecting the right business structure. A Delaware Limited Liability Company (LLC) offers numerous benefits for online businesses. This article explores the benefits […]

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LLC Members and Managers: Who Owns an LLC?

By Matthew Dochnal April 25, 2023
two small business owners opening a cafe

Who owns and manages an LLC? If you’re thinking about setting up a Limited Liability Company (LLC), it’s helpful to understand the roles of LLC owners and how they’re involved in managing the business. LLCs offer the flexibility to create unique management structures, pick officer titles, distribute management responsibilities, and outline ownership interest. In this […]

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23 Reasons to Form an LLC in 2023

By Matthew Dochnal April 19, 2023
business owner opening a store front

Every year, there are new opportunities to grow your business. For many small business owners, now is the perfect time to consider forming a Limited Liability Company (LLC). The LLC has quickly become the most popular business structure for small business owners. According to the Delaware Division of Corporations, over 1.29 million LLCs are registered […]

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How To Manage LLC Capital Contributions and Distributions

By Matthew Dochnal April 11, 2023
making a capital contribution

  Once you get your business operations off the ground, you will need to consider some of the financial aspects of operating an LLC. This includes managing capital contributions and distributions in your newly formed company.  As a small business owner or aspiring entrepreneur, it’s essential to understand these processes to ensure your LLC’s success. […]

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What Is an EIN Number and Does My Business Need One?

By Matthew Dochnal March 14, 2023
clipboard with "EIN" typed out on a piece of paper.

When starting a new business, registering an LLC or corporation is just the first step. To truly get up and running, there are several more steps to take, such as getting an EIN number for your business. While the process of obtaining an EIN number from the IRS is not complicated, business owners often have […]

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Why Freelancers Should Form a Delaware LLC

By Matthew Dochnal February 16, 2023
freelancer working at a desk

In recent years, a growing number of people have turned to freelancing as a way to earn a living. Starting a freelancing business can be a great opportunity with many benefits, including flexibility and independence. One important decision that freelancers have to make is how to structure their business. More specifically, whether they should operate […]

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How to Wind Up and Close a Delaware LLC

By Matthew Dochnal February 7, 2023
"Going out of business" sign in store window

Most entrepreneurs are optimistic when starting a new business venture. However, many understand that commerce is inherently risky. According to the U.S. Bureau of Labor Statistics, 20% of new businesses fail within two years, and only 50% make it to their fifth year. It’s ok if you decide to close your business. However, you need […]

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What Is an LLC and How Can It Protect My Business?

By Matthew Dochnal January 12, 2023
llc formation document

The Limited Liability Company, or “LLC”, is the most popular business entity type in the United States. LLCs are simple and flexible business structures that combine the tax treatment of a sole proprietorship with the personal liability protection of a corporation.  Despite LLCs being so common, you might not know exactly what an LLC is. […]

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Why Startups Should Choose the Delaware C-Corp.

By Matthew Dochnal January 9, 2023
An investor putting money into a rocketship

What do companies like Uber, AirBnB and DoorDash all have in common? Each secured millions of dollars from venture capital firms and investors as startups. They are also all  incorporated as Delaware C-Corporations.  Delaware C-Corps are the most popular entity choice for startup companies looking to attract investors. Angel investors and venture capital firms prefer […]

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Can a Green Card Holder Set Up a Delaware LLC?

By Matthew Dochnal December 19, 2022
United States green card

Permanent residents of the United States are able to start businesses and form LLCs in Delaware. This includes US green card holders. In fact, individuals from almost any country in the world (except restricted countries) can form a Delaware LLC. If you are a permanent resident looking for your piece of the American Dream, forming […]

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How Do I Add a Member to a Delaware LLC?

By Matthew Dochnal December 15, 2022
business partners shaking hands

Owners of a Delaware LLC can add or change members at any time simply by amending the LLC Operating Agreement. Delaware does not require owners to make any additional public filings to add members to their LLC. However, existing members should take certain steps to avoid conflict when transferring membership. We cover exactly how to […]

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What Is a Corporate Secretary and Does My Company Need One?

By Matthew Dochnal December 9, 2022
a team of business professionals

  A Corporate Secretary can be a valuable asset to a corporation as it grows. But what does a Corporate Secretary do, exactly? Are companies required to have one? We dive into the details of what a Corporate Secretary is and why they are important. What Is a Corporate Secretary? A Corporate Secretary is one […]

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What Are Special Purpose Vehicles?

By Matthew Dochnal November 17, 2022
corporate asset protection

If you are looking to incorporate a business, you likely have sifted through tons of legal jargon. Corporations, LLCs, partnerships, sole proprietors, the list goes on. Here’s another one: Special Purpose Vehicles. People typically associate Special Purpose Vehicles, or “SPVs”, with major corporations; however, they can be useful for businesses of all sizes. Companies can […]

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Do I Need a Lawyer to Set Up a Delaware LLC?

By Matthew Dochnal
lawyer sitting with a client

If you are a business owner looking to form an LLC, you’ve likely researched some of the legal requirements. Setting up a Delaware LLC on your own can be complicated, and stressing over the details of your legal structure can take focus away from your business plan. You may be asking yourself whether you need […]

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How To Maximize Tax Savings for Single-Member LLCs

By Matthew Dochnal November 8, 2022

According to data from the Bureau of Labor Statistics, about 20% of small businesses don’t make it past their first year. A contributing factor to this statistic is the fact that many business owners do not take advantage of easy tax deductions. If you set up your business as a single-member LLC, there’s a significant […]

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What Is A Delaware Public Benefit Corporation?

By Matthew Dochnal October 24, 2022
B Corp

Do you want to make money while also making a difference in the world? The Delaware Public Benefit Corporation (“PBC”) allows companies to do just that. A Public Benefit Corporation is a for-profit business with a stated “public benefit” purpose set out in its incorporation documents. Delaware PBCs benefit both stakeholders and shareholders, and many […]

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What Is a Subsidiary Company?

By Matthew Dochnal October 11, 2022
Google headquarters with statue in front

The term “subsidiary” is used often in business, however, you might not know exactly what it means. Subsidiaries are an important part of the legal structure of nearly every large company. In this article, we discuss what subsidiary companies are, how they are used, and the best way to structure them.      What Is […]

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What You Need to Know About Beneficial Ownership Reporting

By Matthew Dochnal October 3, 2022

The Financial Crimes Enforcement Network (FinCEN) has issued a final rule for creating a beneficial ownership registry pursuant to the Corporate Transparency Act (CTA). The law requires corporations, limited liability companies (LLCs), and other entity types to disclose information about individuals connected to these companies. In particular, the ultimate beneficial owners, who are the human […]

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Non-Stock and Non-Profit Corporations: What’s the Difference?

By Matthew Dochnal September 28, 2022
Man leaning on a question mark.

The terms “non-stock” corporation and “non-profit” have become almost interchangeable, however, this is not correct. “Non-stock corporation” refers to a type of legal entity filed with the Secretary of State. A “non-profit” organization refers to a non-stock corporation that has obtained a tax determination letter from the IRS. Here we sort through these two loaded […]

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What Is An LLC Membership Certificate?

By Matthew Dochnal September 20, 2022
llc membership certificate

The Delaware Limited Liability Company (LLC) is the preferred legal entity for entrepreneurs and small business owners. Compared to a corporation, an LLC offers much more flexibility and minimal red tape.  The company’s Operating Agreement sets forth an LLC’s ownership. This internal document governs the affairs of the company and is not filed in the […]

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Twitter v. Musk Trial Shines Spotlight on Delaware Business Court

By Matthew Dochnal September 12, 2022

On October 17th, 2022, a hive of high-profile corporate attorneys will swarm Wilmington, Delaware to appear in front of the Court of Chancery. The state’s business court was tasked with resolving a dispute between Tesla CEO Elon Musk and Twitter, Inc. The lawsuit stems from Musk’s attempt to back-out of a deal he brokered in […]

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What Is an ITIN Number and Do I Need One?

By Matthew Dochnal August 30, 2022
individual tax identification number

The United States Internal Revenue Service (IRS) utilizes several different types of identification numbers. You are probably most familiar with Social Security Numbers, which are issued to all US Citizens. You may be less familiar with Employer Identification Numbers and Individual Tax Identification Numbers. The IRS uses these different numbers to distinguish between individual US […]

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What is a DUNS Number and Do I Need One?

By Matthew Dochnal
business credit report

If you have ever tried to rent an apartment or lease a vehicle, you are probably familiar with the personal credit system. Your Social Security Number is attached to credit reports generated by major credit bureaus. Potential lenders then use your credit score to assess your ability to borrow money. Much like how a Social […]

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What are the Record-Keeping Requirements for a Series LLC?

By Matthew Dochnal August 5, 2022

A Series LLC  allows you to take one LLC and break it down into its component parts. One parent LLC has the ability to form an unlimited number of separate, protected series. Each of these protected series is a legal person able to hold assets. The statute shields the assets of each protected series from […]

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What Is a Certified B Corporation?

By Matthew Dochnal July 11, 2022

You may have seen the “Circle B” logo, but what does it mean? The logo can only be displayed by a Certified B Corporation. These are companies that have achieved a minimum score on an evaluation of their corporate governance, community, employee, and environmental benefits. Here’s what you need to know about this entity. What […]

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Who Are The Members And Managers Of An LLC?

By Matthew Dochnal February 16, 2022
member and manager

Before forming an LLC, it is important to understand how it will be structured and managed. LLCs offer business owners complete flexibility to create unique management structures. This includes choosing officer titles, delegating management responsibilities, and structuring ownership interest.  Here we breakdown common management and ownership structures for LLCs, including who the LLC Members and […]

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How Is an LLC Taxed?

By Matthew Dochnal September 18, 2019
taxes

The Delaware LLC is the most popular type of legal entity amongst small businesses. A Delaware LLC provides bullet proof liability protection for business owners’ personal assets while avoiding the red tape involved with maintaining a corporation. Entrepreneurs prefer LLCs because they are flexible, cost effective, and easy to set up. Forming an LLC is […]

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