The (Business) Tax Man Cometh

OK. So the title isn’t 100% accurate since the taxes I am referring to are not the ones that most start ups might think of. These are not exactly the same as IRS-type taxes, rather these are “taxes” that states require for your entity to stay in good standing.  These are your annual maintenance fees so you don’t get a letter saying your Inc. or LLC is in trouble.

These are some deadlines coming up for business entities in the most popular states we assist clients with formations.  Delaware calls one of its fees a “franchise tax”, which can be confusing at times.  The general idea is that the DE “franchise tax” works similar to an annual fee based on the par of your stock and/or value of your assets.

Delaware Corporations

  • Franchise taxes – Due before March 1
  • Annual report -Due before March 1
    • $50 fee
    • $125 late fee penalty if after March 1
  • Pay and file both online here

Delaware LLCs

  • No Annual report
  • Annual tax – Due before June 1
    • $250 fee
    • $200 late fee if after June 1
  • Pay and file online here

Massachusetts Corporations

  • Annual report – Due within 2.5 months after close of fiscal year (for most companies this will be due February 15 if you use December 31 as your fiscal year end)
    • $100 if filed online, $125 if filed by paper

    Pay and file here

Massachusetts LLCs

  • Annual report – Due on or before March 9
    • $500 fee
  • Pay and file here

These are fairly straightforward dates and amounts that you can budget for early on in 2012, with the exception of the DE franchise taxes, which require a bit of calculating based on your unique situation.

Assisting clients with managing corporate filing dates and creating new entities is something my firm, Ascentage Law, does regularly.  If you have any questions, please feel free to contact me.

Because everyone’s situation is unique, you should consult an attorney and/or accountant to determine how the deadlines above apply to your situation.

What’s in a Trend?

Apparently next year will be the “year of the social“, whatever that means. The author of that article seems to insinuate that to this point social media has stagnated and now these four “megatrends” will take the world, at least from a social media standpoint by storm. Bear with me on this one as I wrote it and then realized that I may be splitting hairs on the definition of “trend”, which to me indicates a feature that is likely to pass with time (i.e. the trend is to wear tube socks with shorts during the summer or the trend is have A Flock of Seagulls hairstyle).Trendy Image

If you ask me, and not that anyone did, I’d be hard pressed to agree that these four items are truly “megatrends” but rather adaptive uses of existing infrastructures. Is it really a trend if some group, or vertical as the author calls it, begins using the social media tool to market its services/goods/etc.? I would propose that such adaptive usage is the next natural progression in social media tool usage rather than a trend. (Editor’s note: It has been pointed out to me that trend in a fuller sense of the words indicates the general direction in which things are progressing.  I knew that of course, but as I said above, when I think of trends, I think hipster trends, not motion of the world trends.)

Just like when any tech product arrives on the scene, early adopters are few and far between and are often those with some connection to the product (or with sufficient funds to play with a new toy they never fully appreciate. Take cell phones for example, they were certainly something that started out with a niche market. Arguably the first adopters were the very groups of people I suggested above. Those first users were never sure how to fully utilize this new fangled toy. But only over time did the early adopters realize new uses and only over time did others outside of the niche group begin taking advantage of the features of the cell phone. The early adopters were soon enveloped by later users and they had to think of new ways to differentiate themselves from newbies. Along came everything from cases to sleeker looking phones to make everyone’s usage experience somewhat unique. Of course the price barrier being lowered along the way is also a factor, but that is to be expected when a demand/supply curve escalates.

For social media tools the early adopters are being enveloped by newbies, in this case hyper-local companies that are slowly adopting social media for the first time. So these trends the author suggests are not just a fad, they are the natural progression of users/adopters. New users are arriving on the scene because rather than seeing social media as a trend, they are viewing it as a tool that they need to adapt to, or adopt as the case may be, or they may just get left in the dust.

In other words, these aren’t trends, they are how we adapt and adopt new technology.  I’m splitting hairs here, aren’t I? What does trend mean to you?

No Time to Blog! (?)

Starting your own firm can be time consuming, stressful, and sometimes convoluted.  I wasn’t even aware of all of the various paper options one can have when it comes to letterhead (the answer is 43. OK, I have no idea, but it seemed like at least that many).

I always tell people there are several elements of running a law practice that take your daily time, in no particular order: 1) servicing existing clients (i.e. those that you are currently doing work for), 2) servicing the business of your firm (i.e. accounting, website, etc.), and 3) trying to bring in new clients.  The latter item is what is what inevitably comes in last place, both in my list and on a daily basis.  Servicing existing clients is of course the top priority.  Managing firm business is of course vital as well because someone has to send invoices, manage the books, and write content for a website.  However, it is the last item that sometimes falls to the side.

Between our firm’s marketing company, MESH Marketing, Kevin O’Keefe, and a close colleague of ours that specializes in PR, they have all said the same thing: you need a blog to bring in new clients.  But what if you don’t have time in a given week to write a 500 word post about the latest decision by the the SCOTUS?  What if you are worried about providing valuable content that ends up being mindless dribble, see my blog :) ?

Let me know your thoughts because I am always unsure of the value of a blog that only has 2 posts per month.  As you can tell, that is less than the going rate for my posts on this blog, let alone a blog that takes extensive research and time to think out structure and content.

So, my friends, what if you have no time to blog?  Are you forever doomed to wallow in existing clients or is a sub-par blog better than none at all?

I Know, I KNOW…

It has been a while.  I admit it.  I’ve said I was going to deliver months ago and alas, I have failed to do so.

I admit, I’ve been itching to get back into writing, but have just been so crazy with starting and running the firm these last 11 months that I have dropped the ball on my blog.  So much has happened since my last post in May: Anna has graduated, she has studied for and pass (on the first try!!) both the NH and MA bar exams, we have opened up a new office in NH, and the firm has beaten it’s revenue goals for year one, with many thanks going to our amazing clients.  I won’t bore you with the details of it all, but I will use them as an excuse.

I promise to write more often.  I promise.  If I don’t write at least once per week, let me know and choose my punishment, as long as it is not anything to do with giving up hockey.  For now though, I must rest for a day filled with new and existing client meetings at CIC tomorrow.

Until our next conversation.