How to Increase Your Firm Revenue Through Business … · 2019. 10. 2. · Help Your Clients & Grow Your Firm Adding business formation and compliance monitoring to your advisory

How to Increase Your Firm Revenue Through Business Incorporation and Compliance Services

Nellie Akalp, CorpNet CEO

How to Increase Your Firm Revenue Through Business Incorporation and Compliance Services

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Nellie Akalp, CorpNet CEO:

Nellie Akalp is an entrepreneur, business expert, professional speaker, published author, and mother to four amazing kids. Nellie has dedicated her entrepreneurial career to helping other entrepreneurs and business professionals succeed at business ownership.

As CEO and Co-Founder of CorpNet.com, she has helped more than half a million small businesses and licensed professionals get their businesses and clients off the ground. She has developed a strong following within the small business community and has been honored as a Small Business Influencer Champion and was named women entrepreneur of the year by NAWBO.

Copyright CorpNet, All Rights Reserved

Accountants are Critical toSmall Business Success


Copyright CorpNet, All Rights Reserved

Businesses Rely on Accountants

Source: http://www.waspbarcode.com/small-business-report-accounting


Creating a Win/Win Relationship



Help Your Clients & Grow Your FirmAdding business formation and compliance monitoring to

your advisory services will help you be more proactive.

Become a trusted advisor to your clients; you may already be advising on these services, but not utilizing it as a revenue source

Increase and diversify your services

Get engaged earlier in the startup process

Increase revenue and improve your bottom line


Why Clients Need Your Support Your clients may know they need to protect their assets, but they typically

don’t know which option is best for incorporation

Terminology and business formation options can be very overwhelming to most people

When clients do attempt to incorporate, they don't understand the tax savings for the various entity types

Once their paperwork is filed, they forget about compliance and/or ignore annual reporting requirements

Which means…they fall out of compliance and put themselves and their businesses at risk


The Win/Win Approach You'll help provide clients with a professional identity.

You'll keep your clients in compliance.

You'll help clients select the best entity type for tax purposes.

You'll help reduce their chance of a tax audit.

You'll give them the right identity for raising future capital.

You are more cost-effective than a lawyer.

You’ll provide true value and increase goodwill by advising them on best choice of entity and jurisdiction for purposes of reducing tax liability.

You will grow your firm by adding additional services.

Business Entity Refresher Course


Popular Entity Choices

Sole Proprietorship/

Partnership

LLC (Limited Liability

Company)

S Corporation

C Corporation


Business Formation Options

Sole ProprietorshipA Sole Proprietorship is easy to form, but it offers little liability protection, funding options, and opportunities for future growth.

General PartnershipA General Partnership is the most basic form of partnership. It is comparable to a sole proprietorship, but it must have at least two owners or partners.

Limited PartnershipSimilar to a General Partnership, the Limited Partnership offers its “Limited” partners asset protection and a shielding from personal liability.

C CorporationThe C Corporation is the most common form of corporate entity. The C Corporation is owned by shareholders. The shareholders elect a board of directors to create and direct the high-level policies of the business.

S CorporationA S Corporation is different from a C Corporation in two significant ways: (1) An S Corporation makes an election to be taxed as a “pass-through entity” and(2) An S Corporation has limitations on ownership.

Limited Liability CompanyA Limited Liability Company is a popular business structure because it combines the liability protection offered by incorporation while retaining some of the tax advantages of a Partnership or Sole Proprietorship.

Professional CorporationIndividuals who provide a professional service can also benefit from forming a Professional Corporation. Where a business provides a professional service, most states have special filing requirements when incorporating.

Note: Most accounting firms, in fact, are registered as a Professional Corporation or Professional LLC/LLP (where available).

Sole Proprietorship

General Partnership C Corp S Corp

Professional Corporation LLC

Formation None NoneState Filing Required

State Filing Required

State Filing RequiredState Filing Required

Limited Personal Liability

No No Yes YesYes: Except

for Own MalpracticeYes

Transferability of Interest

No No Yes Generally Limited Generally LimitedYes: Often

Limited

DurationUntil Withdrawal or Owner Death

Unlimited Unlimited Unlimited Unlimited Unlimited

Pass-through Taxation

Yes Yes No Yes NoYes: Upon Election

Ability to Raise Capital

Not as Separate Entity

Yes YesYes: Shareholder

Limits ExistYes Yes

Limitations on Number of Owners

Yes No No YesNo: All Owners Must

be in Same Profession

No


Avoiding Legal Advice



You Can Safely Help ClientsYou may give advice about the effects a business structure will have on clients’ tax

obligations. Example questions you can answer:

Will pass-through taxation, S Corporation tax treatment, or taxation as a corporation be most beneficial financially to a client who is forming an LLC?

What options does a general partnership have if its owners want to lower their self-employment tax burden?

Which states offer the most favorable tax rates for a corporation?

Topics to Avoid Giving Legal AdviceYou may not give advice about liability ramifications of the various business entity

types. Example questions you should avoid:

What are the personal liability advantages of changing from a sole proprietor to an LLC?

What should clients include in their operating agreement?

Which state will offer the most favorable legal environment for a corporation?

Services You Can Offer



Services You Can Offer

Business incorporation

Name search

Business name reservations

Business name registrations

Licenses and permits

Federal tax IDs

State revenue registration

DBAs

Articles of amendments

Reinstatements

Register Agent services

Forming LLCs

Bylaws

Annual meetings

Annual statements

Trademarks

Certificates of good standing

Mergers

Articles of dissolution

Business closure

Meeting minutes

Adding business formation and compliance monitoring services create both short and long-term services

Sample Filing Requirements by Entity

Initial FilingRequirements

Annual Compliance RequirementsRegistered Agent

Required

Sole Proprietorship None None No

General Partnership None None No

Limited Partnership Initial Filing (Some States)

Annual Reports(Some States)

Yes(Some States)

C CorporationInitial Filing

Initial ReportPublication Fees

Annual ReportsAnnual MeetingsMeeting Minutes

Yes

S CorporationInitial Filing



Yes

Limited Liability Company Initial Filing Annual Reports Yes

Professional CorporationInitial Filing



Additional Licensing or Board Certification May Be Required

Yes


Revenue Growth Potential



Revenue Example OneProfessional: QuickBooks Pro Advisor

Sample Offering: Complete Business Formation Package

Sales Per Month: 1

Monthly Revenue: $750 + State Fees

CorpNet Cost: $250

Advisor Profit: $500

These numbers increase as clients re-engage advisor for annual compliance filings and services.


Revenue Example TwoProfessional: Small CPA Office


Sales Per Month: 4

Monthly Revenue: $4,000 + State Fees

CorpNet Cost: $1,000

Advisor Profit: $3,000



Revenue Example ThreeProfessional: Large Accounting Firm


Sales Per Month: 20

Monthly Revenue: $20,000 + State Fees

CorpNet Cost: $5,000

Advisor Profit: $15,000


Streamlining the Process


CorpNet.com Partner Program

Offer business formation and compliance.

CorpNet is a silent, white labeled partner.

CorpNet never contacts your client.

All documents, alerts, and information are sent directly to you without labels.

You will have a Dedicated Account Manager who knows your specific requirements and is available to you for whatever you need.

Private Label: Resell CorpNet Services

Refer your clients to CorpNet and they will receive white glove treatment.

A dedicated account manager will work with your clients to ensure a personalized experience and a “hand-off” back to you when the process is complete.

Earn commissions up to 25% or pass the savings to your client.

Referral Program: Refer Your Clients

Participating in both our Reseller and Referral partner programs is ok!

CorpNet.com/partners/


Our Tools Are Your Resources

Questions?



Nellie Akalp, Presenter

Founder & CEO, CorpNet.com

[email protected]

(888)449-2638

https://www.corpnet.com/partners/

Nellie Akalp

August 22 - 23, 2018 | Boston, MA

Nellie Akalp, PresenterFounder & CEO, CorpNet.com

[email protected](888)449-2638

https://www.corpnet.com/partners/


Documents

How to Increase Your Firm Revenue Through Business … · 2019. 10. 2. · Help Your Clients & Grow Your Firm Adding business formation and compliance monitoring to your advisory