BOCA RATON, FL, June 06, 2023 /Business PR News/ — Opus Virtual Offices is revolutionizing the entrepreneurial landscape by offering a groundbreaking approach to business planning. Entrepreneurs can now prioritize acquiring a business address before incorporating their companies. Allowing them to harness a wealth of benefits that set them on a path to sustainable success. “Flexibility is key to success. With our virtual office solutions, you can rebrand your business effortlessly, keeping your future open and your options limitless.” Yori Galel, CEO. It’s time to flip the script and acquire a business address before incorporating your company. This revolutionary approach gives you a laser focus on initiatives like product development and customer acquisition, propelling your business to unimaginable heights.
About Opus Virtual Offices
Opus Virtual Offices has become the fastest-growing company in the alternative workspace industry, with more than 650 locations throughout the U.S. and Canada. Their successful business model is built on providing complete office services for a single, low monthly rate of $99. Exclusive features of an Opus Virtual Office include a live receptionist answering and transferring calls, a prestigious corporate mailing address, a business phone, fax, and voicemail.
Opus Virtual Offices offers professional state-of-the-art conference rooms available for a flat hourly rate. Unlike many other virtual office providers, there is no fine print, hidden charges, or service limitations. Leave the costs associated with a traditional office lease behind and concentrate on running your business. With Opus Virtual Offices, you have all the benefits of a conventional office lease without worrying about excessive overhead expenses.
In the fast-paced business world, success is often measured by various factors, including revenue growth, customer satisfaction, and market share. However, there is one essential ingredient that is often overlooked that holds immense power – business credit. A solid credit profile can be the key to unlocking growth opportunities and ensuring your business thrives in the long run. If you want to understand the importance of a positive credit score for your business, how to use it to your advantage, and how Opus VO, the leading virtual office provider, can enhance your credit reporting experience to give your business the edge it deserves, follow along.
Building a solid foundation for your business requires more than just a great product or service. It demands credibility and financial stability, often assessed by potential investors, partners, and lenders through your creditworthiness. Establishing and maintaining your company’s credit profile is crucial since it can propel your business forward.
How to Establish Business Credit
To establish solid credit in the business world, follow these steps:
Get a dedicated business phone number and business address: This is an easy thing to do with a virtual office and doesn’t require a large investment.
Incorporate your business or form an LLC (limited liability company). This ensures your personal and business identities will be separate.
Get a federal employer identification number. This is a free service offered by the IRS. An EIN acts a bit like a Social Security number for a business entity, yet may change as time goes on.
Open a business bank account. Make sure you use the business’s legal name and address.
The Benefits of Having Business Credit
Business credit separates your personal finances from your business finances. By keeping them apart, you protect your personal assets from potential risks and liabilities associated with your business. This separation not only shields your personal credit from any adverse effects caused by your company’s financial performance but also offers professionalism and accountability that can inspire trust in investors.
Business Credit Determines Access to Capital & Funding
Whether you need a loan for expansion, new equipment, or additional staffing, a strong credit profile significantly improves your chances of securing financing at favorable terms. Lenders and financial institutions often rely on your credit score to evaluate your company’s creditworthiness and determine your interest rate and credit limit. By being proactive and taking control of your credit, you show that you can handle financial obligations responsibly, making you a secure risk and more attractive to lenders.
Alternative Funding Sources
Solid business credit opens various business opportunities, such as establishing trade credit with suppliers. Trade credit allows you to negotiate better terms, extend payment periods, and build valuable relationships with vendors. A company with a favorable credit profile is considered reliable and trustworthy, paving the way for favorable agreements and savings.
Why Choose Opus VO?
You may wonder how Opus Virtual Offices ties into this narrative. Opus VO, renowned for its exceptional virtual office solutions, offers a unique and invaluable advantage in business credit reporting. Opus VO offers comprehensive credit reporting as part of their virtual office services for every client as soon as they sign up.
Consistent credit reporting enables you to establish and strengthen your business credit effortlessly. By incorporating credit reporting into their virtual office solutions, Opus VO not only assists you in establishing a professional business presence but also helps build your company credit profile. Every time you utilize Opus VO’s virtual office services, such as mail handling, phone answering, or meeting room rentals, your business credit activity is meticulously reported to Moody’s, enhancing your overall business reputation.
Tips to Build Business Credit
Pay vendors early: paying on time can get you a good score on the Dun & Bradstreet PAYDEX, where scores range from 1 to 100. This score is based exclusively on your payment history with vendors.
Manage cash flow: when you have good credit, you are eligible for lower interest rates and better terms with vendors. Use credit cards to efficiently manage your company’s cash flow.
Monitor your credit report: errors and fraudulent activity can negatively impact your business and make borrowing difficult. Check your credit report a couple of times each year. If you find an error, correct it by filing a dispute with the proper reporting agency.
Work with vendors that report payments: Ask the vendors that you work with if they report to credit agencies. If they don’t consider opening accounts with new vendors that do, such as Opus VO.
Opus Virtual Offices
If you want your business to thrive in today’s competitive landscape, you must recognize the importance of business credit. It is a critical component that influences your credibility, financial opportunities, and growth potential. By choosing Opus VO as your virtual office provider, you gain access to world-class virtual office solutions and unlock the added benefit of their credit reporting service. Opus VO’s commitment to empowering businesses with comprehensive credit reporting sets them apart and makes them the ideal choice for entrepreneurs and companies aiming to maximize their potential. Invest in your business’s future today and leverage the power of business credit with Opus VO.
Starting a new business is an exciting time in every entrepreneur’s life, one filled with passion and ambition. What most new entrepreneurs overlook are the hidden expenses associated with launching a new business. Everyone is aware of the standard start-up costs, such as rent and inventory, but many overlook lesser-known expenses that can catch a new business owner off guard. Here is a list of the six hidden costs of starting a new endeavor that, when overlooked during budgeting, can make a difference between success and failure.
The six hidden costs of starting a business are taxes, permits/licenses, employee benefits, administrative expenses, insurance, and consultants. Understanding and preparing for these expenses will help aspiring business owners navigate the financial landscape more effectively.
Taxes: As a business owner, no matter what entity you create, taxes are one expense you cannot avoid. Depending on your state, you’ll have to pay federal, state, and local taxes. Your tax rate will vary as well, depending on your locality. For instance, California requires a 7.25% sales tax, whereas Texas, requires a 6.25% tax.
Permits, Licenses & Fees: Depending on the type of business you want to establish, you may need to factor in permits, licenses, or fees. Although many of these are one-time start-up expenses, they can be quite hefty, especially if they are not accounted for when finalizing a start-up budget. These expenses vary from industry to industry.
Employees & Benefits: The cost of employees and things such as benefits are not always predictable, yet they are necessary if you want to retain top talent and have happy employees.
Administrative Expenses: Expenses that are required to support your organization’s daily activities fall under the umbrella of admin expenses. Every business has them. They can be adjusted based on the type of business you open and the way you run your business too. For example, if you rent a brick-and-mortar office space, they will be higher versus if you go the route of a virtual office.
Insurance: Insurance is another expense that may vary depending on the industry you operate in. Regardless of that fact, insurance is a necessary expense to protect your business from litigation and unforeseen circumstances. Many states within the U.S. require companies to have workman’s comp. insurance, while other industries require a more comprehensive policy approach. Nevertheless, insurance is a hefty expense that should be accounted for when budgeting for your new business.
Consultant Fees: Hiring a consultant as a start-up, can seem costly. But the expertise they bring to the table can be invaluable and worth the upfront expense. Many companies value consultants more than full-time employees as they get very specific expertise at a fraction of the cost of hiring a full-time expert. In fact, a recent study found that out of 100 start-ups, 3/4 of them partitioned up to 5% of their budget for consultant fees.
Opus Virtual Offices
Opus Virtual Offices is a B2B provider of virtual office services to businesses across the U.S. & Canada. Competitively priced, Opus VO offers many services that set them apart from the competition. Services that will help you run your business efficiently while saving you money on administrative staff, and physical space, such as live reception, inbound/outbound call transfer, call log, and digital mail sort. When you’re ready to take the next step in your new business, think of Opus VO!
Streamline Your Business by ordering checks online. In today’s fast-paced world and global economy, efficiency and professionalism are essential for success. When you combine the convenience of a virtual office with the ease of ordering checks online, you just made your business more fluid and convenient. The need to reorder checks by going into the bank is over. Order checks online with just one click whether you are on the road, at home, or on vacation.
Despite paying most of your business bills via ACH, Zelle, or Chase Pay, the need for paper checks still exists. Physical checks with your business name add an air of establishment to your business, akin to the benefits of having a business address and business number. In this article, we’re going to touch on all the ways ordering checks online for your business can benefit your company.
Professionalism
Nothing is as important as putting up a professional front for your clients and distributors. What better way to do that than with business checks with your company name & address in the upper right-hand corner? A business check shows that you pay attention to detail, which lets your clients know that you will give their business the same attention. A customized check and other business products showcase your brand in a polished and professional manner. When you order checks online, you can customize your check to the smallest detail. Your checks can have your company logo, colors, and business information so that you can create a lasting impression with clients. Whether you opt for traditional checks, high-quality security checks, or stylish designs, physical checks ensure your financial transactions reflect the professionalism of your virtual office setup.
Brand Consistency
Maintaining brand consistency across all aspects of your business is crucial to building trust and recognition. When you order business checks online, you can extend your branding efforts beyond your virtual presence. Incorporating your company logo and design elements into your checks, envelopes, and other business products reinforces your brand identity with every transaction. This consistency enhances your credibility and professionalism, whether you’re dealing with clients, vendors, or financial institutions. Integrating physical checks with a virtual office setup creates a cohesive and memorable brand experience.
Convenience
When you have a virtual office, it makes a statement. It shows that you value flexibility and time-saving benefits. Online check orders align perfectly with this mindset by providing an easy and convenient way to order personalized checks and other necessary business products online. With just a few clicks, you can browse their extensive selection and choose a design that suits your brand. This streamlined process eliminates the need for time-consuming trips to the bank and unnecessary paperwork. Free up valuable time that can now be dedicated to growing your business, by ordering checks online.
Enhanced Security
Security is a top priority for every business, as is the importance of protecting your financial transactions. Most online check companies offer high-security checks incorporating multiple fraud prevention features, such as microprint, chemically reactive paper, and tamper-evident packaging. These measures safeguard your business against fraud and unauthorized transactions. Security checks can give you peace of mind by minimizing financial loss.
Opus VO
Opus Virtual Offices provides virtual office solutions to build professionalism, efficiency, and branding in today’s business landscape. With Opus VO, businesses can enjoy the benefits of a professional business address, mail-handling services, and meeting room access, all without needing physical office space. This flexible, cost-effective solution allows businesses to establish a professional presence and enhance their credibility. When you’re ready to take your business to the next level, order checks online and enhance your company branding and professionalism.
We are all guilty. Guilty of pushing off our dreams and aspirations for one simple reason. We are waiting for the right time, waiting for things to fall into place. The fact is, there is never a right time. No one is ever truly ready. But study after study shows that the most successful people in the world don’t wait for the right time to train for that 5K, to start that new business, or to look for a better career. They take a leap of faith and jump in, knowing that they can learn as they go.
The Right Time Doesn’t Exist: Jump in and Learn as You Go
Starting a business, taking on a new habit, and chasing the things that you truly want can be quite daunting. It takes courage, hard work, and dedication. Many aspiring entrepreneurs feel they need to wait for the “right” time to start a new endeavor. This is a skewed belief. Not everything needs to be perfect, the stars don’t have to align. The most successful entrepreneurs know there is no perfect time. No one is ever truly ready for their next adventure. The most successful entrepreneurs jump in feet first and learn what they need as they go.
The Problem with Waiting for the Right Time
One of the biggest misconceptions about starting a business is that you must have everything in place before starting. This includes a solid business plan, a clear strategy, a marketing plan, and enough capital to get started. While these things are important, waiting for the “perfect” moment to start can be a trap that leads to missed opportunities.
The truth is, there will never be a “perfect” time to start a business. There will always be challenges, obstacles, and unknowns. If you wait for the right time, you may miss opportunities or fall behind competitors who have already begun their journey.
The most successful entrepreneurs understand they will never be fully prepared. Rather, they adapt to challenges and find creative solutions to problems as they arise. This allows them to gain valuable experience and learn important lessons that they can apply to future endeavors.
The Benefits of Taking Action
Taking action, even if you’re not fully prepared, has many benefits, such as:
Gaining valuable experience: The best way to learn is by doing. When you take action and start your new business or endeavor, you’ll gain valuable experience that you can’t get from reading books or attending seminars.
Overcome fear: Fear is one of the biggest obstacles people face when they want to start something new. Fear of the unknown, fear of being teased by friends and family, and fear of failure. By taking action, you’ll confront your fears and develop the courage and confidence to overcome them.
Build momentum: Momentum is key to building a successful business. By taking action, you’ll build momentum and make progress toward your goals.
Identify opportunities: Starting a business often leads to unexpected opportunities. By taking action, you’ll put yourself in a position to identify and take advantage of these opportunities.
Create a sense of urgency: When you take action, you create a sense of urgency that can propel you forward. This can help you stay focused and motivated, even in the face of challenges.
How to Overcome Fear and Take Action
Usually, fear is the biggest factor holding you back from chasing your dreams. Here are a few ways to overcome fear and jump into your next endeavor.
Identify your fears: The first step in overcoming fear is to identify exactly what you’re afraid of. Is the fear of failure holding you back? Do you lack confidence? Are you concerned about financial risks? By identifying your fears, you can develop strategies to move past them.
Start small: Starting a business doesn’t have to be an all-or-nothing proposition. You can start small and build from there. For instance, start a side hustle or launch on a small-scale, something that won’t take up more than your weekends.
Seek out mentors: Mentors can be an invaluable resource for aspiring entrepreneurs. Mentors offer guidance, support, and advice as you navigate business challenges. After all, they were once in your shoes and know what it takes to get to the other side.
Take calculated risks: While taking risks is an inevitable part of starting a business, it’s important to take calculated risks. Informed and calculated risks are the best way to move ahead. This means while advocating to jump right in and follow those big dreams, look before you leap.
Embrace failure: You need to see failure as the stepping stone to success. Failure is not a reason to walk away and give up. Instead, it’s a reason to learn a new skill and push yourself out of your comfort zone. Taking action is the only way to overcome this fear. Everyone was a newb at some point.
Have a support system: Starting a business can be lonely and overwhelming. It often requires burning the midnight oil and turning down social engagements. Try to surround yourself with supportive people who will keep you motivated and accountable without judgment. Consider joining a community of entrepreneurs or networking with like-minded individuals.
Keep learning: Starting a business requires continuous learning and adaptation. Stay curious and learn from your experiences, mentors, and industry experts. This will highlight your ability to pivot when needed.
The Perfect Spring Board To Jump in Before You’re Ready
Here are a few business concepts that you can attempt to test the waters. They don’t require a lot of prep work or a significant financial investment. They are also the best fields that you can use to learn as you go.
Freelancing: Freelancing is a great way to start a business without the financial risks or overhead costs associated with traditional businesses. Consider offering your skills as a freelancer on platforms like Upwork, Fiverr, or Freelancer to get started. As a freelancer, you can work as little or as much as you want, and there is always the opportunity to grow when you’re ready.
E-commerce: E-commerce is another business venture that is easy to take on when you’re not quite ready to go full speed ahead. You can open an Etsy shop, become an Amazon vendor, or have your own website where you sell your services. Depending on what you’re selling, you can start an E-commerce business with minimal upfront investment and work on it during the evenings and weekends so it doesn’t interfere with your 9 to 5.
Service-based business: Service-based businesses, such as marketing agencies, graphic design firms, or consulting businesses, can be lucrative and low-cost. Consider offering your skills as a service to clients in your area of expertise. This is a great way to test the waters and see where things go. Your concept may explode and take off or stay a small side hustle.
Content creation: If you have a talent for creating content, consider starting a blog, podcast, or YouTube channel. These platforms can be monetized through advertising, sponsorships, and affiliate marketing.
Virtual Offices
An easy way to set up any of the opportunities mentioned above would be with a virtual office. Virtual offices come with administrative support, provide a prestigious mailing address and allow you to appear as though your company is established and here for the long run. When you get an Opus Virtual Office, you get a slew of services, such as digital mail sorting, real-time call logs, inbound and outbound call transfer, and more, for one low monthly fee of $99. Don’t let your fears hold you back. The right time to start that new business is now. Don’t miss out on that opportunity. Take the leap today!
As a business owner, you have a lot on your plate. Something always needs your attention, from managing employees to staying on top of your finances. One aspect of running a corporation that can be easily overlooked, but is essential, is maintaining the corporate veil. This refers to the legal separation between a corporation’s interests and the personal interests of its owners, shareholders & officers. This separation is necessary if you don’t want to be held personally liable for corporate wrongdoing. One way to ensure that you maintain the corporate veil is by using a virtual office instead of your home address for your business. This avoids the appearance of impropriety and ensures there’s no co-mingling between your personal business and your corporation’s business.
What is the Corporate Veil?
The corporate veil is a legal concept that demands the separation of corporate finances, and its actions from the assets of its owners. Simply put, it protects the personal assets of shareholders and officers from being attached to lawsuits or claims against the corporation. To maintain this protection, some thresholds must be met. One threshold is that corporate operations and finances remain separate from personal affairs and finances. In other words, there is never a unity of interests between a corporation and its officers.
The courts may strip the corporation of this protection if the corporate veil is pierced. This means that the assets of corporate officers can be seized to pay for legal damages, debts, and other financial obligations of the business, something no business owner wants.
How is the Corporate Veil Pierced?
There are a few different ways the corporate veil can be pierced. We will focus on the measure the courts call “alter ego liability.” Alter ego liability is found when a court determines that a business and its owners are essentially the same entity. When a court finds alter ego liability, they find a unity of interest between the corporation’s interests and the interest of its shareholders/officers. For example, the officers use the corporation as a shell company for their personal gain. In this case, a court may strip the corporation of its limited liability protection.
Several factors can contribute to a court finding alter ego liability, including the co-commingling of personal and business finances, failure to comply with corporate formalities, or using personal assets to pay for business expenses and vice versa. These actions blur the lines, making it more likely that a court will find the corporate veil pierced.
Why Using Your Home Address Can Pierce the Corporate Veil
Using your home address as your corporate address may effectively blur the lines between your personal life and your business and creates an appearance of impropriety. This may make it challenging to maintain corporate veil protection and increase the likelihood of alter ego liability if a lawsuit or claim against your corporation exists.
For example, let’s say you’re sued for breach of contract. Suppose you use your home address for your corporate address. In this case, the plaintiff’s lawyers may argue that your business is merely a shell company and that you, the corporate officer, and your business are essentially the same entity, thereby holding you personally liable for any corporate wrongdoing or debt. This argument is more compelling when personal and business finances are commingled.
In addition, if you use your home address for your business, you may be more likely to use corporate assets to pay for personal expenses. For example, you pay your home’s electric bill out of your company checking account, or you might use your personal credit card to pay for business expenses or use your personal bank account to deposit business income.
Why Using a Virtual Office is the Best Choice
To minimize the risk of piercing the corporate veil, you must create a clear separation between your business and yourself. A virtual office is the best way to do this without breaking the bank. A virtual office offers more than a business address for your company. It ensures that your corporation is a separate entity from your personal interests. Virtual offices provide privacy protection, as well as create an aura of professionalism for your new venture. They offer flexibility, which allows business owners to work from anywhere while maintaining a professional client-facing image and a clear separation of business and personal interests.
Opus Virtual Offices
Piercing the corporate veil is a serious legal doctrine that can expose shareholders’ personal assets to liability. With a virtual office, corporations and their shareholders/officers can enjoy many benefits while reducing the risk of losing their limited liability protection simply because it will ensure a separation of personal and professional interests.
Opus Virtual Offices is a B2B provider that offers administrative support and a host of virtual services. With features such as digital mail sorting, real-time call log, parcel post receiving, live reception, and meeting rooms on demand, it is the clear choice among virtual office providers. Make the choice that serves your corporation best, use a virtual office, and don’t expose your corporation to risk.
Ah, the joys of running a business from home. You get to skip the daily commute, wear pajamas all day, and enjoy the convenience of being steps away from your kitchen. But there’s one downside that many entrepreneurs know too well: the risk of missing packages. Whether it’s because you’re not there to sign for a delivery or because your friendly neighborhood porch pirate has struck again, it seems like there’s always a package missing when you’re trying to run a business from home.
But fear not, my fellow home-based business owners! There is a solution to this age-old problem: a virtual office. Using a virtual office instead of your home address for your business lets you rest easy knowing that your packages won’t disappear into the ether.
The Stats
First, let’s discuss statistics. Did you know that porch piracy is skyrocketing? Spurred on by increased online shopping and economic uncertainty, package theft has become a serious concern for many e-commerce businesses and their customers. These numbers have only grown since the pandemic and enforced lockdowns. In fact, in 2022, over 19% of Americans lost packages to porch piracy. One way for businesses that operate out of their home to prevent this would be to use a virtual office.
How can a virtual office help? Well, it’s simple. When you use a virtual office, you’re not just getting a prestigious business address for your company and marketing collateral. You’re also getting a professional receptionist to handle your mail and packages. That means no more missed deliveries or stolen packages. Your virtual receptionist will sign for your packages, keep them safe and secure, and may even forward them to you if you cannot pick them up in person.
The Benefits
With a virtual office, you get the added bonus of having a professional business address that places you on Main Street, an address that, if you had to maintain with physical office space, would be financially out of reach. A virtual office gives your business an air of credibility, and it helps to separate your personal life from your work life, so there’s no appearance of impropriety if you’re a corporation. With a virtual office, you no longer need to give your home address to clients or vendors – give them your virtual office address and let your receptionist handle the rest.
In addition to ensuring you never fall victim to porch piracy, a virtual office may boost your productivity. With a separate address for your business, you can create clear boundaries between your work life and your home life. Establishing those boundaries is the first step in avoiding burnout.
And let’s be real, who doesn’t want to feel like a boss? A virtual office gives you all the perks of a traditional office – a professional address, a receptionist to handle your mail, and a meeting room to meet with clients – without the overhead costs. With a virtual office, you get the best of both worlds.
Virtual Offices
Using a virtual office can save you from the headache of missing packages, give your business a professional edge, and even boost your productivity. There are many virtual offices with different services and packages. When you choose an Opus Virtual Office, you can select as many locations as you want, with over 650 to choose from across the U.S. Opus VO is the most competitively priced virtual office company offering live reception for inbound and outbound calls, package, and mail receiving, digital mail sort, and real-time call logs so you can run your business most efficiently. Choose a virtual office for your small business and ensure your parcels never get stolen again!
Piercing the corporate veil is a legal concept used when an individual or business entity seeks to hold a corporation’s shareholders or officers personally liable for the corporation’s actions. Typically, a company chooses to create a corporation as its entity of choice because, under the eyes of the law, a corporation’s actions or conduct are legally separate from those of its shareholders and officers.
This means that the personal assets of a corporate officer or shareholder remain untouchable by the IRS creditors and debtors. However, this protection is not a guarantee. In certain circumstances, attaching personal assets to a corporation’s wrongdoings in a lawsuit or a claim may be possible. That’s if, and only if, the shareholders or officers “pierce the corporate veil.“
This legal opinion will explore the concept of piercing the corporate veil, including when it may be appropriate to do so, how the process works, what happens when the veil is pierced, and how to avoid it.
A corporation’s limited liability shield for its officers is one of the most valuable assets of a corporate entity. However, there are times when shareholders or officers abuse this privilege. As a result, the courts will put aside the limited protection and allow shareholders to be held liable for corporate debt, liability, or wrongdoing. In other words, a court will pierce the corporation’s veil of limited liability and hold its shareholders personally responsible for the damage. We will explore the elements attached to piercing the corporate veil, with a focus on Florida law, §2d 1063 (Fla.5th DCA 2003).
What Does it Mean to Pierce the Corporate Veil?
Piercing the corporate veil is a legal doctrine that allows the courts to disregard the separate legal identity of a corporation and hold its shareholders personally liable for corporate debt or obligation. This is the most powerful tool plaintiffs can use to recover damages from a corporation that has wronged them, allowing them to attach personal assets rather than being limited to the business’s assets.
For the courts to put this protection aside, plaintiffs must show that the corporate officers or shareholders have conducted themselves in such a way that they are undeserving of this protection. Courts are extremely hesitant to pierce the corporate veil, as it’s one of the most extreme remedies available, and it undermines the principle of limited liability at a fundamental level.
What Actions Can be Seen as Piercing the Corporate Veil?
There are several factors that a court may look at to determine if the veil has been pierced, such as:
Fraud or Misrepresentation: If a corporation was set up with the intention of defrauding creditors (think of shell corporations), it could be found to have pierced the veil. Alternatively, if the corporation has engaged in misrepresentation of any kind, then a court may decide to pierce the veil and hold shareholders or officers personally liable.
Lack of Corporate Formalities: If a corporation has failed to follow proper corporate formalities. Such as their obligation to hold regular board meetings, keep accurate records, or fail to observe other corporate formalities, a court may decide to pierce the veil.
Alter Ego: If a corporation is treated as the alter ego of its shareholders or officers, a court may decide to pierce the veil. This can occur if the shareholders or officers treat the corporation as an extension of themselves rather than as a separate legal entity. For instance, they fail to maintain separate financial affairs, use their business account to pay personal bills, or run their corporation out of their home.
Inadequate Capitalization: If a corporation is knowingly undercapitalized, meaning it doesn’t have enough assets or funds to cover its liabilities, a court may decide to pierce the veil and hold shareholders or officers personally liable.
Personal Guarantee: If a shareholder or officer has personally guaranteed a corporate debt, a court may decide to pierce the veil and hold the individual personally liable for the debt.
How the Process Works
The process is clear and straightforward. A lawsuit is filed against the shareholders or officers of the corporation. The plaintiff then has the burden of proof and must show adequate evidence of one of the above factors. If they meet the standard of proof, the court may rule in their favor and find the corporate shareholders personally liable.
In order to pierce the corporate veil, the plaintiff must show that the shareholders or officers engaged in some wrongdoing that justifies holding them personally liable. This may involve demonstrating that the corporation was set up with the intention of defrauding creditors, that the shareholders or officers failed to follow proper corporate formalities, or that the corporation was undercapitalized or comingled finances with their personal finances.
What Happens When the Corporate Veil is Pierced?
If a court deems the corporate veil has been pierced, shareholders and corporate officers may be held personally liable for the debts and obligations of the corporation. This means their personal assets may be seized or attached to satisfy company debt and obligation.
In some cases, piercing the corporate veil may also lead to reputational damage for shareholders and their corporations. This is because others will know that they engaged in unethical or illegal behavior and may be hesitant to conduct business with these individuals in the future.
Virtual Offices
Piercing the corporate veil is a serious legal remedy afforded by the courts that may have significant consequences for shareholders. It’s important to take every measure possible to avoid the look of impropriety by corporate officers. One way to accomplish this is by using a virtual office for your corporate address. Virtual offices, such as Opus Virtual Offices, are one tool that corporations can use to avoid the appearance of using their corporation as an alter ego. By having your corporate address attached to a virtual office rather than your home address, shareholders and officers should fall within the protection of the limited liability granted to corporate entities.
Virtual offices typically offer a variety of services, including reception service, parcel post receiving, meeting rooms, a corporate address, and more. Imagine all that and maintaining the corporate privilege of personal asset protection. If you’re considering a virtual office, consider Opus VO, one of the most competitively priced virtual offices within the U.S. Opus VO offers administrative support and virtual office services that will allow you to grow your business to new heights!
Taxes may not be the most exciting subject, but as a business owner, it’s essential to stay up to date with the most recent changes to the tax code and learn how they affect your business. In 2017, the Tax Cuts and Jobs Act was passed, which brought about significant changes to the tax code. These changes can significantly impact your business and its bottom line. This article will explore the new tax codes implemented and highlight how they may affect your business going forward.
The Tax Cuts and Jobs Act (TCJA), passed in 2017, brought about significant changes to the tax code. One of the main changes was the reduction in the corporate tax rate from 35% to 21%. This reduction in the corporate tax rate was meant to stimulate business growth and investments while providing more money for businesses to use for research, development, hiring, and expansion.
Another significant change introduced in the TCJA is the new deduction for pass-through entities, such as sole proprietorships, partnerships, and limited liability companies (LLCs) [you can read more about business entities here]. Entities with pass-through taxation aren’t doubly taxed; instead, they report company profits as their personal income on their individual tax returns. This new deduction allows owners of pass-through entities to deduct up to 20% of their qualified business income on their individual tax returns, which can lead to significant tax savings for them.
The Tax Cuts and Jobs Act also eliminated or reduced many business deductions. For instance, entertainment expenses can no longer be deducted from business tax returns. This means businesses may need to adjust their budgets and spending habits to account for such changes so it doesn’t negatively impact their bottom line.
One of the most significant and controversial changes in the new tax code is the state and local tax (SALT) deduction limitation. This change limits the state and local taxes companies can deduct on their federal tax returns to $10,000. This change may significantly impact businesses in states with higher tax rates, making it more challenging to attract and retain new talent.
Overall, the new tax code has many benefits and drawbacks for businesses. While the reduction in the corporate tax rate and the new deduction for pass-through entities may lead to significant tax savings, the flip side of eliminating or reducing business deductions and the limitation on the SALT deduction may result in increased business costs. Businesses need to work with their accountants and tax professionals to understand how these changes affect them and make the necessary adjustments to their budgets and spending habits. This will give them the opportunity to continue to turn a profit and flourish.
Opus Virtual Offices
One way for businesses of all sizes to increase profits is by reducing costs. A simple way to do this is to use a virtual office in place of a brick-and-mortar presence. Opus Virtual Offices is a virtual office company that has clients in every industry of every size. We offer live reception, inbound and outbound call transfer, meeting rooms on demand, parcel post receiving, and more. If you’re a business that is looking for an alternative to a physical space to increase your profit margin, consider Opus VO.
Small business owners are driven and passionate about their work. After all, getting a new venture off the ground takes a tremendous amount of discipline. Sometimes, the amount of self-imposed isolation and late-night hours needed to start a successful business can lead to burnout. Burnout is a state of emotional, physical, and mental exhaustion that results from prolonged stress. It is not a state of zen!
If you’re an entrepreneur feeling the growing pains of starting your own business, here are 5 ways small business owners can avoid burnout with a side of humor. After all, they say, laughter is the best medicine. So, without further ado, here’s the entrepreneur’s guide to finding the funny side of burnout.
First off, let’s start with the obvious: caffeine. There’s nothing quite like that feeling of a fresh cup of coffee in the morning to get your day started. But when you’re burning the candle at both ends, caffeine can quickly become your best friend or your worst enemy. Before you know it, you’re mainlining espressos to keep up, and your body is running on fumes. Yet, you still can’t resist that sweet, sweet java. It’s like a warm hug for your soul, even if your stomach is churning and your hands are shaking.
Second is that knawing feeling of overwhelm in the pit of your stomach. As a new business owner, you’re likely the only one around. You manage your own finances, do your own marketing, act as a customer service rep, and you’re the one to deliver the goods. Something is always pulling at you, demanding your full attention. That feeling of wishing you could clone yourself to get more done in a single day is a sign of being overwhelmed by your responsibilities. If you take a step back to see the bigger picture, hopefully, you can see the humor in the situation and know that you’ve become a master juggler who deserves center-ring at the circus!
Let’s not forget exhaustion. Whether it’s due to stress, excitement, or just too much caffeine, entrepreneurs are notorious for sacrificing a much-needed solid night’s rest to push their business forward. But hey, sleep is overrated anyway, or so they say! In actuality, sleep is essential. Yet when you’re neck deep in burnout, sometimes the only thing you can do is laugh or cry. So find the humor in walking around like a zombie, stumbling around with your eyes half closed and the brain fog accompanying exhaustion.
Then there’s the constant hustle. As an entrepreneur trying to bootstrap your new venture, you may find yourself in a continual state of motion. Always searching and looking for more. You may begin to feel like you’re a hamster on a wheel, running as fast as you can but not achieving your goals. You need to stop and slow down, but then again, that hamster wheel can serve double duty as your daily cardio.
Lastly, there’s the impending fear of failure. When you’re all in on your idea, the stakes are high. You’ve poured your heart and soul into your business, and the idea that it may all come crashing down is petrifying. Sometimes the only way through is to look at the situation with a humourous lens. This will help you put everything into perspective.
Realize this feeling of overwhelm is only a season, so you can allow yourself to take a step back and breathe. While having a sense of humor can make the process easier, here are 5 practical tips you can implement to make the life of a budding entrepreneur a bit easier to master:
Set realistic expectations: Rome wasn’t built in a day, and neither are successful businesses. Setting realistic expectations can help manage overwhelm and help you sidestep burnout. Try to break large tasks down into smaller, more manageable ones.
Prioritize self-care: when you are laser-focused on your professional goals, it’s easy to let self-care fall by the wayside. This is the wrong move. Take the time to do something you enjoy that you find relaxing. Taking the time to show yourself some love can alleviate stress and allow you to come back stronger.
Delegate: Instead of doing everything yourself, learn to hand off smaller tasks to others. A virtual office is a great way to do this as a new business owner or startup. When you have a virtual office, they handle many daily tasks that lead to overwhelm. Virtual office companies, such as Opus Virtual Offices, offer features such as live call answer, parcel post receiving, meeting rooms upon demand, and most importantly, a prestigious business address, so your new business has an air of authenticity.
Take time off: taking regularly scheduled breaks throughout the process is essential to avoid burnout. Take a long weekend, a siesta, or that vacation you’ve always dreamed of. This will allow you to come back stronger than before, with a renewed sense of energy.
Seek support: burnout can be isolating. There’s no need to go it alone. Seek support from friends, family, or a therapist. Join associations or other small business communities where you can talk to people walking the same walk as you. After all, they know best what you’re going through and may be able to offer advice that has worked for them in the past.
Opus Virtual Offices
Life as an entrepreneur can be a lonely endeavor, but it doesn’t have to be. Consider a virtual office if you are overwhelmed by the responsibilities of starting a new business. Not only does a virtual office save you money, but it’s a great alternative to a physical office. They offer services that will alleviate the stress of keeping a business running. Opus VO has over 650 locations nationwide, making it the clear choice. Wishing you the best of luck in your new endeavor!
