Question:
I saw Better is now doing something called “#FileSomethingFridays”—what (and why) is that?
Answer:
We’ve got all sorts of clients doing all sorts of cool things. But what they often don’t realize is how many projects require government filings in order to do them! That’s why we came up with #FileSomethingFridays. Each Friday, we’ll add a new project or action to this list, so you know when a filing might be necessary for you!
1. Commercial Co-Ventures— You Need to File Something!
One such example is that of the “commercial co-venture,” which is just a fancy way of saying selling products or services and donating a percentage of the profits to charity. Yep, you have to file something for that!If you re thinking about embarking on a commercial co-venture adventure, contact us for more information on the required filings! We re happy to help keep you compliant.
2. Ongoing Compliance for Business Entities— You Need to File Something!
Any entity that is formed through the state will have regular, ongoing compliance you’ll need to meet to stay in good standing. In California, this includes regularly filing your Statement of Information with the Secretary of State, but check with your attorney and CPA to see what else is required for your specific entity.
3. Selling Services or Products— You Need to File Something!
If you (as an individual or business entity) are selling tangible products, any digital products online, or offering paid services, you will need to file a local filing for that! This filing is called a business license or a business tax certificate. These types of filings are a little funky and they differ from location to location, so if you have any questions about your unique situation, definitely speak to an attorney.
4. California’s Minimum Franchise Tax— You Need to File Something!
No, this is not just for “franchise” business owners! All businesses registered in the state of California must pay this annual $800 tax. If you aren’t sure if you’ve paid this for your business, talk to your CPA to see if they handled it on your behalf. If not, talk to your lawyer for more information.
5. Hiring Employees in California— You Need to File Something!
If you’re hiring employees in the state of California, you have to file a form called DE 34 for each employee within 20 days of their start date! It’s easy to do online, and sometimes your payroll provider will do it for you as part of the employee onboarding process. Just make sure *somebody* files it, or you can be subject to penalties!
6. Hiring Service Providers or Independent Contractors— You Need to File Something!
If you hire service providers (like us!) you’ll need their W-9 form for your tax filings. And if you hire independent contractors, you’ll need to file a 1099 if you file any independent contractor $600 or more. For more specific tax filing questions, hit up your CPA! They’re always the first source (not Google) you should consult for tax information specific to you.
7. Allowing Users to Post or Store Material on Your Website— You Need to File Something!
If you have a website that allows users to post materials or store material, then this is important for you! There is a law called the Digital Millennium Copyright Act (or the DMCA), which addresses certain aspects of copyright and the internet, including online infringement. The DMCA includes safe harbor protection, which can shield a website operator from liability created by users. But in order to use this safe harbor, you have to register a DMCA agent with the US Copyright Office.
8. Have the EDD Send Your Claims Notices Digitally— You Need to File Something!
If you are an employer and you’d like to receive your EDD claims notices digitally (instead of through snail mail) you need to sign up for “SIDES,” or the State Information Data Exchange System. Per the EDD, SIDES ” is a secure and timely way for employers…to electronically receive and respond to a Notice of Unemployment Insurance Claim Filed (DE 1101CZ),” which is what the EDD sends to employers when an employee or former employee files a new Unemployment Insurance (UI) claim or when an existing UI claim is reopened. This can be really important, because you only have a 10 day window to respond to these notices, and that’s based on the date the notice is sent!
9. Best Protect Your Copyright or Trademark— You Need to File Something!
Fun fact: you technically receive copyright or trademark protection without filing anything. However! Filing for copyright or trademark protection does have its perks, including expanded legal protections and the right to collect attorney’s fees in litigation. So if you want to best protect your intellectual property, filing something is essential.
10. If You Formed a California Business or Nonprofit in the Last 90 Days— You Need to File Something!
If you’ve recently formed a nonprofit or business in California (or you’re thinking about it), this one is for you. You’ll need to file a “Statement of Information” within 90 days of the date you filed with the Secretary of State. You can do this before 90 days (so don’t feel like you have to procrastinate), so make sure you put it on your calendar to do this!
Wrapping It All Up….
See? Lots to file! Don’t forget to check back as this list evolves—this is important information and could help you out! If you have any questions, feel free to email bertie@inbetterwetrust.com and a member of our team will get back to you.