by eclewis | Sep 23, 2014 | Business News
Last year, Colorado, with the passage of HB 13-1138, the “Public Benefit Corporation Act of Colorado,” joined a growing minority of states that have passed legislation enabling the incorporation of “benefit corporations.” Benefit corporations are a corporation that can be structured as a C-corporation or S-corporation but are specifically committed to benefitting the public, in addition to making profits. Directors of benefit corporations are charged with balancing the interests of shareholders with the interests associated with supporting public benefits. This legislation allows both new and existing corporations to become benefit corporations.
These public benefits can include educational, environmental, charitable, religious, cultural, scientific, and other types of publicly beneficial causes. However, benefit corporations are able to state more than one cause that they wish to support. This can allow for some flexibility within the company in the kinds of goals they will support.
Some well-known examples of benefit corporations include Patagonia, Etsy, and Warby Parker. Here in Colorado, GoLite, a Boulder-based outdoor apparel and equipment company, New Belgium, the Fort Collins-based brewery, and others have decided to become benefit corporations.
While many corporations feel that charitable giving is part of their social responsibility and choose to give to such causes without being a benefit corporation, shareholders of benefit corporations are given the unique power to take legal action against the management of the benefit corporation if they are not producing public benefits. Conversely, it is rare, if not impossible, for shareholders of regular corporations to be able to take such legal action over charitable or public benefits foregone by a regular corporation.
Some see the development of benefit corporations as an exciting new era that demonstrates a commitment to corporate social responsibility. Others view them as potentially tying the hands of corporate management, especially if the company hits hard times, since regular corporations can still choose to give charitably. As a result, it will be interesting to see how these benefit corporations change the corporate world and how it will effect how companies try to generate both profits and public benefits.
If you have questions about setting up a corporation of any kind, be sure to contact the Law Office of E.C. Lewis P.C., home of your Denver Business Lawyer, Elizabeth Lewis, 720-258-6647 or email her at Elizabeth.Lewis@eclewis.com.
by eclewis | Aug 14, 2014 | Business News
New businesses and entrepreneurship are on the rise in the Centennial State. The Quarterly Business and Economic Indicators Report from the Secretary of State’s office, covering the second quarter of this year, has shown that new business entity filings have increased 4 percent compared to second quarter of 2013. This also represents a 4.8 percent increase overall for the past 12 months, when compared to the previous 12 month period.
Other positive trends for the second quarter include higher employment levels in Colorado and nationwide, as well as an increased rate of renewal filings of existing entities. Renewal filings increased 3.9 percent in the second quarter from the first quarter of this year. These and other economic indicators led to the predictions within the report for continued employment and economic growth for the next two quarters of this year thanks to new jobs from startups and growing businesses.
The report specifically projected more increases in filings over the third quarter of this year as well. While these filings are projected to slow down some during the fourth quarter of the year, as they typically do, they are nevertheless expected to be higher this year than last year’s final quarter.
Business Insider also recently ranked all 50 state economies growth rate by comparing them across eight economic indicators like unemployment, gross domestic product, average wages, and size of the working age population. Colorado earned the top spot on their list at #1 due to being within the top fifteen states in all eight of their metrics, as well as having a highly diversified economy. This further signals a growing economy for Colorado.
On June 9th, the Secretary of State announced a filing fee holiday for new business entity filings, which reduces the fees from $50 to $1. The holiday was prompted by budgetary surpluses with the Secretary of State’s Office and it will continue through the rest of the summer. After the summer, the fee will be reevaluated on a monthly basis. This holiday, when combined with the already positive economic trends that are being forecasted for the state, may help spark additional business formation and growth here in Colorado.
Now is a great time to consider starting or expanding your own business with the positive outlook of Colorado’s economy behind you, as well as reduced new business filing fees. In order to get started, be sure to reach out to the Law Office of E.C. Lewis PC, home of your Denver Business Lawyer, Elizabeth Lewis, 720-258-6647 or email her at Elizabeth.Lewis@eclewis.com.
by eclewis | Jul 1, 2014 | Business News
The results from CNBC’s ranking of America’s Top States for Business are in. After analyzing and comparing each state across fifty-six different business metrics, each state was assigned points in ten major categories to determine their ultimate ranking. Colorado came out with a ranking of #8 in the nation overall. You can take a look at the full report here.
Looking at some of the ten primary ranking categories, Colorado received the following rankings. Colorado ranked first for Access to Capital, which looks at the availability of venture capital and small business loans. For Workforce, which accounts for the quality and availability of workers, it came in 5th. Colorado ranked 8th for Economy, which examined the growth, job creation, and health of the real estate market. Colorado also came in at 9th in Technology & Innovation, which factored in the number of new ideas and capacity to support them within the state, and 12th in Quality of Life, which was scored by looking at crime, healthcare, and recreational considerations.
Colorado was specifically described in CNBC’s report as being “focused on innovation,” having a workforce that is “dynamic” and that capital for businesses was “abundant.” The Centennial State’s strong business performance evidenced by this report shows that there is no better time than the present to start or grow your business right here in Colorado.
If you are ready to get started, you can contact the Law Office of E.C. Lewis, PC, home of your Denver Small Business Lawyer, Elizabeth Lewis at 720-258-6647 or email her at elizabeth.lewis@eclewis.com.
by eclewis | Jun 17, 2014 | Business News
Does My Business Need an Employer Identification Number (EIN)?
There are a few questions that you can ask yourself right away regarding your business that can indicate to you immediately whether or not it is time to apply for an Employer Identification Number (EIN) from the IRS.
Does your business have employees or plan on hiring employees? It is important to note that even if your business is using contractors to get work done, they may be more accurately characterized as an employee under the law, which will require an EIN to be established and additional changes regarding such workers to be made.
Does your business operate as a partnership or a corporation? This includes all types of partnerships, corporations, and will likely include your LLC, unless it is a single-member LLC with no employees (and does not plan on hiring any) that does not fall under any other specific conditions.
Is your business involved with any of the following types of organizations? Non-Profits, Trusts (except certain grantor-owned revocable trusts), Estates, Plan Administrators, Individual Retirement Accounts, Exempt Organization Business Income Tax Returns, Real Estate Mortgage Investment Conduits, or Farmers’ Cooperatives.
Does your business withhold taxes on income, besides wages, that are paid to a non-resident alien?
Does your business file any of the following tax returns: Employment, Excise, or Alcohol, Tobacco and Firearm?
Does your business have a Keogh plan? Keogh plans are a particular kind of retirement plan that may require an EIN.
If you answered yes to any of the above questions, are unsure about your answer, or have other questions of your own, do not hesitate to reach out to the Law Office of E.C. Lewis, PC, home of your Denver Business Lawyer, Elizabeth Lewis at 720-258-6647 or email her at elizabeth.lewis@eclewis.com.
by eclewis | Jun 10, 2014 | Business News
A mentor in your industry can help set you down the right path for your business, or expose you to opportunities you had not even considered. They are not afraid to give frank advice by letting you know a new idea needs refining or when to take that risk you have been considering. They can also help you realistically determine your business goals and how to achieve them more efficiently. Mentors are important because they have been in your position, and you can learn from their experience in ways books are incapable of teaching you and more candidly than a friend or family member might.
Trying to find a mentor does not have to be intimidating. Finding a mentor starts with networking, but the better question is where and how to get started.
A great place to start is within. Think about whom you know in your industry. Think about your business partners, clients, co-workers, friends, and family. These people can all be potential contacts to discover your new mentor. Ask if they have had a mentor or if their parents worked in the same line of work. If you are still having trouble connecting with a possible mentor this way, it may be time step outside your comfort zone.
Start searching for conventions, organizations, or even classes designed for those in your line of business. Go to an event or class with a colleague and strike up a conversation with other attendees. Ask if they have ever been to an event like this to get conversation going. Be sure to introduce yourself to the officers of the group or speakers at the event, because there is a reason why they are leading the group. These people have unique knowledge from their experiences, and they could make for a great mentor. Look for ways to connect with these new acquaintances beyond work by discussing hobbies, vacations, and family. You never know what else you may have in common. Get their business card and follow up soon and let them know you enjoyed meeting them.
When setting up additional meet-ups remember to be flexible and work around their availability, since these people are using their time to meet with you when they have no obligation to do so.
These tips should help set you on your way to discovering a mentor in your industry and getting closer to your business goals. If you need legal assistance with your next business goal, do not hesitate to reach out to the Law Office of E.C. Lewis, PC, home of your Denver Business Attorney, Elizabeth Lewis, at 720-258-6647 or email her at elizabeth.lewis@eclewis.com.
