Don’t Forget: The Tax Man Cometh a Month Earlier for Businesses

Just a quick reminder from Hill, Barth and King, LLC that the deadline for corporate income tax returns (Forms 1120, 1120A, and 1120S) or to request an automatic six-month extension (Form 7004) is March 15, 2013.

What does all this mean?

Put simply, if your business is a corporation --whether a regular C corporation or an S corporation—you need to have all of your IRS forms filed no later than the last available postmark timestamp on Friday, March 15^th or at the least, you must have completed and submitted the appropriate paperwork to file for an extension.  The good news on the latter is that it’s a simple document and requires little more than your request and your signature.

Just as a quick refresher: C-corporations contain all the typical company characteristics such as possessing “legal persons” status and offering shareholders limited legal liabilities.  They are taxed on their income before distributing their earnings to their shareholders. S-corporations are a in a separate classification because they are not taxed on their income and shareholders shoulder the company’s legal status and protections evenly.

If you have any questions about business or personal income tax, feel free to contact Kevin J. Deardorff, CPA, MBA of Hill, Barth & King LLC’s Naples office by calling (239) 263-2111 or e-mailing him at kdeardorff@hbkcpa.com.

By Kevin Deardorff

Hill, Barth and King LLC® ranks as the 83^rd largest public accounting firm in the nation.  HBK LLC® employs nearly 300 professional and support staff members who serve clients in 12 offices located throughout Pennsylvania, Ohio and Florida.

To learn more about Hill, Barth and King LLC® visit www.hbkcpa.com.     

Fictitious Names May Be Up for Renewal

Fictitious names, also known as DBAs (Doing Business As), are valid for 5 years and expire on December 31st of the fifth year. Make sure you do not forget to renew if yours is due this year.

Each Fictitious Name Registration must be renewed between July 1 and December 31 of the expiration year to maintain active status. The Division of Corporations will mail to the last reported mailing address, at least 3 months prior to its expiration date, a statement of renewal. This is one reason it is very important to keep your current address on file with the Division of Corporations.

Remember that a DBA is owned by the business entity not the individual, unless you are a sole proprietorship. Operating as a sole proprietorship is typically not the best choice due to tax issues, the fact that you cannot obtain worker’s compensation exemption, and the lack of liability protection. Always consult an attorney or accountant when making decisions like this about your business.

Let us know if you have any questions about renewal. We are always here to help. Our team is your team.

Avoid Administrative Dissolution or Revocation

Yes we have called and emailed and shouted about this for months, but there are still a few business owners who have not filed your annual report. The original deadline of May 1st has obviously passed and the very final deadline is quickly approaching.  If you do not file by this final deadline of Friday, September 28th, your business will be dissolved or revoked. To reinstate a business is expensive and time consuming.

Avoid having your business administratively dissolved or revoked by filing your annual report by 5pm this Friday, September 28th, if you have not yet done so. Filings can be submitted directly on the Sunbiz website. Access to this website will not be available from 5 pm Friday, September 28th, until 8 am Monday, October 1st, for any electronic activity.

If you file between now and Friday, there will be a $400 penalty fee. It gets worse after Friday at 5pm. Any businesses that fail to submit annual reports by this deadline must file for reinstatement in order to continue doing any business.  The fee to file for reinstatement can be up to $750 or more. The longer you are inactive, the more it will cost.

If you took care of this by May 1st this post does not apply to you. We never want our clients to pay unnecessary fees or be caught working without being properly setup with the state. Feel free to contact us if we can assist you in any way with annual report filing or reinstatement. 

Registered Contractors Grandfathering Starts October 1st

We have some amazing news for anyone who holds a Registered Contractor’s license that is under the purview of the CILB. If you have held an active state-registered license for a minimum of 5 years, you can submit an application to receive an equivalent Certified License as of October 1, 2012. This means that you can then be licensed to do work in any county throughout Florida without having to get multiple county licenses! All you would need to do is register your one license in the county you wish to do business!

House Bill 897, which passed during the 2012 legislative session, was approved by Governor Rick Scott on May 4, 2012. This bill will re-open and extend the time period for contractors to request that their registered contractor’s license be grandfathered to a state wide certified contractor’s license. This grandfathering time period will take effect on October 1, 2012 and applications will be accepted until November 1, 2015.

The basics:

• Currently hold a valid state-registered construction license. (Specialty Licenses are not included in this grandfathering provision.)
• Have, for that category, passed a written examination that the board finds to be substantially similar to the examination required to be licensed as a certified contractor under this part.
• Have held an active state-registered license for a minimum of 5 years.
• Have not had your contractor's license revoked at any time, nor have had your license suspended or been assessed a fine in excess of $500 within the last 5 years.
• Hold the correct minimum insurances.
• Meet the minimum 660 credit score, or obtain a bond if you do not.
• Supply the application fee of $309.00.

This could be the perfect opportunity to expand your territory. Start getting those jobs that have always been just outside your reach…  Call the Team at Licenses, Etc. today to find out more. 

Renewal Deadline Extended Due to Tropical Storm Isaac

The DBPR has extended the deadline for renewal of certified contractors and both certified and registered electrical contractors whose licenses are set to expire August 31, 2012. The deadline for these license holders is now midnight September 14, 2012. The state provided an extension because of the impact of Tropical Storm Isaac across the state.

These licensees now have until midnight on September 14, 2012 to complete their continuing education requirements and renew their licenses without having to pay a late fee. Renewal extension FAQs are also available online.

As always, use the online renewal system at www.myfloridalicense.com for faster, more efficient service. Licensees who wish to fax their continuing education course completion certificates to the Bureau of Education and Testing to expedite renewal may use fax number 850.922.2316.

For more information call the gals who always keep you current with the latest information available. Or email us at support@licensesetc.com. 

Veterans Licensing Fees Can Be Waived

The DBPR has taken a step forward to help veterans that are coming home from active duty. As of July 1st, the state has the ability to waive licensing fees for military veterans who apply for a state license within 24 months of an honorable discharge. The fees that can be waived include the initial license fee, initial application fee and initial unlicensed activity fee. 


What is the fine print? 

• Veterans must apply for licensure within 24 months of being honorably discharged from a branch of the United States Armed Forces, including National Guard units. 

• The veteran must provide a DD-214 or NGB-22 form as proof of honorable discharge and the Military Veteran Fee Waiver Request must be submitted with the application.

• This waiver does not include examination fees or other incidental fees, but the VA will reimburse eligible applicants for the cost of licensing and certification examinations. This reimbursement cannot exceed $2,000 per test. The exams they are reimbursing must be deemed necessary to pursue a trade or profession.

Call us if you have any questions regarding this new waiver. We can help you to find out how you or your loved one can get their feet back under them upon returning home. Starting a new business or becoming a part of an existing team starts with a call to the gals at Licenses, Etc.

Out with the Old, In with New Apps and Enforced Rules

As anyone who has been connected with us for any length of time will know, we are always saying that things could change at any time. Well they did, but thankfully the state has given us time to adjust by allowing us to continue the old way for a while as we (and they!) learn their new system. What are we talking about? New applications. The state has updated their forms and we have scoured them to be able to let you know how they are easier than the old ones and more importantly how they are more difficult.

Let’s start with the easy. For Initial Issuance applications, the state no longer requires someone else to verify (sign off) on experience. Also, none of the new applications require bank letters or financial statements. The form that was streamlined the most, though, is the Qualifying an Additional Business Entity application. They no longer require CPA prepared financials or letter of capitalization, 3-months bank statements, bank verification letter, a list of projects completed by each company, information about who can pull permits or vendors, or a signature from a “responsible party” of each company.

This is sounding pretty good, maybe too good, right? Well, now let’s discuss why they are harder. Old applications only looked at credit reports for open bankruptcies/liens/judgments, but the new applications also look at credit SCORES.  Any applicant with a credit score below 660 is required to get a financial stability bond.  For Division-1 licenses (CRC, CBC and CGC), the bond is $20,000. For Division-2 licenses (everything else), the bond is $10,000.  Bond amounts can be cut in half ($10,000 D-1, $5,000 D-2) by taking a 14-hour financial responsibility course, but we are finding that surety companies are only offering these bonds on a very limited basis. From what we’re hearing right now the bond cost is around 3-5% of the bond amount PLUS collateral equal to the bond amount!

Although experience requirements have not changed, the way that experience is provided on the application has become much more detailed.  Now (for D-1 apps) every month of experience required needs to be accounted for on the paperwork with specific projects.  Also, the main ‘buzz words’ of each license type are listed as check-box items.  Each project must list the specific time period when the work was performed, and the check-boxes that apply to the project must be selected.  The combination of check boxes & months must be calculated to come up with the appropriate amount of experience.  D-2 is a bit more lenient than D-1, but the details are still much more elaborate than on the old forms. In addition to all of that, the name, license number, email address and phone number of the contractor that supervised the experience must be listed for each project.  This is to make sure that only experience gained while under the employ of a licensed contractor is used on the application.

We know this is a lot to take in… trust us… WE KNOW. We have until July 13^th to submit the old forms, which gives us some time to learn the new ins and outs, so to speak. No one likes change, but as always, if you have any questions just give us a call. The one thing that can be counted on, we are here to help you.

New Rules & Forms for CILB

Effective immediately, new rules and forms for all CILB license applications have gone into effect (http://www.myfloridalicense.com/dbpr/pro/cilb/index.html). Specifically, the 660 Credit Score Rule we've been telling you about is now being enforced, and there is no longer a requirement for experience verification. DBPR has also posted all new forms for all types of applications.

What does this mean for you?

• If you are applying for a new license or want to make changes to your existing license, you MUST have a credit score of 660 or higher; otherwise, you will need to purchase and maintan a bond.

• If you are applying for a new license, you no longer need to have your experience verified by another license holder (but the experience information required has changed drastically).

Important Note: You may apply using the old forms with the old rules (credit score not necessary, but experience verification is) until July 16, 2012. However, those forms are no longer publicly available. Licenses, Etc. still has these forms and can submit your application prior to July 16, 2012, without meeting the credit score requirement. Contact us ASAP (239-777-8321 or 239-777-1028) for more information. We will be extremely busy during this period, so don't delay!

Also, while we have you, don't forget that your Annual Report for your business (not your license) is due by May 1, 2012. Anyone who has a business or foreign entity in the state of Florida MUST file this report. If you wait until after the deadline, there is a $400 penalty! File at http://sunbiz.org/. Our temporary addition to the Licenses, Etc. team, Charlotte, will be calling as many clients as possible to remind you to file this report and to offer to take care of it for you. Please be alert for that call. We don't want you throwing away $400 because of a missed deadline!

Thank you,

The Gals at Licenses, Etc.

Chrissi, Kristie & Lisa

New Building Code for Exams

As the state legislature continues modifying building codes and laws, the contractor exams must be revised. A new exam is developed every few years based on the most recent codes. This is one of those years.

Beginning June 19-20, 2012, the 2010 Florida Building Code will be used for the contractor examination. If you have purchased books and taken classes based on the 2007 building codes, April is the last exam for which these books will be good. You will want to take this exam if you still need to test. Otherwise, you will be forced to purchase new books. The registration deadline for the April 17 - 18, 2012 examination is March 18, 2012.

Sign up here: www.floridaexam.com.

Home Inspection Grandfathering

We have been talking about it a lot so you have probably heard by now that the state ‘re-opened’ the window for grandfathering when applying for a home inspection license. Right now it is as easy as it ever will be to obtain. Just remember that grandfathering will be allowed until July 1, 2012. After this, we doubt the state will ever give this opportunity again.

What qualifies you to apply? A Division 1 license is all that is needed, which means individuals who hold a Certified General, Building & Residential Contractor License. No testing or education is required. The fee to the DBPR is $330 and fingerprinting is still required.

Generally, our applications are getting processed and approved within 2 weeks although the state officially has 30 days to complete their review. If you would like additional information, please let us know. As always, the gals at Licenses, Etc. can help you with the application.  Give us a call today to find out more.

Consumer Alert Concerning Annual Minutes

It appears that there is a scam out there regarding the annual report filing for the Department of State, Division of Corporations. Please be aware that COMPLIANCE SERVICES (not to be confused with the Florida Corporation, Compliance Services, Inc.) is mailing businesses a notice for "Annual Minutes" to be ordered for a fee of $125.

These notices are NOT from the Dept. of State, Division of Corporations. "Annual Minutes" are NOT required to be filed with any agency. Do NOT confuse these notices with the messages sent by the Division of Corporations reminding each business to file its 2012 Annual Report. If you receive this letter from COMPLIANCE SERVICES saying that you need to file your Annual Meeting Minutes--toss it out. 

You DO need to file an annual report with the Department of State, Division of Corporations (AKA Sunbiz), but these are two separate issues. Annual Reports can be filed online directly at www.Sunbiz.org or you can call us for help with the filing.

As always, the gals at Licenses, Etc. are here to help you in any way that we can. If you have any questions or need assistance, give us a call. We can help make sure that you don’t get scammed.

Home Inspection Continuing Education Requirements

So many of you are taking advantage of the home inspection license while the state has ‘re-opened’ the window for grandfathering. This is only for those who currently hold a Division 1 license with the state (Certified General, Building & Residential Contractor License).  There is no testing required, and also no education required. It is definitely the easiest it will ever be to get one, but the license expires on 07/31/2012, so what about the renewal?

We wondered the same thing so we went straight to the source and found out that the first 14 CE credits will not be required until 2014 renewal cycle. Home Inspectors should not start taking CE until after July 1, 2012.   CE credits taken before then will not be counted towards the 2014 renewal cycle. Moving forward, a minimum of fourteen (14) hours of continuing education will need to be completed every two years in order to keep the Home Inspector License active.

Just because there are no CEUs required this round, you’re not totally free.  The license DOES expire on 7/31/12. A renewal notice will be mailed to the address that you have on file with the DBPR office 90 days prior to renewal. Renewal fees are $205 and may be mailed to the department or you may renew your license online at www.MyFloridaLicense.com or with a Customer Contact Center Agent at 850.487.1395.

We will keep you up to date on all requirements as they are made known.  Keep an eye on our blog and e newsletter for the most current information available. If you are interested in obtaining this license or have any questions, just give us a call! We are always here to help.

Fictitious Name Renewal

So we all love this time of year.  The ending of another glorious year.  We can start wrapping things up and hope that next year will be even better.  But it is also a time when a lot of renewals come due.  One of those is fictitious name renewal. 

When you file for a fictitious name, it is good for 5 years. Your renewal must be filed by December 31st of the 5^th year since you filed to remain active. This can easily be done online at www.Sunbiz.org. If you fail to file the renewal, the registration will "Expire" and will not be able to simply be renewed or reinstated. You would need to file a new fictitious name registration all over again. This will include another ad in the paper, too.

When you renew your fictitious name, it will be active again for another 5 years. The fee is $50.00 and at this time you can change your mailing address, the county of the principal place of business, the federal identification tax number and the name and/or address of any owner.

Many people have questions regarding if they need a fictitious name or not. This is because most people don’t understand what a fictitious name is. All it means is any name being used to do business other than the legal name of the company. An example would be ABC Contracting, Inc. that would like to advertise themselves using the name ABC.  This usually pertains to franchises like when a local company wants to do business as McDonald’s.

If you have a fictitious name and aren’t sure if you are due this year, go to http://www.sunbiz.org/ficinam.html and type in your name. Click on the link for your name that should appear on the next page and find the expiration date listed under the filing information.  As always, if you need help in filing or would like further clarification, give the gals at Licenses, Etc. a quick call.  We are always here to help.

Elimination of the Qualified Business Organization License

A lot of you are sending in questions regarding the qualified business licenses that will be expiring this August.  Effective October 1, 2009, the Department of Business and Professional Regulation no longer issued Certificates of Authority (qualified business licenses) to companies.  This means that you no longer need to renew this license because they no longer exist.

House Bill 425 eliminated the requirement for a separate business license for construction companies in Florida. Contractors will still be required to qualify construction businesses with their license and provide background information for the business they are seeking to qualify.

If you ever have questions or concerns about your licenses, we are here to help.  Just give us a shout. 

UPDATE YOUR INFORMATION WITH US!!

We’ve been trying to call our clients who haven’t filed their annual reports to remind them of the due date.  Unfortunately, a lot of numbers are no longer in service.  We want to be able to pick up the phone and call you when there is a deadline that we don’t want you to miss, but when we don’t have the correct contact information, that is impossible.

Please let us know if any of your contact information changes:  phone number, email address, or mailing address.  Let us be able to go the extra mile for you.  Take a moment to shoot an email to etc@licensesetc.com and let us know if you have changed your contact information. 

Do You Have $400 to Throw Away?

Yeah, neither do we!  So we want to remind you to file your annual report by May 1^st.  Every business formed prior to 2011 must file their annual report by this date.  If a report is filed late, an additional $400 penalty is levied to the standard fees.

In the past, there was a ‘loophole’ that could sometimes allow you to avoid the penalty when filing late.  That loophole was removed last year, so ALL late filings must pay the $400 late fee.  It’s definitely not worth waiting!  The standard fees are $150 for a Corporation and $138.75 for a Limited Liability Company.  If you wait until after May 1^st, that means the fees are $550 and $538.75 respectively. 

When filing your annual report, this is the time to make necessary changes.  Update your company address, registered agent and manager/officer information.  Be sure to check your spelling.  If information is mistyped, an amendment must be filed, which is an additional $35.

To clarify, this is NOT your license renewal.  Your license is up for renewal in August of every EVEN numbered year.  This is to keep your business active and retain your business name with the Department of State. If you don’t file it, the State will eventually dissolve your company. If you have any confusion on this matter, you know who to ask!

Filings are done online at www.sunbiz.org, but as always the gals at Licenses, Etc. would be happy to take this task off your hands!  Give us a call and we will make sure it is done correctly and on time! 

Florida Annual Reports Due May 1st!

Filing your annual report each year keeps your business active with the Department of State, Division of Corporations for another year.  Every business formed prior to 2011 must file their annual report by May 1^st.  If a report is filed late, an additional $400 penalty is levied to the standard fees.

The standard fees are $150 for a Corporation and $138.75 for a Limited Liability Company.  If you wait until after May 1^st, that means the fees are $550 and $538.75 respectively.  In the past, there was a ‘loophole’ that could sometimes allow you to avoid the penalty when filing late.  That loophole was removed last year, so ALL late filings must pay the $400 late fee.  It’s definitely not worth waiting!

When filing your annual report, this is the time to make necessary changes.  Update your company address, registered agent and manager/officer information.  Be sure to check your spelling.  If information is mistyped, an amendment must be filed which is an additional $35.

To clarify, this is NOT your license renewal.  Your license is up for renewal in August of every EVEN numbered year.  This is to keep your business active and retain your business name with the Department of State.  If you have any confusion on this matter you know who to ask!

Filings are done online at www.sunbiz.org, but as always the gals at Licenses, Etc. would be happy to take this task off your hands!  Give us a call and we will make sure it is done correctly and on time! 

Less Than a Week Left to Grandfather

We are down to the final week.  Anyone who wants to apply for the Home Inspection or Mold Remediation or Assessor License has very little time left.

The DBPR requires that they receive your application by the end of the day on Monday, February 28^th. 

If you are looking to submit your application in the Grandfathering timeframe, the gals at Licenses, Etc will take care of you.  Please contact us immediately to get this process started.  This will be a rush situation because we are into the countdown, so for $400 for the first application and $200 for each additional we can assure a thorough job that will ensure you won’t miss out on the chance of a lifetime. 

What You May Not Know About Worker’s Comp.

Have you obtained workers' compensation insurance or filed for an exemption with the Division of Workers' Compensation?

The Facts:

·        An exemption only costs $50 and is good for 2 years. 

·        Up to 3 people per company can be exempt. 

·        A person must own at least 10% of the company to file for an exemption.

·         If the company qualifier is NOT an owner, he or she MUST be covered under the company’s WC policy. 

·        Same holds true for any non-owner employee. 

You may think you’re “legal” because you’re covered under one company’s name, but that may not be the case.  When you license a company, you are required to either have WC insurance or a WC exemption for that company, EVEN IF THAT COMPANY ISN’T ACTIVELY WORKING AT THE PRESENT TIME.  The DBPR requires you to be in compliance with Chapter 489.114 and says, “any person, business organization, or qualifying agent engaged in the business of contracting in this state and certified or registered under this part shall, as a condition precedent to the issuance or renewal of a certificate or registration of the contractor, provide to the Construction Industry Licensing Board, as provided by board rule, evidence of workers’ compensation coverage pursuant to chapter 440.”

What can happen if you are caught without workers’ compensation coverage or an exemption for any and all companies that you qualify?  The department shall notify the persons or entities governed by this section who have been determined to be in noncompliance with chapter 440, and the persons or entities notified shall provide certification of compliance with chapter 440 to the department and pay an administrative fine in the amount of $500. The failure to maintain workers’ compensation coverage as required by law shall be grounds for the board to revoke, suspend, or deny the issuance or renewal of a certificate or registration of the contractor under the provisions of s. 489.129.

You can find the exemption form here: http://www.myfloridacfo.com/wc/pdf/DWC-250.pdf. 

Or call us and we will give you information on how to get coverage. 

Would you like to verify your WC status with the state?  Go here:  https://secure.fldfs.com/WCAPPS/Compliance_poc/wPages/query.asp to access the state’s records for WC coverage and exemptions.  If you’re not listed, you need to resolve this immediately!

These rules may not have been actively enforced in the past, but this is the law.  The Boards are tightening their reins and pursuing prosecution.  You really cannot ignore this.

Please contact us if you have questions about any of the next steps you should be taking after receiving your license.  We are here to help you.

Florida UC Assessment

It appears the Florida Department of Revenue is hitting mailboxes this week with tax assessment notices [bills].

These taxes ARE NOT due to an incorrect filing or underpaid deposit.

In a nutshell, the Florida unemployment ‘piggybank’ has been empty for years.  Because that fund is basically insolvent, Florida continues to borrow from Uncle Sam to meet its unemployment obligations.

All of us as Florida employers must bear the burden of paying the interest on that debt, and that is what these notices pertain to.  It appears the state is examining a look-back period of 7/1/09 through 6/30/10 for the purposes of computing each firm’s obligation.

The formula for calculating the payment is specified by law.  The calculation is based on your taxable wages reported from 7/1/09 through 6/30/10 which is listed as line 1 on your bill.  There will be a flat charge of $25 for any delinquent quarter which is line 2 on your bill.

Call us with any questions.

-    Thanks to Greg Borden at Olde Florida Payroll for this information.