CPAacademy.org Check-In | Episode 14: Nellie Akalp

 Jason
 Hi, Nellie. Welcome to the CPA Academy. Check in. We're so excited to have you on the show. I've moderated so many of your webinars before, and I think this is the first time that we've been on camera with just us without a presentation going. So it's a pleasure to have you here on the CPA Academy Check In. And before we dive into the interview, i, of course, want to give everybody watching all of our audience some background about you before we get into the interview. Nellie is the CEO of CorpNet.com, a trusted resource for business incorporation, LLC filings, and corporate compliance services in all 50 states. Nellie and her team recently launched a partner program for accountants, bookkeepers, CPAs, and other professionals to help them streamline the business incorporation and compliance processes for their clients. So thank you so much for being here. How are you doing today?

 

 Nellie Akalp
 Thank you so much for having me. Jason, it's finally so nice to meet you in person and put a face to a name. It's really nice to be here, and I really appreciate the opportunity. Thank you.

 

 Jason 

We're thrilled to have you. Thanks so much for being here. So let's get started. So tell us about your background and what led you to starting CorpNet.

 

 Nellie Akalp
 So I'm a mother of four, and my background has always been entrepreneurship. I love being an entrepreneur. I live it, breathe it, and do it on a daily basis. And it all started with my husband and I met back in college, and went to law school, two separate law schools. And then we decided that last year in law school, we decided we really didn't want to practice law. And with the online industry coming to birth because back in 1997, it was the birth of the Internet, and people were wanting to start businesses. And really, there was no seamless solution out there that can help them navigate all the ins and outs of starting a business in a cost effective way. And with our legal background, we decided to launch our first business out of our one bedroom apartment. That led to us growing it and being acquired by a publicly traded company and then taking some time off and realizing that were too young, too passionate, and frankly, too bored to take an early retirement, so we decided to get back into it in 2009 and start CorpNet.

 
 But simply stated, my background by trade, I have my law degree, I don't practice law, and currently I'm the CEO and founder of CorpNet.com.

 

 Jason
 Wow, that's a unique story. That's a road that I feel like I know a lot of professionals want to take, but don't. And it's incredible that you and your husband took that step and really made yourselves something special with CorpNet.

 

 Nellie Akalp
 Thank you. Thank you. It's been a great ride and we love every minute of it. I would say yes.

 

 Jason
 So how has the company evolved since its founding? So is the version of CorpNet that we all know today the same version that you started with your husband all those years ago out of your apartment or in that restructuring? Is it slightly different? Have you had any people staying with you all along that way besides your husband?

 

 Nellie Akalp
 So, for Clarification, we launched a company back in 1997 that was acquired and CorpNet was then started in 2009. CorpNet was started in the garage of our residence initially, and when we started CorpNet, it was much different than what it is today. Today, I would say CorpNet has become actually post COVID, truly a SaaS company for other businesses and also a solution provider for accountants, financial professionals, and lawyers. So we don't look at ourselves as a document filing service, a legal filing company that really just serves consumers. We're more niche to accountants and business and financial and legal professionals who are looking to service their clients and using us as their silent fulfillment partner.

 

 Jason
 Got it. That's a specific niche that you've carved out for yourself and it seems like it's one that's working quite well. So how does CorpNet differentiate itself from other business formation or compliance services in the ways that makes CorpNet special? I know you'd already mentioned that you've evolved into more of a SaaS company. So is there any other detail you can give on that or other ways that make CorpNet special?

 

 Nellie Akalp
 So that's a great question and I think it boils down to our mission statement. And our mission is to educate and inspire entrepreneurs in business and accountants and legal and financial professionals in business together. And we do that by offering the most comprehensive, cost effective services when it comes to any accountant, CPA, business or financial professional wanting to help their clients navigate the ins and outs of starting a business, expanding a business, keeping their business in compliance, registering their clients for state payroll tax registrations in multiple states. So for us, it's really about providing services that are very concierge based and providing cost effective services where at the end of the day, it makes it seamless for both the accounting professional and their clients. So that it's a win at the end, the client is getting what they want, which is amazing services from their advisor and the accountant or CPA is here looked upon as their client's hero.

 

 Jason
 That's a really lofty goal to get to and I know that you've hit it every single time and I'm thrilled to hear about all that success. So in your own words, why is your service so important to the accounting profession? Of course, there are going to be so many people watching this check in who are tax professionals themselves. And of course we have plenty of time too. So you could feel free to expand on this answer for as much as you want that you feel is relevant.

 

 Nellie Akalp
 Yeah, I'll tell you this, I've been a resident webinar presenter for Cpacademy.org for now over three, four plus years. And I think our services are critical to the accountant and the accountant professionals business. And it's kind of like a marriage because clients look to their accountants as kind of like the next best thing when it comes to running the business. And a smart business owner would be very close to their accountant or their financial advisor. And oftentimes when clients are starting a business or considering to expand their business, the first person that they would call is their accountant. And the accountant is in the best position to advise their clients when it comes to entity choice of filing, tax implications on the type of entity their clients are choosing to run their business under and also compliance issues as it relates to their business entity.

 
 So it behooves the accountant or the CPA not to offer these services to their clients. And oftentimes what I see happen is that when the accountant or CPA is not offering entity filings compliance and payroll tax registration to their clients, the client is often getting poached by another service provider. And oftentimes that accounting professional runs the risk of having their client poached and losing their client.

 
 So it really is beneficial for accounting professionals to have somebody like you to consult with and to work with for the benefit of everybody. It sounds like everybody wins in this situation. Absolutely.

 
 And again, here's the best part. What do you have to lose? Because the accountant is not doing any of the work here, they're literally subcontracting it out to a fulfillment, a reputable, I might say a reputable fulfillment service provider who is tenured and has all the expertise in all 50 states. They don't have to do the legwork, they don't have to do the research, and they get to add another revenue stream to their existing suite of services and ten X their revenue. So it's a win all around.

 
 And I know a lot of people listening will definitely have their ears perk up at the ten X revenue. That is not a multiplier to shake anything at.

 

 The proof is in the pudding because we actually have many partners that actually are also listeners and members of the Cpacademy.org website and oftentimes listen into my webinars and there are living proof that this formula is actually working. The client is happy. Their financial advisor, the accounting professional, is looked upon as the client's hero and they looked upon as an enhanced advisor because they're looked upon as a one stop shop whereby the client can go to them for any aspect of their business filings, compliance and any of their financial and business needs.

 

 Jason
 Indeed. So of course, this is CPAacademy. We love getting into the weeds. So let's dive in a little bit in however much detail you want to provide. Give us some of the more common mistakes that you see entrepreneurs making when starting a business and how you and CorpNet help them avoid those pitfalls. I'm sure there's more than a and.

 

 Nellie Akalp
 You know, for those listening in, again, CorpNet.com, we're a legal filing company and we specialize in providing comprehensive, cost effective services when it comes to starting a business. Whether somebody needs to set up a sole proprietorship or a partnership or they're ready to incorporate a business or form an LLC, let's say they already have an existing LLC or a corporation and they want to expand that corporation or LLC into other states, we offer these services in all 50 states. In addition, Post COVID, one of our products that really took our business from being simply a 15 person company to now a 200 person company, is our state payroll tax registration product. And what that did is Post COVID, most companies went remote and a lot of accountants and CPAs and financial advisors were really looking for solutions to help their clients quickly get registered and stay compliant in other states that employer was having nexus in.

 
 And so our company had this product. We again looked at the market and we wanted to provide a solution for a pain point that the accountant, the CPA was really having. And we came out with our state payroll tax registration product which is now in all 50 states. For those of you who may not know what a state payroll tax registration is, anytime an employer is wanting to pay their employee by paycheck, that employer has to register and set up a state payroll tax account which typically comprises of a state income tax withholding account and state unemployment insurance account. That registration can either be one registration that takes care of setting up these two accounts or that registration is two separate registrations and we provide this service in all 50 states. So what has happened for us is that by providing these services, we're seeing that more and more employers are prone to wanting to hire employees in other states and now their reach is much more easier to grab talent not only in their own home state but in other states.

 
 And we make the process super easy for the client and for the accounting professional. So at the end of the day, typical mistakes that we see when people fail to use a partner like CorpNet in helping them or helping their clients navigate the ins and outs of starting a business or expanding a business or keeping their business in compliant. First and foremost, I would say, is not navigating enough which entity is best for them, or even if they know what entity is right for them, not doing the proper elections or tax filings as it relates to that entity. I would say another mistake that we often see is filing in the wrong state. There's a lot of myth about Wyoming and oftentimes we find that clients typically file in the wrong state and we'll have to make a correction on that filing. Another mistake we see is that there is still a lack of awareness and education when it comes to setting up a corporation or LLC and then the client not having enough education as to the responsibilities that come about informing a corporation or LLC and what someone needs to do to upkeep that corporation or LLC and to keep it in compliance.

 
 So lots of different mistakes that we see. But the most common ones, I would say, is not choosing the right type of entity for your business, not filing in the correct state. And I would say another one is not keeping and following the compliance rules and formalities as it relates to keeping that business compliant throughout the lifetime of the business.

 

 Jason
 That's a lot to keep track of. And it also sounds like, especially in this age of remote work, that there are a lot of benefits that entrepreneurs looking to expand and attract talent out of their home state have to gain by partnering with someone like you.

 

 Nellie Akalp
 That is correct. And we make it super easy for the accounting professional because we have dedicated experts that we assign to that accountant that is like a concierge based provider to that accountant. They're available at all times. They can do all the research for the accountant, for their client. Plus we have this amazing compliance portal here at CorpNet, which there's no fees. The client or the business professional representing the client can come in and register that client's business entities or multiple business entities, and we proactively monitor their business entities for any type of compliance alerts and filings that would come up. So not only this is a great way for the professional to keep track of all the multiple business entities for their clients, it's also a way for them to start building up their residual revenue and charging their clients for monitoring their multiple business entities.

 
 But at the end of the day, it's protecting the client from having their entity go into bad standing. And it keeps their clients in good standing and compliant with state laws and formalities.

 
 Nobody wants to get that letter in the mail one day and go, oh, there's a huge problem with your business and you are no longer allowed to operate wherever you're operating. No one wants to wake up one day and see exactly.

 

 Jason
 So you mentioned nexus a little bit ago and of course that's a big topic right now for anybody working in compliance. So you have, of course a very well attended webinar here on CPAacademy called when does a business have Nexus? And as of course you're aware, nexus status varies from state to state and it's often very challenging for businesses to keep up with the evolving regulations. So are there any pitfalls or misconceptions that you feel business owners have when coming to you in determining their nexus status and what are the ways that they could actively go to address those issues so that they don't wake up one morning and see that letter in their mailbox?

 

 Nellie Akalp
 Yeah, that's a great question, Jason. I think simply stated, nexus really comes down to connectivity with a state. Okay? So simply stated, when we're talking about nexus laws and nexus in and of itself, we're talking about the business, the actual business having connectivity within that state that it's doing business in. And I do have a really thorough webinar on this topic and I think it's coming up in the next few months and we do kind of ramp it up a little bit because it's year end. But all in all, you have to kind of go through the bullet points and check it off to see if somebody has nexus within a state. First and foremost, obviously, it's physical nexus. There's physical nexus and then there's economic nexus. Okay? And physical nexus typically is consistent through all 50 states, whereas economic nexus can vary from state to state.

 
 I have an amazing guide on this if there's no time to listen in on the webinar. But if you go to the CorpNet blog and if you search Nexus, we have a state by state guide on nexus, both physical and economic nexus. But at the end of the day, it boils down to connectivity to that state. And if someone has connectivity to that state, then they will have to file within that state and they will have to pay the taxes for that state. But again, it boils down to that state's particular laws when it comes to physical connectivity and economic connectivity. And again, we have a great state by state guide on physical and economic nexus. It's on our website. It's actually in our blog that you can access from our website and it's available to everybody. So I hope I have clarified that question for you, of course, and I.

 
 Know there's so much more there. And of course, Nellie's webinar on when does a business have Nexus? Along with all of her other webinars you can find through her instructor page on Cpacademy.org and of course the blog on CorpNet through CorpNet.com. Don't forget to check that out as well. So looking ahead, there's a lot to look ahead for. So what's next for you? What's next for CorpNet? Are there any other upcoming projects or endeavors that you're excited about, or is there just anything fun that you have looking forward to that you're just excited about in general?

 
 Well, we're always moving and grooving at CorpNet. And our mission, as I've said to you at the beginning of this conversation, is for us to continuously make it easy for entrepreneurs, business, financial professionals, accountants, CPAs when it comes to navigating all the ins and outs of starting a business, expanding a business, registering for state payroll tax registrations in any of the 50 states for their clients. And we're actively and constantly researching ways that we can make our products more simplified and more seamless for our clients. One great, exciting news that I do have to share is that we are going to be one of the main sponsors, one of the top platinum sponsors at this year's QuickBooks Connect event. So if you're happening to be at the QuickBooks Connect 2023 event, it's, I believe, going on from November 13 through 15th. So look out for CorpNet.

 
 We are one of QuickBooks Platinum sponsors over there. We're going to have a massage area where you can come and stress away your business filings for your clients and get a little ten minute massage. And there'll be a lot of fun stuff happening. But CorpNet will be there November 13 through the 15th, or I believe it's the 12th through the 15th, but I think it's the 13th through the 15th, and we will be there. So if you're going to be there, I look forward to seeing you. I'm going to be presenting and I'm going to be presenting a session over there. It's a quick hit session during lunchtime, one of those days. So I'm really excited and looking forward to that event.

 

 Jason
 That sounds like a lot of fun. I know we'll have a couple of people from CPAacademy heading over, and if I'm there myself, I've got a knot in my shoulder that I need to work out at that massage.

 

 Nellie Akalp
 Yes, I'm actually I think I'm planning on meeting with Nathan and some of your team members over there when we're out there. So I'm excited.

 

 Jason
 Of course. I know they're excited, too, and we're excited to have had you here today. And of course, this isn't a webinar. We don't have to launch any polling questions. We don't need to go through any formalities. But are there any other things that you'd like to say before we go ahead and sign off?

 

 Nellie Akalp
 No, I'm just grateful for this opportunity and for the following that I have on Cpacademy.org and for all of the members choosing me as a top webinar presenter for 2022. And I love to be of service. I love educating. That's truly my biggest passion is super excited as to what the future holds between us and CPA Academy. And we have a lot of new content coming out, so just super excited. And for those of you interested in wanting to learn more about CorpNet partnering with CorpNet, you can feel free to send us an email at info@corpnet.com. If you're interested into our partner program and want more information about our partner program. I see that little kitty over there. I love it. Yes, I love know. For those of you interested in partnering with Know, CorpNet's partner program is a pay as you go service. We don't charge any setup fees.

 
 We don't charge any annual fees. We do not charge any ongoing fees. It's truly a free service to join. And you can either join us as a white label reseller, whereby, let's say you have a client and you have clients, and you don't want to lose any type of contact with your clients, and you don't want them to know that you're using a silent fulfillment partner such as CorpNet to do all the filings for you. In that case, you would want to become a white label reseller and partner with CorpNet as a white label reseller. In that way, you're working with CorpNet, you remain the main point of contact with your clients, and CorpNet is your silent fulfillment partner, and we would provide our services to you wholesale. So all of our services to you are wholesale, and you would get to mark up that service for your clients and make a substantial amount of profit.

 
 Now, let's say you don't want to be the go between CorpNet and your clients. We also have a referral program whereby you can refer your clients to CorpNet and make a commission off each sale. Now, let's say you don't want to make a commission. You can still refer your clients to CorpNet and provide the commission that you would otherwise receive as a discount to your clients. Or split it. Split it in the middle. So the program is very flexible. It's designed to meet your needs. And for more information, you can go to CorpNet.com. Again. That's WW Dot CorpNet.com. And you'll see right off of our homepage a big Partner with US button, and you'll get to learn all about it. But I'm grateful to be here. I'm thankful for this opportunity, and I'm really excited to continue to be presenting more webinars on the CPAacademy.org website. So thank you.

 

 Jason
 And of course, we're thrilled to have you. And thanks so much for being here with us today. Thank you so much for being so generous with your time and for answering all our questions. And we're looking forward to your next webinar.

 

 Nellie Akalp
 I am, too. Thank you, Jason. Take care.