The Most Effective Gutter Cleaning Techniques

Climbing a ladder to clean gutters can be tedious and messy. Fortunately, there are several ways to make the job easier and avoid costly roof, wall, foundation, or landscaping damage.

Begin by attaching a gutter cleaning nozzle to your hose and extending it to the length needed for reaching your gutters. Start at one end and work your way around, checking downspouts for clogs as you go.

1. Use a Leaf Blower

If you’ve looked for quick gutter cleaning tips on the internet, you’ve probably seen videos that demonstrate the use of a leaf blower to remove debris. This method can be effective, but it’s important to use the right tool and take precautions. You’ll want to wear protective gloves and eye protection. A dust mask can also be helpful to prevent inhalation of small particles and contaminants. Before beginning, ensure that your ladder is stable and secure in a stable location, and make sure to wear sturdy work boots.

Begin by directing the blower’s air stream through the gutters, clearing away debris as you move along. Be careful not to blow the debris into your downspouts, which can cause clogs. If you are unable to clear out all of the debris, consider using a hose to flush the central gutter troughs and downspouts.

It is best to work in sections, utilizing the blower as you work through each area of your gutter system. Start at one end of the section and work toward the middle, ensuring that all areas are cleared out. For difficult-to-reach places, you can also use a hand scoop or a gutter brush to dislodge stubborn debris.

Work on a dry, warm day to avoid saturating the leaves with water and reducing your effectiveness. Once the gutters are completely clean, you’ll need to rake up and dispose of all of the discarded gunk. If you’ve used a gutter blower, it’s a good idea to use a tarp or bucket to contain the debris, and a garden trowel or scoop is useful for removing compacted debris.

Whether you’re working by hand or using a blower, be prepared for a messy job. Gunk from clogged gutters is usually a mixture of wet leaves, twigs, dirt, and dead bugs that has decayed into a sticky mush. This can be a hazardous mix, and if you don’t take care to protect yourself properly, it could lead to serious injury. Be sure to wear durable work gloves, safety goggles, and a dust mask when cleaning gutters.

2. Clean by Hand

Using a gutter cleaner designed to dissolve stuck-on dirt, grime, and stains can make the job of cleaning your gutters much easier. You can find these products at most home improvement stores and online retailers. Just be sure to read the label and follow the instructions for use. Some of these products may require a special hose attachment or a garden nozzle. Using a high-pressure water nozzle can increase the power of the spray and help you reach hard-to-reach places in your gutters.

Another option for cleaning your gutters is to manually scrub them. This method can be time consuming, but it can also be very effective at removing stubborn dirt and grime. To clean your gutters by hand, you will need a ladder, a bucket, a gutter scoop or garden trowel, and heavy-duty work gloves. Begin by grabbing all of the debris that you can easily reach. Place the debris into the bucket. Afterwards, you will need to scrub away any caked-on grime and algae, moss, or mildew buildup. Scrub with a soft-bristled brush or sponge. Avoid using too much force, as you might damage the surface of your gutters.

When you are finished scrubbing your gutters, rinse them with a hose to remove any remaining dirt and grime. If you notice any stains, you can repeat the scrubbing process until your gutters are clean and free of residue.

It is important to wear gloves when you are cleaning your gutters by hand, as the gunk in your gutters contains a mix of leaves, dirt, and rotting bird, pigeon, and squirrel droppings that can be ridden with bacteria. Gloves will protect your hands from the dirty, rotting debris and will prevent painful cuts from torn metal shards. Be sure to wear rubber, leather, or thick cloth gloves to ensure maximum protection. It is also essential to wear a safety harness while working on a ladder, and be sure to have someone standing on the ground to watch your progress and call an ambulance in case of an emergency. Some expert Knoxville roofers also recommended to pick a day that is not rainy or windy to work on your gutters.

3. Use a Gutter Sense Tool

Gutter Sense tools let you clean your gutters without standing on a ladder. You simply attach the tool to any extension pole and then use a rope or handle to control its scoop-shaped arms, which can grab debris including leaves, twigs, and other small objects. This is a great method for people who don’t want to use ladders, but still need to make sure that their gutters are cleaned thoroughly and safely.

As with any gutter cleaning method, you should start by removing coarse dirt and other large debris by hand. This will help to prevent it from getting stuck in your downspouts, causing water flow issues and potential damage to your home. Once the large debris has been removed, it’s time to clean out the gutters themselves using a brush or vacuum. This is a great opportunity to check for any areas of wear or damage and address them as needed.

When cleaning your gutters by hand, be sure to use gloves. These will protect your hands from dirty, rotting debris that often contains bird, pigeon, and squirrel droppings that are ridden with bacteria. It’s also a good idea to use thick, suede gloves rather than cotton or leather because they can be more maneuverable and are less likely to tear.

Once you have all of your gloves on, start by working from the corners of the gutter section toward the middle. This will prevent you from pushing any debris into the downspouts and clogging them. When you reach the middle, you can then rinse the gutters with a hose and inspect them for any blockages.

If you find any blockages, you can use a plumber’s snake or high-pressure nozzle to dislodge them. Once your gutters are completely clear, you’re ready to enjoy the benefits of a clean, well-functioning gutter system! Remember to always take precautions when cleaning your gutters, and be sure to use a ladder that’s stable and in a safe location. Taking these steps will help you to avoid dangerous falls and keep your gutters in top condition for years to come.

4. Use a Hose

This is a very effective method for dislodging packed dirt and debris, but it might not work as well on caked-on sludge. It’s also messy, with water and debris potentially splattering. If you use this method, be sure to wear comfortable work clothes and have a receptacle (such as garbage bags) for discarded debris.

Start by attaching a gutter cleaning nozzle to your hose and extending it to a length that comfortably reaches the gutters from the ground (usually a telescopic extension pole). Secure the ladder in place on a stable surface and position yourself so that the nozzle is inside the gutter. Turn on the water and begin spraying it into the gutter. This should quickly dislodge leaves, twigs and other debris. Continue spraying the inside of the gutter and directing the flow of water into downspouts until the entire gutter is clean and free of debris.

Once the gutter is clean, you can spray a degreasing solution or an all-purpose household cleaner onto the gutter to break down any remaining grease and grime. Some manufacturers even offer gutter cleaners that contain powerful detergents that dissolve and wash away stubborn grease, oil, dirt, mud and other stains. Be sure to test these cleaners on a small section of your gutters before applying them to the whole system.

To keep your gutters clear and working properly, set up a regular maintenance schedule. Plan to clean them at least twice a year, though more frequent cleaning may be necessary if your home is located under large trees or if you have a very steep roof. Trim overhanging tree branches to reduce the amount of debris that falls into the gutters, and install downspout screens to catch smaller leaves and twigs. These are all easy and effective ways to keep your gutters from becoming clogged, and to protect your home from water and structural damage. Be sure to use a sturdy ladder and safety gear when climbing to access your gutters, and always work with another person if possible. If you are not comfortable working from a ladder, or your gutters are especially clogged, call a professional gutter cleaning service.

Weatherproofing Your Roof: A How-To

If you live in an area that experiences yearly hurricanes, your home’s roof needs to be protected. This can reduce or prevent leaks and structural damage.

A shingle roof should have a waterproof material like tar paper or roofing felt in between the rafters and shingles. Sarking is also a good way to safeguard against damages and leaking.

Install Attic Insulation

A properly insulated attic can help prevent hot or cold air from seeping through the roof and into the living space of your home. It can also cut energy bills and make it easier to regulate the temperature of the house.

Insulation is measured by its R-Value and you can use a tape measure or ruler to determine the current level of insulation in your attic. The higher the R-Value, the more effective the insulation. If you don’t already have enough insulation to reach your desired R-Value, add additional insulation using loose-fill fiberglass, mineral wool or cellulose. Loose-fill insulation is easy to install and can be purchased at most hardware stores. Before attempting to install attic insulation, you’ll want to prepare the attic by removing any old insulation and repairing any holes or damaged areas. It’s important to wear personal protective equipment when handling insulation, which includes a dust mask or respirator, eye protection and long sleeves and pants for comfort and safety.

During the installation, you’ll also need to take care of any electrical wires in your attic. If you plan on running new electrical outlets in the attic, you should cover them with metal flashing and hardware cloth or plywood, creating a 3-inch safety gap between the insulation and the fixtures. It’s also a good idea to install temporary plywood flooring to walk on when you enter the attic, instead of standing directly on the exposed joists.

While insulating your attic, you should also consider soffit-intake vents to provide proper ventilation and prevent moisture buildup and mold growth. You can use gable vents, louver vents or ridge vents to achieve this goal.

After you’ve installed attic insulation, you should install a polyethylene vapor barrier. The vapor barrier will prevent condensation from building up inside the attic, which can cause drywall to crack. You’ll want to leave a few inches of space around any chimneys or other heat sources, as these items can melt or burn the vapor barrier. A professional roofing contractor like these dayton roofers can help you with the vapor barrier installation.

Add Seam Tape

A good waterproofing method will protect your home from water leaks and other issues that can cause structural damage, mold growth, and high energy bills. There are several different methods to choose from, each with its pros and cons. Some are more expensive than others, so it’s important to weigh your options and choose the best one for your budget.

If your roof is starting to show signs of wear and tear, you can waterproof it yourself by spraying or brushing on a water-based coating like Fastfix Wet Shield. This will help seal any gaps between the shingles, and will also protect against cracks and other forms of surface damage.

Another way to waterproof your roof is by using a sheet membrane. This type of membrane is made from sheets that are laid over the roof and then joined together with a heating torch. It can be applied over tiles, concrete, or asphalt shingle roofs and is available in a variety of materials.

Liquid membranes are also an option. These can be sprayed or brushed on, and are often more affordable than sheet membranes. They are typically made of polyurethane, or a combination of polymethylmethacrylate and silicone, and can last for up to 25 years. When choosing a liquid membrane, look for a product with a high elongation percentage. This will ensure that it can stretch to accommodate any shifts in your building, especially if you live in a high-rise or steel structure.

Lastly, you can also use heat tape to add an extra layer of protection to your roof. This can keep the seams of your roof warm, and prevent ice dams from forming that could cause major damage to your roof.

Waterproofing your roof is essential if you want to avoid costly repairs and other problems down the line. By taking these simple steps, you can protect your home from the elements and give it a long life. Whether you’re a do-it-yourselfer or hiring a professional to take care of the job, following these tips will help you weatherproof your roof and protect your investment.

Check the Flashing

The flashing on your roof helps to protect against water damage, but it only works well if it’s tight. If you notice any gaps in your flashing, it’s important to repair them immediately. It only takes a small hole for water to seep under your shingles and cause damage to your roof and home. A professional roofing contractor can use a sealant to repair any leaks in your roof flashing.

If you’re not comfortable climbing up onto your roof to check the flashing, crawl into your attic and look for any areas where water is pooling. You can also hire a roofing company to conduct a thorough roof inspection.

Before waterproofing your roof, make sure it’s free of debris and that any shingles are not damaged. Thoroughly cleaning the surface allows the liquid to adhere better. Additionally, it makes the leaks easier to find. You can use a pressure washer or another method to clean the roof.

All shingle roofs should have a layer of solid waterproof material between the rafters and the shingles. A newer option is a thermoplastic polyolefin (TPO) membrane, which is lightweight and flexible. It prevents leaks but allows vapor to pass through, which reduces condensation in your attic.

The shingles on your roof can last a long time, but they will eventually show signs of wear and tear. You can extend their life by adding a waterproofing compound to them. These compounds can be sprayed or rolled onto the shingles to restore the waterproofing oils and resins that were originally in the shingles. There are both oil-based and water-based compounds available for shingle roofs, and you should choose the one that best suits your needs.

A flat or leveled roof requires a different kind of waterproofing membrane than a shingled roof. Single-ply membranes such as ethylene propylene diene monomer (EPDM) can be applied to flat and leveled roofs using an adhesive, ballasting or fastening method.

When choosing a commercial waterproofing solution for your flat or steel roof, look for one with high elongation and a low coefficient of expansion. These factors will help the membrane stretch to accommodate movement in the building. You should also consider a breathable membrane, which will prevent moisture from entering the building but allow vapor to escape.

Install Heat Tape

In addition to being a preventative measure against water damage, weatherproofing your roof protects the integrity of your home’s foundation and adds value. Proper waterproofing can help you avoid major repairs that can be expensive and time consuming.

A key aspect of roof waterproofing is ensuring that the cladding material and shape are appropriate for your climate. Different methods work better with certain types of roofs, and a professional should advise you on the best options.

Some waterproofing materials are liquid chemicals that form a seal, while others are sheet membranes that are installed on the roof and overlapped to create a watertight barrier. Liquid membranes are usually sprayed on and can be done quickly, while sheet membranes require welding and steam to install. Both have their pros and cons, but depending on the type of roof you have and your budget, a specialist should be able to advise you on which is the best solution for your home.

Waterproofing your roof before a heavy rain is important to prevent water damage. A roof that isn’t properly waterproofed can be vulnerable to leaks, which may lead to mould growth and other issues. To reduce the risk of your roof leaking, make sure that it is properly waterproofed and check it regularly for any signs of moisture or cracking.

In addition to preventing water damage, waterproofing your roof can also help you save money on energy costs. A well-insulated attic will keep the heat in your house during winter and cool air in during summer. It will also help to prevent the formation of ice dams on your roof.

Another way to save money is by installing a self-regulating heating cable. This can be installed in a zig-zag pattern around the eaves and will warm up the snow and ice so that it melts more rapidly and doesn’t build up on the eaves. To calculate how much heat cable you need, simply plug in some basic information into an online calculator and it will tell you the length of cable you need.

It is critical to follow drainage and ponding regulations when waterproofing your roof. Failure to do so can result in your roof being damaged by water and causing flooding or structural damage.

Compulsory Strike Off: Process Explained

A compulsory strike off is a legal proceeding wherein a company’s name and capacity to function as a legal corporate entity is removed from the register of the companies house department of the government.

This, essentially, spells out the end of the companies’ ability to operate in practically any manner, shutting it down and the subsequent liquidation of any of its assets as well as a loss of employment for all members beneath said company.

A compulsory strike off is an occurrence either ordered by the companies house, petitioned by an external party or by an acting agent of the court – of which results in the subsequent shutting down of said company in its entirety, ceasing its operations and preventing it from further legal actions.

What is the Companies House?

The companies house is a government agency which acts as the registrar of any currently operating company entities, wherein it is considered a sub-department of the larger Department for Business, Energy and Industrial Strategy.

In concerns to the motions of a compulsory strike off, the companies house will remove the name of the dissolved company from their registrar, instead placing it on the list of struck off companies that are not allowed to legally operate.

In certain cases, even, the companies house itself may order a company to shut down.

This is mostly seen when a company has either been suspected or found to commit tax fraud, tax avoidance, failure to file their pertinent accounts or a failure to disclose their annual financial statements to the government.

Is Dissolution and Compulsory Strike Off the Same?

The terms dissolution and compulsory strike off refer to the same process of a company being removed from the register of the companies house, being used interchangeably with the status of dissolved being considered the status of the company that has undergone a compulsory strike off.

Can Compulsory Strike Off be Voluntary?

As may be obvious from the compulsory portion of compulsory strike off, a voluntary strike off is distinct from a compulsory strike off in the fact that the director or shareholders of the company have not themselves decided to initiate the dissolution of said company.

A compulsory strike off of a company is usually ordered by the companies house, or petitioned in a court of law by disgruntled creditors in order to force a company into liquidation.

While the actions of the company’s director are limited in the scenario of a compulsory strike off notice, there are several alternative avenues they may take, all of which depend on the scenario and nature of the compulsory strike off and the company itself.

What Happens to a Company’s Assets During a Compulsory Strike Off?

Though dependent on the particular reasonings behind the compulsory strike off notice, the assets of a dissolved company are usually placed in the care and ownership of the government, as the dissolved company is no longer legally able to trade or operate in the capacity of a legally recognized company.

This seizure of company assets is thereby dubbed “bona vacantia” and usually retained by the Treasury Solicitor of the Crown, wherein it may lay unclaimed due to the fact that the dissolved company did not undergo any sort of formal liquidation procedures prior to being struck off.

In order for a company to avoid its assets being placed beneath the care of a governing body and being classified as bona vacantia, it is important for them to perform a liquidation through the proper channels prior to completing the dissolution process.

Why does Compulsory Strike Off Happen?

In some cases, wherein a company receives notice of a compulsory strike off petition, it is likely due to a creditor or other outside party petitioning the companies house (and similar official bodies).

A far more common situation is one wherein the companies house itself has filed the petition to strike off a company due to a failure by the company to file its financial accounts or otherwise disclose pertinent information required by a company entity, all of which may have their deadline extended with a simple request to the companies house itself.

This avoidance of account disclosure is usually intentional and a sign that a company is unwilling to report their financial information for the purposes of unethical or illegal activities.

This may be contested by outside parties not directly involved in the company, especially creditors that have yet to be reimbursed for their products or services by said company beneath the strike off petition.

What are the Company’s Options after a Compulsory Strike Off Notice?

In the event that a company has received notice of a pending compulsory strike off petition, it is possible to contest it, though this particular ability is reserved for the company’s directors, shareholders, and creditors (at least, those that are as of yet unpaid).

This is primarily due to the fact that once a company has been dissolved beneath a compulsory strike off, its assets will be seized by the government and the dissolved company will no longer be able to pay back their debts and liabilities, leaving creditors at a loss.

By extension of this – if the company’s director is unable to contest the compulsory strike off but still wishes to retain ownership of the company’s assets and funds, they must undergo the process of member’s voluntary liquidation or similar methods of asset liquidation and extraction.

It is important to keep in mind that submitting an objection to the compulsory strike off request will not automatically cancel the strike off itself, and will instead only pause or suspend it while the companies house investigates who filed the request, for what purposes, and whether the strike off request is indeed valid and must be fulfilled.

References

Unknown Author. (N.D.) “Strike off your limited company from the Companies Register” United Kingdom Government. Retrieved on 6 February 2022 from (https://www.gov.uk/strike-off-your-company-from-companies-register/apply-to-strike-off)
Unknown Author. (N.D.) “Apply to strike off and dissolve a company” United Kingdom Government. Retrieved on 6 February 2022 from (https://find-and-update.company-information.service.gov.uk/close-a-company/)
Unknown Author. Bona vacantia, Crown disclaimer and escheat: issues in liquidation, dissolution and restoration | Practical Law. Practical Law. Published 2022. Accessed February 6, 2022. (https://uk.practicallaw.thomsonreuters.com/w-007-3468?originationContext=knowHow&transitionType=KnowHowItem&contextData=(sc.Default)&comp=pluk)
Companies House logo shared under Open Government Licence v3.0.

First Gazette Notice for Compulsory Strike Off: Purpose Explained

In the event of a compulsory strike off being served to a company or similar entity by the companies house, certain motions are put into play that not only begin the process of striking off said company from the companies house register, but also notify all parties of such a change.

This is usually considered the first warning, especially in the event that the company is found to be in violation of a particular law or stipulation beneath a governing body – thereby placing the company at risk of legal ramifications, one among which is known as a compulsory strike off.

A first gazette notice for compulsory strike off is generally posted by the companies house, and is meant to state the intent of said companies house to begin striking off a company from their register.

In the case of a compulsory strike off, this is usually due to the company’s violation or failure to fulfill certain duties and responsibilities, though other reasons may exist.

What is the Gazette?

An official journal meant to primarily keep record of any company related processes and procedures that the public may wish to become aware of, the gazette is a publication beneath the government made in more of an official capacity than ordinary newspaper publications.

This acts as both an official proof of notice to any parties that are immediately mentioned in the notice, as well as a method of which external parties related to the company in the notice may become aware of any pending actions to said company.

The gazette is not reserved for a single publication, however, as several forms of the gazette do exist depending on the particular geographical area the proceedings are taking place in as well as the headquarters of the company in question.

What is a Compulsory Strike Off?

The term compulsory strike off refers to the involuntary process of the companies house or similar governing body shutting down the regular operations of a company, liquidating their assets and otherwise dissolving the corporate entity without the input of its directors and shareholders.

This is most often done if the company is found to be in violation of certain laws or duties that it is meant to be upholding, such as a failure to disclose relevant financial information to the companies house or creditors for the purposes of fraud or tax evasion.

The Team at Marchford says that the reasons a company may be served with a compulsory strike off is a failure to pay relevant taxes, penalties, or a failure to disclose other forms of information not only reserved for that of financial matters.

What Happens During a Compulsory Strike Off?

When a company receives notice of a pending compulsory strike off, they will be given a certain period of time in which they may rectify whatever violation has been enacted so as to postpone or cancel the pending compulsory strike off.

However, in the event that the company willfully does not comply or remains ignorant of the pending compulsory strike off proceedings, several procedures will be undertaken by the companies house and related governing bodies that can be quite disruptive to daily business for the company.

The first and most immediately noticeable of these proceedings is the freezing of the company’s banks and a halting of any trades taking place at the time of the compulsory strike off.

This may have the effect of alerting creditors that were not already aware of the compulsory strike off to the situation the company finds itself in, pressing them to seek repayments for any liabilities or loans that said company has yet to fulfill.

In the event that the compulsory strike off has reached fruition and the company has been dissolved and struck off from the companies house register, its assets and funds will become property of the government and as such will not be easily accessible to the owners and shareholders of the now dissolved company.

Apart from the first notice posted in the gazette for the compulsory strike off, several subsequent postings will also be released by the companies house notifying the public of any proceedings and progresses occurring during the company’s striking off, with a final notice signifying that the company no longer exists after the proceedings have been completed.

Why is a Notice Posted in the Gazette?

A first gazette notice posted for compulsory strike off is usually only released by the companies house in the event that the company in question has failed to comply with the repeated requests made to them, or if the companies house has otherwise found evidence that the company is no longer trading or trading in an illegal manner.

This notice is therein posted in the gazette publication for the purposes of notifying any interested parties of the pending strike off that the company may undergo in the event that they continue to ignore the communications of the companies house.

External entities such as investors, customers, creditors or even trading partners may all find that such motions taking place with the company a rather risky endeavor, and as such may change their decisions accordingly.

This can have the unfortunate effect of a company’s reputation being damaged, even if a single notice has been posted in the gazette – potentially affecting their customer base and subsequent revenue.

Can a First Gazette Notice for Compulsory Strike Off be Stopped?

Yes, a first gazette notice for a company’s pending compulsory strike off may be stopped by said company fulfilling the requirements or penalties communicated by the companies house.

Doing so will generally prevent the notice from being published in the gazette in the first place, and will subsequently also cancel the striking off of the company’s name from the companies house register – avoiding dissolution entirely.

Generally, the company to be struck off will have received a letter at their registered address of business detailing what sort of violations said company has committed and how best they may rectify the situation so as to avoid any succeeding consequences.

What Should a Company Do Once They Have Received a Gazette Notice of Compulsory Strike Off?

Generally, the response a company should have once they receive notice of a pending compulsory strike off will depend on the particular wishes of the board of directors as well as that of the shareholders.

This is best made clear through the usage of a vote, wherein the majority winner will decide what to do with the company moving forward.

Allow the Strike Off to Occur

In the event that the majority shareholders and acting board of directors no longer wish to keep their company trading or operational, simply allowing the strike off to occur is a perfectly acceptable course of action, though certain caveats may stall or prevent this process from occurring.

In the event that the company has a disgruntled creditor or similar third party entity that is owed a sum of money or fulfillment of contract terms, they may place an objection to the compulsory strike off with the companies house so as to stall or cancel said strike off, forcing the company to settle its debts prior to dissolution.

Retain the Business and its Operations

If, instead of allowing the company to be dissolved, the shareholders and board of directors wish to continue the function and name of the company, they must make several motions so as to assure the companies house or other enforcing administrative body of their intentions.

The first and most immediate action that must be taken in this particular situation is to open up communication channels with the companies house and to make it quite clear that they wish to cancel the pending compulsory strike off; Referred to as a strike off suspension application.

Of course, the particular reason behind the compulsory strike off in the first place must also be rectified by the company so as to completely cancel the dissolution instead of simply postponing its enactment.

External Creditor Objects to the Strike Off

A compulsory strike off may be suspended or cancelled by a third party related to the company in the event that they possess an outstanding debt or contract that has yet to be fulfilled by said company to be struck off.

The reasoning behind this is that the company, if struck off, will be both unreachable, legally unable to negotiate or represent itself, as well as unable to access its funds or liquidate its assets, all of which will make it impossible for the creditor to be paid back or remunerated in any manner.

This suspension or cancelling of a pending compulsory strike off is quite similar in process to the directors of a company acting in the same way, with the creditor or other external party needing to make contact with the companies house in order to file the proper motions.

References

Published by ‘Authority’ (1665) “About The Gazette” The Gazette, Official Public Record Retrieved on February 13 2022, from (https://www.thegazette.co.uk/about_
Unknown Author. Bona vacantia, Crown disclaimer and escheat: issues in liquidation, dissolution and restoration | Practical Law. Practical Law. Published 2022. Accessed February 13, 2022. (https://uk.practicallaw.thomsonreuters.com/w-007-3468?originationContext=knowHow&transitionType=KnowHowItem&contextData=(sc.Default)&comp=pluk)
Unknown Author. (N.D.) “Apply to strike off and dissolve a company” United Kingdom Government. Retrieved on 13 February 2022 from (https://find-and-update.company-information.service.gov.uk/close-a-company/)
The Companies act of 2006 “Dissolution and Restoration to the Register”(2006, modified Feb 16 2021)Retrieved 13 February 2022 from ( https://www.legislation.gov.uk/ukpga/2006/46/part/31#top ) (U.K.) Registrar’s power to strike off defunct company
Featured image logo shared/modified under Open Government Licence v3.0.

Chartered Accountant vs CPA: The Differences Explained

In the field of accountancy, a large number of variable titles and specialties exist, each with their own personal connotation signifying the particular branch of accounting said accountant is a member of.

Among these titles are the legally protected chartered accountant, or CA, and that of the CPA, or certified public accountant, both of which are recognized accountants with significant qualifications and proper certification in order to practice their particular line of work beneath a regulating body specifically made for accountants.

However, some confusion may be found in the distinction between the two, as both chartered accountants and certified public accountants are titles used by a variety of certified professional accountants in the accounting industry, oftentimes with practically the same meaning.

What is a Chartered Accountant?

The title chartered accountant refers to the upper echelon of professionally certified and educated accountants, wherein said accountants are legally and ethically qualified to perform tasks and services that are otherwise impossible to do without legal certification.

Individuals without the prerequisite chartered accountant title cannot perform these tasks and services, both legally and because of insufficient training.

However, the caveat and main difference between that of chartered accountants and certified public accountants is simply the geographical location wherein said accountant has received their certification and passed said certification exam.

Countries outside of the United States such as the United Kingdom, Australia and certain countries in south east Asia all utilize the legally protected title of chartered accountant in order to act as a distinction between legally recognized certified individuals and non-certification holders.

Chartered accountants are allowed by these countries to carry out duties such as performing financial audits and approving the disclosure of certain types of financial statements.

What is a CPA?

The term certified public accountant or CPA is a legally protected distinction meant to signify that an individual has been approved to act in a professional accounting capacity, oftentimes after said individual has passed a licensure exam and several years of training or accrued sufficient on the job experience.

Just as is the case with chartered accountants, unlicensed individuals cannot otherwise provide the same tasks and services to prospective clients as a certified public accountant can, both legally and due to a lack of sufficient education or experience.

The primary distinction between the title of CPA or certified public accountant and that of a chartered accountant is that certified public accountants have been approved and licensed within the United States, with the term CPA only rarely being used outside of the United States.

The main purpose of the existence of this certification is to ensure that a professional standard is enforced, ensuring that no harm may be caused by unlicensed and amateur individuals seeking to act as accountants without the required prerequisite skills.

What are the Advantages of Using a Chartered Accountant?

Individuals or financial entities wishing to utilize the services of a chartered accountant may find that there are certain advantages to using a legally recognized professional with relevant qualifications and certifications.

Among these is the formal education in a relevant field possessed by the chartered accountant, of which will reduce the chance of them performing any errors and ensure that their work is of the utmost quality, of which may otherwise be missed if non-certified professionals are instead hired.

Depending on the particular governing body certifying the chartered accountant, the chartered accountant must have undergone at least three to five years of relevant experience in the field of accounting prior to being certified, giving them a level of experience that allows them to act confidently in their duties.

Additionally, individuals holding the title of chartered accountant are oftentimes required to keep up to date with new regulations, practices and methods within their particular field of work, meaning that a legally certified chartered accountant is kept abreast of any changes in the accounting sector, or finance as a whole.

What are the Advantages of Using a CPA?

In the event that the services of a CPA or certified public accountant are required, the individual or entity wishing to procure their services can be assured that the work entailed in their hiring is of a professional standard of quality, owing to the fact that certified public accountants oftentimes undergo a certain level of regulation prior to being licensed.

The exact educational qualifications required to attain the legal title of certified public accountant are somewhat less stringent than that of chartered accountants, owing to the fact that individuals seeking to become a CPA only require the completion of one hundred and twenty hours of undergraduate classes in order to be approved.

Thus, while it is possible to become a CPA without the completion of a college degree, it is likely that individuals legally recognized as certified public accountants have undergone some level of training and education, providing a competency to their services.

This may depend on the particular state and regulatory body the CPA has been approved by, however.

Can Chartered Accountants Work in the United States?

Considering the geographical reasoning behind the distinction between chartered accountants and certified public accountants, it is understandable that there would be some confusion as to the rules pertaining to the working of chartered accountants in the United States, whether temporarily or for good.

It is possible – with several caveats, such as the obvious legal requirement of a work visa or sufficient immigration certifications that are required of all foreign nationals entering and working within the United States.

Specific to chartered accountants, however, individuals wishing to provide their services in a professional capacity while holding the certification of chartered accountant in a different country must first pass an equivalency exam imposed by regulatory accounting organizations situated in the United States.

This is done to ensure that the chartered accountant has sufficient experience of knowledge of the inner workings of United States accounting work, which may be tangentially different from the sort of accounting work done in other countries, especially pertaining to that of tax laws.

Can CPAs Work Outside the United States?

The exact specifics of recognition of a certified public accountant or CPAs qualifications may depend on the particular regulatory bodies found in whatever foreign country they may find themselves working in.

However, a large majority of CPAs are legally qualified to offer their services in many non-U.S. countries owing to the fact that the largest global regulatory accounting organization recognizes their particular type of professional certification.

This equates to many companies actively seeking the services of certified public accountants, both within and outside of the United States, especially in the sort of corporation that performs overseas work in the United States, wherein an expert in the local regulations and laws would be needed.

Though it is important to keep in mind that the sort of training certified public accountants undergo is usually specific to laws and methods primarily used within the United States, making certified public accountants working outside of the U.S. potentially less effective than the local equivalent, depending on their own personal training and experience.

This is not to say that certified public accountants are not capable of performing the same duties as any non-U.S. equivalent accountant, as it is a globally recognized title and as such denotes significant education and qualification possessed by said CPA.

References

Unknown Author. (Feb 1987) “The Chartered Accountant, Volume 36” Institute of Chartered Accountants of India, originated from the University of California.
Gingras, Russell T. “Writing and the Certified Public Accountant.” Journal of Accounting Education, vol. 5, no. 1, Mar. 1987, pp. 127–33. DOI.org
Will Kenton, Michael J Boyle, Marcus Reeves. (October 2020) “Chartered Accountant (CA)” Investopedia Investopedia.com
Will Kenton, Khartit Khadija. (August 2021) “Certified Public Accountant (CPA)” Investopedia Investopedia.com

Chartered Accountant Duties: Tasks Explained

In the field of accountancy, individuals bearing the certification and title of chartered accountant are among the highest class in terms of skill and qualifications, oftentimes acting in a far wider reaching and significant capacity than less prestigious levels of accounting certification.

This, in turn, has led to prospective future chartered accountants and business owners alike to ask the question of what exactly it is that chartered accountants do in the course of providing their services, and how these services can act in a beneficial manner to their clients.

The duties of a chartered accountant are considered to be quite wide-reaching ones, though all share the same focus on the general finances and related matters of the client, whether they be a single individual or a grand scale corporate entity with thousands of daily financial transactions.

What is a Chartered Accountant?

A chartered accountant, in the generally understood term, are accountants that have undergone sufficient qualifications and training in order to be legally recognized by an accountancy related regulatory body, allowing them to perform duties otherwise not possible for other non-certified accountancy related professionals.

Chartered accountants may work in a variety of capacities and with differing scopes of responsibilities, depending on their level of experience and the particular sub-field of accounting they have chosen to be employed in.

These differing scopes of responsibilities are usually pertaining to the financial complexities of their client, whether it be a single individual seeking advice on the filing of their taxes to large scale corporations searching for an internal management accountant.

In short, the primary function and duties of a chartered accountant are directly relating to the transcription, interpretation and control of money and assets with monetary value, all of which are utilized in nearly every fixture of modern society and the very economy itself.

This makes the presence of accountants in society a vitally important one, with very little in the way of financial movement or even the concept of government being possible without the function of accountancy in some shape or form.

How are Chartered Accountants Qualified?

The path to becoming a chartered accountant, unlike other professions, does not primarily require the attainment of a collegiate degree in a related field, with the primary requirements to becoming certified as a chartered accountant being somewhat less stringent but no less important.

Primarily, prospective future chartered accountants are required to possess between three to five years of relevant experience beneath an accountancy-related organization, usually recognized by the same regulatory body itself.

Apart from this relatively short experience requirement, prospective future chartered accountants may also need to possess some sort of undergraduate degree, though this will depend on the particular regulatory body the prospective chartered accountant is applying to.

Once the prospective future accountant has collected all sufficient experience and education, they must then pass several months of examinations in order to determine whether they possess the prerequisite skills and knowledge required during the course of a chartered accountant’s work.

If passed and then approved by the regulatory body, the individual will then possess the impressive title of chartered accountant, allowing them to function in a variety of capacities in nearly every industry or for any client.

How are Chartered Accountants Used?

Chartered accountants, when hired by financial entities or contracted by individuals, can act in an advisory capacity, a managerial capacity, in the interpretation of financial information, as facilitators in communication between two parties or even in the training of more junior colleagues.

Other ways chartered accountants may be of use to their clients is in the certification of documents and other disclosures related to a financial entity so as to confirm the legitimacy of the information contained therein, allowing it to be utilized for such purposes as tax filing, a court of law or for use in negotiations.

This wide-reaching spread of duties performed by chartered accountants oftentimes means that particularly large organizations will employ either more than one chartered accountant or dedicate entire departments to certain sections of accountancy, occasionally spearheaded by a sufficiently experienced chartered accountant.

Duties of a Chartered Accountant in Service to Financial Entities

Considering the fact that chartered accountants may be employed by a division of the government, sole individuals or financial organizations that require their services, it is important to separate the particular duties said accountant will be performing depending on their particular employer.

Most commonly, chartered accountants may be employed by corporate entities or similar structured organizations that compensate the accountant for a variety of duties that are required in order to retain the general function of the organization.

Risk Analysis

Highly specialized and delicate, risk analysis is a vitally important function performed by chartered accountants in order to ascertain whether a particular financial move performed by their client entity is a sound one.

The duty of risk analysis utilizes significant amounts of math so as to determine whether the relative risk involved in such actions like investments, acquisitions or contract formations are acceptable enough so as to not outweigh the benefits of said actions.

Risk analysis is most often seen in corporate entities choosing to divest large volumes of money in order to expand their reach or brand.

Inter-entity Liaison

While corporations or other forms of financial entities oftentimes possess a department specifically meant for the purpose of communication, either between their own internal employees or the public, it is most often a chartered accountant or subordinate of a chartered accountant that performs direct technical liaising for the entity.

This is due to the fact that the sort of negotiations that take place at an accountancy related technical level oftentimes require some level of expertise in the field so as to ensure that no miscommunication or disadvantageous occurrence may come to pass during negotiations between the client and the other party.

Financial Management

The most common duty performed by chartered accountants, financial management is the act of handling a corporation or financial entity’s internal money and related assets so as to ensure its continued function and growth.

Financial management primarily involves the interpretation and planning of monetary positioning by the accountant, wherein they may act as a macro level manager as well as an advisor to higher ranking members of the financial entity.

Chartered accountants may also act in an active capacity wherein they will dictate the allocation of funds, manpower and utilization of employees so as to maximize financial efficiency within the entity.

Junior Training

Somewhat less common save in larger scale corporations or accounting firms wherein multiple accountants are hired at once, chartered accountants with enough experience to be considered seniors may act in an educational and training capacity so as to improve the professional portfolio of their immediate juniors.

This can be done through the conduction of training in-house, through the conduction of seminars, through direct mentoring or even through simple dictation and management of several junior employees as part of an accounting team or department.

Financial Interpretation and Disclosure

Another extremely common duty performed by chartered accountants, the compilation, interpretation and disclosure of financial information in the form of financial statements or similar documents is among one of the most basic functions of any accountant, regardless of whether they are a chartered accountant or not.

These financial documents are then provided to external parties such as investors and governing bodies or are otherwise kept internally for review by the chartered accountant, their colleagues, or presented to executives within the financial entity so as to keep them apprised of the entity’s financial function.

Invoice and Receipt Release

Though sometimes performed by non-chartered accountant professionals who work in similar fields, the releasing of receipts and invoices may be performed by chartered accountants, especially in instances where some level of legally binding certification is required as a form of information verification.

There is some distinction between these duties and that of the preparation of financial statements, as invoices and receipts are not meant to act as a financial disclosure in any way save for the exchange of monetary value, assets or services between the financial entity and external parties.

Alternatively, it is possible for chartered accountants to instead supervise a department dedicated to the compiling and releasing of invoices and receipts, freeing up the time and energy of the chartered accountant so they may instead perform more rigorous and intense duties.

Financial Audits

The duty of financial auditing is not solely reserved for chartered accountants in the employ of a financial entity, as financial audits may be performed by governing bodies or prospective investing bodies wishing to verify the financial standing of an organization so as to decide their next move.

Within a financial entity or corporation, a chartered accountant acting as an internal auditor may investigate manners concerning the movement and dispensation of money and similar assets by constituent members of the entity, whether to verify the veracity of a transaction or to assess the general financial standing of the entity.

Duties of a Chartered Accountant in Service to Individuals

Apart from duties chartered accountants may provide in the service of a corporation or other financial organization, chartered accountants may also be hired and contracted by sole individuals for the purpose of acting in an advisory and executive capacity.

Individuals choosing to hire a chartered accountant may find that the accountant will request access to their private financial information as well as their general financial plans so as to properly assess the sort of actions they must take.

Tax Advising and Filing

Perhaps one of the most frequently seen duties performed by chartered accountants in the service of sole individuals, the filing of taxes to a governing body is highly dependent on the geographical location it is meant to be filed in, with laws in the United States differing from that of other countries.

As such, when contracting a chartered accountant for tax purposes, it is best to choose one based or educated in the same location as the taxes that are meant to be filed, as it is likely they are quite familiar with each individual law and caveat involved in the filing of said taxes.

General Financial and Budgetary Advice

Highly advisable, certain individuals may contract a chartered accountant in order to receive a professional’s opinion and advice on the general allocation of their monetary budget as well as their financial situation in its entirety.

This may be done for any sort of individual regardless of their financial standing, from unemployed members of society with significant levels of debt to the wealthy desiring to obtain insight into the ideal allocation of their investment portfolios.

Usually, a chartered accountant will act as a consult wherein they will assess the day to day finances of the individual and their family as well as discuss with them their long term goals and plans, allowing the chartered accountant to form a long term plan with hard numbers and specific information that allows the individual to reach their goal.

Debt and Credit Assessment

Tangentially related to general financial and budgetary advice, individuals may choose to contact a chartered accountant in order to have their debts and financial credit assessed, whether to verify its veracity or to form an action plan wherein the individual may improve their situation.

This has become less common in modern times as such things like credit scores and computerized interest calculators become more accessible to the average person, removing the necessity of consulting a financial professional in order to obtain the relevant information.

References

Unknown Author. (1987, Digitized Feb 2011) “The Chartered Accountant, Volume 36” The Institute of Chartered Accountants of India
Lee D. Parker, Back to the Future: The Broadening Accounting Trajectory, The British Accounting Review, Volume 33, Issue 4, 2001, Pages 421-453, ISSN 0890-8389, https://doi.org/10.1006/bare.2001.0173.
Makdissi, R. , Nehme, A. and Khawaja, M. (2020) The Effect of the Chartered Accountant’s Work on the Sustainability of Companies Open Journal of Accounting,
Quick, R., & Henrizi, P. (2018). Experimental Evidence on External Auditor Reliance on the Internal Audit. Review of Managerial Science, 13, 1143-1176.

Pros and Cons of Forming an LLC in New Mexico

An LLC, or a Limited Liability Company, is a business structure used in the US for running a business. Instead of an unregistered business such as a sole proprietorship, registering a business as an LLC can have some benefits enjoyed by corporations. However, regulations surrounding LLCs are highly dependent on the state in which they’re registered and things can be significantly different from one state to another. Looking at the different factors involved, there are certain pros and cons associated with forming an LLC in New Mexico.

New Mexico has truly made it easy for people to form LLCs in the state. Firstly, New Mexico offers a highly competitive filing fee for those establishing an LLC at $50. This is incredibly low given a state such as Massachusetts would require a filing fee of $400.

After the initial payment of the filing fee, an LLC in New Mexico does not have to pay an annual fee, unlike other states. The state also does not require annual reports. New Mexico offers true anonymity as the only names needed in the documents of the LLC are the organizer and the registered agent. The benefits of an LLC in New Mexico would then be weighed with the socioeconomic characteristics of the state.

Pros of Forming an LLC in New Mexico

Annual Fees

Annual fees are typically required by the state to keep LLCs in compliance and in good standing. Depending on the state, the LLC must pay a fee annually or every two years. Unfortunately, the annual fee is typically not dependent on the income or activity of the LLC which means as long as the LLC is operational, it must pay annual fees.

Annual fees can vary across different states; LLCs in Alaska are required to pay an annual fee of $100 every two years while LLCs in California pay more than $800 in annual fees. However, the Secretary of State of New Mexico prioritized making the state inexpensive when it comes to forming businesses and entering commerce. Thus, LLCs in New Mexico do not have to pay annual fees in order to be compliant and operational.

Annual Reports

Annual reports are documents that detail the activities of a company throughout a fiscal year. They give the state an idea of how the LLC is doing, and it is also a way to update the state with the information regarding the names and addresses of directors or managing members of a corporation or LLC as well as the company and registered agent address.

Some states have a predetermined date where all LLCs must submit their annual reports before regardless of when the LLCs were formed while some states require the submission of the annual reports on the anniversaries of the formation of the LLCs.

Since LLCs are registered at the state, most states require annual reports to be submitted. In contrast, sole proprietorships and partnerships do not have to submit annual reports to the state. However, some might find it advantageous that New Mexico does not require LLCs to submit annual reports.

Filing Fees

Once the organizer – the individual or entity primarily responsible for the technical formation and establishment of the LLC – has submitted the Articles of Organization – the necessary documents for LLC establishment – they can then proceed to pay the filing fee. Filing fees vary from one state to another and can become quite competitive. While some states have a higher barrier to entry with an exorbitant filing fee, other states are more welcoming with a minimal filing fee.

Filing fees are decided by the state and vary from one to another. For example, a lot of states have filing fees set at $100 such as Georgia, Idaho, Louisiana, Maryland, New Hampshire, Oklahoma, Oregon, Virginia, West Virginia, and Wyoming. Many states have filing fees higher than $100 such as Illinois with $150, Alabama with $200, Alaska with $250, and so on. Filing fees can also be quite expensive such as the case for Texas with $300, Nevada with $425, and Massachusetts with $500.

Since the state of New Mexico promotes the formation and operation of businesses in the state, the state offers a highly competitive filing fee of only $50. With a filing fee of $50, New Mexico has one of the lowest filing fees aside from Arkansas with $45 and Kentucky with $40.

Privacy

Registering a business with the state confers several benefits which effectively drive people to form LLCs. For one, LLCs provide limited liability protection to the members (owners) of the LLC. This means in the event of debt and legal action, the financial burden does not befall the members, thereby protecting their own personal assets such as property, cars, and bank accounts.

Business owners forming an LLC also enjoy pass-through taxation where the taxes generated by the LLC passes through on to their own personal tax. This is in contrast with corporations that have double taxation where they pay taxes for both the business and themselves separately.

However, one disadvantage to forming a legal entity recognized by the state government is that the personal information of the people involved has to be listed and becomes public record. While this is acceptable to many individuals, there are those who would rather keep their anonymity. For these people, they would rather opt for an anonymous LLC.

An anonymous LLC is one where the ownership information of the LLC is not made publicly available by the state where the LLC is registered. Unfortunately, individuals who would want to form an anonymous LLC would have to operate in states that support anonymous LLCs.

It is said that while some states do support anonymous LLCs, New Mexico is one of the states that allows for truly anonymous LLCs. This is because the state does not maintain any records of ownership or management at all. In New Mexico, the only names required to be listed in the Articles of Organization are the organizer and the registered agent as they act as the point of contact between the state and the LLC.

Disadvantages of Forming an LLC in New Mexico

Poverty Rate

Operating a business in a state requires one to be familiar with the sociodemographic of the people living there. While New Mexico does make it easy for new business owners to form LLCs, they have to keep in mind that the state does have one of the highest poverty rates in the country. In 2019, it was estimated that 18.2% of the population in New Mexico was listed to be in poverty. This is especially alarming as the poverty rate of the US for 2019 was at 10.5%; This means that New Mexico had a poverty rate almost twice that of the country’s poverty line.

While there are businesses that might not be affected by this statistic, it is still one that new business owners have to keep in mind if they are considering forming an LLC in New Mexico.

Unemployment Rate

Another statistic to consider is the high unemployment rate in New Mexico. According to the US Bureau of Labor Statistics, New Mexico is ranked 48^th of all the states according to the unemployment rate as of April 2021. Unemployment rates are an important marker for businesses to consider because when unemployment is up, more people have less money to spend on goods and services.

Benefits of Forming an LLC in California

When setting up a business in California, one has many options regarding which business structure they want to go into. While some would consider sole proprietorship or even a corporation, many would opt for an LLC. An LLC, or a Limited Liability Company, is a legal entity that can be used to run a business and hold assets. There are several benefits to running an LLC in California compared to the other business structures.

Running an LLC in California offers several advantages that will greatly benefit business owners. The main benefits of forming an LLC in California for a business are personal liability protection and taxation. Personal assets will be safe as the financial burdens will not carry over to the members of the LLC. Furthermore, individuals can choose a certain tax status that appeals to them and not worry about double taxation. Aside from those benefits, forming an LLC has other benefits over other business structures such as ease of entry, increased credibility, a registered name, etc.

Benefits of Creating an LLC in California

Personal Liability Protection

One major benefit of an LLC is that it provides the members of an LLC personal liability protection. This means that the individuals under the LLC will not be personally liable for the company’s debts and financial obligations. This also protects the members when the company is sued.

This is in stark contrast with sole proprietorship where the government sees the individuals associated with the business to be the business itself.

Personal liability protection is often considered to be a good enough reason to consider LLCs in the first place. People who go into business without this type of protection stand to lose their personal assets such as houses, cars, bank accounts, and more.

Pass-Through Taxation

Corporations in California are subject to double taxation which means that income is taxed twice: once to the corporation at its corporate tax rate and then again to the owners of the corporation.

However, that is not the case for pass-through entities such as S-corporations, partnerships, sole proprietorship, and most LLCs. These entities undergo pass-through taxation which means that the profits and losses pass through them to the owners who will then pay taxes at their personal tax rates.

This is particularly helpful for small business owners who wish to streamline their operations.

Aside from the financial advantages, pass-through taxation can also benefit business owners through other logistical means such as not having to file tax returns. These entities might be required to submit information returns but at the end of the day, reporting obligations are far simpler.

Options for Federal Tax Purposes

Another major advantage of forming an LLC is that the members involved have options when it comes to federal tax.

Due to the flexibility of an LLC as a business structure, an LLC with a single owner (a single-membered LLC) can choose whether they want their LLC to be taxed as a sole proprietorship, an S corporation, or a C corporation.

On the other hand, LLCs with two or more owners (a multi-membered LLC) can be taxed as a partnership, an S corporation, or a C corporation.

It is important to note that the members of the LLC will only be able to enjoy pass-through taxation as long as they do not opt to have the LLC taxed as a C corporation.

Name Registration

Sole proprietorships and partnerships use the names of the owners as their business names unless they register a “doing business as” (DBA) name.

However, part of starting an LLC is name registration which means that once an individual has registered a unique name for their LLC, no other business in the state is able to use that chosen name as long as that LLC remains active.

Credibility

Credibility is an important factor for a successful business as trust is a fundamental basis in the relationship between a client and a business. Not only is credibility important in generating leads but credibility is also required to maintain and bring back clientele.

Registering a business as an LLC can add a weight of credibility to an individual’s business – at least compared to a sole proprietorship or a partnership. Including LLC in the business name adds a sense of formality that can help customers and clients trust the business more.

Ownership Transfer

Business structures that have laid out their specific assets are easier to deal with in the event of a transfer of ownership. Either by sale of the interest or upon death, an operating agreement can make transfers significantly easier – especially compared to a sole proprietorship or a partnership.

Ease of Entry

Individuals going into business can always opt to remain as sole proprietors, but they will be leaving themselves vulnerable to financial obligations that might befall on their business.

On the other hand, setting up a corporation is especially tedious and complicated as corporations would require an elected board of directors to oversee the company, corporate officers to execute day-to-day operations, and corporations are usually for businesses that want to go public via an IPO – an initial public offering on the stock market.

As a middle ground, many suggest that forming an LLC is an ideal option because you get the benefits of a registered business structure with a very low barrier of entry.

After a name has been successfully chosen, all an interested party has to do is to select a registered agent, file the Articles of Organization (FundsNet suggests using an Organizer), create an Operating Agreement, and get an Employer Identification Number (EIN). Along with the required documents, interested parties should also send the payment for the filing fees ($70 in California); All the necessary documents and fees should be sent to the Secretary of State.

Why Every Business Owner Needs IT Security Systems to Ensure No Data Leaks!

The Internet allows businesses of all sizes and from any location to reach new and larger markets and provides opportunities to work more efficiently by using computer-based tools.

Whether a company is thinking of adopting cloud computing or just using email and maintaining a website, cybersecurity should be a part of the plan.

Everything we do, both at a business and personal level, seems to involve technology in one way or another.

However, as that happens, businesses continue to be a top target for hackers, with the number of organizations hit by cybercrime rising each year.

Each year promises faster internet, more connectivity, and unfortunately, more cybersecurity threats.

According to a study released by IBM, the cost of a data breach has risen 12% over the last five years and now averages $3.92 million per business.

Not only do cyber attacks cost millions of dollars each year, they could lead to other serious problems for business owners.

Business owners could not only be facing a potentially significant disruption in their business when getting hit with a cyber attack, but lawsuits from their customers or others if they (or their attorneys) believe that you were negligent.

“Thinking about how to respond to a cyber-event after it happens is a poor strategy,” says Tim Francis, a vice president specializing in cyber insurance at Travelers Insurance.

“Business owners need to consider cyber-attacks just as they would any other risk — like fire, theft, or severe weather — and plan for it as part of their business continuity strategy.”

Cyber attacks are constantly evolving, but business owners should at least be aware of the most common types so they know how to protect themselves:

Malware – Malware is an umbrella term that refers to software intentionally designed to cause damage to a computer, server, client, or computer network. Malware can include viruses and ransomware.
Viruses – Viruses are harmful programs intended to spread from computer to computer (and other connected devices). Viruses are intended to give cybercriminals access to your system.
Ransomware – Ransomware is a specific type of malware that infects and restricts access to a computer until a ransom is paid. Ransomware is usually delivered through phishing emails and exploits unpatched vulnerabilities in software.
Phishing – Phishing is a type of cyber attack that uses email or a malicious website to infect your machine with malware or collect your sensitive information. Phishing emails appear as though they’ve been sent from a legitimate organization or known individual. These emails often entice users to click on a link or open an attachment containing malicious code. After the code is run, your computer may become infected with malware.

There are many ways to protect your organization from cyber attacks that could cost you hundreds if not thousands of dollars and/or lost data.

Here are some cybersecurity best practices:

Cybersecurity Best Practices

Employee Training

Employees and emails are a leading cause of data breaches for small businesses because they are a direct path into your systems.

Employees should be trained on how to:

Spot phishing emails
Use good browsing practices
Avoid suspicious downloads
Create strong passwords
Protect sensitive customer and vendor information
Know the signs of social engineering

KnowBe4 is a great resource for training employees on the dangers of cyber attacks.

Use Antivirus and Malware Software’s

Make sure each of your business’s computers is equipped with antivirus software and anti-spyware and updated regularly.

Since cyber attacks involve installing malware on the employee’s computer when a link is clicked, or attachment is opened, it is essential to have anti-malware software installed on all devices and the network.

Secure Networks with Passwords

Use strong passwords that include 10 characters or more and a combination of uppercase, lowercase, numbers and special characters.

Passwords should also be changed frequently and should not be repeated.

Multi factor Authentication

Multi-factor authentication requires additional information such as a security code sent to your phone to log in.

Extensive Backup and Recovery Planning

Every business should have a way to restore backups and recover data should an attack occur.

The SBA recommends at least backing up word processing documents, electronic spreadsheets, databases, financial files, human resources files, and accounts receivable/payable files.

To ensure that you will have the latest backup if you ever need it, check your backup regularly to ensure that it is functioning correctly.

Firewalls

One of the first lines of defense in a cyber-attack is a firewall.

In addition to the standard external firewall, many companies are starting to install internal firewalls to provide additional protection.

It’s also important that employees working from home install a firewall on their home network as well.

Consider providing firewall software and support for home networks to ensure compliance.

Cyber Insurance Plan

Finally, and considering all the risks, every small business needs to make sure there’s some type of cyber insurance in place.

Many of the agreements with the cloud-based providers that are hosting data put the liability back on their customers, especially if any breach was caused by lack of training, software, or due diligence on the customer side.

Today it’s critical for small businesses to adopt strategies for fighting cyberthreats.

More than half of all small businesses suffered a breach within the last year alone.

Security is a moving target.

The cyber criminals get more advanced every day.

In order to protect your data as much as possible, it’s essential that each and every employee make cyber security a top priority.

And most importantly, that you stay on top of the latest trends for attacks and newest prevention technology. Your business depends on it.

3 Important Business Software Recommendations Owners Should Consider

Each year, thousands of companies both big and small are victims of phishing, malware, hacking, and other types of cyberattacks.

Small to medium sized organizations are generally more vulnerable than large ones because they tend to have fewer resources to devote to security or just don’t have the knowledge to protect themselves.

The truth is that Sixty-seven percent of organizations suffered some form of a cyberattack in 2019 – whether it be a virus, ransomware, phishing, or some other form of cyber attack.

You can safeguard your firm against losses caused by cyberattacks by simply implementing a few key softwares on top of your Network Monitoring systems that can be found here.

Here are 3 Important Business Software Recommendations Owners Should Consider Implementing Now:

Intrusion Detection Systems

An intrusion detection system (IDS) monitors network and system traffic for any suspicious activity.

Once any potential threats have been identified, intrusion detection software will send notifications to alert the systems admin team that there is a threat.

As your organization grows, you will have more and more devices jumping in and out of the network and you will need a way to track these devices at all times.

Intrusion detection systems very advanced these days and a great one will proactively analyze and identify patterns that are indicative of a cyber attack, often times before the cyber attack fully infiltrates the system, preventing a lot of potential damage from being done.

There are two types of Intrusion Detection Systems to know about so you can decide on the one that is a better fit for your organization.

Network-Based Intrusion Detection Systems – NIDS

A NIDS requires a packet sniffer which gathers network traffic information.

Most NIDS’s include a rule-based engine that you can customize with your own rules.

There are many different NIDS’s so you will want to look for one with advances options like a user community rule module that allows you to imports community produced rules directly.

This saves you time and gives you some already tried and true rules from the community.

NIDS rules also work as selective data capture.

This makes data analysis easier because it only shows data that fall under the specified rules – it keeps the system from being overwhelmed with information that is hard to sort through.

NIDS programs must e installed on an actual piece of equipment and the higher end enterprise solutions typicall come with some sort of network kit.

An NIDS also requires a sensor module for picking up traffic.

Host-Based Intrusion Detection Systems – HIDS

Unlike NIDS that examines traffic, a host-base intrusion system examines the events on a computer connected to your network.

It does this by looking into admin file data such as log files.

HIDS programs back up your configuration files which gives you the ability to restore previous files and setting should you be infected with ransomware, a virus, or other cyber attack.

For the best results, it is best to install HIDS on every piece of equipment connected to your network.

You will then that a distributed HIDS system with a centralized control module so that you can view each host from one location, or dashboard.

Antivirus and Malware Protection

Cyber attacks re one of the most serious threats that business have to face in this modern day and age.

Around 50% of small to medium sized organizations suffer losses resulted from malware infections, and this is in the US alone.

Even with the alarming high number of cyber attacks being reported each year, still few companies pay attention to their cyber security.

Many business owners think that the free built-in Internet Security software is enough to protect their data but with how advanced and sophisticated hackers are getting, it just won’t cut it.

Here’s why you need a more reliable antivirus and malware protection software for you business.

Ransomware – Ransomware is perhaps the most prevalent type of cyber attack and it is one of the hardest to detect. In a nutshell it freezes access to files stored on a hard drive and can even travel to connected networks, bringing an entire organization to its knees. To get control back you either have to pay the ransomware or hope that you have sufficient backups of your files to restore your entire network. Yikes!
Protect Sensitive Data – Spyware is one way that hackers get access to your personal and financial data as well as data about your customers, e-mail addresses, phone numbers, e-mails and so much more. Talk about an invasion of privacy! This not only puts you, but your customers at risk. Furthermore, Spyware is extremely difficult to detect, prevent and remove without the right antivirus in place.
E-mail Protection – A good antivirus and malware protection software will not only detect intruders, but will scan incoming emails, letters and attachment and earn you if there is anything suspicious or potentially threatening. These malicious viruses are often disguised as normal looking images, attachments, text files, and links. One accidental click and your computer with tons of confidential information is infected.
Online Security – If you run a portion of your business online, such as online payments, storing sensitive information online, etc, antivirus even helps protect that. Timely detection and blocking of phishing and fraudulent sites are ones of the important components of a complex online security pack.
Management Console – Many Anti-viruses have a console so that you can manage multiple users and devices in one place. It also alerts you when updates are needed so that you can be sure you are always up-to-date and protected.

Antivirus and Malware protection software also offer other benefits such as password managers, file shredders, firewall, ad blocker, USB scanning, anti-spam filters, search adviser, and even built-in VPN service.

After reading all of the reasons listed above, will you choose to spend several dollars on a good antivirus or lose millions of dollars because of your carelessness one day? I’d say the answer is more than clear!

Firewalls

There are two types of firewalls: Hardware firewalls and software firewalls.

Hardware firewalls allow you to protect your entire network from the outside world with a single physical device. This device is installed between your computer network and the internet.

A hardware firewall monitors packets of data as they are transmitted. The firewall then blocks or transfers the data, according to predefined rules.

Regardless of the type of firewall that you choose, both aim to accomplish the same thing: firewalls provide protection against outside cyber attackers by shielding your computer or network from malicious or unnecessary network traffic.

Firewalls can also prevent malicious software from accessing a computer or network via the internet.

They can be configured to block data from certain locations such as computer network addresses, applications, or ports while allowing relevant and necessary data through.