Using Dappr (FAQ)
What is Dappr and what services do you offer?
Dappr is a comprehensive business services platform designed to streamline and simplify various aspects of managing a business, particularly for LLCs (Limited Liability Companies). Our platform offers a wide range of services tailored to meet the needs of modern entrepreneurs and small business owners. Some of the key services provided by Dappr include:
LLC Formation: Dappr helps you establish your LLC quickly and efficiently, guiding you through the necessary steps and paperwork required for legal compliance.
Registered Agent Services: We offer Registered Agent Services, ensuring that your business remains compliant with state regulations by receiving and managing important legal documents on your behalf.
Business Checking Accounts: Dappr facilitates the setup of business checking accounts, providing you with a convenient way to manage your company's finances.
Payment Processing: Our platform integrates with leading payment processors, allowing you to accept payments from customers seamlessly and securely.
Invoicing: Dappr provides invoicing tools to help you create and send professional invoices to clients, track payments, and manage your cash flow effectively.
Point-of-Sale (POS) Systems: For businesses with physical storefronts or retail operations, Dappr offers Point-of-Sale systems to streamline transactions and manage sales data. (Currently only available as a private beta to selected customers).
Legal Compliance: We assist businesses in maintaining legal compliance by providing resources, guidance, and tools related to tax obligations, reporting requirements, and regulatory compliance.
Customer Support: Dappr is committed to providing excellent customer support, offering assistance and guidance to users throughout their business journey.
In summary, Dappr combines essential business services into a single platform, empowering entrepreneurs to focus on growing their businesses while we handle the operational and administrative aspects.
How does Dappr help with setting up an LLC?
Dappr streamlines the process of setting up an LLC by providing an easy-to-use platform that guides you through every step of the formation process. Here's how Dappr assists in establishing your LLC:
Business Name Registration: Dappr helps you search for and select a unique business name, ensuring it complies with state regulations and is available for use.
Filing of Formation Documents: We prepare and file the necessary documents required to legally establish your LLC. This includes the Articles of Organization, which are critical for outlining the structure and purpose of your business.
Obtaining an EIN: Dappr facilitates the application process for an Employer Identification Number (EIN) from the IRS, which is essential for tax purposes and setting up a business bank account.
Operating Agreement Creation: Our platform assists in drafting a customized Operating Agreement, which is vital for defining the management structure, laying out member duties, and ensuring smooth operation.
Compliance Checks: Dappr provides ongoing compliance support to ensure your LLC meets all state-required formalities, such as annual reporting and renewals.
Registered Agent Services: We offer Registered Agent Services to handle legal and government correspondence on your behalf, maintaining your privacy and ensuring you meet legal requirements.
By using Dappr, you benefit from a guided, transparent, and simplified process, making LLC setup accessible and manageable, allowing you to focus on growing your business.
What is an LLC Operating Agreement, and why is it important?
An LLC Operating Agreement is a legal document that outlines the management structure, operating procedures, and ownership details of a limited liability company (LLC). Here's why it's crucial:
Defines Ownership and Roles: The Operating Agreement clearly states the ownership percentages of each member and their respective roles and responsibilities within the company.
Establishes Management Structure: It outlines whether the LLC will be member-managed, where all members participate in decision-making, or manager-managed, where appointed managers handle operations.
Protects Limited Liability Status: Having a comprehensive Operating Agreement helps maintain the limited liability protection of LLC members, shielding personal assets from business liabilities.
Resolves Disputes: The agreement includes provisions for resolving conflicts among members, such as voting procedures, dispute resolution mechanisms, and buyout provisions.
Guides Decision-Making: It sets guidelines for decision-making processes, major business decisions, and procedures for adding or removing members.
Clarifies Profit Distribution: The Operating Agreement specifies how profits and losses will be allocated among members, ensuring transparency and fairness.
Enhances Credibility: Having a well-drafted Operating Agreement can enhance your business's credibility with investors, partners, and stakeholders.
Compliance Requirement: Many states require LLCs to have an Operating Agreement, and even if not legally mandated, it's considered best practice to have one in place to avoid potential disputes and legal issues.
An LLC Operating Agreement is a foundational document that not only governs the internal operations of your company but also protects your interests and ensures smooth functioning and compliance with legal requirements.
Is Dappr suitable for small businesses or freelancers?
Absolutely! Dappr is specifically designed to cater to the needs of both small businesses and freelancers. Here’s how Dappr can be beneficial for these groups:
Tailored Business Services: Dappr provides a range of services that are ideal for small businesses and freelancers, including invoicing, payment processing, and easy management of business finances. These tools are designed to simplify the often complex financial management landscape that small businesses face.
Scalability: Whether you're just starting out or planning to expand, Dappr’s features scale with your business. This means you can start with basic features and add more complex tools as your business grows without switching platforms.
Cost-Effectiveness: Dappr offers competitive pricing models that are favorable for small businesses and freelancers looking to maximize their budget. The ability to choose from different subscription plans allows you to pay only for what you need.
Ease of Use: The platform is user-friendly, making it easy for individuals who may not have extensive technical or accounting expertise to manage their business finances effectively. This is particularly advantageous for freelancers who often manage all aspects of their business.
Support and Resources: Dappr provides extensive support and resources tailored to the unique challenges faced by small businesses and freelancers, including access to customer service, detailed help articles, and community forums where you can connect with other business owners.
Dappr’s comprehensive set of tools, combined with its flexibility and support system, makes it an excellent choice for small businesses and freelancers looking to streamline their operations and focus on growing their business.
How do I choose between a Simple and Advanced management structure for my LLC?
After your LLC is formed successfully, you will continue onboarding with Dappr and be asked to select between a 'Simple' or 'Advanced' management structure. If you select 'Advanced', you will get access to several compliance features intended specifically for businesses with plans for significant growth, while 'Simple' is intended for freelancers or single-member LLCs without employees.
Choosing between a Simple and Advanced management structure for your LLC depends largely on the nature of your business, your management preferences, and your plans for future growth. Here’s how to decide which option might be best for you:
Simple Management Structure:
Best for Small or Solo Operations: If your business has few or no employees, or if you're operating as a freelancer, the simple structure minimizes complexity and administrative overhead.
Limited Decision-making Layers: This structure is ideal if you prefer direct control over all major decisions without the need for formal meetings or complex procedures.
Ease of Maintenance: With fewer formalities, the simple structure is easier to maintain, making it a good choice for business owners who prefer straightforward operations.
Potential Limitations and Downsides: Some institutions will require that your LLC conducts meetings and maintain very comprehensive business records, particularly lenders that offer loans and financing without personal guarantees. If you plan to become eligible for these types of solutions, the 'Simple' structure isn't the right choice for you.
Advanced Management Structure:
Designed for Growth: If you anticipate bringing on partners, investors, or multiple members, an advanced structure can accommodate more complex ownership arrangements and management hierarchies.
Formal Governance: This structure is suitable if your business requires formal management processes, including designated managers or directors who handle day-to-day operations separate from owners.
Enhanced Control Mechanisms: An advanced structure often includes detailed provisions for governance, such as voting rights, meetings, and protocols for decision-making, which can be crucial as businesses grow and add more stakeholders.
Factors to Consider:
Future Plans: Think about where you see your business in the next five years. If significant growth, investment, or expansion is in the plans, leaning towards an advanced structure might make transitions smoother.
Regulatory Requirements: Some industries might benefit from a more structured approach due to regulatory requirements or investor expectations.
Management Style: Consider your management style and how you plan to interact with other members of your company. More structured governance can sometimes help in maintaining order and clarity as more parties get involved.
What are the benefits of using Dappr’s Registered Agent Service?
Dappr’s Registered Agent Service offers several key benefits that can streamline your business operations and ensure compliance with legal requirements:
Compliance Assurance:
Dappr serves as your official Registered Agent, ensuring that your business stays compliant with state regulations regarding registered agent services.
Legal Document Handling:
We receive and handle legal documents and official notices on your behalf, including tax forms, lawsuits, and other critical communications.
Privacy and Security:
Our service helps maintain your privacy by using our address for public records, reducing the risk of unwanted solicitations or privacy breaches at your primary business address. IMPORTANT! The registered agent address provided by Dappr can NOT be used as a business address, and some states will still require a business address to be publicly available. A virtual office/mailing address will be required for complete privacy shielding.
Reliability and Timeliness:
With Dappr as your Registered Agent, you can trust that important documents will be received promptly and securely, reducing the risk of missing crucial deadlines or legal notifications.
Professional Representation:
Present a professional image to clients, partners, and regulatory agencies by listing a reputable Registered Agent like Dappr for legal correspondence.
Document Organization:
Centralize your legal documents and correspondence, making it easier to manage and access important paperwork related to your business.
Expert Support:
Access to expert support and guidance on compliance matters, ensuring that you understand and meet your legal obligations as a business entity.
Flexibility and Convenience:
Dappr’s online platform offers convenience and flexibility, allowing you to manage your Registered Agent services seamlessly from anywhere.
By choosing Dappr’s Registered Agent Service, you gain peace of mind knowing that your legal obligations are handled professionally, allowing you to focus on growing and managing your business effectively.
Can I use Dappr for my business if I am not based in the United States?
Dappr is designed to facilitate the formation of U.S. LLCs for founders worldwide, including those who do not reside in the United States. Non-U.S. residents can utilize Dappr's formation service, although they are subject to enhanced review processes and may face more complex formation procedures due to state and federal guidelines.
For individuals without a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), including U.S. residents, Dappr assists by manually filing an SS-4 form with the IRS to obtain an Employer Identification Number (EIN). This process can introduce delays, typically around four weeks but possibly extending to twelve weeks.
Non-U.S. residents must meet specific requirements:
They must not be residents of countries under U.S. sanctions.
They must possess a valid photo ID, such as a passport, driver's license, or national ID card.
They must provide a U.S. address for business and mailing purposes, which can be a virtual address.
Currently, due to U.S. sanctions, individuals from Cuba, Iran, North Korea, Syria, Russia, and the Ukrainian regions of Crimea, Luhansk, and Donetsk are unable to use Dappr’s services. Additionally, in light of the ongoing conflict due to Russia's invasion, Dappr cannot offer certain financial services to individuals with primary addresses in Ukraine, although other services like business formation, business records, and accounting remain available.
What payment methods does Dappr accept for its services?
Dappr is committed to providing a range of convenient payment options for its services. For initial business setup fees, Dappr only accepts payment via credit or debit cards. Once the business is established and the Dappr Checking account is set up, subsequent payments for services can also be made directly from the company's Dappr Checking account, enhancing ease and integration of financial management.
For owners or investors making capital contributions, Dappr accepts a broader array of payment methods. In addition to credit and debit cards, ACH bank transfers are available for domestic transactions. For international investors or owners without a U.S. home address, Dappr accommodates payments through international wire transfers using the SWIFT network, ensuring flexibility for global clients engaging with U.S. business operations.
What time zone does Dappr use?
Dappr generally displays dates and times in the app according to the user's local time zone to ensure clarity and convenience. However, there are a few exceptions where Universal Coordinated Time (UTC) is used, which may impact how certain information appears or how certain operations are timed.
Dappr Checking Account Statements: While the account transactions are displayed in the user's local time zone on the Checking page, the monthly statements themselves record transaction dates in UTC. This means that the time of a transaction may appear differently in your monthly statement compared to what you see in real-time on your account page.
Visa Cash Card Limits: The daily, weekly, and monthly spending limits on Dappr Visa Cash Cards reset at midnight UTC. For example, if you are in New York (UTC-4 during daylight saving time), your spending limits will reset at 8 PM local time instead of midnight.
Subscription Periods: All Dappr subscription periods operate according to UTC. This means that if a subscription is set to renew on a specific date, it will renew at midnight UTC of that date. For a subscriber in San Francisco (UTC-7 during daylight saving time), this renewal would technically occur at 5 PM the previous day.
Payment Receipt Timestamps: When processing sales through Dappr's payment features, all receipts are timestamped in UTC. For customers conducting business internationally, or for those located significantly east or west of the UTC line, this can mean receipt times might appear several hours ahead or behind the actual local transaction time.
Understanding these differences is crucial for managing financial activities accurately, especially for users across different time zones or for those managing transactions close to the time boundaries mentioned.
Can I use Dappr to manage multiple businesses under one account?
Yes, Dappr is designed to support entrepreneurs managing multiple businesses. You can easily switch between your businesses within the desktop app. To do so, simply click on the profile icon located in the upper right corner of the screen, then select ‘Switch business.’ From the dropdown menu, choose the business you wish to manage. If you’re looking to start a new business, you can begin the formation process directly from this menu by clicking ‘Start new business.’ This feature makes it convenient to oversee various ventures from a single Dappr account, streamlining your administrative tasks and allowing you to focus more on growth and less on management logistics.
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