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OUR BUSINESS ENTITY SELECTION and SETUP SERVICES
There’s a lot to tackle when you start your own business. There’s more to getting your company off the ground than offering a great product or service. Before you can even perform crucial tasks like opening a company bank account or applying for a tax identification number from the IRS, you’ll need to determine exactly what kind of business entity your company is. Every entrepreneur is familiar with terms like “LLC,” S-Corp,” and “nonprofit.” However, there are only a few of them who understand the financial implications that a business’ entity status can have on a company’s day-to-day function.
The type of business entity that you choose for your company can decide crucial debates like who will be responsible for its debts and profits. It’s important to make sure that if your business folds, it won’t take your personal finances with it. The type of business entity you select will also affect how you can raise money from investors and what kinds of loans your company can apply for. A business entity’s type can also affect the liability of its owners for things like legal ramifications. You don’t want to be personally liable if your company is found guilty of some kind of wrongdoing in a lawsuit.
In addition, the type of business entity you choose can determine which members of a company can exercise control over its functions and make decisions on its behalf. Your company’s business entity type can also have long-lasting effects on your taxes. For example, an S-Corp, or small corporation, can pass its income directly from the business to its shareholders to avoid pitfalls double-taxation penalties.
Once you select a business entity, you must then set it up. This involves several components, including:
- Applying for a Federal Tax Identification Number (FEIN).
- Completing the Articles of Organization and paying any fees required.
- Creating an operating agreement.
When you’re considering these kinds of long-term decisions for your business, it’s important to have professional advice. We can both help you determine which type of business entity you should register as and aid in setting up your company.
- Sole Proprietorship
- Corporation (includes S Corp)
- Limited Liability Company (LLC)