There are a number of advantages to forming a company. Of course the main reason is for personal asset protection. When you operate as a sole-proprietorship, you are entirely and personally responsible for the actions of the company. Incorporating allows the business owner to separate and protect their personal assets in case of a lawsuit or claims against a business entity. Another reason to incorporate is for perpetual existence. A sole proprietor or partnership usually ends on the death of the owner or owners. Forming a corporation ensures that your company’s legacy can be preserved, as well as continue to provide employment and services for clients should any changes in ownership take place.
You may want to consider forming a corporation or an Limited Liability Company. In doing so, it is extremely important to understand legal and tax difference between those entities. To make matters more confusing, there are two types of corporation that the owner might consider: C Corp and S Corp. Interesting to note that Limited Liability Company (LLC) does not have a specific tax structure, so the owner of an LLC must choose one. If no election is made – IRS by default will treat your LLC as a sole proprietor or a partnership, disallowing many tax advantages. Each business type has its advantages and disadvantages. We will help you through the pros and cons and analyze which is best for your situation and help you file the correct federal and state paperwork. Contact us for details.
The right structure whether it be an LLC, corporation, partnership, or sole proprietorship, depends on a few things like, who will own your business and what its activities will be. We will look at your investment needs, discuss forecasted income, and review the potential risks and liabilities of your business. We also prepare you for the expenses involved in establishing and maintaining the various business structures to help you plan for the future.
Choosing a registered agent is a required step when incorporating your business. A registered agent’s primary role is to send and receive formal correspondence between your business and government agencies. Our Registered Agent Service is designed for organizations of all types and sizes. When you select us as your registered agent, we will receive important legal documents on your behalf, enhancing your privacy and giving you more time to run your company. Appointing us as your Registered Agent will streamline and expedite all state filings, improving your business’ overall efficiency. Contact us for details.