New Business Formation

Let us help you choose the right business structure for your needs and avoid the common pitfalls that many new small business owners make.

Formation charge is $150 for LLC or $175 for S corp. State charge needs to be paid by credit card.

Information needed for the formation:

Name of the LLC (Any name.. please provide few choices since sometimes they are taken).
Name, SSN, date of birth, address, phone numbers, email address & % of partnership for all partners.
Kind of services performed by LLC.
Are you planning to pay wages? if yes when
Will you be collecting sales tax? if yes when

C-Corporation :
A C-Corporation is the most common type of business entity. It offers limited liability protection to its shareholders, meaning that they are not personally liable for the debts and liabilities of the corporation. This type of entity also has the ability to raise capital through the sale of stock. However, C-Corporations are subject to double taxation, meaning that the corporation itself is taxed on its income, and then the shareholders are also taxed on the dividends they receive. This can make C-Corporations less attractive to small businesses.
S-Corporation :
An S-Corporation is a type of business entity that offers limited liability protection to its shareholders. Like a C-Corporation, an S-Corporation is also taxed on its income. However, the shareholders of an S-Corporation are only taxed once, on the dividends they receive. This can make S-Corporations more attractive to small businesses.
LLC :
A Limited Liability Company (LLC) is a type of business entity that offers limited liability protection to its members. LLCs can be either for-profit or nonprofit organizations. Unlike a corporation, an LLC is not taxed on its income. Instead, the members of the LLC are taxed on their share of the profits and losses of the LLC. This can make LLCs more attractive to small businesses.

Single Member LLC :
Part of individual taxes. The owner pays Federal, State plus 15% Self Employment Tax.
Multi Member LLC :
Separate business tax return needs to be filed. Each partner get K1's from the company. Let's say 4 partners - 25% each.
Active partners pay federal , state plus 15% self employment tax (Social Security & Medicare taxes) however inactive partners only pays Federal and State taxes. They do not pay self employment.
S Corporation :
Separate business tax return needs to be filed. Each partner get K1's from the company . On full profit all shareholders only pay federal and state taxes however the entity must run payroll.
C Corporation- Double taxation. :
Shareholders are owners however the company file its own taxes and pay its own taxes. As long as shareholders keeps the profit in the company there is no individual tax.

However the day shareholders take the profit, the distribution is taxes as capital gains or dividend income.