Starting your own business can be an exciting adventure, but there are so many questions at the outset: what should I name my company? How should I approach business incorporation? Who can best help me to make decisions that will move my business forward?
A corporate structure should be chosen only after carefully weighing the options. Although you are free to change your corporate structure at any time, it is financially important to begin this venture properly.
Proper Entity Selection
Proper Entity Selection at the time of business start-up, deciding when a change in your entity designation may be appropriate, or completing your entity responsibilities are all part of Total Business Care's Entity Management Services.
Basic Forms: Organization For New Businesses
General Corporation: Also known as C Corporation. A shareholder’s liability is limited to the amount invested.
Sub-chapter S Corporation: This option combines the tax advantages of a partnership while limiting personal liability in the manner of larger corporate structures. There are restrictions, such as a limit of 75 shareholders, who must also be citizens or permanent residents of the U.S.
Limited Liability Company: Though this entity is not a corporation, this structure also limits the liability of its owners without the ownership restrictions of an S corporation or the documentation requirements.
Other Forms: Organization That Do Not Require Incorporation Services
Partnership: In a partnership each general partner is responsible for all debts and liabilities of the business; not just his or her proportionate share.
Sole Proprietorship: A sole proprietor is an individual who owns and operates a business that is not a formal entity as a corporation or partnership. The profits or losses are reported on the individual’s tax return.