CELEBRATE NATIONAL SMALL BUSINESS MONTH - $100 Bonus
When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.
When a business becomes incorporated, it has completed the process of becoming a corporation, as recognized by state law. Incorporation provides the owners with many advantages, but the primary benefit is the business will be viewed as a separate entity from its owners.
Select The Business Entities/Structures
We'll group your documents and file them directly with your state
You'll receive your completed paperwork by mail.
Our experts determine your exact business license requirements and apply or fill out the applications on your behalf, regardless of complexity. We experts submit your applications online - wherever available - or send you "signature-ready" forms with precise instructions to sign, date, and drop in the mail
A sole proprietorship is easy to form and gives you complete control of your business. You're automatically considered to be a sole proprietorship if you do business activities but don't register as any other kind of business.
Sole proprietors are personally liable for the debts of their business. If the business is sued, your house, savings, and other personal assets are at risk.
A sole proprietor is responsible to report all business profits as personal income, and pay self-employment tax on those profits, to cover Social Security and Medicare.
There are no partners, shares, or membership interests in a sole proprietorship so it's generally difficult to attract investors without changing your business structure.
You Pay: one-time payment of $99.00 + state filing fee
A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" any profits or losses to its partners. Each partner includes his or her share of the partnership's income or loss on his or her tax return.
You Pay: one-time payment of $159.00
In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. A corporation can also take special deductions. For federal income tax purposes, a C corporation is recognized as a separate taxpaying entity. A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders.
The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. This creates a double tax. The corporation does not get a tax deduction when it distributes dividends to shareholders. Shareholders cannot deduct any loss of the corporation.
You Pay: one-time payment of $149.00 + state filing fee
priority rush service (7–10 business days) You Pay: $199.00 + state filing fee
S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level.
To qualify for S corporation status, the corporation must meet the following requirements:
You Pay: one-time payment of $99.00
A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, and you should check with your state if you are interested in starting a Limited Liability Company.
Owners of an LLC are called members. Most states do not restrict ownership, and so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner.
You Pay: one-time payment of $69.00 + state filing fee
Businesses must comply with federal, state, county, and local license and permit regulations.
In addition to registering with the Department of State, most professions must register with the Department of Business and Professional Regulation.
Do It Yourself Package
Everything you need is one download away.
You Pay: one-time payment of $99.00
Professional Help Package
Skip the paperwork. Let us do the work.
You Pay: payment starting at $399.00
States can be strict about enforcing business licenses compliance. Failure to acquire the proper licenses would mean that your business is out of compliance. This may result in fines, penalties, and even forced closure.