Has it always been your dream to own your own business? You can hardly be blamed. At a foundational level, entrepreneurship is central to the American dream, and venturing out on your own to earn a living can be an especially fulfilling prospect. In most cases, when someone starts their own business, it is the result of many years in a particular industry. The idea is then to utilize that experience to serve an underrepresented area of the market. On top of designing a thorough and comprehensive business plan, however, comes the need to complete a staggering volume of forms and documents. One way to ease that burden is to work with a corporation processing service.
In the past, completing documentation by hand was an unavoidable nuisance. Whether it was your taxes, insurance forms, or other registration and permit matters, at times you simply had to carve out portions of your day to navigate these logistical issues. This was especially true for business owners, who face especially daunting seas of paperwork and bureaucratic headaches.
With the advent of the internet, however, we have seen a great number of processes become streamlined. In fact, cumbersome paperwork matters that used to take hours have been reduced to tasks that can be completed in a matter of minutes. At the Corporation Center, we employ this principle to help business owners complete the documents they need in an efficient manner, so that they can get back to focusing on growing their organizations.
Are You Interested in Starting an LLC or LLP?
If you are thinking about starting your own business, chances are you are no stranger to planning. In applying that quality to your business, you want to make sure that all possible scenarios are accounted for. The fact is, however, it is hard to predict the future, but by making some simple projections, you may be able obtain an accurate picture of what will happen with your business in the short- and long-term.
Many businesses, as they grow and expand, opt to form a limited liability company, or an LLC for short. In an LLC, your business becomes its own legal entity, which for tax purposes is treated as a “pass-through”, meaning it is not subject to onerous business taxation practices. In an LLC, as you may have already deduced, there is also the concept of limited liability, which means that you and other members can personally shield yourself against lawsuits and incurred debts. When you form an LLC, your state will likely require you to adhere to some stringent guidelines, so it is worth performing due diligence on whether or not this model is appropriate for you.
An LLP, or limited liability partnership, is similar to an LLC in many ways. It allows for members–or in this case, partners–to protect themselves against liability, though not to quite the same extent as an LLC. LLPs are not available in all states and are typically utilized by professional service providers, such as doctors, dentists, lawyers, architects, and accountants.
Deciding Whether an S-Corp or C-Corp is Right for You
Setting up your business as a corporation is not a decision to be arrived at lightly. As it will fundamentally alter the structure and organization of your business, establishing a corporation may not be right for everyone. If you have done your research, though, and have opted to go the route of forming a corporation, you will want to determine whether an S-Corp or C-Corp makes sense for your business.
The main factor that separates S- and C-corps lies in how they are taxed. A C-Corp is what is considered “double-taxed,” in that your business pays taxes on its income, and you also pay taxes on the income you make as an owner. In an S-Corp, you are “single-taxed,” meaning that you report your business revenue as personal, claimable income.
Tax matters are inherently complicated. Before deciding on establishing an S-Corp or a C-Corp, it is prudent to consult with an experienced tax professional and, potentially, an attorney. This way you can make an informed decision that better positions your business to thrive.
Save Time and Money with Our Corporation Processing Service
So, now that you know some of the in’s and out’s about corporation and company documentation, why should you work with us? The main thing to consider is time saved. Sourcing and completing legal documents can be a time-consuming affair, not to mention the effort needed to package them and mail them to the appropriate government entity. Also, when working with the Corporation Center, our online forms make it easy for you to input all of your relevant data, ensuring that errors and mistakes do not occur which could delay processing. We also utilize a safe and secure SSL-encrypted web portal, so you can rest easy knowing that the private information of you and your business is transmitted in a confidential manner. Contact us today to learn more.