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Business Formation
WHAT KIND OF BUSINESS WE HELP CREATE
Success lies in the approach you choose to take. The formation process of a new business entity comes with significant responsibility, and state and local regulations must be addressed for the business to operate and protect new or current investments from substantial risks. Our goal is to help your business grow by establishing credibility and protecting essential assets early on.
Our tax accountants will help you succeed by getting your new company off to a strong start. We will provide professional guidance for all aspects of your new business, including choosing a business structure, determining your capital needs, cash flow management, and much more. With our full suite of business startup help and accounting services, we will enable your business to build a solid financial platform.
What we'll do:
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Review your business plan to clarify your marketing, management, and financial plans.
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Determine your start-up capital needs.
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Evaluate and quantify your borrowing power so you know how much money you can get your hands on if needed.
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Select a business structure that best fits your needs by evaluating tax advantages, legal exposure, ease of operation and portability should you need to relocate.
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Select the right accounting software by evaluating your budget, needs and hardware.
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Prepare a Cash Flow Budget so you know exactly how much money you need to keep the business alive each month for the first few years. Unplanned cash requirements are always emotionally painful.
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Establish billing and collection procedures to maximize your cash flow.
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Establish procedures to monitor and control costs.
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Setup a home office so you can maximize your tax deductions.
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Prepare and file your application for your Federal Employer Identification Number and State IDs.
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Provide payroll and payroll tax filing when you bring on your first employee.
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Comply with employment laws so you don't get hit with fines and unhappy employees.
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Identify your business insurance needs.
Let us assist you in starting your new business venture. Contact us today to schedule your initial consultation with our tax expert.
SOLE PROPRIETORSHIP
This is the simplest type of business to setup because it requires absolutely nothing! It's a one-person, unincorporated business, and there is no differentiation between the owner and the business. All of your earnings, receivables, payables and debts are your responsibility. It's easy to start and maintain a sole proprietorship, but the downside comes when your profits are taxed on a Schedule C at a federal self-employment tax rate of 15.3% (known as self-employment tax) before you pay a cent of federal income taxes.
PARTNERSHIP
Like a sole proprietorship, a partnership can be incredibly easy to setup and maintain, though depending upon the type of partnership, could also be incredibly difficult and complex. Anytime you have multiple owners of a business, you have a partnership, whether it be a limited partnership or a limited liability partnership. The profits from a partnership are generally also subjected to 15.3% federal self-employment tax on top of income taxes.
C-CORPORATION
A C-Corporation completely separates the business from its owner(s). Stock is issued to the shareholder(s) of the company, and said stock can be bought or sold at any given time. Profits are taxed at the federal corporate level at a maximum tax rate of 21%, and the individual only pays personal income tax on the money physically paid from the company.
S-CORPORATION
An S-Corporation also separates the business from its owner(s). Though S-Corporation owners also hold stock in their companies, taxation is completely different. The owners of the S-Corporations don't pay personal income taxes on the money drawn from the company, but those monies drawn from the business aren't deductible. The bottom line of an S-Corporation is taxed federally at personal income tax rates and is paid by the individual owner(s). The majority of businesses that have taxable income of at least $40,000 on an annual basis should at least consider forming an S-Corporation. The IRS estimates that there are over twice the number of S-Corporations as C-Corporations in existence.
LLC
Limited Liability Companies, or LLCs are setup mostly for legal protection but can be incredibly useful for a plethora of reasons. The LLC is the most flexible device for businesses in American taxation. An LLC can choose to be taxed as a sole proprietorship (if there is only one owner), a partnership (if there are multiple owners), a C-Corporation or an S-Corporation. Regardless of how the LLC is taxed, the entity provides legal protection for the business owner(s) and effectively separates the individual from his or her business.
Special Pricing
At FLAG Services we firmly believe that starting a business shouldn't be a costly venture, our fees are where affordable meets quality!
Each state charges a different fee for business formation, and each has a different annual fee for maintaining your corporation or LLC.
The type of business entity you select can impact everything from how to establish owner compensation to how much you’ll pay in taxes. We simplify the business incorporation process for new business owners and lead you towards the most appropriate structure for your business.
Taxes play such a pivotal role in the success of most small businesses, but too often they’re overlooked. Before you even start a business it’s vital that you sit down with a trusted and experienced tax accountant to understand how best to run your business.