Download a Corporation is the easy way to getting your business started on the right path for success. To make your business official and to have people trust in your brand and in your business.
It’s ideal to go through the process of making your business official. Yes, of course the easy part is in the formation, but it takes work to keep up with all the details that are included in the process. Like ensuring that you follow the procedure of filing taxes on your earning quarterly, yearly and keeping track of records as well as updating your corporate status yearly. It takes work to remember to do all this process yearly. From renewing your corporate status yearly to hiring a tax advisor to help you with filing your taxes. So, yes, there is help out there to help you through the process.
Before we begin, let’s talk about some keywords:
There are four general types of corporation structures in the United States: a Sole Proprietorship, a Limited Liability Company (LLC), an S-Corporation (S-Corp), and a C-Corporation (C-Corp).
As the name states, it is what it is, a Sole Proprietorship, is you, it has anything and everything to do with you. Your name is on this kind of formation, and you are responsible for all the risk associated in this. I don’t mean to alarm you! As it is not intended to do so, but my objective is to give you the understanding, this way you are aware what you are getting yourself into.
With this entity a Sole Proprietorship, there is no separation between you and the corporation. You are the corporation. Although, this process is easier to complete in the formation process. Since your name is on everything, it gives you complete control of your business. You’re automatically considered to be the Sole owner and the Sole Proprietor if you do any business activities, but are registered as any other kind of business.
In a Sole Proprietorship, you are not produced as a separate business entity. What this means, is your business assets and liabilities are not separate from your personal assets and liabilities. As you, will be held liable for the debts and obligations that the business incurs. These kinds of liability do not exclude you from getting the benefits of a business, such as a trade name. You can still get a trade name with a Sole Proprietorship.
If you are just getting your business started and want to learn the rope. A Sole Proprietorship is a choice for low-risk businesses dealing; if you are just trying to understand the way things go.
A Partnership’s business structure is associated to a business partner. It is as the name states: a Partnership, and this Partnership is one of the simplest structure to form other than a Sole Proprietorship. As the Partnership structure includes two or more people to own the business together. There are two types of partnerships: limited partnerships (LP) and limited liability partnerships (LLP).
Limited Partnerships has only one partner that has “unlimited liability,” and all other partners have “Limited Liability.” The keyword is One Partner has UNLIMITED Liability, meanwhile the other partner have LIMITED Liability that is specified amongst themselves.
What this means is, the partners, with limited liability titles, only have a limited amount of control over the business, and this information is documented in a partnership agreement. In the Limited Liability Partnership all profits are passed through to personal tax returns, and the general partner — the partner without limited liability — must also pay self-employment taxes.
The objective of the LLP is it gives a form of protection for each partner from debts against the partnership, so they won’t be responsible for the actions of other partners.
The idea behind an LLC is, it allows you the benefits of a corporation, and partnership business structure. The LLC protect you from personal liability, such as your personal assets. For example, your house, your vehicle, and your saving account is protected from risk in case you are sued with a lawsuit, or your LLC is faced with bankruptcy. In this case, it’s ideal to protect your asset.
Relating to larger corporate structure such as C-Corp or S-Corp, if you plan on expanding your business to Shareholders or Stockholders on the stock market (investors), the corporate statuses would be idea. However, your tax bracket is more related to these structures and the structure is set up differently.
Since these structures are intended for larger adaption in the world of business they are subjected to rules related to the tax bracket, and it’s ideal to consult with the IRS to see what the requirements are, which it would be the intent of your tax advisor after the entity structure has been formed.
You’ll still have to follow the strict filing and operational processes of a C – Corp and S – Corp.
The reason why these corporations are formed is solely intended for the purpose of keeping asset management separate, and it creates a separation between these people and/or its entities. That if a shareholder leaves the company or, sells his or her shares, the S or C corp can continue to do business and is not disturbed by this entity.
There is only one reason why people file a profit corporate structure, and that benefit is a for-profit. Benefit corporations are different from C corps in purpose, accountability, and transparency, but aren’t different in how they’re taxed.
Benefit corporations are driven by both mission and profit. Shareholders hold the company accountable to produce some sort of public benefit in addition to a financial profit. Some states require benefit corporations to submit annual benefit reports that demonstrate their contribution to the public good.
There are several third-party benefit corporation certification services, but none are required for a company to be legally considered one in a state where the legal status is available.
The very first thing to know is what Corporation Structure do you want. Once you know this. Then you begin the process of Download a Corporation, which we would then proceed with setting up for you. The best part about this is we can handle any questions you may have during the process and someone is always here to help you.
