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Frequently Asked Questions
How do I choose which form of business is right for me?
Do I have to have a Fictitious Name Statement?
Can you help me fill out and then file my company papers?
What is the turn around time for filing my papers?
Can you help me with the nearly endless list of things to do to set up my business?
Can you design and then maintain my website?
What business set up packages do you offer?
Can you coach me throughout my business start up process?
Answers
How do I choose which form of business is right for me?
There are many forms to choose from so, a visit with your Accountant would be the best way to determine what is right for your business. Below is a chart describing the various types of business forms.
Sole Proprietorship |
| Ownership |
Owned and operated by one person |
| Your level of control |
Give yourself a name, get a business license and start operating |
| Personal liability |
Owner has unlimited liability - personal assets are at risk in event of failure or lawsuit |
| Tax forms (minimum) |
Filed with personal income tax return - Form 1040, Schedule C, Schedule SE (Self-employment tax), Form 4562 |
Upside: You have sole responsibility for the business.
Downside: You have sole responsibility for the business. |
General Partnership |
| Ownership |
Owned and operated by two or more people |
| Your level of control |
Evenly split among the partners |
| Organizational paperwork |
Easy to organize, but you need legal contracts drawn up for the partners |
| Personal liability |
Owners have unlimited liability - personal assets are at risk in event of failure or lawsuit |
| Tax forms (minimum) |
In addition to personal income tax forms (1040, Schedule SE, 4562), you must file a Form 1065 (Partnership Return of Income) |
Upside: Other parties share in the investment and operation.
Downside: Partners could end up disagreeing, creating legal problems. |
Limited Partnership |
| Ownership |
Owned and operated by two or more people |
| Your level of control |
Amount of investment and responsibilities of the individual partners are determined by contractual delineation |
| Organizational paperwork |
Give yourself a name, get a business license and start operating |
| Personal liability |
Owners have unlimited liability unless stipulated by contracts between the partners |
| Tax forms (minimum) |
In addition to personal income tax forms (1040, Schedule SE, 4562), you must file a Form 1065 (Partnership Return of Income) |
Upside: Other parties share in the investment and operation.
Downside: Partners could end up disagreeing, creating legal problems. |
Limited Liability Corporation |
| Ownership |
Owned and operated by members |
| Your level of control |
Total |
| Organizational paperwork |
For most states, you must file articles of incorporation |
| Personal liability |
Limited liability - owner's personal assets are not at risk |
| Tax forms (minimum) |
Depending upon the structure, taxed as a partnership or corporation |
Upside: You have the control of a sole proprietorship with the protections of corporation.
Downside: You have to deal with the paperwork of a corporation. |
Corporation |
| Ownership |
Owned by shareholders |
| Your level of control |
Checked by your board of directors |
| Organizational paperwork |
Must file articles of corporation and is continually monitored by local, state and federal agencies |
| Personal liability |
Shareholders have limited liability for the corporation's debts |
| Tax forms (minimum) |
Form 1120 Corporation Income Tax Return, Form 8109-B Deposit Coupon, Form 4625 Depreciation |
Upside: You can raise money by issuing stock.
Downside: Higher overall taxes because dividends to shareholders are not deductible from business income. |
S Corporation |
| Ownership |
Owned by shareholders |
| Your level of control |
Checked by your board of directors |
| Organizational paperwork |
Must file articles of corporation and is continually monitored by local, state and federal agencies |
| Personal liability |
Shareholders have limited liability for the corporation's debts |
| Tax forms (minimum) |
Form 1120S Corporation Income Tax Return, Form 4625 Depreciation, Form 1040 Individual Income Tax Return, Schedule E, Schedule SE |
Upside: Raise money by issuing stock and treat earnings as distributions passing directly through to shareholders and their personal tax returns.
Downside: Any shareholders working for the company must pay themselves wages, meeting the standards of reasonable compensation. |
Do I have to have a Fictitious Name Statement?
If you plan on doing business in a name other than your own, you will need to file a "fictitious business name" with the county Clerk-Recorder Office in the County in which your business is located. This public notice will be published in a newspaper of general circulation.
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Can you help me fill out and then file my company papers?
Yes, we can help you fill out your business startup paperwork and also help you file them in a timely manner.
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What is the turn around time for filing my papers?
The turnaround time for filing depends upon the type of paperwork; however, we typically turn paperwork in to the appropriate agencies within two (2) business days. This will vary depending upon the type of paperwork, your cooperation, and other factors.
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Can you help me with the nearly endless list of things to do to set up my business?
Yes, we have a checklist of the tasks that need to be completed prior to 'opening' day. We will work with you to accomplish each task. If we work together through completion, your business will be up and running before you know it.
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Can you design and then maintain my website?
Yes, we have a variety of packages available.
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What business set up packages do you offer?
We have several to choose from. Check our offerings.
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Can you coach me throughout my business start up process?
Yes, we are a full service company and have business coaching available to help you from startup through continued growth.
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