4800 NW 167th St, Miami, Florida 33014
|
Office: (305) 626-4646 Efax: (866) 323-7442 Email: taxpro@taxpro 305 .com
TaxPro 305

OFF TAX SEASON HOURS WILL BE BY APPOINTMENT ONLY.
SEE CONTACT INFO BELOW

Explanation

What is Incorporation?

 

When you incorporate a business, you evolve from a sole proprietorship (or general partnership) into a company that’s formally recognized by its state of incorporation. In other words, it becomes a legal business entity of its own — separate from the individuals who founded it. The new company structure often falls into two categories: a limited liability company (LLC), or a corporation (corp). In this article, we’ll be focusing on LLCs, as well as two popular types of corporations — an S corp and a C corp.

No matter how you choose to incorporate, there are certain benefits you can expect — like being shielded from personal liability, as well as increased credibility with customers. There are also additional advantages and disadvantages associated with each incorporation type.


Limited Liability Company Benefits

LLCs protect business owners, also referred to as members, from being held personally liable for the actions of the LLC. This limited liability typically protects you from the personal risks involved if a lawsuit were to arise concerning your business — safeguarding your personal assets. A couple additional benefits of an LLC include: 



  • Flexibility in management. Corporations have a set management structure where directors oversee the major business decisions and officers are responsible for the day-to-day running of the business. LLCs do not have the same formal management structure.
  • Pass-through taxation. With pass-through taxation, taxes are not paid at the business level. If you choose to become an LLC, income/loss would be reported on your personal tax return. If any taxes were due, they would be paid on the individual level.

LLC vs. Corporation: What’s the real story?

All incorporation options are not created equal. When deciding between a corp vs. LLC, the best choice for your business not only helps you start off on the right foot, but also acts as a foundation for your company’s ongoing success and growth. As you consider which business type is right for you, thinking both about your short and long-term goals for your company is advisable. 

LLC vs. Corporation: Other key differences

 

  • Business losses. The "S corporation advantage," allows business owners to use business losses — like those incurred during the startup phase — on their personal tax returns as deductions.
  • Self-employment taxes. An S corp can provide savings on self-employment or Social Security/Medicare taxes, and it allows owners to offset non-business income with losses from the business — unlike a C corp which is a completely separate tax entity.
  • Ownership restrictions. Neither the LLC nor the C corporation have restrictions on the number of owners the business can have or who can be an owner. S corporations, however, have a number of restrictions. S corporations can have no more than 100 owners, and owners cannot be “non-resident aliens.” Additionally, S corporations can not be owned by C corporations, LLCs, other S corporations or non-qualified trusts.
  • Dividends and venture capitalists. C corps are often the preferred incorporation choice of developing businesses. Owners can hold different types of stock interests (including preferred and common stock), which allow for different levels of dividends. This is one reason why venture capitalists choose C corporations when they offer funding to a business. Investors are attracted to the prospect of dividends (often higher dividends) if the corporation makes a profit.
  • Earnings. C corps can retain and accumulate earnings (within reasonable limits) from year to year.

Fees

The cost is $300 to open new company. With that we will provide you with:


  • Articles of incorporation from the state of Florida


  • Your EIN from the IRS. 


  • With those two documents you can now open a business bank account. 

What we would need from you to open Company

 

  • NAME OF COMPANY (PLEASE PROVIDE US WITH 3 NAMES IN THE ORDER OF PREFERENCE BEING THAT NAME YOU SELECT MAY ALREADY BE IN USE.)

 

  • ADDRESS FOR COMPANY (CANNOT BE A P.O. BOX)

 

  • NAME(S) OF COMPANY MEMBERS (PRESIDENT, VICE PRESIDENT, MANGER, MEMBER MANAGER, ETC…)

 

  • TYPE OF COMPANY (C-CORP, LIMITED LIABILITY COMPANY, S-CORP, PARTNERSHIP, ETC…)