Business Entity Setup
We Help you Secure & Protect your Dream Business
The first step in establishing your business is to pick the correct business entity for you. Depending on your type of business and industry, our brokers personalize better protection and tax saving opportunities. Plus, look forward to legally registering your business name! Check out the three (3) most popular business entities below. As a corporate agent of service in California and licensed tax professionals, our staff will ensure a solid foundation for your business.
Types of Entities
DBA
Businesses with only one (1) owner or sole-proprietors can register the name of their business in the county they will be conducting business. This name selection is published in a local newspaper and once approved; filled in the hall of records in your county.
LLC
Sole owner, Partners or multiple business owners benefit from the protection of a limited liability company. A sole business owner, also known as; single-member LLC, benefits from the protection and simplicity of taxes with a Limited Liability Company (LLC). This business entity structure creates a separation from personal and business matters. This is your recommended option; if you are a business owner with assets and personal property (real estate, saving accounts, other items of value). As a single member LLC, you enjoy “pass-through taxation” with the IRS. LLCs are also available for partnerships or multiple owners.
INC
Businesses with high revenue or in high-risk industries are recommended to choose this option as a business entity structure. This option benefits the business by creating clear separation of individual’s personal property versus the corporation’s assets. There are two types of corporate tax elections: C-Corp or S-Corp. S-Corp creates a pass-through entity. Businesses with an S-Corp avoid double taxation on the corporate income. C-Corps are double taxed; on a corporate level and the business owner’s profits on their individual tax return.
FAQs for Business Entity Setup & Taxes
Yes; however, to better protect yourself from identity fraud it is highly recommended to get a tax identification number TIN for yourself as a sole owner. This same number can be used for any business you start up as a sole-proprietor.
If you have a Corporation or LLC registered with the State Secretary of California you are required to pay a minimum $800 franchise. This is due in the first quarter of your accounting tax period. You must pay this fee even if you declared a loss on your tax return.
You can register a new Corporation or LLC in the last 15 days of the year and not pay the franchise $800 minimum tax as long as you did not conduct business in those last 15 days. This is a great way to get a head start on the new year. You can set setup a new business bank accounts, and other necessary system required to manage your business.
Income taxes are determined by a number of different factors. Tax planning will assist small business owners by estimating quarterly taxes, setting up budgets, and identifying business expenses that can be deducted. Call us for more information.
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