Do you have business ideas and are thinking about starting your own business? Economic indicators show this is an excellent time to start a new business. After market research has been done and a business name chosen, we help startups with their business formation by explaining the different entity choices available, along with the tax ramifications of each to help you make the right choice.
Every year thousands of new small businesses are launched. What we have found is that although most new business owners are adept at starting and running their businesses, they require assistance in many areas of finance, legal, and taxes. We have worked with many business models and types from sole proprietorships to large, well-funded start-ups.
There comes a point in time when new businesses are best served by seeking professional help in setting up the best tax structure for their company to legally save taxes. We have many years of experience working with startups in many different industries. We can advise you as to the best legal structure from a tax standpoint, and help with getting your accounting and books set up.
1. Small Business Setup
2. New Business Advisor Services
2.1. Choose your legal business structure
2.2. Create a business plan
2.3. Get a Federal Employer Identification Number (EIN) and make tax elections
2.4. Set up accounting and bookkeeping
2.5. Register for sales and use tax
2.6. Payroll processing
2.7. Prepare annual tax return and quarterly estimated taxes
3. Four common types of incorporation
3.1. Limited Liability Partnership (LLP)
3.2. Limited Liability Corporation (LLC)
3.3. C Corporation
3.4. S Corporation
4. New business applications
5. Start a new business in Boca Raton
Planning the type of legal structure you choose in the beginning will have a large impact on your finances and legal protection. We’ll help you evaluate the tax advantages and pros and cons of setting up as a Sole Proprietor, a Partnership, a Limited Liability Company (LLC), or a Corporation (C Corp or S Corp) and determine which of those will best meet your goals and minimize your taxes.
When the legal structure has been decided, we can help with your new business formation, including a corporation setup or LLC setup, or preparing partnership agreements, and with necessary business filings. You will also need to get the appropriate business licenses.
We’ll review your financial plan including startup cost, requirements to start, ideas for how to finance your business or get venture capital, and offer suggestions from an accounting or tax perspective.
We will register your business with the federal government and get a federal tax ID number for your new entity. You will need this to open a business bank account, get a credit card, file taxes, and much more. We will explain the pros and cons of making an S Corp election, which is the most common type of tax election for small businesses.
We believe that it serves new business owners to outsource certain functions to focus on their core competencies of operating and growing their businesses. You can outsource your accounting and bookkeeping to us, taking those duties off your hands and making tax time effortless.
If you choose to do them in house, we can help you set up your books using QuickBooks accounting software, and train you in how to use it. We’ll help create invoicing and bill paying systems either in QuickBooks or separately that you will be comfortable using.
If your business is required to collect sales tax, we will help you register your business account with the state. Whether you have an online business or a local brick and mortar location, filing your taxes on time is critical.
A new business may only have a handful of checks to sign to cover payroll, but the tricky part is taking out the correct amount of taxes. We can get you set up for running your own payroll but most new business owners find it easier to hand that over to us, and breathe a sigh of relief when they don’t have to process and file payroll taxes on their own, as mistakes can be very costly.
Part of our income tax preparation service includes preparing your business and personal returns, since the business return flows over into the personal, as well as filing the quarterly estimated tax returns, if they are needed.
Don’t wait until next year to start thinking about business taxes and tax returns. Make a tax planning appointment for strategies to lower your tax bill now, while you grow your business. We’ll help you determine your tax withholding.
General and limited partners are two types that could be part of a partnership. The differences are that general partners have management authority in the business, as well as personal liability for any financial obligations. A limited partner is one who is an investor but has no authority and carries no liability, except to cover the amount of their investment. An LLP is many times created with a C or S corporation, with the corporation setup to be the general partner.
To form an LLC, legal documents must be created, including an organizational agreement and articles of organization that must be filed with the Secretary of State. The LLC may be taxed as a partnership, but the members or owners of an LLC are not liable personally for the financial obligations of the company. Members must report their income from the LLC along with any deductions on their personal tax returns.
C corporations have owners or shareholders who carry no personal liability for the business financial obligations. Instead, the company is taxed, and any shareholders are taxed as well on dividends or cash distributions they receive.
S and C corporations are similar in many ways, but a business structured as a S corporation doesn’t pay taxes, but any shareholders must pay tax on income they receive from the business.
FRED (Federal Reserve Economic Data) has identified new businesses that have a high propensity of becoming a business with a payroll by looking at new EIN applications or tax ID number, and identifying various factors. High propensity business applications include those that indicate they will be hiring, give a planned wages starting date, apply for a corporate entity, or have one of several industry codes.
Business formation statistics have increased dramatically during the last year during the Covid pandemic. Many new business types are being started, as gaps in the marketplace identified, along with a huge labor market to choose from.
Join the ranks of Americans starting new businesses and call our office in Boca Raton today. Start your new business with help from our CPA. No attorney is necessary.