Business Entity Registration

Forming a company is an important step for small business owners.

There are several business structures entrepreneurs could consider as they start their businesses. There are advantages and disadvantages associated with each business entity.

Registration of a business entity could be completed by the business owners; however, it is important to keep in mind that failure to fill out the forms correctly could lead to future problems. You, the business owner could register the business or my may elect to hire a CPA or Attorney to register the business on your behalf.

• Sole Proprietorship is a one-person business that is not registered with the state as a corporation or a limited liability company (LLC). A Sole proprietorship is the simplest business structure to maintain.
• Partnership is a business structure with more than one owner. There are two basic types of partnerships; general partnerships and limited partnerships. The partnership is the simplest and least expensive co-owned business structure to create and maintain.
• C Corporate is the most common corporate business entity. The corporation is a separate legal entity owned by the shareholder(s), as a result the shareholders cannot be held personally responsible for the debts of the corporation.
• S Corporation is a standard corporation that has elected a special tax status with the IRS. The formation requirements for an S corporation are the same as those of a C corporation.
• Limited Liability Company (LLC) is a business entity that offers limited liability protection and pass-through taxation. An LLC can be managed by either the managers or members.
• Nonprofit Corporation is an entity formed for purposes other than making a profit. Nonprofit corporations are formed pursuant to different state laws than standards for-profits corporations; however, the process of forming a nonprofit corporation is very similar.

Let TSBDG, Inc. assist you with selecting and setting up the best business entity to suit your business needs. Contact us at info@tsbdg.com.