Incorporating a business means turning your sole proprietorship or general partnership into a company formally recognized by your state of incorporation. When a company incorporates, it becomes its own legal business structure set apart from the individuals who founded the business. Through incorporation, the company’s owner or owners create a separate legal entity to transact business. This new business entity corporation or limited liability company (LLC) transforms the way the business is seen through the eyes of the law and often has more credibility with potential customers, vendors and employees.
How does Incorporating work?
Wondering how to incorporate a business as a C corporation or S corporation or how to form an LLC? Here are some of the steps included in the process:
Determine where you want to incorporate.
Decide which business type is best for your business and goals. Consult with an attorney or accountant.
Determine who the directors of the corporation or who the members/managers of the LLC will be.
Select El Cid Bookkeeping, Inc. Accountancy and Taxation Services as your registered agent. El Cid Bookkeeping, Inc. Accountancy and Taxation Services can be listed on your Articles of Incorporation or Articles of Organization. El Cid Bookkeeping, Inc. Accountancy and Taxation Services can be appointed by you to receive important legal and tax documents on behalf of your business and forward them to you. El Cid Bookkeeping, Inc. Accountancy and Taxation Services includes this service in all incorporation packages with us.
El Cid Bookkeeping, Inc. Accountancy and Taxation Services prepares and files the Articles of Incorporation or Articles of Organization per instructions from the Secretary of State’s office. El Cid Bookkeeping, Inc. Accountancy and Taxation Services handles this step for you, allowing you to concentrate on running your business.
Why is incorporating a business important?
The primary benefit to business incorporation is limited liability. When you own a small business, you will invest a lot of money into not only getting it launched, but in keeping it running smoothly as well. As the owner you are responsible for any debts and losses your business may accumulate along the way. However, when you incorporate, you are typically only held responsible for the amount of money you personally invest. Your personal assets typically cannot be used to satisfy the debts and liabilities of your business.
Business Entity and Incorporating
We specialize in business entity and incorporating.
LLC, S-Corporations, C-Corporations and Nonprofit and all types bylaws. We also love doing bookkeeping services and all types of income taxes whether it is personal or business. We are experts in all QuickBooks; Desktop or Online platforms. We can help you!
A businessentity is an entity that is formed and administered as per corporate law in order to engage in business activities, charitable work, or other activities allowable. Most often, businessentities are formed to sell a product or a service. There are many types of businessentities defined in the legal systems of various countries.
Verify Company Name Availability, Preparation of Articles of Incorporation, Document Filing with Secretary of State, a Free 60 Minute Business Tax Consultation, Domain Name from Register.com, Federal Tax ID (EIN) Highly Recommended, Custom Bylaws, Custom Meeting Minutes for 1st year, Corporate Kit and a Basic setup of QuickBooks Desktop or QuickBooks Online file with customized Chart of Accounts.
3 Easy Steps
Complete Our Simple Questionnaire
We create your Incorporating documents and file them with the Secretary of State
You receive your final Corporate, S Corporate, LLC or Nonprofit in the mail.
Secure your assets, gain tax breaks. LLC owners enjoy limited liability protection, and are typically not personally responsible for business debts. So creditors can’t pursue your home or car to pay business debts. Another plus: corporations often gain tax advantages, writing off such things as health insurance premiums, savings on self-employment taxes, and life insurance.
Grow your corporation for now—and the future. Incorporating bolsters credibility, and may help you reach potential new customers and partners. And while you can’t live forever—your corporation can. Even if an owner dies or sells interest, the corporation still exists.
Easy transfer and faster funds. Corporation ownership can be easily transferable (with some restrictions on S corporations). Capital can be raised more easily through the sale of stock. Another advantage is that many banks prefer handling loans with incorporated borrowers.
Ready for retirement. Retirement funds and qualified plans, like a 401(k), can be easier to establish.
Corporations do have some potential disadvantages, including:
Double taxation. C corporations are subject to double taxation of corporate profits when income is distributed as dividends. This can be avoided by electing S corporation tax status with the IRS.
Ongoing fees. You must file articles of incorporation with the state, plus applicable fees. Many states impose ongoing fees—which are steeper for a corporation than for a sole proprietorship or general partnership.
More record keeping. Corporations must follow initial and annual record-keeping requirements—which sole proprietorships, general partnerships and limited liability companies (LLCs) avoid.