Business
No doubt starting a new business is a huge challenge, but professional advice from a qualified local tax firm can make it much easier. EF Multi Services has helped many new companies to get off to a good start with our extensive foundation and expertise.
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One of the first tasks you will face is selecting an entity type. There are numerous ways to incorporate your new business, and each has its advantages and disadvantages. EF Multi Services will work with you to select the best type of entity for your business.
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We can help in many other ways, including submitting the relevant documents, drawing up a business plan, setting up accounting systems, minimizing tax liability, and much more.
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Type of Business Entities
There are many ways to start a new business and each has unique tax and legal implications. EF Multi Services will help you navigate through all these and in selecting the best one.
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Limited Liability Company (LLC)
One of the greatest advantages of an LLC is the owners or members are shielded from personal liability for the financial obligations of the company. However, the company can be taxed as a partnership, so it is important that its members state income and deductions related to the company in their individual tax returns. When establishing an LLC, it is necessary to develop an organizational agreement and file articles of organization with the Secretary of State's office.
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Limited Liability Partnership (LLP)
An LLP includes general partners who have management authority aswell as limited partners who invest cash in the company. There are many aspects to this entity type like that the general partners have personal liability for the firm's obligations. Limited partners however are only liable only for the amount of their investment, and they have no management authority. A Limited Liability Partnership is commonly formed with a C or S corporation as a general partnership, and it is not a separate tax-paying entity.
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C Corporation
C Corporation is a separate legal entity, so its owners or shareholders have no personal liability for the obligations of the Company. The company is taxed on its income, and shareholders also have to pay tax on dividends or income they receive.
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S Corporation
Like a C corporation, an S corporation is a separate legal entity, but it differs in that shareholders are taxed on income received from the corporation, but the corporation itself is not taxed. However, a company must meet stringent legal requirements to qualify as an S-Corporation. Both C and S companies offer substantial asset protection.
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