Entity Formation

There are pros and cons of each entity form for your business. We help entrepreneurs and small businesses sort through not only the paperwork, but also the many factors that go into the decision of whether you should operate as a sole proprietor, a partnership, an LLC, or form a corporation. We will prepare the necessary formation documents to file with the State, bylaws or operating agreement, initial minutes, and acquire the tax identification number for your business. In addition, we can continue to counsel you and advise you on an ongoing basis to ensure all corporate formalities are complied with.

 
 
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what is the best legal structure for my business?

The four main types of business entities are:

  • sole proprietorships

  • partnerships

  • limited liability companies (LLC)

  • corporations (for-profit & non-profit)

Select the optimal structure for impact. 


Do I need an ein?

On the federal level, new business owners must learn if they need to obtain an employer identification number (EIN) and pay the following taxes:

  • Income Tax: All businesses except partnerships must file an annual income tax return. Partnerships file an information return. The form used depends on how the business is organized. LLCs have several options regarding how they wish to be taxed under the IRS “check a box” regulations.

  • Employment/Payroll Tax: When a business has employees, the employer has certain employment tax responsibilities they must pay and forms they must file. Employment taxes include: Social Security and Medicare taxes, federal income tax withholding, and federal unemployment (FUTA) tax.

  • Self-Employment Tax: Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. An experienced business formation attorney can often help a business owner to minimize or eliminate self-employment tax.

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