Corporation


CORPORATION BUSSINESS SET-UP, includes: Filing, Preparation of Corporate By Laws: All Required Forms and Application for EIN:                                                      $800.00

Articles of Incorporation Filing Fee:  ( State fee)   $100.00 

Initial Statement of Information Filing Fee:        (State fee)              $25.00

                                            

Total:                      $925.00


NOTES:
  • Newly incorporated or qualified corporations are exempt from the $800 annual minimum franchise tax for their first year of business. Thereafter, the amount is payable annually whether the business is operational or not, profitable or not , as long as the corporation is active.
  • A corporation files a separate tax return from the individual owner/owners. It uses either IRS Form 1120 (C Corporation) or Form 1120S (S Corporation).
  • By default, all companies are C Corporations. To become an S Corporation, the business has to submit a request to the IRS. 
  • A C Corporation pays its income tax to the IRS. The individual owner/owners pay their personal taxes from their wages issued by the corporation. Hence, dubbed as double taxation.
  • If approved by the IRS, an S Corporation is a passive entity, meaning the corporation's net income is distributed proportionately to its shareholders. The corporation doesn't pay Federal income tax but  income is included in the shareholders individual tax returns.
  • If done right, a corporation protects the personal assets of its owners from claims and lawsuits since it's a separate entity from the individuals. Co-mingling of personal and business assets should be avoided at all costs.
  • With the passage of the Tax Cuts and Jobs Act (Trump Tax Plan) in 2018, the business is entitled to an additional 20% tax reduction from the net profit.

Limited Liability Company


LLC BUSSINESS SET-UP, includes: Filing, Preparation of LLC Operating Agreement, All Required Forms and Application for EIN:               $700.00

Articles of Organization Filing Fee: (State Fee)  $70.00 

Initial Statement of Information Filing Fee:    (State fee)                    $20.00

                          Total: $790.00

NOTES:
  •  $800 Annual LLC tax to be paid immediately after registration with SOS, not included. An LLC pays a minimum franchise tax of $800 annually whether the business is operational or not, profitable or not , as long as the LLC is active.
  • An LLC files a separate tax return from the individual owner/owners. It uses IRS form 1065 of Form 1068.
  • An LLC is a passive entity, meaning the business'  net income is distributed proportionately to its partners. The LLC doesn't pay Federal income tax but income is included in the partners' individual tax returns.
  • If net income is at least $100,000, an LLC partner is subject to self-employment tax of 15.3%. This is where an S-Corporation is better.
  • If done right, an LLC could protect the personal assets of its owners from claims and lawsuits since it's a separate entity from the individuals.  
  • Co-mingling of personal and business assets should be avoided at all costs.
  • With the passage of the Tax Cuts and Jobs Act (Trump Tax Plan) in 2018, the business is entitled to an additional 20% tax reduction from the net profit.
  • An LLC needs to have at least two partners for the IRS to accept  net losses on a partner's tax return. A single-member LLC is treated  like a sole proprietorship for tax purposes- on the individual Schedule C of Form 1040 and is subject to the 15.3% self-employment tax.

Fictitious Business Name/DBA/

Sole Proprietorship


DOING BUSINESS AS (DBA), includes: Preparation of Fictitious Business Name Statement, County filing & fees and Newspaper publication for 4 weeks:                                       $450.00

Notarization:    $15.00

Total:                  $465.00‚Äč