How do I officially start a business?
The first step to make your business an official entity is to register the business with the Secretary of State of the state of your choice. Bean Counter can do this for you and guide you through the process. Already did this step but need help with next steps? Congratulations! Help us help you by filling out this form.
What are the types of business entities?
The types of business entities include Sole Proprietorship, Partnership, Limited Partnership (LP), Limited Liability Company (LLC), S-Corporation, and C-Corporation. Business structure and tax structure are not always the same. For example, an LLC can elect to file as an S-Corporation for tax purposes.
What type of business entity should I start?
This depends on a number of factors, including your role in the company, the industry, and the expected annual revenue. For help determining the optimal business structure for your goals, schedule a free business consultation today!
What information do I need to form a new LLC?
To form an LLC, you need a business name, a business address, a management structure, and the names and addresses of all members and managers. Every LLC has at least one manager and at least one member. You should know the ownership percentage of each member. LLCs cannot issue shares.
To form a new Corporation, you need a business name, a business address, the number and par value of shares the Corporation is authorized to issue, and the titles, names, and addresses of all officers and at least one director. Corporations can issue shares, and ownership is determined by the percentage of shares owned. Corporations must have at least three officers and at least one director; sometimes more than one of these can be the same person.
Yes. However, the business can be incorporated in a different state than where it is physically located. Many companies choose to incorporate in Delaware, Nevada, or Wyoming despite doing business in other states. In these cases, the business still needs to also be registered with each state where the business has a physical presence but as an out-of-state entity. For example, a Wyoming entity with an office in California will be incorporated in Wyoming but registered in California as a Wyoming entity doing business in California.
Yes! Bean Counter can help you obtain an EIN along with registration with the appropriate state entity. Call us at 1-844-MY-BEANC or book a free consultation.
C-Corporations and LLCs can elect to be taxed as S-Corporations, meaning the business profits flow through to the shareholders’ or members’ personal tax returns. To make this election, you must file Form 2553 by March 15th for most businesses. S-Corp election for an LLC does not make sense if the LLC is not yet making a large profit. For more information, schedule a free consultation today!
You do not need to register a sole proprietorship with any state. By default the income of this entity will be treated as your personal income. Also, you should register a DBA name if you conduct business under a name different from your legal name. Bean Counter can also help with registering DBA names!
Aside from an EIN and registering with your state, you may need several other documents that are likely to be requested by banks, lenders, and government agencies.
For an LLC, you generally only need Articles of Organization.
For a Corporation, you need Corporate Bylaws, Annual Meeting Minutes, and Share Certificates.
For businesses doing business under a different name than the legal entity name, you may also need a DBA (“doing business as”) name registered locally.
We invoice clients monthly on Net 30 terms. Each payment is due within 30 days after the invoice is sent. We invoice after the services are performed.
Bean Counter can help you create all these documents and more
For more information, call us at 1-844-MY-BEANC or schedule a free consultation.
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