LLC Registration, Corporate Registration, Sole Proprietorship or Partnership?

There were 27.2 million business enterprises in the United States, according to Office of Advocacy figures. in 2005 there were over six million businesses with workers and over 20 million without workers. The small business administration forecasts that over 99% of the businesses in existence in the US employ less than 500 workers each.

All companies begin their journey as startups. According to statistics supplied by the small business administration, close to 80% of all small business startups were financed by either loans or savings from family or supporters. Therefore, as these businesses start out to mature and thrive, it is imperative that more financing becomes available from banks and public sector insitutions. The more growth the firm experiences the more the original founders begin to look for prudent ways to decrease their personal liabilities and risk in the business..

One of the first measures in starting a business is to develop a checklist: select a tax year (fiscal year), determine on an appropriate business structure and pick out an accounting method that works for your particular industry. If one chooses a “C” or “S” corporate structure or even an LLC structure, there becomes a need for incorporation. Mandatory paperwork filing comes with choosing either of these corporate structures. If it is sole proprietorship and partnership, registration is not required, and business activities may start immediately. If you determine to pursue the corporate structure for your business, you must also consider the costs of obtaining adequate legal and accounting advice that will ultimately be required.

Incorporation is a fairly easy procedure, although each state demands their own particular paperwork that must be filed with the secretary of state. Most people pick out to use the services of an incorporating agency to manage the paperwork and filing process.. These agencies file the papers in all the states required and provide some value added services including information of fees and duration calendars that vary from state to state. States like Nevada and Delaware are corporate friendly; therefore, most firms incorporate in either of these states.

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Incorporating a Business
How To Incorporate a Business