LLC Registration, Corporate Registration, Sole Proprietorship or Partnership?

here were 27.2 million businesses in the United States, according to Office of Advocacy estimates. Six million companies had workers and 20 million companies did not according to 2005 census data. 99 percent of the 27 million businesses employ less than 500 employees according to the most recent SBA information.

For many, the journey starts out as a small startup. Private loans or private financing are the mainstay of most small business startups. Therefore, as these companies begin to mature, it is important that easier access to finance from banks and the public is available. As these small businesses commence to grow it becomes important and advantageous for the owners to reduce their personal liability and risk.

Formulating a checklist before starting a business is usually a positive first step and it should look something like this: step one choose from the available business structures one that meets your needs, pick out a fiscal tax year, pick out an appropriate accounting method. 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 you select to structure your business as a sole propietorship or partnership, registration may not be required and business activites could start immediately. In the cases of LLC and corporation, a lot of legal counsel, understanding the filing procedure, tax compliances, formation of business structure as per the type of corporation and the role of management and members are required.

To incorporate your business you will need to fill out the proper forms and submit them to the proper agencies in the state the incorporation is performed. One of the most routine ways to start the incorporation process is to contract the services of an incorporating agency. 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. Many small business owners select to incorporate their company in Nevada or Delaware, simply because these states are considered by many to be “corporate friendly”.

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