New Business Formation
You manage your business;
we'll help you pick the best form.
It is a privilege to start a business. When an individual (or individuals) decides that starting a business is their life's path, it is an extraordinary moment. There are many benefits to starting a business. The most important benefits are independence and the potential to gain more earnings than being employed under an organizational entity. Forming a business can be an exciting time. Although this can be true, all involved in creating a company must carefully consider the risks associated with establishing one. It's just not enough to hypothesize potential risks. You can discover the benefits and risks by contacting an experienced team of professionals who can navigate the business formation process. By speaking to a Darshi Kasotia CPA, PLLC member, you can truly discover if it is the right time to start forming a business. Being informed about the prospect of starting a business can help you obtain much-needed clarity. It can also save you time, among other vital resources that are needed to start a business.
There are different types of business structures. Let us provide you some insight into some of the most prevalent.
Common types of businesses
General Partnership
A general partnership refers to a business entity that is formed by two or more individuals or owners. All involved partners share profits and assets as well as become responsible for any liability presented.
Limited Partnership (LP)
A limited partnership refers to a business that is formed by two or more individuals or owners. A key aspect of this type of business structure is that partners are only responsible for the investment they have provided if liabilities ever arise.
Limited Liability Partnership (LLP)
This business formation is similar to a general partnership, but the difference lies in the amount of liability. Most partners involved obtain some personal liabilities. All partners are protected from wrongful or negligent acts of their partners. Professional organizations, such as attorney or physician offices, tend to be formed as LLPs.
Incorporation (C & S Corporation)
Incorporation is the legal process that takes an organization and transforms it into a corporation. There are two important forms of corporations. C-Corporation and S-Corporation. A C-Corporation is the most prevalent form of corporation. Shareholders, or owners, are separate from the corporation. A C-Corporation is its own entity. S-Corporations have pass-through taxation capabilities, meaning that shareholders file individual tax returns and report profits and losses. They are responsible for the taxes within a business.
Limited Liability Company (LLC)
A limited liability company is a type of business formation that is created by one or multiple owners. Owners are not personally responsible for the debts and liabilities of the business. Pass-through taxation is found in such organizations, meaning owners file tax returns to report personal profits and losses. There is not a separate business tax return that needs to be filed to the IRS.
Can't decide which business entity type is right for you? At Darshi Kasotia CPA, PLLC, you will find experts dedicated to helping individuals reach their entrepreneurial goals. Let us assist you in selecting the right business formation to ensure long-term success. Contact us to help you commence your goals of becoming a business owner.