Congratulations on launching your business! You are off on the right footing by exploring a partnership with Whyte & Associates, Inc. We like to be involved with ventures from the get-go, as savvy entrepreneurs know that what they do from the very outset can have far-reaching ripple effects on the health and sustainability of their business over the long term. Among our many services to support organizations at every stage in their “life,” our team in Rancho Cucamonga, California, provides trusted guidance on entity formation.
Just like selecting the right vendors and suppliers, it is essential to select the right structure or “entity” type for your new business. We can provide insights into the pros and cons of different structures. We also ensure that all steps and processes are followed to a “T,” as there is paperwork that must be properly completed and submitted for incorporation. You should never leave this decision to a guess or hunch. It is not to be taken lightly as there are many potential consequences to your personal and business bottom line as well as your reputation from choosing the “wrong” structure for your venture and situation.
There are several different structures. These include sole proprietorship, general partnership, LLC (Limited Liability Company), Corporation, LLP (Limited Liability Partnership), and limited partnership.
There are different implications associated with each business structure. For some structures, you might be “on the line” and personally responsible for lawsuits and other legal actions taken against the business. In addition to legal liabilities, there are considerations related to taxes, management, and operations that must be discussed when exploring your business, goals, and the various options for incorporation.
The first step is to file requested paperwork and settle filing fees with the Secretary of State. Here in California, forms differ depending on how you plan to incorporate. Additionally, every entity must file appropriate documentation regularly. So, this is not a “one-and-done” process. Typically, paperwork is filed on an ongoing basis every 12 to 24 months. It is also important to obtain an EIN (Employer Identification Number). This is like a Social Security Number for your business. The business must be registered with the state tax authority, too, so that way, you can pay income, sales, and employment taxes (as relevant to your situation). We suggest streamlining business accounting and taxes with a separate business bank account. By keeping your personal and business finances separate, associated income and expenses are easily identified, and other risk exposures are minimized.
We have helped businesses of all sizes and types from across the Rancho Cucamonga, CA area grow for almost 70 years now. As full-service accounting and tax professionals, we have the comprehensive services to support all of your business’s financial needs, and at every step as it evolves. To start this journey off right, schedule your meeting with a member of our team by calling us at (909) 575-0080.
