Business Registration Services
If you’re getting ready to start a new business, you may already know the many benefits of officially registering it with your state. As a successful entrepreneur, a top-flight corporate executive or a wealthy individual, you may have had experience starting or registering businesses. Or maybe you’ve turned an existing partnership or sole proprietorship into a corporate entity.
Starting a new business is a thrilling time.
Once the thrill has worn off, however, you realize how much hard work you have ahead of you. If you can get the business off to a good start, though, you can carry that energy forward and reap even more of those hard-won rewards.
STARTING A BUSINESSES
You need a methodical plan of action to start and run a successful business enterprise. Edofalltrades help you avoid the common pitfalls of many new businesses.
Take advantage of our expertise for new business formation and business registration. Get help choosing a corporate structure and incorporating your business with your state. There are several viable business registration entities to select from:
• Sole proprietorship
• Limited partnership
• Limited liability company (LLC)
• S Corporation (S corp)
• C Corporation (C corp)
• Not-for-profit corporation
• Foreign corporation
THE PROS AND CONS OF INCORPORATION
The main reason to register and incorporate your business is to limit your liability. Starting a new business requires that you invest considerable time and money. By incorporating, you protect your personal wealth from the company’s profits or losses. That’s the main reason to incorporate and register your business. But there are other good reasons too, including:
• Business growth now and in the future. Incorporating improves creditability, which can help you reach new customers and find potential partners. A corporation has an indefinite lifespan in New York, so the company still exists after you retire. It’s something you can pass from generation to generation.
• Tax breaks and secured assets. As the owner of a corporation in New York, you can take advantage of its liability protections. Creditors can’t put a lien on your home or repossess your car if your business owes them money. Corporations also gain tax advantages that aren’t available to individuals, such as health insurance premium write-offs, as well as savings on life insurance and self-employment taxes.
• Retirement. You can take advantage of 401(k) plans and other best retirement plans available if your business is incorporated.
• More fundraising options. Selling stock in your company makes it easier to raise capital. Also, many banks prefer working with corporations when lending money.
But it’s not all wine and roses. Starting a corporation does have some disadvantages, such as:
• Ongoing fees. When you file Articles of Incorporation with a state, you have to pay the associated fees in New York, which differ from state to state. Some states also charge ongoing fees that are more expensive for a corporation than for a general partnership or sole proprietorship.
• Double taxation. In New York C corporations, dividend income is taxed along with corporate profits. To avoid double taxation, you can elect to file your taxes as an S corporation.
• Extensive record keeping. Corporations have to follow record-keeping requirements on an annual basis that general partnerships, sole proprietorships and LLC’s don’t have to adhere to.
BENEFITS OF A C CORPORATION
A C corp is a standard corporate structure in which shareholders own the business. C corps limit each shareholder’s liability to their investment in the company. A C corp may be right for you and your shareholders if the following conditions apply:
• You need venture capital for financing.
• You require flexible profit-sharing among shareholders.
• You need the flexibility to spread earnings between the corporation and shareholders for tax purposes.
• You prefer corporate earnings to stay in the company to contribute to growth.
• You want to provide shareholders and employees benefits through the corporation.
• You’d like to offer employees stock options.
• You want to limit taxes among your employees.
• You anticipate that your corporation will own real estate.
• You want to lower your risk of an IRS audit.
• You want to have an easy way to sell the business.
BUSINESS TRADE NAME REGISTRATION
The difference between a trade name and corporate name is that a trade name is typically a fictitious name. Your company might use a trade name when doing business — it’s also known as a DBA or Doing Business As. If your trade name differs from your corporate name, you can register a trade name with the Secretary of State to keep other businesses from using it.
A corporate name, on the other hand, is used by the entity formed by your corporation. Corporate names are typically followed by “LLC” or “Inc.” A corporate name is the official name of your business.
STEPS OF INCORPORATION
The process of incorporation transforms your business into a legal entity that’s separate from the individual founders, offering various levels of protection. Your new incorporated venture gives your business more credibility to vendors, employees and potential customers. It’s also more compliant with state law. We provide new business formation that follows specific steps that include:
1. Location of incorporation. Decide which state you want to incorporate in. Some states have tax advantages if you incorporate there.
2. Type of incorporation. Find a business consultant to help you determine which type of business structure (e.g., LLC or S corp) best suits your goals.
3. Registered agent. Pick a registered agent for your business. Listed on the Articles of Organization and Articles of Incorporation, your registered agent receives tax documents and other important legal documents on behalf of your corporation.
4. Directors of your corporation. If you’re registering a large corporation, you must choose directors and board members. If you’re forming an LLC, you need to determine the members and managers.
5. Articles of Organization or Articles of Incorporation. Make sure you follow the instructions from the office of the Secretary of State. Miller & Company can handle this process for you.
HOW EDOFALLTRADES CAN HELP
In addition to the advice above we can help get your business off the ground, our business experts can:
• Prepare a strategic business plan to define your marketing, management and financial plans
• Determine your start-up capital requirements
• Identify sources of start-up capital, as needed
• Quantify your borrowing power for more conventional loans
• Select a business structure that best fits your needs
• Evaluate the tax advantages, legal exposure and ease of operation of the chosen structure
• Select the right accounting software by analyzing your budget and needs
• Prepare a cash flow budget
• Establish billing and collection procedures to maximize your cash flow
• Define internal controls
• Prepare and file all required state and local licenses and permits
• Prepare and file your application for a Federal Employer Identification Number (EIN)
• Provide payroll and payroll taxes services
• Identify your business insurance needs
• Develop a solid Partnership Agreement