NEW BUSINESS SET-UP
A new business can be a hassle to set up. As a business customer you will find that we try to get to know your business in depth in order to provide excellent service. When appropriate we will spend time at your work site to gain a better understanding of your business operations. Your business success depends on your focused attention. Why let tax and accounting concerns distract you from your main goals?
Vision Tax Payroll provides a wide variety of business tax and accounting services. The following is a partial list of areas that we are able to assist you with:
- Avoid mixing personal finances with your business finances.
- Tax planning early in your company's setup can save you hundreds of dollars later on.
- Representation in Purchase & Sale.
- Getting favorable Zoning and Variance Decisions -when Needed,
- Partnership Agreements
- Business Plan Development.
- Commercial & Business Financing.
- Take advantage of new tax law changes as they happen.
- Timely filing of payroll and sales tax reports saves you money
- Tax Preparation Services
- Audit Review & Compliance
- Payroll and Sales Tax Services
- Accounting and Bookkeeping
- Corporate Dissolutions.
We will help you set up your business, insuring that it runs properly. Our continued relationship insures your records are kept accurately so that you can make accurate business decisions.
CHOOSING BUSINESS ENTITY
It is very important for an individual to choose the right structure from the Beginning to incorporate its business to avoid paying more taxes and facing re-structuring complexities in future. When beginning a business, you must decide what form of business entity and state is appropriate to establish your business. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.
MOST COMMON TYPES OF ORGANIZATION:
Sole Proprietorship - this is the easiest method of organizing your business. A sole proprietorship can be conducted by a single individual, or by an individual and his or her spouse. There are no specific filing requirements other than a business license and fictitious business name. The owner is taxed as an individual on the income or losses of the business. The major disadvantage of the sole proprietor is that the individual owner is personally responsible for all debts and liabilities of the business. This means that all of your personal assets, not just the assets of the business, are at risk.
C Corporation - is an organization that is organized under specific provisions of the General Corporation Law. A Corporation must have corporate officers and bylaws, and must be registered with the State. In addition, the corporation will be taxed at the State and Federal level on its earnings. A corporation offers the protection from personal liability for the owners. This "corporate veil" of protection does not offer protection from liability in the case of fraud, failure to pay taxes, under capitalization of the corporation, or commingling of personal and corporate funds.
S Corporation - Similar to the "C" Corporation, the "S" corporation offers all the benefits of a corporation, but with a different tax structure. S corporations pay no Federal income tax, but pay state level tax. The S corporation's shareholders report the company's income or losses on their personal tax returns.
Limited Liability Company (LLC) - combines the limited liability protection of a corporation with the flexibility and pass through taxation of a partnership. Like the shareholders of a corporation, the owners (members) of an LLC are not personally responsible for the debts or liabilities of the LLC. The LLC has no limitations on who may be involved. The LLC can be managed by its members or by managers
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New Corporation filing, Obtain Tax ID number (EIN), Sales Tax Vendor Application, All Permits $999.00
C-CORPORATION vs S-CORPORATION vs LLC
DIFFERENCE BETWEEN S-CORPORATION & LLC
While the S corporation's special tax status eliminates double taxation, it lacks the flexibility of an LLC in allocating income to the owners. An LLC may offer several classes of membership interests while an ‘S' corporation may only have one class of stock.
Any number of individuals or entities may own interests in an LLC. However, ownership interest in an ‘S' corporation is limited to no more than 100 shareholders. Also, ‘S' corporations cannot be owned by ‘C' corporations, other S corporations, many trusts, LLCs, partnerships, or nonresident aliens. Also, LLCs are allowed to have subsidiaries without restriction.
DIFFERENCE BETWEEN CORPORATION & LLC
There are many important differences between the corporation and LLC. The entities are taxed differently. An LLC is a pass-through tax entity. This means that the income to the entity is not taxed at the entity level; however, the entity does complete a tax return. The income or loss as shown on this return is "passed through" the business entity to the individual shareholders or interest holders, and is reported on their individual tax returns.
With a standard corporation, the corporation is a separately taxable entity. Corporations are treated as a separate legal taxable entity for income tax purposes. Therefore, corporations pay tax on their earnings. If corporate earnings are distributed to shareholders in the form of dividends, the corporation does not receive the reasonable business expense deduction, and dividend income is taxed as regular income to the shareholders.
LLC's are less rigid in their structure than corporations, so you have more flexibility in adapting the LLC to your unique business. The Operating Agreement of a LLC can be structured in a limitless amount of ways.
Formality : A corporation is a formal entity with officers and directors (at least one of each) required. A LLC, on the other hand, can be "member managed" and run in a less formal way. For small, start-up businesses, less formality means you can focus on making money rather than administrative work.
DIFFERENCE BETWEEN S-CORPORATION & C-CORPORATION
All corporations start as "C" corporations and are required to pay income tax on taxable income generated by the corporation. A C corporation becomes a S corporation by completing and filing federal form 2553 with the IRS. An S corporation's net income or loss is "passed-through" to the shareholders and are included in their personal tax returns. Because income is NOT taxed at the corporate level, there is no double taxation as with C corporations. Subchapter S corporations, as they are also called, are restricted to having no more than 100 shareholders.
FIND A SIDE-BY-SIDE COMPARISON BELOW:
