Starting a New Company?
The biggest investment, both emotional and physical, is to start a new business. Who better to help you get started than your friends at Freedom TAX Bookkeeping and Insurance. We have been there and done that already!!! Let us help you on your startup and advise you of the things that you should stay away from and things you really should pay attention to.
First piece of information you need to know about starting a new business is how to classify your business name. Is it going to be a Corporation, Limited Liability Company (LLC), Partnership, or simply a Sole Proprietorship? This is a very important step in starting your business.
Here are a few definitions you need to know about classifying your business:
Corporation: an association of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members. A corporation is a separate taxable entity.
Limited Liability Company: Like owners of partnerships or sole proprietorships, LLC owners report business profits or losses on their personal income tax returns; the LLC itself is not a separate taxable entity. Like owners of a corporation, however, all LLC owners are protected from personal liability for business debts and claims -- a feature known as "limited liability." This means that if the business owes money or faces a lawsuit; only the assets of the business itself are at risk. Creditors usually can't reach the personal assets of the LLC owners, such as a house or car.
Partnership: two or more people share ownership of a single business. An agreement is usually made between partners to determine what will happen in case the partnership needs to be dissolved, bought out, and how much time each partner needs to invest etc. This type of business is fairly easy to set up and manage.
Sole Proprietorship: Almost all businesses start out as Sole Proprietorship. They are owned by one person, usually the individual who has day-to-day responsibility for running the business. Sole proprietors own all the assets of the business and the profits generated by it. They also assume complete responsibility for any of its liabilities or debts. It is very easy to prepare a tax return for this type of business. It all gets recorded on a Schedule C of your personal tax return.
Now that you have decided on what type of business you want to register it is time to determine other factors like location, bookkeeping, insurance, taxes, monthly reporting, end of year reporting, and most important of all is marketing. This is where we come in!!! Let us show you how...
Step 1
We will register the best fitted type of business entity that will comply with the laws of your state. We will explain where you are protected and what you will be liable for throughout the year. We believe in preparing you from the start with the knowledge you will need to make adequate decisions for the future of your business.
Step 2
We will do a complete setup of your business registrations with the state. This means your payroll taxes, unemployment insurance, sales tax, end of year reporting, W2 Forms, 1099-MISC Forms, 1040 Form, 1120C, 940 Form, 941 Form, and keep track of your daily expenses. This sounds very expensive right? Well we start at $100 per month.
Step 3
After we complete the setup we will prepare you for the end of the year reporting. This is very important because if proper paperwork has not been maintained you could be faced with an audit from the Internal Revenue Service or the state. We will teach you how to keep your books organized because we, at Freedom TAX Bookkeeping and Insurance, believe that it is more important for you to know what your books look like than us. We will give you audits periodically to make sure everything is compliant.
We have helped many startup businesess with this model. It is not as easy as it looks. There are many other factors that are not included here. Each new business is unique and this is the reason why we could not include the full instructions here. We will know what to do where you let us know you need help.