Entity incorporation and business formation
Why it may be a good idea to incorporate my business?
There are tax and legal considerations when it comes to organizing your business as something different than a sole-proprietorship. Incorporation can allow to protect personal assets, acquire limited liability, specially in risky endeavors, and take advantage of deductions a tax benefits provided to business.
A corporation is a legal entity separate and distinct from its owners. Corporations are granted most of the rights and responsibilities that individuals possess. Corporations can enter into agreements, loan and borrow money, sue and be sued, hire employees or independent contractors, own assets, and pay taxes. Corporation can be organized as C-Corps or S-Corps.
C-Corporations are subject to double taxation. This means that they pay taxes on their income and shareholder pay taxes when dividends are paid. S-Corporations are special tax treatment corporations that are not subject to double taxation. S-corporations are also known as pass-through entities. This means that taxes are only paid when a shareholder receives dividends. To be treated as an S-Corporations an entity must make an express request with the New York Tax Department.
Limited Liability Companies
An LLC is a form of business organization formed by one or more persons who have limited liability for the contractual obligations and other liabilities of the business. A Limited Liability Company is a hybrid form that combines the limited liability benefit of a corporations with the operative flexibilities of a partnership.
A partnership is form of a business organization that requires no formal act and no express agreement. According to the law, there is a partnership were two or persons carry a business as co-owners sharing costs and benefits. When it comes to taking on business ideas or projects with another it is a best practice to put the terms in writing and to be very clear about intent, costs or benefits, otherwise partners can be liable beyond their expectation or they can be involved a venture unwanted or unanticipated.
Limited partnerships or LLP are a form or business organization were there is a partner fully responsible for the business and other partners whose liability and responsibility is limited. An LLP as an organized business entity must be created by filing a Certificate with the New York Department of State.
Contracts and business compliance
Corporate filing and registration
Contests and sweepstakes
Unfair business practices