Vcorp Services Gives Entrepreneurs the Opportunity to Pursue their Dreams with Announcement of National Business Plan Competition
- WHICH ENTITY TYPE IS BEST FOR MY BUSINESS – LLC OR CORPORATION?
That's a question that ultimately only you can answer.
Corporations have been around for hundreds of years, so the paperwork to form and
maintain them can seem archaic at times. But if you plan to "go public" soon (for example, to make a public offering of your
company's shares on the New York Stock Exchange), this is the only business entity type that can do it.
LLC stands for Limited Liability Company. It is a newer business entity type, but it
has fast become the preference among many new small business owners. The reason is that LLCs were designed to offer the
personal asset protection of Corporations, but with fewer initial and on-going requirements. For example, LLCs generally do
not have to keep detailed meeting minutes, or even hold formal meetings at all.
- ARE THERE ANY TAX ISSUES?
With Sole Proprietorships and General Partnerships, there is little legal
separation of the owners from the businesses. So the owners are taxed on all money that their businesses make.
Corporations are recognized as entities separate from the owners by default, so the
Corporation is taxed on all money that it makes. Then additionally, the owners are taxed on all money that they pay
themselves from the Corporation. This is commonly known as "double taxation". Or some states allow you to file to be a
special type of Corporation called an
S-Corporation, in which taxation is the same as with Sole Proprietorships and
LLCs are the opposite. By default the taxation is the same as for Sole
Proprietorships and General Partnerships. Or some states allow you to file to have the taxation be the same as the default
for Corporations, where the LLC is taxed on money it makes, then additionally its owners are taxed on money that they pay
themselves from it.
For more details, consult one of the many books written on this subject, or a local
- WHAT'S AN S-CORPORATION?
An S-Corporation is a special type of Corporation available in some states.
They are different from traditional Corporations in that they avoid the issue of "double taxation". Specifically, the
business does not pay tax on its revenues. Instead, the owners pay taxes on all business revenues. For more details,
consult one of the many books written on this subject, or a local tax professional.
- WHERE IS MY LLC FORMATION OR INCORPORATION FILED?
These filings are at the state level, typically with the Secretary of
State's office. Some states also require publication of an announcement of the LLC Formation or Incorporation in
specific publications. SimpleFilings has experience with these filings in nearly every jurisdiction in the United
States, and we are proud to put this experience to work for you.
- WHAT HAPPENS AFTER MY ORDER IS COMPLETE?
SimpleFilings is a fast and secure solution for three of the most common new
business filings: LLC Formation or Incorporation, DBA Registration, and obtaining your Federal Tax ID. But there can be
numerous other filings for you to perform both before and after starting business. As a courtesy, we've listed some
- Internal administration - LLCs require fewer administrative formalities than
Corporations, but both require some. For example, LLCs must write and keep a document called an Operating Agreement
which outlines basic ownership and management information. Many books have been written on the subject of LLC and
Corporation administration, and they often include useful document templates. Find them at your library or bookstore.
- Federal government filings - The IRS needs to know how to tax your new business. Filing
forms such as IRS 8832, IRS 2553, and IRS 1023 can accomplish this. Other IRS filings, and filings with other Federal
government agencies may be required as well. Local tax professionals can be good sources of information on this.
- State government filings - Each state you do business in will have filing requirements such
as state tax ID numbers, state tax returns, foreign business entity registration (if it is not the state you formed your LLC
or Incorporated in), and annual business entity reports. Offices in each state such as the Secretary of State and Department
of Revenue can help you determine which ones apply to your business.
- Local government filings - Each local jurisdiction you do business in may have filing
requirements such as licenses, permits, etc. Offices in each jurisdiction such as the County Courthouse and City Hall can
help you determine which ones apply to your business.
- Insurance and trade requirements - Depending on the nature of your business, other
non-government filings such as obtaining insurance may be necessary to comply with all applicable laws. Consult your
insurance agent and applicable trade association.
Starting and running a business is a richly rewarding but never-ending process, and the
responsibility for research and compliance is solely yours. But remember that the profits are solely yours as well!
- WHAT IS A DBA?
DBA stands for "Doing Business As" and is an official, public registration
of a business name with either the state or local jurisdiction. DBAs are sometimes called "Fictitious Names", "Assumed
Names", or "Trade Names". Basically, a DBA is an operating name of a business that is different from its official legal
- WHAT IS MY BUSINESS'S LEGAL NAME?
A business has only one official "legal name", which is determined by its
type of organization. For organizations like Limited Partnerships, LLCs, and Corporations which file with their
Secretary of State upon creation, the legal name is the exact business name used in that filing. For Sole
Proprietorships and General Partnerships, the legal name is the personal name(s) of the owner(s). For example, John Doe.
- DO I NEED A DBA?
Without a registered DBA , your business has to operate only under its one
official legal name, which if you are a Sole Proprietor, is your personal name! State law requires that you file the
proper paperwork to operate even under a variation of your legal business name, and even for a short amount of time. Two
examples are below.
Example #1: Jane Doe begins doing independent consulting work, marketing herself
as Can-Doe Consulting. Since Jane hasn't filed the paperwork to create an LLC, Corporation, etc., that makes her a Sole
Proprietorship by default. So she must register Can-Doe Consulting as a DBA, since her legal business name as a Sole
Proprietorship would be Jane Doe.
Example #2: The official legal name of an entrepreneur's Limited Liability Company
is "John Doe Enterprises, LLC". He markets a home building business in the summer as "JD Homes", and a snow-plowing
business in the winter as "JD Enterprises". Those are both DBAs that would need to be registered, because neither matches
exactly with his official legal business name.
- CAN A DBA BE FILED FOR ALL BUSINESS TYPES?
Yes, DBAs can and should be filed for all business types - they are not
just for Sole Proprietors. General Partnerships, Limited Partnerships, Corporations, LLCs, and Non-Profits that wish to
operate under a name different from their one official legal name are required to register a DBA.
- DOES AN LLC
OR CORPORATION NEED TO FILE A DBA?
Yes, the laws requiring DBA registration extend to LLCs and Corporations. If
the company conducts business under any name other than the exact legal name that appears on the LLC's or
Corporation's formation documents, they are required to register it as a DBA. "Conducting business" can include
marketing materials, letterhead, business cards, etc. in addition to actual business transactions. Also, banks generally
require a DBA registration prior to opening a business bank account or establishing a line of credit.
- WHAT IS A FEDERAL TAX ID?
Also known as an Employer Identification Number (EIN), a Federal Tax ID is
like a Social Security Number for your business. It is a unique 9 digit number (ex. 12-3456789) that the Internal
Revenue Service and other federal agencies use to identify your business for tax filing and other purposes.
- WHAT IS AN EIN?
EIN stands for Employer Identification Number, which is another name for a
Federal Tax ID.
- DO I NEED A FEDERAL TAX ID?
Federal Tax IDs apply to many different groups, including:
- Individuals/Sole Proprietors
- Limited Liability Companies (LLC)
- Other employers and business entity types
Generally, if any of the following are true you still need to acquire a Federal Tax ID:
- You need to pay business taxes.
- You have one or more employees.
- You want to open a business bank account.
- You want to start a line of business credit.
- You form an LLC, Corporation, or Partnership.
- You change from one business entity type to another such as from an Individual/Sole Proprietor
to an LLC.
- You are starting a Keogh Plan, also known as a Self-Employed Pension.
- You want to bid for a federal government contract.
- WHAT IS THE FILING PROCESS?
We realize you don't have the time to wait on the phone or in long lines,
or to wade through lengthy multi-page forms. So all you need to do is submit our convenient one-page online form. Typical completion time is no longer than 5 minutes, and the
form is secured for your privacy. Then we prepare government form SS-4 and obtain your signature on it, authorizing us
to work with the Internal Revenue Service on your behalf to acquire and deliver your Federal Tax ID.
Our service fee for basic document preparation and filing ranges from $108 to $128, depending upon your business entity
type. Optional upgrades include delivery within 24 hours and delivery within 60 minutes.
Sometimes as a result
of the filing process we find out that clarification and/or more information is required from you, and if that is the case
we will contact you by e-mail from TaxID@SimpleFilings.com.
- WHO CAN USE THIS SERVICE?
The online form is available for all business
entity types including:
- Individuals/Sole Proprietors
- Limited Liability Companies (LLC)
- Other employers and business entity types
The only restrictions are (1) the primary address must be in the United States and (2) the owner,
principal officer, trustor, grantor, etc. must have a valid Taxpayer ID Number (Social Security Number, Individual Taxpayer
ID Number, or Federal Tax ID) to enter on the form
“Entrepreneurial Spirit” Competition will Award Individuals with Free Incorporation Services
MONSEY, NY - May 5, 2009
– Vcorp Services LLC (www.vcorpservices.com
), a leader in turnkey state corporate filing services, today announced its “Entrepreneurial Spirit
” business plan competition, which will award winning entrepreneurs with free incorporation services. Over the past decade, Vcorp has helped thousands of companies nationwide get their start and continue on a path of growth and success. The company’s founders created this competition to stimulate business ownership during the economic downturn, giving individuals the opportunity to turn their dreams into business enterprises and seek success on their own terms.
“These are tough economic times, but they also present an incredible opportunity for people who’ve considered starting their own businesses to finally take the leap of faith and do it,” says Isaac Muller, CEO and Founder, Vcorp Services. “In a better economy, people are more likely to look for employment rather than start their own businesses. With the amount of jobs diminishing, the time is ripe to venture out. Vcorp is passionate about entrepreneurialism, and our goal with this competition is to stimulate the formation of new businesses. We’re inviting individuals - whether they are business students or people looking to make a career change - to turn their ideas into viable enterprises. Incorporation is the crucial first step in making that happen.
The “Entrepreneurial Spirit”
competition begins May 1st and runs through July 31st. Applicants from all states are eligible to submit their business plans for consideration, which will be selected based on presentation, creativity, viability and other business factors. Winners will be awarded a free state filing for a corporation or limited liability company (LLC). Interested parties should submit their business plan or executive summary to email@example.com
. For more information, please call at (888) 528-2677.
Vcorp Services provides a full suite of affordable, high quality corporate services to new and current business owners, including entity formations, business filings, document retrieval, trademark applications, compliance services and more. Vcorp’s cutting-edge technology and legal products expertise provide the lowest prices and fastest service on forming and maintaining a business. For more information, please call (888) 528-2677 or visit www.vcorpservices.com
Elizabeth Roz, Executive Vice President
310 728 0792