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.
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
General
Partnerships.
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 tax professional.
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.
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.
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
below:
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
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.
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.
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.
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.
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.
EIN stands for Employer Identification Number, which is another name for a
Federal Tax ID.
Federal Tax IDs apply to many different groups, including:
Generally, if any of the following are true you still need to acquire a Federal Tax ID:
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.
The online form is available for all business
entity types including:
Site by BwgDesigns.com 323.286.7938