Corporation Setup For Small Businesses in Loganville
We will help you find the perfect structure for your new corporation.
What Is A Corporation?
A corporation is a legal entity- a company or group of people authorized to act as a single entity- that is separate and distinct from its owners. Corporations are able to make a profit, be taxed, and be held legally liable.
A corporation holds many of the same rights as an individual, much like entering into contracts, own assets, borrow or loan funds, hire employees, sue or be sued, pay taxes, and more.
Should You Setup A Corporation?
Running a business has many risks, and as much as we all try to manage the risks, even the best of us can encounter debt, accidents, and other setbacks. Establishing a corporation helps to protect your personal assets, and comes with added benefits such as:
- Limited Liability– having a corporation means the business owner is not personally responsible for the debts and liabilities of the business. This means creditors can not come after assets like your home, car or other assets to pay off business debts.
- Tax Advantages– as a sole proprietor, you cannot write off health insurance premiums or take advantage of other tax benefits that a corporation can give you. There are many tax benefits to incorporating that we’d be happy to discuss with you.
- Increased Credibility– being incorporated helps your business have more credibility in the eyes of your customers, vendors, partners and employees.
- Raising Capital– Banks and other institutions are more willing to lend money to corporations than individuals. This is especially true when considering small business loans.
There are many other advantages to having a corporation that could prove to be beneficial for your business and industry. Let us help you come up with a plan today!
Different Types of Corporations
An individual can establish a corporation alone or with a group of people, and the corporation can be for-profit or non-profit. Non-Profit organizations fall into the category of charities and usually focus on helping different areas of society in some way, whereas more generally corporations are established to generate a profit. Revenue generated for non-for-profit corporations is typically used to further the cause of the organization.
If you are currently running a business and are not incorporated, this is called a sole proprietorship, which is not considered to be a separate business entity from the individual and offers no liability protection.
The Four Main Types Of Corporations:
C Corporation– C corporations are one of the most common types of corporations and have a corporate structure that provides some of the strongest protection from personal liability. C corporations hold fairly extensive but straightforward record-keeping requirements. This option is often a good choice for medium or higher-risk businesses that need to raise money or may eventually go public.
S Corporation– S corporations give the owner the corporate structure that reduces liabilities and also avoids the double taxation of the C corporation. Essentially, an S corporation allows the owner to receive more personal income from profits and losses than in a C corporation.
LLC– A limited liability company is one of the most flexible corporate structures. An LLC provides protection to the owner’s personal assets while allowing the owner to receive profits and losses through their personal income without facing corporate taxes.
Non-profit– Non-profits typically have a single-minded cause. Two of the most common types of non-profits are charities and religious organizations. Some people think that the goal of a non-profit is not to make money, but many non-profit organizations are extremely profitable. The main difference is that the profits are put back into the operations, expansion, and future plans of the organization.
Professional Accounting Services
Whether you are just starting your business, or you have been conducting business for some time, there are necessary steps to incorporate. It is important to choose a good name for your corporation. Like naming a child, it seems like a simple thing to do, but it can be more difficult than you think. We suggest that you go to the Secretary of State website and search to see if there is a business that is already using your name.
Depending on which corporate structure you want to create, the necessary steps may include:
- Write Articles of Incorporation & File Them With The State
- Create Corporate Bylaws
- Draft A Shareholder’s Agreement
- Establish Corporate Minutes
- Issue Stock Shares
- File For An EIN (Employer Identification Number)
- Obtain Any Necessary Licenses & Permits (Depending upon the business & industry)
- Start enjoying your new corporation!
We provide corporation setup services that make the entire process easy so you don’t get overwhelmed. Let us manage the complex process of setting up your corporation. Together we can help you create the business you have always dreamed about.
Contact us today for a free initial consultation.
Accounting Firm That Partners With You
Keeping track of your finances is one of the most important parts of your business as it alone allows you to continue operating the business without running into financial debt, government trouble, or improper tax filing. We take the finances into our hands when you partner with us and we let you focus on the core aspects of running your business on a day-to-day basis. We offer accounting services such as bookkeeping, tax preparation, business consulting, and payroll services to small and mid-sized businesses in Georgia.