New Business Setup
Setting up a new business is more complicated then just going to work.
We start out with a discussion of the various types of business entities to choose from:
- Corporation, to be an S corp. or a C corp. both have liability protection, one is taxed at the corporate level and the other has the profits or losses flow through to the shareholder. Which one is right for you.
- Partnerships, there must be at least two to form a partnership
- LLC-limited liability company-usually used for real estate
- Sole proprietorship
Getting Registered
You will need a federal identification number and you must register with the various taxing agencies if you are going to have payroll or collect sales taxes, we will help with any or all of these.
Setting up the books
We recommend using Quickbooks accounting software program to help organize and keep the records. We will help you choose the correct one and train you to use it.
A Business Plan
If you don’t know where you are going any road will take you there. We will help you clearly define your goals and help develop a plan to achieve them. We know you can work hard, let’s make sure you get where you want to go.
STARTING A BUSINESS-Frequently Asked Questions
Q. How do I get started?
A. Write down your ideas
Q. Corporations , LLC’s or Sole Proprietorship , what’s right for you?
A. A single member LLC and a sole proprietorship are treated the same for personal taxes and all the details end up on your personal return. The more information on the personal return the more opportunity for the IRS to examine it. Sub Chapter S corporations are filed on a corporate tax form and the appropriate shareholder tax information is then reported on the 1040.
Q. C Corporation or Sub Chapter S corporation ?
A. New Corporations are automatically set up as C Corps. The Sub Chapter S is an IRS designation which allows the profits or losses to be reflected on the shareholder’s individual return. This helps to avoid double taxation that might apply on the C Corp. The double tax could occur when the Corporation pays income tax on its profits and later down the road the income is distributed to the shareholders who will pay personal taxes on that income.
Q. Do I need an accountant or can I use QuickBooks for everything?
A. QuickBooks is a good start for processing transactions, but having a Professional Accountant [ Manietta Business Advisors and QuickBooks Training] is a must. Using our experience will be easier then getting it on your own the hard way.
Q. Which comes first , QuickBooks or Manietta Business Advisors and QuickBooks Training?
A. It’s best to have your Professional accountant on board before you begin using QuickBooks. Setting up the software properly will help you avoid problems and frustration down the line.
Q. Is there a formula for being successful?
A. Absolutely-----
- 1. Show up when you say you will.
- 2. Do what you promise and only promise what you can do.
- 3. Finish what you start.
- 4. Be nice, politeness goes a long way.
Give us a call at 630-579-8900 or e-mail me at Rich@rjmcpa.com we look forward to meeting you and helping you get started the right way.
