21 Jan So You’re Starting a Business: We have Business Formation Packages Starting @ $549
The time of year for new beginnings
With the improved economy, many people are finding that the time is right to start their own businesses. There are myriad decisions, including identifying a company name and business entity, or structure. A corporate or LLC-type business entity is separate and distinct from its owners; it’s also separate in the eyes of the law.
There are many considerations that will help drive your decision, and California Document Preparers helps our clients identify the business entity that is most suitable for them. Best of all, our Business Formation Packages start at just $549—and that includes the filing fee with the office of the Secretary of State.
Sole proprietorship: sole business owner working in a consultancy basis
Many freelancers, consultants and independent contractors operate as sole proprietors. A sole proprietorship is an unincorporated business owned and run by one individual—there’s no distinction between the business and its owner. As a sole proprietor, you are entitled to all profits and are responsible for all of your business’s debts, losses and liabilities.
Partners, family members or other stakeholders: a more robust business structure
A key benefit of forming a corporation is liability protection. An owner’s liability is normally limited to the amount of money he/she invested in the business. Usually, only the business entity itself can be held liable for the debts and obligations of the business—not the individual owners. Other benefits of incorporation include stock options for employees and the ability to attract investors. Intangible benefits of creating a corporation include helping establish credibility with potential customers, employees, vendors and partners.
Additional considerations: LLC, S Corp, C Corp or Professional Corporation
You may need to also determine whether your corporation will be a Limited Liability Corporation (LLC), S Corporation or a C Corporation. When incorporating, professional service-providers (lawyers, accountants, medicine, etc.) need to form a Professional Corporation that restricts ownership so that some or all of the shareholders or directors are members of the profession.
California Document Preparers’ Basic Business Formation Package includes:
- Articles of Incorporation. A basic formation document that establishes the company and identifies the number of shares it is authorized to issue. California Document Preparers files this document with the Secretary of State for you.
- Bylaws. These are the basic framework of the corporation that defines how elections are held and the roles of the officers.
- Obtaining you tax ID number from the IRS.
- Corporate Kit, Stock Certificates and Seal: California Document Preparers provides an elegant binder to store your corporate documents, records, seal, and stock certificates.
If you’re starting your new business and need a business formation package, come in to one of our California Document Preparers offices to get started. We help our clients identify the business entity that is best suited to their organization.