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Start your business on the right foot with business formation services from McNeill Financial Services. From choosing a business entity to filing paperwork on your behalf, we’ll help you position your new business for long-term success!
After long months of planning and strategizing, you're finally ready to start your new business, but now you’re faced with the overwhelming and challenging task of choosing and setting up your business’s legal entity. Trying to do this on your own can be time-consuming and overwhelming as you fill out paperwork and try to navigate complicated tax structures. A mistake in paperwork can lead to long delays in launching your business while choosing the wrong entity can cost you thousands in excess taxes and fees.
That’s where McNeill Financial Services can help you. We provide comprehensive business formation services to help you choose the most advantageous legal entity as well as assist you with many of the financial aspects of getting set up.
A sole proprietorship is a single-owner, unincorporated business. Legally and financially, there are no differences between the business and the individual, and all profits of the business pass through to the owner’s personal income and are taxed accordingly.
This is the easiest business to set up, as there is little to no paperwork involved, and it’s also the most common. However, there are few legal protections in place, any liabilities accrued by the business are the responsibility of the owner, and personal assets may be used to settle business debts or liabilities.
A partnership consists of two or more people running a business together. Like a sole proprietorship, there’s little to no paperwork involved, profits pass through as personal income from a tax perspective, and the owners are personally responsible for any business liabilities.
A limited liability company is a formal business arrangement and must have articles of organization on file with the Secretary of State’s office. Like a sole proprietorship, any profits and losses are passed through to the owner who reports them on their personal income tax return. However, an LLC offers more protection than a sole proprietorship as the owner is not personally liable for debts and actions of the business.
For example, if the business owes a supplier money, the supplier can take legal action to recoup their money from the business, but the owner’s personal property can’t be used to pay debts.
Any type of corporation has shareholders who have stock in the company, but shareholders are not personally liable for any debts of the corporation. There are also numerous compliance guidelines and regulations related to holding regular meetings and keeping specific records that sole proprietors and LLCs do not.
An S-Corporation, like an LLC, is protected from liability and passes income, losses, deductions, and credits through to the shareholders to declare on their personal taxes. Thus, federal corporate income taxes are not applicable, thus, this can be a highly advantageous legal entity.
Like an S-Corporation, a C-Corporation has shareholders and is free from personal liability. However, with a C-Corporation, a corporate income tax is paid first from the business, then shareholders are required to pay taxes on personal income from any dividends they received. While the tax rates are higher, a C-Corporation is not limited in how many shareholders the business has, driving share prices higher and increasing profits.
At McNeill Financial Services, we are dedicated to helping businesses succeed. We’re with you at the beginning, helping you choose a business entity and getting your business set up, and we can continue to work with you as your business builds its foundation and begins to grow. With comprehensive bookkeeping and accounting services, we’re by your side to help you keep your records accurate and reduce your tax burden. Our team of experienced CPAs and support staff is here to help you meet your goals and succeed in your business.
If you’d like to learn more about our business formation services or would like to get started, schedule a consultation with our CPA firm in Raleigh, today.
5530 Munford Road, Raleigh, Ste 105 North Carolina 27612, United States
Open today | 09:00 am – 05:00 pm |
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