STARTING A NEW BUSINESS

WHAT YOU NEED TO KNOW



5. TYPE OF BUSINESS FORMATION

• Sole Proprietorship
  • County Registration with Doing Business As (DBA)
  • Unlimited Liability

• Single member Limited Liability Company
  • State Formation with required advertising notices.
  • Limited Liability
  • Taxed as Sole Proprietorship

• Partnership
  • County Registration with Doing Business As (DBA)
  • Unlimited Liability
  • Partnership Agreement
  • Income/Losses Pass Directly to Partners

• Limited Liability Company (LLC)
  • State Formation with required advertising notices.
  • Limited Liability
  • LLC Operating Agreement for Members
  • Taxed as Partnership upon election

• Corporation
  • State Formation
  • Shareholders Agreement
  • Limited Liability
  • “C” Corporation
  • “S” Corporation
  • Must have employees

DISCLAIMER

NOTICE:

U.S. Treasury Circular 230 Notice:

Any tax advice contained in this document is not intended or written to be used, and cannot be used for the purpose of:

• avoiding penalties that may be imposed under the Internal Revenue Code or by any other applicable tax authority, or

• promoting, marketing or recommending to another party any tax-related matter addressed herein.

4. Financial Planning <<                                                                              >> 6. Business Plan