Business Registrations
We Offer Business Registration Services for LLCs and Corporations
LLC:
An LLC is a Limited Liability Company. LLCs help shield the owners from being personally liable for company debts and liabilities.
Corporations:
A Corporation is another type of business entity that also provides the owners with similar liability protections.
Frequently Asked Questions – Business Registrations
Should I register an LLC or a Corporation?
- Both LLCs and Corporations provide the owners with debt and liability protections. LLCs are more common for individuals that are just starting out because they have less formalities and are generally less expensive to maintain. However, corporations are preferred by investors, so if you plan on raising money from several investors or going public, then you may want to consider a corporation
Can my LLC be taxed as a Corporation?
- With both LLCs and corporations, you get to choose how you want to be taxed. So, LLCs and Corporations can choose to be taxed as S-corporations or C-corporations. The first step is to get the LLC or Corporation registered. Then you can file a document with the IRS choosing how you’d like to have your business taxed.
- LLCs are great because they can provide you with the ease of maintaining an LLC while providing you with the tax benefits of a corporation.
Should I have my LLC/Corporation taxed as an S-corp or C-corp?
- Pass-through: For a small business that is just starting out and doesn’t plan on making a lot of money the first year, then generally leaving the LLC as a pass-through entity would be recommended by an accountant. This means that profits are passed through directly to the owners who then pay tax on them. This is the default tax election when you register for an LLC as a single owner.
- S-Corp Election: With an S-corp tax election you are able to save some money on self employment tax. The S-corp tax election allows you to take a portion of the business profits and pay yourself a reasonable salary. This helps minimize your tax obligation by saving you some money on self employment tax. Accountants seem to only recommend the S-corp tax election when your business is making over $75-100k. But, definitely reach out to your accountant to see what he or she recommends for your particular situation.
- C-Corp Election: With a C-corp tax election, business profits are taxed TWO times. So the business will pay tax on the profits and then when the business distributes those oprofits to the owners, the owners will have to pay tax on that money again. This tax election is generally reserved for larger businesses and those individuals that plan on going public or raising money from several outside investors.
How hard and expensive is it to maintain an LLC or Corporation?
- LLCs are slightly easier to maintain and usually a little less expensive than corporations.
- With LLC and Corporations you generally have to file an annual report (or its equivalent) each year and pay an annual fee to the state each year. The annual fee varies from state to state but on average is around $100 per year. The annual report is required in most states and essentially asks if there has been any changes to the LLC or Corporation since the previous year.
- Why should I register for an LLC or Corporation and not just keep my business as a sole proprietorship?
- The main benefit of an LLC and corporation is that they provide you with liability protection. So it can help shield you from being personally liable for lawsuits against the business and from business debts.
- For entrepreneurs that are literally just starting out and barely have a business plan in place, then you should probably wait before spending money on an LLC.
- But for entrepreneurs that already have a plan of action for their business and want to hit the ground running, then having an LLC or Corporation prior to getting started is a great idea. Starting out as a sole proprietorship and then changing to an LLC or Corporation is possible, but will result in you having to spend a lot of time changing everything.
Our Reviews Speak For Themselves
I was looking for someone efficient and reliable to create an LLC in the US, Fast Biz was really efficient and we highly recommend their service! Many thanks to Robert for his help!
JC Jenn
Client
Came on referral from my accountant, true help with affordable prices. Very informative and went a bit above scope for what I initially asked. Highly recommend for legal services.
Dylan Ander
Client
Super helpful & amazing! Made setting up my business easy and fast! I highly recommend using Fast Biz Law! They are helpful & Kind!
Chris White
Client
Robert at FastBizLaw helped me set up my S Corp fast and hassle-free. He went above and beyond, calmly explaining the basics to me which was refreshing. Seeking help from lawyers in the past, I had felt rushed, like a clock was ticking as dollar signs racked up. Robert never made me feel that way which was ultimately why I chose to do business with him. Very happy with my decision and would recommend to others.