Business Formation Consulting Solutions
Are you trying to find ways to run your business more efficiently and effectively?
Do you have questions about how the different business structures work and how they are available to small and medium companies?
Perhaps you’re seeking a consultant that will collaborate with you in terms of business planning and initiatives for your business?
If any of these questions relate to you, you’re in the right place. With our business consulting services, you can boost your profits and see a generous increase in your income. Whether you’re in a partnership agreement or working as a sole trader, there are ways we can help.
Table of Contents
- Why is the Structure of Your Business Important?
- Startup Consulting
- Annual Budgeting (Business and Personal Assets)
Why is the Structure of Your Business Important?
The way in which you structure your company has an impact on how much you pay for your Federal income taxes, any filing fees, and even on business expenses and personal liability.
This is why you need to select a business structure before you file your company with the state you will be operating in.
It is true that you can choose a different structure for your company later, so if you form an LLC now and decie you want to change to a sole proprietorship later on, this is usually possible.
However, some states have strict regulations on what a business entity is allowed to do – including limiting the ways in which you can change your company.
Therefore, it’s important you consider the structure you want carefully before you register. This is where a consulting agent like us can help. Our very own registered agent service is able to provide extensive knowledge and advice to help you make the right decisions.
It doesn’t matter if you’ve recently started your own business or you’re thinking of setting one up, we are able to help ensure your business venture succeeds.
Through careful research, we have found that working with a financial professional from the start is able to double your chances of success for your new company.
There are so many issues to address and questions to be answered when you start a new business, and even if you have other partners to help you it can become overwhelming. This is one of the areas we can help with, taking some of the weight off your shoulders.
Here are just a few examples of things that must be addressed during your startup phase that has to do with regulations or financial demands:
- Determine the best entity for legal and tax purposes to assess your tax status
- Choose a business name and confirm a physical street address
- File paperwork with local, state, and federal agencies to set up your business
- Acquire a federal ID number from the IRS
- Open a new business bank account, merchant account, and credit cards
- Select an accounting system, such as QuickBooks
- For eCommerce, select a shopping cart
- Acquire any necessary business licenses and permits
- Discover what insurance you should carry to protect yourself (example, limited liability protection/unlimited liability)
- If you hire employees:
- Register with the IRS and the state agencies
- Select a payroll system
- Acquire Worker’s Compensation
- Determine monthly or annual meetings
- Set up benefits and a vacation policy
- Secure accounting, a legal entity, IT, and HR counsel
- Determine sales tax requirements and register with your state and local agencies
- Fulfil any investor requirements
We can help you with many of the items on this list, as well as offer valuable assistance to aid you in increasing your chances of success. This expert advice consists of:
- Carefully managing your cash flow to prevent overcommitment
- Preparing the first-year budget to keep you on track
- Setting realistic goals and helping you acquire the funding you need
- Reviewing operations from a financial management standpoint to ensure you are in line with your targets
- Preparing an operating agreement
- Helping you plan for large capital acquisitions so that you can minimize borrowing and develop better cash management
Working with new businesses is at the very core of what we do. It’s our passion to help them thrive and grow into larger corporations. Business formation isn’t something you have to do alone, and all you need to do is get in touch to see where we can start helping you out.
Annual Budgeting (Business and Personal Assets)
Budgeting can feel restrictive at first, and it can often lead to a sense of panic when you first start out because you don’t usually have a great deal of cash. However, budgeting is a greay way to try and avoid business debts, and that’s why it is often referred to as “Profit Planning.”
The aim of the game is to help you achieve your profit goald by monitoring your spending and income, working to avoid overspending, and ensuring that you have the correct revenue to cover any and all overhead expenses.
Our budgeting services include:
- Preparing a 12-month budget. This includes revenue and expense goals based on your accounts
- Monthly reporting of budget versus actual variances to improve your accountability
- A quarterly review of actual versus budgeted amounts and an over and under accounts analysis. This includes actions to take to stem any issues or shortfalls
- An optional capital budget based on balance sheet accounts and any new capital acquisitions
This is just some of what we can do for your business with regard to financial planning. Not only will budgeting make it easier for you to fill out your tax forms for the Federal Government and keep track of your goals, it also ensures that your company continues to live within its means.
If you get in touch with our talented and experienced team of professionals, we can take you through everything you need to ensure financial clarity and success for your company.
Entity Selection for Business Structure
Selecting the best entity type for your company requires careful thought and consideration. There are pros and cons to each type of business, and it all depends on which one is going to work best for you and the way in which you file articles and operate.
These are the most common types of organization that people choose to model their businesses on.
Sole proprietorships are the easiest business model and certainly the most common. However, it is important to note that your personal and business assets are not separated in this form.
This means any debts incurred by the business will be your personal responsibility and part of your personal assets. It’s the best choice if you want a low-risk business model that allows you to test the waters first.
Limited Liability Company (LLC)
There are several different kinds of Limited Liability Company (LLC) (such as a Manager Managed LLC), and this means there are also different tax treatments for them that vary from state to state. This form of business protects you from personal liability for any company debts, but any members of the company will be self-employed and must file for income tax as such.
This is usually a step up from a sole proprietor and there are two types of partnership that are most commonly used – Limited Partnerships (LP) and Limited Liability Partnerships (LLP). It is similar to when you form an LLC but less complex in nature, and it remains the best choice for a business that has other partners who head the company.
This is a legal entity that is separate from its owners. Corporations such as this can be taxed, make profit, and be held legally liable. However, they do require much more extensive record keeping and are likely to face more complex filing fees and taxing processes.
Generally speaking, this form of corporation was designed to avoid the double taxation that comes with running a C Corp. It allows for some profits and losses to avoid taxation while also remaining separate from its owners just like the C Corporation. It’s a more flexible alternative but an S Corporation does have strict criteria that needs to be met.
These businesses tend to receive a tax exempt status because they are usually a charitable organization, religious, educatory, literary, or scientific in nature. They do not pay state or federal taxes on any profits they make, but they must apply for and receive exemption status.
We are able to let you know what your options are and how you can get started just by looking at your situation and circumstances. Through this, we can help you get started with any business filing requirements you might have.
As your company grows, it may outgrow the entity you originally selected. We can assist you in determining the proper entity choice for today’s stage of your business and assist you in re-organizing if a change is deemed necessary.
Business formation is not always easy when you’re doing it alone. With our help, we can assist you in building a strong business structure so that you have a company you can be proud of. Regardless of what you need assistance with, we’ll be here every step of the way.
To find out more about or to get started with any of our business consulting solutions, please contact us by phone or email. One of our dedicated team members will be on hand to help you with any queries you might have.