EXPLORE BUSINESS TYPE OPTIONS

LLC

Limited Liability Company or LLC

LLCs shield the owners, who are called members, from being personally liable for actions of the LLC. LLCs also provide flexibility in management and offer the benefit of pass-through taxation which means that the profits and losses of the business pass through to its owners, who report them on their personal tax returns. Pass-through taxation is among the reasons why LLCs are significantly easier to run compared to a corporation.

Why choose an LLC?

Consider forming an LLC if you are fearful of personal risks to lawsuits arising from your business. For example, if you decide to open a storefront business that deals directly with the public, you may fret that your commercial liability insurance won’t fully cover your personal assets from potential slip-and-fall lawsuits or claims by your vendors for unpaid debts. Running your business as an LLC may ease your mind because it instantly offers you an additional layer of security against these and other possible claims against your business.

New York LLC Costs:

  1. New York State Filling &  Federal Tax ID (EIN):  $500,   Due to BMY & Co 
  2. Newspaper fees: $1,00-$2,000 vary by county, Due to Newspaper,
  3. Certificate of Publication: $150, Due to BMY & Company 
  4. Ongoing: Biennial Statements: $9, every two years, Due to NYS
  5. LLC Kits and additional official copies $450+
  6. Permits and Certificates, $400+ 

Incorporation

S- Corp

The S corporation business entity type is a corporation that comes with a special advantage: it has the limited liability of a corporation, but without the "double taxation" of income passed through to the shareholders. Prior to the acceptance of the LLC, the S corporation was the best vehicle to shield the owners while avoiding double taxation. The "S corporation advantage" allows a business owner to use the business losses—such as those incurred during the startup phase—on their personal returns as deductions. S corporations can also provide savings for their owners on self-employment or Social Security/Medicare taxes along with the FICA (Federal Insurance Contributions Act) tax.

Why choose an S corporation?

An S corporation allows the owners to offset non-business income with losses from the business, unlike a C corporation which is a completely separate tax entity. When compared to an LLC, the S corporation enables an owner to characterize a portion of income as “dividend,” rather than “earnings” that are subject to employment taxes

C- Corp

C corporations are the most common type of corporation. They offer more flexibility than S corporations relative to the number of owners (shareholders) they can have and who can be an owner. Because of a pronounced ability to deduct employee benefits, C corporations are often preferred by developing businesses.

Why choose an C corporation?

C corporations offer more flexibility than S corporations when it comes to the number of owners (shareholders) they can have as well as who can be an owner. Plus, the owners can hold different types of stock interests (such as preferred versus common stock.) This is one reason why venture capitalists choose C corporations when they offer funding to a business. Investors are drawn with the prospect of dividends if the corporation makes a profit. A C corporation can also retain and accumulate earnings (within reasonable limits) from year to year.

New York Corporation Costs:

  1. New York State Filling &  Federal Tax ID (EIN):  $500,   Due to BMY & Co 
  2. S Corp Filing $200, Due to BMY & Co
  3. Corporation Kits and additional official copies, $550+
  4. Permits and Certificates, $400+


DBA

Doing Business As: Adopting a business name

A doing business as (DBA) filing is an official and public way to register a business name with either the state or a local jurisdiction, such as a county. A DBA name is also called an assumed name, fictitious business name or trade name.  A DBA name is typically used when you want to use multiple names for one business, or if you are a sole proprietor wanting to be recognized as a name that is not your legal name. 


Why a DBA name is important

DBAs allow sole proprietorship and general partnerships to conduct business under a name other than the owner’s or owners’ personal name(s). For C corporations, S corporations, limited liability companies (LLCs), limited partnerships (LPs), limited liability partnerships (LLPs) and nonprofit corporations, filing a DBA allows them to transact business using a name other than the official company name that is included in the incorporation documents.

Once the DBA filing is approved, the business can use the name as its official business name and:

  • Open a business bank account
  • Create stationery or business cards using the DBA name
  • Develop advertisements and/or list the company in directories
  • Undertake transactions on behalf of the company


Common reasons for DBA Filing 

There are a number of reasons why business owners choose to file a DBA, and these reasons may vary by business type. There are a number of reasons why business owners choose to file a Doing Business As, and these reasons may vary by business type. Common reasons include:

  • To transact business under a name other than the official name of the company or the sole proprietorship. A DBA name allows a sole proprietor, corporation or LLC to name the business something other than the legal name, which in the case of a sole proprietor is the name of the individual.
  • Open a business bank account. Banks typically require sole proprietorship and general partnerships to have a DBA before opening a business bank account.
  • Additional business credibility. Having a DBA can lend additional credibility for sole proprietorship and general partnerships.
  • New name for new business activity. Often a DBA filing is made when a company wishes to enter a new line of business or to market a new product or service.
  • Domain name as Doing Business As. A DBA name can be filed in order for a company to transact business under the company’s domain name.
  • Public notification. A DBA filing notifies other businesses that the name is in use, as the DBA name becomes part of the public record.


Key Benefits of DBA

There are no limits to the number of DBA names a business can register. Having multiple DBAs can allow your company to effectively run separate businesses under one legal entity, as long as you stay within any limits posed by your business purpose (if incorporated). 


For pricing please contact us.