Business Services

Business Formation

Which business type is right for me?

Starting a new business is exciting, but you must protect yourself and your business along the way.  Choosing a business type can be daunting, but the information below should help you in get started.

  • Corporations
  • LLC
  • Partnerships

A corporation is a legal entity distinct from its owners, where the owners, or shareholders, are usually only liable up to the amount of money they have invested. 

To form a corporation a creator must file "articles of incorporation" with the state stating corporation's name, the number of shares, its purpose and the name and address of the incorporator(s).  Because the owners of the corporation own shares in the company, it is relatively easy to transfer ownership to other people or to have new owners join the corporation.  For taxation, corporations are taxed separately from its shareholders.  The shareholders are then also taxed when they receive a dividend (payment) from the corporation.  The corporation's tax liability may be reduced by paying tax deductible salaries, however the IRS may see this as a "disguised" dividend and tax it.

Lau & Nicolello, LLC can help get your business setup and running quickly and efficiently.  Please con​tact us for more information.