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    Starting a New Business

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Starting a business is often less complicated than many people perceive. By employing a well-thought-out strategy and leveraging expert resources, you can significantly enhance your chances of success. At Grace & Ben, we take pride in collaborating closely with our clients throughout the entire process, providing guidance and support to help ensure that their business not only launches smoothly but also flourishes in the long run.

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When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.

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Sole Proprietorships 

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​A sole proprietor is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.

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Partnerships

 

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A partnership is the relationship between two or more people to do trade or business. Each person contributes money, property, labor or skill, and shares in the profits and losses of the business.
 

Corporations

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In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. A corporation can also take special deductions. For federal income tax purposes, a C corporation is recognized as a separate taxpaying entity. A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders.

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S Corporations

 

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S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level.

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Limited Liability Company (LLC) 

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 A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, you should check with your state if you are interested in starting a Limited Liability Company. Owners of an LLC are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner.

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1. Plan Ahead Before Going Into Business

2. Write a Business Plan

3. Get Training and Counseling

4. Get Advice on Business Financing

5. Use State Services and Grants

6. Choose a Business Structure

7. File for a 'Doing Business As' (DBA) Certificate

8. Register Your Business with the State

9. Get a Tax ID and Learn About Tax Rules

10. Obtain Licenses and Permits

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Sounds like a lot of step, but guess what? G&B is here to go every and each step with you.