How to set up your small business as a corporation

How to set up your small business as a corporation begins with what kind of corporation your small business wants to be.There are three main types of corporations, S and C Corporations and LLC.For a small business the best choice is going to be a LLC.This is because of the simplicity of getting the LLC going.

A small business may want a C Corporation if it plans to become very large, or is too large for one person to run.A C Corporation has to have stockholders meetings and board meeting annually and take minutes on these meeting.The C Corporation is taxed twice and is the most expensive to operate.It is not typically the choice for a small business when setting up a corporation.

The S Corporation is similar to the C Corporation, but is not taxed twice.The corporation is required to have annual meetings for the board and stockholders.There need to be fewer that 75 stockholders in an S Corporation and the Social Security taxes are less.

The most popular corporation choice for a small business is the LLC.LLC stands for Limited Liability Corporation.The LLC is just that, it limits the liability for the owner.The corporation can accumulate real estate and debt and the small business owner is not responsible for any misdealing, the LLC is.The LLC is not required to hold any board of directors or stockholders meetings.

So with the LLC being the best choice for small businesses to become a corporation, here is how to set it up.One of the easiest ways is to pay a company like corporate.com to provide your small business with a complete package for a minimal fee.The fee can start at about $75 for the small business.These fees will cover the necessary paper work as well and all the filing needed.The online businesses help and guide your small business through the procedures required to become an LLC.

There are many online companies that will set up a LLC for any small business in any state.State fees may be additional.If you ant to set up your small business as a corporation yourself, the first thing to do is get an EIN.This is an employee identification number.All businesses with employees, or who are a corporation are required by the IRS to have an EIN.

Attaining an EIN is a simple enough process and it is free.You will need to go to irs.gov search for EIN and follow the instructions.It won't take long and can be done at any time.It should be done sooner than later.It is also possible to go into your local federal offices, and get the paper work and fill it out.Either way gets the EIN and then you can continue to set up your small business as a corporation.

The nest step is to go to the state the small business will be operating out of.Each state is different and will have forms and applications for a LLC to be set up.It is a simple process of getting the right forms and giving the right information.The state will give the small business a separate identity from the small business owner and that is when the small business is set up as a corporation.The hardest part is going to the state offices or searching for your state requirements online.Once you have all the information the state requires, which usually isn't much.Your small business is ready to be a LLC

How you set up your small business as a corporation depends first on what kind of corporation you want for your small business.The LLC option is typically the best for small businesses that just want to limit the liability the owner has for the business.To form a LLC is a lot less complicated than any other corporation.Your small business will need an EIN from the IRS and then will need to go into local state offices and fill out the proper paper work.