Entity Formation

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Creating a business entity is a very important way to protect yourself from liability and save on taxes. You must decide what form of business entity to create and your form of business determines which income tax return form you must file. Entities are formed at the state level, and every state has some statute that allows for the creation of an entity. We are experts in forming entities in all states of the US.

Business Structures

Sole Proprietorship

It is the simplest and most common structure chosen to start a business. It is an unincorporated business owned and run by one individual with no distinction between the business and you, the owner

Partnership

It is a formal arrangement by two or more parties to manage and operate a business and share its profits. In a partnership business, all partners share liabilities and profits equally, while in others, partners have limited liability

Limited Liability company

It is a business structure in the United States whereby the owners are not personally liable for the company’s debts or liabilities

C- Corporation

It refers to any corporation that is taxed separately from its owners. C corporation is distinguished from an S corporation, which generally is not taxed separately

S- Corporation

It is a small business corporation that elect to pass corporate income, losses, deductions, and credits through to their shareholders through K1 for federal tax purposes

Non-Profit Entity Formation

  • A nonprofit corporation (also called nonprofit, non-profit, NPO or not-for-profit) is an entity formed for purposes other than making a profit. Nonprofit corporations are formed under state law, and as a result are subject to state rules and regulations after their formation. Requirements may include the election of a board of directors, and the drafting of corporate bylaws. In addition, compliance with several internal formalities is typically required, such as holding meetings and recording minutes etc
  • After incorporating, many nonprofit organizations need to apply to the IRS for recognition of tax exemption under section 501(c)(3), also known as 501(c)(3) status
  • Our firm has an expertise in forming non-Profit entity in any state of US

Frequently Asked Questions.

It depends on your expected income and how you plan to pay yourself. An LLC is simpler to run and is the right starting point for many new businesses, while an S-Corp election can reduce self-employment tax once your profit reaches a certain level. We usually run the numbers both ways before recommending one.

Do I need a separate business bank account right away?Filing a Certificate of Formation with the Texas Secretary of State, obtaining an EIN from the IRS, setting up your registered agent, and — depending on your entity type — filing an SYes-Corp election. We handle the full process so nothing gets missed, including the accounting setup that follows.

Texas requires an annual Franchise Tax Report (and Public Information Report) even if your business owes no tax. Missing this filing can lead to your entity being forfeited by the state, which we help clients avoid every year.

Yes. We evaluate the timing so the conversion lines up cleanly with your tax year, handle the entity paperwork, and make sure your books and payroll (if applicable) are restructured correctly on the new entity.

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