Dec 21, 2022
Exciting news! You want to form a business but need help figuring out what to do or where to turn. When it comes to forming a business, there are several factors and steps during the process you should take to ensure you are set up for success. The Golden Lion Tax Solutions professionals can take you from concept through to the day you open your doors. Here is how we can partner to start you off on the right foot.
First, where do you start? There are several items to consider before even beginning the process of forming your business. Once you have identified what you want your business to do, you will want to conduct market research to know and evaluate similar companies or services in your area. Choosing the right location will be vital in gathering demographical information like demand, pricing, market size, and economic indicators to understand opportunities for gaining customers. The location of your business will also impact the requirements for registration, which taxes you will need to be responsible for and how much those taxes could be, potential personal liability, and what permits and licenses you will need.
Once you have finalized your research, you must compile a business plan encompassing your company’s foundation. This plan will need to be as comprehensive as possible to convince potential investors, individuals, or businesses that wish to work with you, that your company is a smart choice for them. It will also serve as your roadmap as you open and begin operations. Though you may find that your growth heads in a different direction than initially planned, it will be a great reference point for you as your company grows and changes.
Next, you will want to determine the entity your business will be set up as. Why is this important? The main reason to form a formal business entity is protection. Choosing the proper business entity creates separation between you as an individual and the business. This protection can shield you, the individual, from the debts and liabilities of your business.
For this reason, it is crucial to understand the different types of business entities available so that you can choose the best one for your business needs and goals. The most common entity types are Sole-proprietorship, Partnership, Limited Liability Company (LLC), and S-Corporation. Take some time to investigate each option, as each carries different requirements, benefits, and ongoing responsibilities.
Another item to note with choosing the correct entity: if your business will be an S-Corporation, then it is essential that you, as an officer, are compensated properly. Obtaining a Reasonable Compensation Analysis Report will guarantee that your officer’s compensation is proper. What exactly is a Reasonable Compensation Analysis Report? It is an independent, unbiased report that establishes Reasonable Compensation for you as an officer, using criteria outlined by the IRS and Courts. The analysis report is compiled based on the officer’s duties, tasks, and responsibilities within the S-Corporation and is a service Golden Lion Tax Solutions can provide for you. The IRS has been making it known that the Compensation of Officers reported on the annual income tax return for S-Corporations will be highly scrutinized for the 2022 tax year and the years following. Having a Reasonable Compensation Analysis Report in hand will provide you with the best defense should the tax return be flagged for an audit, as it utilizes the same databases the IRS and tax courts use when scrutinizing reasonable compensation.
The last step before the registration process is choosing a name for your business. Choosing a name can be one of the most challenging steps, as you will want to choose a name that helps make your business stand out while hinting at what your business actually does. When choosing a name for your business, one key thing to remember is to confirm that the name, or a similar name, has not already been taken. You won’t be able to stand out if a similar business with a similar name is already in operation. We can guide you in choosing a name that is as unique as you and your business.
Now that you have completed the market research, compiled a business plan, obtained funding, and determined your location and business structure, it is time to register the business. This process will begin the necessary legal steps with state and federal governments to register the entity and identify which tax obligations it must adhere to as soon as it starts operating. By having a professional such as Golden Lion Tax Solutions involved with the business formation process, we can walk you through all legal and tax-related obligations to ensure your business never encounters a misstep with its obligations. As each state and sometimes every county has different reporting requirements based on the activities of the business, we can ensure nothing is missed, thereby preventing problems for you in the future.
As you can see from all this information, there are several factors to consider and address when deciding to form a business, which can be stressful and overwhelming. At Golden Lion Tax Solutions, we can take the stress out of starting your business and ensure everything is covered. We understand the importance of setting up your business for success and will provide you with any necessary tools you will need. Not only do we ensure all the necessary steps are completed, but we will also ensure you are educated to understand your annual requirements to keep your business in good standing. Contact us today to begin your entrepreneurial journey.
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Your future and your family deserve the right protection. Golden Lion Tax Solutions will be your advisor and confidant throughout the entire journey. We guarantee to offer you or your business best-case solutions for your tax debt. We are by your side every step of the way. Start now and get your life back.
For help with your tax debts, email firstname.lastname@example.org or call 833-LION-TAX (833-546-6829)
Disclaimer: There are requirements that must be satisfied in order to qualify for some of the tax solutions we discuss on our website. Not all of our services will be suitable for every client. Golden Lion Tax Solutions is here to help you find the most appropriate solution to fit your situation.