Entity Formation

Sky_puzzleWhy Incorporate? 

Personal protection and preferred tax treatment – plain and simple.  Forming a company draws a clear line between your personal and business assets.  This helps to protect your personal assets from risks or debts associated with running your business.  Forming a company also allows you to save money on taxes, reduces the chances of a tax audit, establishes credibility with your customers and banks, and facilitates succession planning for the business.

Call our team of incorporation specialists to set up a free initial consultation at our Newark, Delaware office (or by phone if you are not local) to discuss what entity type is right for you. 302.994.2000

 

How Can I Save Money By Incorporating?

If you are operating as a sole proprietor, you are required to pay self-employment tax on your profits.   The current self-employment tax rate is over 15%.  By creating a corporation or LLC (limited liability company) for your business, only the salary you pay yourself is subject to self-employment tax.  Thus, controlling your payroll will allow you to control self-employment tax.

Depending on your situation, you may be able to save as much as 50% on your tax bill.  Another tax benefit of incorporating is deductions – select medical and childcare costs may be deductible depending on your situation, whereas sole proprietors cannot deduct them.

 

What Benefit Do I Get By Incorporating with CBS?

Form your company at an affordable price and enjoy the benefits of the high level of customer service delivered by our knowledgeable, experienced staff.  With our document filing services, you’ll know exactly what you will receive and exactly how much it costs from the beginning.  In most cases, the filed documents are returned to us within a few days of filing and are then given to you in a handsome company notebook embossed with your company name.

 

DifferenceEngine№2Why Is Having CBS Form My Company is Better Than Using a DIY Website?

Simply, because we are tax experts.  Forming a company whether it be a corporation, LLC or a partnership, is the first decision that any business owner makes with regards to how their income will be taxed. There are numerous variations of tax election that you can select – and all have significant impact on how you and your company will be taxed.  Each election might result in a dramatic tax implication – a wrong choice could mean paying thousands of dollars in unnecessary taxes.  A website may do a good job of explaining this or not. And fully understanding the long-term implications of the entity status usually requires more than the average business owner knows about taxation.  Therefore,  having CBS’ team of tax experts form your company gives you peace of mind knowing that from the start your entity is set up properly, and will maximize all tax advantages available.

 

What if I Am Trying to Set-Up a Non-Profit?

Setting up a non-profit requires completing and submitting a non-profit status application to the Internal Revenue Service. This is no small feat – especially when you are trying to get your non-profit off the ground.  Because we have completed these applications hundreds of times, we understand the nuances of what the application requires and how to navigate the process.  Our team completes the application in its entirety for you – so you can focus on the importance of launching your non-profit cause.