Incorporation & New Business Advisor Services
Our Minneapolis CPA firm can assist you with business start-up, incorporation and entity selection services. Scott Reid CPAs has the experience to help advise and guide you in choosing the best business entity to meet your short and long term goals. Many businesses are formed without the owner ever really considering the implication of each entity type. Selecting the wrong type of business structure can result in unnecessary taxes, increased liability and other consequences.
We consider all the factors including asset protection, your personal liability, state and local laws, future growth and how to minimize your taxes. With our guidance and support you will be able to choose the best legal form of business organization so you can minimize your future tax obligations and grow your new business.
New Business Advisory You Can Trust
- Incorporation and entity selection
- Filing startup paperwork
- Federal and state tax ID applications
- Tax planning advice
- QuickBooks set up and installation
- Payroll services
We provide new business advisor services for:
- Corporations – C Corporation, S Corporation
- Limited Liability Companies (LLC)
- Limited Liability Partnerships (LLP)
Popular Forms of Business Formation
Scott Reid CPAs, a Minneapolis accounting firm has helped many businesses simplify the incorporation and business formation process. Below are some popular entity types for businesses. Each entity selection choice has tax advantages and disadvantages that must be considered before making a decision for your business. We invite you to call us at 651-635-9776 and we'll help answer your questions about how to minimize your taxes and incorporate your business.
Limited Liability Partnership (LLP)
A limited partnership is comprised of general partners and limited partners. The general partners have management authority and personal liability for obligations of the limited partnership. The limited partners are cash investors and have no management authority. The limited partners have limited liability only for the amount invested in the limited partnership. The limited partnership is not a separate taxpaying entity and is often formed with a C corporation or S corporation as the general partnership.
Limited Liability Company (LLC)
An LLC must file Artcles of Organization with the Secretary of State in order to be formed and it requires an organizational agreement similar to a partnership agreement. The owners or members of the LLC are shielded from personal liability for the obligations of the LLC. The LLC may be taxed as a partnership so income and deductions are reported by its members on their respective individual income tax returns.
Corporations
A corporation is a separate legal entity. Its owners or shareholders have no personal liability for the obligations of the corporation. The disadvantage of a traditional corporation (C corporation) is double taxation since tax is both paid on corporate income and again when shareholders pay income tax on dividends.
To avoid double taxation, corporations that qualify make a special S election to be taxed only once. These corporations are known S corporations.
C-Corporation
- Double taxation - Corporation taxed on its income; shareholders taxed on distributions or dividends from the corporation
- Separate legal entity distinct from shareholders
- Offers good asset protection
S-Corporation
- Must meet certain requirements or risk being treated as C Corporation
- Separate legal entity distinct from shareholders
- Corporation will not be taxed, but shareholders report tax on individual returns
- Offers good asset protection
Call us at 651-635-9776 or request a consultation through our website to learn how we can help you determine the best structure for your business.
