Incorporation and New Business Advisor Services

There's much more to starting a new business than renting space or reserving a domain name. Failing to seek proper advice can lead to legal and financial consequences, and even sink your new venture before it ever gets off the ground.

Northern Massachusetts CPA firm Turner & Costa, P.C. has the knowledge and experience to help you make the right decisions from the beginning. With our guidance, you'll choose the best type of entity and the best state under which to incorporate, file the appropriate start-up documents, establish a tax plan, set up financial systems, ensure Social Security compliance, and provide for health insurance and other employee benefits.

Choosing the Right Type of Entity

The type of entity under which you incorporate has enormous implications for a new business. Turner & Costa, P.C. can explain the pertinent tax and legal issues and help you determine the best choice for your venture. Here is a brief rundown of several common forms of incorporation.

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 Corporations

• The corporation is taxed on its income and its shareholders are also taxed on distributions or dividends they receive from the corporation.
• It is a separate legal entity from its shareholders.
• If offers good asset protection.

S Corporations

• The corporation is not taxed, but shareholders must report taxes on their individual returns.
• It is a separate legal entity from its shareholders.
• It offers good asset protection.
• It must meet certain legal requirements or risk being treated as a C Corporation.

Limited Liability Partnership (LLP)

An LLP is comprised of two types of partners. General partners have management authority as well as personal liability for the firm's obligations, while limited partners are simply cash investors with no management authority and liability for only the amount they have invested. An LLP is not a separate tax-paying entity and often is formed with a C or S corporation as a general partnership.

Limited Liability Company (LLC)

An LLC requires an organizational agreement similar to a partnership agreement and must file articles of organization with the Secretary of State. The owners or members are shielded from personal liability for the company's obligations. An LLC may be taxed as a partnership, so its members must report income and deductions on their individual tax returns.

We'll be happy to meet with you at no cost or obligation to introduce our firm and discuss how partnering with Turner & Costa, P.C. can get your new business off to a great start. Call us at 978-692-3291 to set up an appointment or request a consultation through our website.