Business Services
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Are you starting a new Tennessee Business? Forming the right business entity is important to protect both you and your business. Here is a quick summary of some common business entities. Contact our office today for a free consultation to file the proper formation paperwork.
LLC
LLC's are a good option for small business owners who have either no employees, or just a few employees. The members of an LLC are not usually not personally liable for the debts of their company, which is one of the distinct advantages of this structure. LLCs also have tax-related advantages and don’t require the same extensive record keeping as corporations.
S-Corp
An S-corporation is a special type of company that’s created through an IRS tax election. An S-corp essentially offers the stock options of a corporation and the tax benefits of an LLC.
An S-corp also carries tax benefits, such as lower rates and extra available credits. An S-corp designation also allows a business entity to be independent of its shareholders. An S-Corp requires a board of directors, and there are strict rules about holding meetings and keeping records.
Corporation
Corporations are recommended if you intend to go public one day. Corporations require a board of directors, and there are strict rules about holding meetings and keeping records. Corporations must pay income tax on all of their profits, and individual shareholders must also pay income tax on their wages if they’re employees.
Tax ID/EIN numbers
Federal Tax Identification Numbers (sometimes called Employer Identification Numbers) are usually required to open a business bank account, apply for business licenses, and file tax returns. A EIN is a unique 9 digit number which is essentially like a social security number for your business.
Cost: $300 plus filing fees for entity formation, $325 for entity formation and EIN number
LLC
LLC's are a good option for small business owners who have either no employees, or just a few employees. The members of an LLC are not usually not personally liable for the debts of their company, which is one of the distinct advantages of this structure. LLCs also have tax-related advantages and don’t require the same extensive record keeping as corporations.
S-Corp
An S-corporation is a special type of company that’s created through an IRS tax election. An S-corp essentially offers the stock options of a corporation and the tax benefits of an LLC.
An S-corp also carries tax benefits, such as lower rates and extra available credits. An S-corp designation also allows a business entity to be independent of its shareholders. An S-Corp requires a board of directors, and there are strict rules about holding meetings and keeping records.
Corporation
Corporations are recommended if you intend to go public one day. Corporations require a board of directors, and there are strict rules about holding meetings and keeping records. Corporations must pay income tax on all of their profits, and individual shareholders must also pay income tax on their wages if they’re employees.
Tax ID/EIN numbers
Federal Tax Identification Numbers (sometimes called Employer Identification Numbers) are usually required to open a business bank account, apply for business licenses, and file tax returns. A EIN is a unique 9 digit number which is essentially like a social security number for your business.
Cost: $300 plus filing fees for entity formation, $325 for entity formation and EIN number
