It is too soon to be involved?

Many young entrepreneurs and start listening as soon as possible a lot of advice on the establishment or creation of an LLC or Limited Liability Company. Despite the fact that the inclusion offers many benefits, including the protection of limited liability companies are not all uploaded to hurry to create a separate legal entity.

Before making a decision on registration or establishment Ltd., is a good idea to meet with an accountant or a company for corporate services, to discuss the following areas and to determine whether the costs of establishing an LLC or incorporation of an advantage to justify in your case.

  • Differences in income taxes between the individual entrepreneur, LLC, S Corporation and C Corporation
  • registration fees
  • Annual fees and taxes
  • Cost registered agent
  • Minimum tax state revenue
  • Fees for execution of income tax
  • Constant maintenance costs

What state you have to choose?

If you are considering the possibility of establishing a limited liability company or the creation of a limited liability company, you can try to go to Delaware or Nevada. Both countries offer a variety of benefits, including lower fees for the creation of an LLC or corporation, but it will likely not be the best choice if you are new to starting a business with little money. If it will be like your situation, you may find it easier and more affordable to go to the state in which you are working.

Benefits such as Delaware, trade legislation and Kantsylyaryyski court, as well as the benefits of compensation Nevada rarely stand up for additional registration fees and annual fees for very little startup.

Reasons for non-inclusion

Although there are more reasons to incorporate or establish Ltd., there are also good reasons to wait. Corporations have a heavy load, including administrative and tax burden than the non-aligned business. If your business is losing money, you'll probably have a greater tax savings without accounting.

Including too quickly will lead to an unnecessary load on your business and the young will give you unexpected tax costs. Be sure to discuss your decision with the lawyer or company in corporate services, to learn more about your particular situation.

Avoid adding too quickly

If your business is still very small and you have few assets, there is a very good chance that you do not claim in court. If you before the & # 39; presents a claim for fraud or negligence, even the inclusion of force will not protect your personal belongings.

If you do not decide to do your business, make sure that you are still up in your town or city, providing DBA (Doing Business As) and get property insurance and accident insurance. All partners involved in the business, have to sign a comprehensive agreement, as well as to protect you in the early stages of business.