Duluth/Lawrenceville CPA: Utilizing the Incorporation Process of Your Entrepreneurial Based Business
So you have started a new business and now need tax advice to take your business to the next level and to ensure that you set up as the correct/best legal entity type for your new Georgia business. Choosing to incorporate your business as a corporation will do much to protect your personal assets from legal liability issues while potentially shrinking your overall year-end tax obligation while also providing benefits for yourself, as well as your employees. We are here to serve you as you make this important decision. Over the decades we have helped thousands pursue the dream of owning their own business and helping them understand and utilize the entity choice that is best-suited for their business.
Starting Your New Incorporation
Incorporating in Georgia requires that you file for the company Articles of Incorporation with the Georgia Secretary of State's Office. Corporations should also be sure to prepare a legal posting/announcement for the legally authorized newspaper in the county's paper, establishing bylaws, election a Board of Directors, Officers and the issuance of stock.
Requirements for Business Set-up
Georgia law, for example requires that you essentially disclose that entity type your business is as part of the name of the business such as adding to the end of your business name one of the below entity types. These names acknowledge to the public what entity type you have selected and for identification purposes with the your state's Secretary of State. Types include:
Providing a Name for your Business
Georgia law, for example, requires you to select a corporate/business name that is easily distinguishable from other names so that the public will be able to readily identify and recognize businesses from other companies.
Having an Incorporator
Georgia law, as an example, requires that as a business legally registering to transact business in the state have a named incorporator who is responsible for all of the initial incorporating paperwork. A company's Articles of Incorporation should be included in the initial paperwork filed with the Secretary of State's Office with the initial filing fees. Working with a professional/attorney in your state will ensure you make wise incorporation choices, while always being sure to meet with your CPA first and foremost to ensure a wise and prudent entity choice.
Over the years of serving Georgia business owners have often struggled with "what's next" in the establishment and setting up of their new business. To help clarify and assist owner in addressing these issues we work with taxpayers be providing the below Incorporating Checklist:
This is to confirm that we went over the rules of being an S Corporation and that you have opted to become same. You are aware of the need to have an annual Board of Directors, Officers, and Shareholder's Minutes meetings and that each year you should pay the annual fee with the Secretary of State's Office to renew your corporations annual registration.
Please be aware that you need to get a business license and always list your corporate title when signing any agreement and conduct all corporate business in the corporate name.
In your corporate book you will find several forms:
Employee forms - W-4, G-4, and I-9 and independent contractor forms W-9. After they complete these forms, you should keep these in their permanent files. There is also information on the Georgia New Hire Reporting Act and forms relative to that information. You are aware of the need to pay a reasonable salary and that you are going to retain a payroll service for your entire payroll and 1099 needs. Please be reminded that as long as you pay yourself a reasonable salary, you may also pay yourself shareholder distributions, which are devoid of FICA and Medicaid taxes. Per your advice you will not be required to file sales tax reports.
The following are recommendations to better manage your business:
Turn in a monthly expense report to the business and keep a daily log to track and support business miles.
I suggest we tax plan twice every year. Your corporate returns are due March 15th of each year.
You will need to trademark your business name to ensure that the name will always be yours.
Please forward a copy of your last year personal return along with a copy of the S Corporation acceptance, when it is received.
To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html There you will also discover a wide host of resources for Atlanta Entrepreneurs.
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