Conducting your trading business in a entity unlocks several additional tax benefits.
We form entities for traders and non-trader clients including most types of small business. Traders should read Entity Solutions in our Trader Tax Center.
Before you sign up for our entity formation service, please have an initial 30-minute consultation with Robert A. Green, CPA or Darren L. Neuschwander CPA to determine if an entity is right for you. For example, some traders may not qualify for trader tax status which is required in an entity for business tax breaks. Most operating businesses (non-traders) need liability protection and an LLC or corporation is a wise choice for them.
Choose our service level below
Entity Formation Service: During your initial consultation, we recommend the best entity strategy for your specific circumstances and goals. During the entity formation meeting, we:
- Finalize the entity plans and form an LLC or corporation using our BizFilings services (see below). (General partnerships don’t require a state filing.)
- We go through formation and start-up tax issues including ownership percentages with a spouse, profit-sharing special allocations, initial capital contributions, tax elections (S-Corp, Section 475 MTM securities, Section 988 forex), employee-benefit plan deductions (retirement and health), tax strategies including Section 195 start-up costs and Section 248 organization expenditures, banking needs, accounting solutions and expense reimbursement plans.
- It’s all included in our basic service and price, which also includes follow-up questions.
Entity Formation & Tax Compliance Package: Most clients who use our entity formation service engage us for our tax compliance service. We design our entity formation strategies and structures for maximum tax benefits and it’s important to use our tax compliance service to collect those tax breaks on your return. Don’t let the tax breaks fall by the wayside by not attending to them on a timely basis, like executing payroll and employer 401(k) retirement plans before year-end. We assign a CPA from the start to answer your questions on tax planning, which is a key element in our tax compliance service.
Entity Formation, Tax Compliance & Accounting Package: You can add on our accounting services, too. A good outcome on our tax compliance service partially depends on the quality and timeliness of your accounting solutions..
BizFilings online incorporation service
We use bizfilings.com for forming LLCs and corporations in all states. We don’t need an online incorporation service for forming general partnerships. We use their service during our meetings and the client pays the cost directly by credit card. (We are a long-term paid affiliate of BizFilings.)
Outside attorney service for legal paperwork
We are not a law firm so we use an outside attorney for legal services. We send our memo with full details to the attorney and she executes the legal paperwork, including:
- Corporations and LLCs: online application for federal EIN (tax identification number); guidance on local applicable laws pertaining to tax registration. For LLCs: customized standard operating agreement and resolutions for those electing or considering S-corp status; preparation of state and federal S-corp election. For corporations: customized standard bylaws, minutes of first shareholder meeting and resolutions; resolutions for those electing or considering S-corp status; preparation of state and federal S-corp election.
- Partnerships: name check, guidance on local applicable law on fictitious business names (FBNs), online application for EIN, guidance on local applicable law pertaining to tax registration, customized standard partnership agreements and resolutions.
- When directed by us, purchase the outside attorney service.
- Disclaimer: Our outside attorneys and BizFilings advise clients throughout the U.S. Some issues vary by state, county, city and town jurisdiction. Consider getting local attorney advice for compliance when appropriate. There are other issues to consider like local property taxes, too.
If you have any questions about our entity formation services please contact us.
We look forward to working with you soon,
Managing Members Robert A. Green, CPA and Darren L. Neuschwander, CPA