Business Formation

Business formation is a key service we offer because it plays a pivotal role in shaping the foundation of a company. We assist clients in selecting the most suitable legal structure for their business needs, which can have significant tax advantages.

• C-Corporation (C-Corp): C-Corps have the advantage of limited liability for shareholders and the ability to raise capital through stock offerings. Tax-wise, they may benefit from lower corporate tax rates, which can be advantageous for businesses with substantial profits. Additionally, they can deduct a wide range of business expenses, offering potential tax savings.
  
• Limited Liability Company (LLC): LLCs provide liability protection for owners while offering the flexibility of pass-through taxation. This means profits and losses "pass through" to the owners' personal tax returns, avoiding double taxation. LLCs can also deduct a variety of business expenses, potentially reducing their tax liability.
  
• S-Corporation (S-Corp): S-Corps also allow for pass-through taxation, avoiding double taxation. Owners report their share of profits and losses on their individual tax returns, potentially leading to tax savings. However, S-Corps have certain eligibility requirements, and not all businesses can choose this structure.
  
• Nonprofit Organization: Nonprofits are exempt from federal income tax if they meet specific criteria and operate exclusively for charitable, religious, educational, or other tax-exempt purposes. Additionally, donors to nonprofits may be eligible for tax deductions for their contributions.

Advising clients on the best business formation for their specific situation involves considering their long-term goals, organizational structure, and tax implications. By offering this service, we guide clients toward the most tax-advantageous choice that aligns with their business objectives and compliance requirements.