IncFile.com - Business Incorporation Solutions

Many forms of business entities exist, but all pay taxes although there is no way to avoid them, your decision upon choosing a business entity will have differing tax ramifications. The IRS will treats sole proprietorship’s, LLC’s and corporations differently when it comes to paying taxes on profits. If the LLC is a single member LLC, the payment of taxes is the same as for a sole owner where an LLC with multiple members will be taxed as a partnership.

Step 1

The first step is to determine the taxation status of the LLC. The best way to do this is by calling the IRS and asking them what type of taxation they have on record for the LLC. In simple terms if you are the only owner, you will treat the company taxes as if you were a sole proprietary business. If there are multiple owners, then the taxes on profits become the liability of the individual partners. The expenses and profits all divide between the partners based on the percentage of the business that they owned.

Step 2

Track all the relevant profit, costs and expenses on Form C for business income as if you were a sole owner. The Limited Liability Company is required to issue a Form K-1 which stipulates the percentage of income for the LLC that each member is required to report and pay taxes on. This percentage also applies to the costs and expenses of operating the business. Payment of taxes for an LLC is similar to the payment of taxes for an LLC is very similar to that of an S-Corporation in that the profits will flow through to the individual tax returns of the members in the case of the LLC or share holders for S-Corporations.

Step 3

You must submit your tax returns to the IRS by the deadline for the year in which the taxes are due. The tax forms for an LLC have the same filing date as a normal taxpayer or other self-employed taxpayer. File estimated taxes due with the return. There will be penalties and interest on the unpaid balance of tax due. You are allowed to call the IRS in order to make arrangements for a payment schedule.

A correspondence fee is a fee over and above the state filing fees that reflects any extra cost of filing with a given state involving general document management and order handling, and these costs may differ from state to state.

Such costs include, but are not limited to, long distance voice and fax calls, special mailing requirements, hidden state fees, extra search fees. If desired, in addition to our standard filing service, INCFILE.COM can prepare the necessary incorporation documents and provide them to you to file yourself. We would provide the prepared documents to you electronically for you to file with the state, and the charge for this would be our standard $49.00, with no correspondence fee.

The Corporate/LLC Kit is a professional binder enclosed in a matching slip case, customized with the name of your company on the spine insert. It comes with a metal die-cast corporate embossing seal with its own carrying pouch, customized with the name of your company and the date and state of formation. It has a set of 6 Mylar Reinforced Index Tabs, 25 custom printed stock or membership certificates with 25 full page stubs. It also comes with a variety of corporate forms on CD-Rom. The kit can be added to your order of our standard formation service, and it is included with the Premium Package.

A Corporate Seal is a customized embossing stamp that contains the name, date and state of formation of your company. In some jurisdictions a corporate seal can be required to open a company bank account. It is typically used on company documents to mark them as official. The Corporate seal is included in the Corporate/LLC Kit.

A Publication Requirement is a compliance mandate that requires the creation and ownership of an LLC to publish an announcement in local newspapers upon being filed. Upon completion of this requirement an affidavit is typically filed with the state to inform them that the publication requirement has been satisfied. Currently the states which require thus are Pennsylvania (corporations only), Georgia (corporations only), Arizona (corporations and LLCs), Nebraska (corporations and LLCs), and New York (LLCs only). At this time IncFile does not provide this service.

Your order is refundable until payment is forwarded to the state (typically within twenty four hours after your order is placed), less a $30.00 cancellation fee and less any expenses which have been paid or incurred in furtherance of your order with any entities, including state agencies or third party vendors. Once payment has been forwarded to the state we cannot accept any cancellations or any other changes to the state filing. We typically forward your filing and payment to the state within twenty four hours after your order is placed. If you have placed an order and would like to cancel it or make any other changes, you must send an email to support@incfile.com. Instructions to cancel an order or any other changes to an order cannot be accepted by telephone.

Unless you plan on having a large, multi-state operation, it is generally best to form your company in the state in which it is located.

Generally speaking, most states will expect you to be registered with them if there is substantial ongoing business and/or a physical presence in that state. If you do form your company in a state other than the one in which your company is located, you may ultimately need to register your company as a foreign (out of state) company with your home state, which will subject you to all of the fees, taxes, and regulations of that state.

No, it does not. An attorney is not a legal requirement to form a Limited Liability Company. While we always recommend consulting the appropriate legal and accounting specialists, we can take care of the filings for you and save you the attorney fees.

In order to form your company, we need to know what name you want for the business. Before forwarding the necessary formation documents to the state we do a name search in your state of formation to see if the company name is available. If the name you want for your company is the same as or too similar to an existing company, the state will reject the filing. In the case of this eventuality, we request an alternate name that is distinctly different from your first choice. If the first choice is not available we will proceed with the alternate choice. If neither is available for filing we will contact you for further options.

NOTE: When choosing a company keep in mind that many company names comprised of two and three letter combinations are frequently unavailable.

The SS4 is the IRS form required to obtain an EIN (Employer Identification Number, frequently called a Tax ID number). The EIN/Tax ID number can be thought of as a Social Security Number for your business. It is usually required to open a bank account in the name of the business and to properly pay and account for any wage/payroll employees of your company. If you require this service we will prepare the SS4 form, and return with your filed formation documents for your signature to file with the IRS. Optionally, you can elect to have IncFile obtain your EIN electronically for you so you will have it ready to go as soon as your company is formed. Just check the appropriate options on the order form and we will send you the prepared SS4 or obtain your EIN electronically, as required.

Click here to have IncFile obtain and email you a FEIN / Tax ID Number.

Once your order is placed we will immediately begin processing the formation of your company. If additional information is required we will contact you for the necessary information. We handle your formation from beginning to end and make sure that your formation is filed quickly and correctly.

IncFile is owned and operated by IncFile.com, LLC and is headquartered in Houston, Texas. Our address is:

IncFile.com, LLC
14027 Memorial Drive, Suite 110
Houston, TX 77079

Almost every state requires a corporation or an LLC to have a Registered Agent (sometimes called a resident agent, statutory agent, or agent for service of process). The Registered Agent address is the address that will be used by the state for any official legal and tax correspondence. The Registered Agent address must be a physical, in-state street address; P.O. Boxes are not acceptable. If needed, IncFile can provide you with a Registered Agent for only $99.00 per year, and any official legal and tax correspondence from the state will be forwarded to your billing/shipping address.

NOTE: If you require us to provide a registered agent, the address cannot be used as a general business/mail forwarding address. Only official legal and tax correspondence from the state will be accepted and forwarded.

Each state has different requirements. Some states require your signature on the Registered Agent acceptance form and some do not. If the formation of your company will require your signature we will sign on your behalf, as your authorized representative.

All you need to do to get started is fill out our easy online order form, which collects all of the necessary information, and only takes a few minutes.

A Limited Partnership consists of at least one general partner and one limited partner. The general partner is potentially liable for all the obligations of the partnership. The limited partner has limited liability. Limited partners may jeopardize their limited liability status if they actively participate in the business of the partnership.

An LLC consists of one or more members which may be individuals, partnerships, limited partnerships, trusts, estates, associations, corporations, other limited liability companies or other business entities. The members of an LLC are afforded limited liability similar to shareholders of a Corporation and have pass-through taxes comparable to a partnership.

While meetings may frequently be necessary and proper to discuss a variety of LLC issues, they are not required by the state to have and maintain an LLC as they are with a corporation.

An LLC is typically managed by its members/owners (referred to as member-managed). In that respect an LLC is unlike a corporation, which has a much more rigid and defined management structure, including directors and officers. All owners of the LLC are typically referred to as members, and they can have control and voting interest proportional to their ownership interest, or in proportions different from their ownership interest; however the members agree.

For federal income tax purposes the profits of an LLC (Limited Liability Company) “pass through” to the personal income of the members/owners. In the case of a single member LLC it is taxed the same as a sole proprietorship (i.e. typically filed on the schedule C of the owner’s personal income tax filing). In the case of a multi member member it is taxed the same as a partnership (i.e. a 1065 partnership return is filed with the IRS, with a schedule K-1 being supplied to each partner/member showing the proportional profit/loss allocated to them, with this being filed on the schedule C or E).

NOTE: These are general tax explanations and may not apply to everyone. You should confer with the appropriate accounting/tax specialists to make sure you understand your personal tax liability.

There are no citizenship or residence requirements for ownership of a C Corporation or an LLC. The S Corporation however does not allow nonresident aliens to be shareholders (owner), but any US citizen or resident alien may be a shareholder (owner). You would, of course, require an in state street address for the state to forward official legal and tax correspondence including service of process, known as the registered agent address, but neither residency nor citizenship is required for ownership of a C Corporation or an LLC.