Entrepreneurs interested in filing an LLC, should consider when would be the best time to do so.
The rewards of incorporation can only be received after the forms have been filed, but as 2010 comes to a close, there may be some benefits to waiting a few months to file. When considering tax reporting, January 1 is the best day to incorporate, writes Nellie Akalp in an article for Mashable. If a business owner files the forms on any other day, they will most likely have to fill out two business income tax returns that year. One will be for the time spent operating as a sole proprietor and the other for the months spent as a corporation.
This results in December and January being the busiest months for state filing offices, and backlogs can begin to pile up. It often takes 40 to 60 business days for a corporation or an LLC to become established after submitting the forms. The duration of the process varies from state to state, but taking advantage of delayed filing can help put a company at the front of the line, Akalp writes. Entrepreneurs can submit a corporation application at a filing service immeadiately and request to delay the actual incorporation until the new year.