Incfile offers several valuable features that can help you streamline your business startup. These include a business dashboard and courtesy email reminders of state compliance and renewal deadlines.
The company also offers an LLC kit that includes a binder, slipcase, 20 stock certificates, transfer ledger, and personalized embossing seal. The kits cost $99, including shipping.
1. What is a business?
A business is an organization or enterprising entity that engages in commercial, industrial or professional activities. Businesses can be for-profit entities or non-profit organizations that support a charitable mission or social cause.
Start your online business with a clear vision and plan. Research your market and competitors to ensure that you are providing something unique and that there is a demand for your product.
2. What is an LLC?
A limited liability company gives owners protection from business debts and liabilities. It also allows for tax benefits, making it a popular option for entrepreneurs.
LLCs can choose how they want to be taxed, and there are typically few startup costs. There may be a fee for registering your business name, though.
An LLC’s profits pass through to its owners, who report them on their personal tax returns. Talk to your accountant to learn more about how an LLC can benefit your business.
3. What is a corporation?
A corporation is a distinct legal business entity. A corporation can own property, enter into contracts, pay taxes and sue or be sued separately from its owners, who are called shareholders.
Incorporating is one of the most important business decisions you can make. A good lawyer or tax professional can help you determine whether this is the best structure for your company.
4. What is a nonprofit?
Nonprofits are organizations that operate without the intention of earning profit. They are normally regulated by state laws and subject to annual reporting requirements.
To generate revenue, nonprofits typically collect member fees or charges, hold fundraising events and receive government grants. This is in addition to generating revenue from the sales of goods and services.
They are prohibited from distributing any profit to owners or investors.
5. What is a limited liability company?
Many businesses must adhere to local, state, and federal regulations. This can include filing for certain permits and licenses.
For an extra fee, Incfile can help you obtain an Employee Identification Number (EIN) for your business. They can also draft an LLC Operating Agreement and file for your business’s banking resolution. They offer these services in their Gold package, which starts at $249 – $100 more than Silver.
6. What is a C-corporation?
A C corporation (named for subchapter C of the IRS code) is a separate legal entity that safeguards shareholders’ personal assets from company debt and liability lawsuits. Investors invest through shares; the Board of Directors sets strategic direction; and officers run day-to-day operations. C corporations must adhere to many operating rules and corporate formalities.
Pros include avoiding double taxation; losses can offset income; and shareholders can deduct dividends from their taxes. Cons include high startup costs, strict requirements and complex regulations.
7. What is an S-corporation?
An S corporation is a for-profit business that has elected special tax status with the IRS. Like C corporations, S corps must observe corporate practice and formalities, such as having a board of directors, writing bylaws, and keeping minutes for significant company meetings.
Many states impose fees such as annual report and franchise taxes to operate as an S corp. However, these fees are typically inexpensive and can be deducted as an operating expense.
8. What is a limited liability partnership?
Incfile offers packages that include an EIN for a one-time fee, and the Gold and Platinum packages also include the price of a year of registered agent service. Those are recurring charges, but the company’s overall pricing is competitive with its competitors.
The cancellation policies are obscured under a lot of legalese, and most yearly services appear to renew automatically (except for the first free year for your registered agent). This is not ideal.
9. What is a sole proprietorship?
A sole proprietorship is a business that has one owner. It is the simplest type of business to set up and is common among freelancers, home-based businesses, or small businesses with few employees.
Profits from a sole proprietorship are taxed through the owner’s personal income. It can also be more difficult for a sole proprietorship to obtain a bank loan because it lacks the legal separation of ownership.
10. What is a partnership?
Partnerships are a way to combine resources and share profits with other business owners. It is important to determine how decisions will be made and what happens if partners disagree. You should also decide how much of the business each partner owns and set rules for distributing profits and losses.
Having a written partnership agreement is important because it defines the responsibilities and liabilities of each partner. There are several different types of partnerships, including limited partnerships and joint ventures.
