Business Formation and Other Payroll Services:
Start your new business confidently with Khob Tax Services aligning and securing it perfectly in the legal framework. For business formation services and/or payroll and bookkeeping services, Khob Tax is the first choice of hundreds of American entrepreneurs. Khob Tax’s payroll and bookkeeping team provides tailored services that suit your business needs and saves time. Whether you are researching your options or are ready to start a business now, we are here to provide the right guidance that helps you get started on your business and run it smoothly.
Here are the services we provide in this space:
1. How should I structure my business?
There are four common types of business structures to consider: sole proprietorship, partnership, corporation, or LLC. Each structure has a unique set of rules. Your tax liability varies for each business structure. Sole proprietorships have one owner. The owner and the business are the same legal entity, so if the business can’t pay its debts, the owner is liable. Partnerships are owned by two or more people. Like sole proprietors, owners assume responsibility for company debts when the business can’t pay. Corporations are separate entities from the owner. The owner’s personal assets are protected in case the business can’t pay its debts. LLCs combine aspects of a corporation and partnership. Like corporations, the owners’ assets are not at risk if the business can’t pay debts. And, like a partnership, the owners have shared tax responsibilities. Khob Tax can help you understand the legal structures, tax advantages & disadvantages of each entity type in detail to help you decide and register the right business structure for your specific need.
2. What is the advantage of registering my business (as incorporate or LLC) vs running as a Sole proprietorship?
Registering a separate business entity gives you the establishment of a separate legal entity, gives liability protection of personal assets, creates a brand name and boosts professional credibility. It also gives you some tax flexibility depending on the entity type and total income.
3. Which State Should You Choose to Incorporate In?
Many entrepreneurs are unsure of which state they should incorporate or form an LLC. Most choose their home state while others opt for states identified by many as “business-friendly”— such as Delaware, Nevada, or Wyoming. It’s important to carefully research the pros and cons because each state differs in its fees, taxes, and other details. The general rule is, If a business has fewer than five shareholders, it’s often more advantageous to incorporate or form an LLC only in the owner’s home state so that they will not incur state fees and taxes in multiple. This can be a tricky decision, so it’s important to consult legal and tax professionals for expert guidance.
4. Business Entity Conversions (Changing From a C to S Corp or LLC to C Corp etc)
Sometimes business owners realize that their present entity type is no longer ideal for their current situation. Therefore, they may want to convert their company to a different business structure. Khob Tax can assist you with this conversion paperwork and convert the entity types.
5. What Is an Employer Identification Number (EIN) and how do I get one?
An Employer Identification Number (EIN) also known as Federal Tax Identification Number (TIN) is a unique identification number that is assigned to a business entity so that it can easily be identified by the Internal Revenue Service (IRS). EIN is commonly used by employers for the purpose of reporting taxes. Khob Tax can assist you in getting an EIN for your business.