Month: March 2018

Advantages of LLC Formation

Posted on by PM Editor

There are many things that people should think about when they are planning on launching a new business in Texas. One of the crucial things in this process is to select the business structure that provides the greatest advantages to their business operations. According to some statistics, Limited Liability Companies or LLCs are the most common type of business entity in Texas. (1) On top of that, incorporation of LLC is not a difficult task. With the right help provided by true professionals like the ones from TaxPM, you should be able to finish this job without any hassles and in no time. LLC creates an ideal mixture of liability protection typical for corporations and flexibility usually found in partnership. It includes some of the best things from both worlds.

If you are still not sure whether you should select an LLC instead of a corporation, we will provide a list of advantages related to LLCs that should tell you whether your business is the right candidate for LLC incorporation/formation.

It keeps the personal assets protected

If you form an LLC, you will get a chance to keep your personal assets safe from the company assets in cases of company lawsuits. In other words, LLC keeps your personal assets protected at all time.

It can help you with taxation

This is another huge advantage of LLC incorporation because you will have an opportunity to select how exactly you are taxed. The tax rate associated with LLC is linked to the owner’s income. To put it in simple words, you can adjust the taxation and pay less in the end.

It avoids double taxation

As you are probably aware, corporations can’t avoid double taxation at least not completely. Namely, corporations are taking care of these taxes at the corporate level and after that, they are paying the taxes on the income which come in the form of dividends. But, LLC doesn’t have to deal with double taxation. You can file returns, but it’s better to rely on professional accounting services for this purpose.

Flexibility while doing business

In case you are managing an LLC, then you will have more options in how to manage your business. It’s possible to add new members to the business without following lengthy procedures. The main purpose of LLCs is to provide business owners flexible business structures that can help them run their companies smoothly.

It cuts IRS audit risks

When compared to a sole proprietorship, an LLC is at lower risk of audits. In case you are thinking about forming an LLC, then you should know that the risk of IRS audit is minimized. (2)

It allows leasing personal assets

Finally, it is possible to lease your own personal assets to your company. In other words, you can manage your LLC even from your home and report that the LLC is actually leasing the office space (your home) from you.

These are some of the things that make LLC a good option for those looking for the right business structure.

 

Launching a Business in Texas

Posted on by PM Editor

The latest reports have shown that the number of new businesses is stagnating nationwide and Texas is not an exception. (1) However, this doesn’t mean that you should give up on your dream especially if you have a solid business idea and you are determined to succeed. Launching a business in Texas is a smart idea for more than one reason. This is a state with low taxes, business-friendly laws, excellent infrastructure and other things that make it an ideal business location. In this article, we will highlight a basic guide to launching a business in Texas.

  1. Choose the best business structure

If you want to support the growth of your business, you should create an adequate structure from the start. There are a few different types of business structures including sole proprietorships, corporations, partnerships and limited liability companies. Select the one that suits your business needs and plans. If you make the right decision, you can expect tax breaks and a wide array of benefits. That’s why it’s a smart move to talk to a professional in this field. TaxPM is definitely the place where you can find such help.

  1. Registration

Once you select the right business structure, you will have to register your business with the Texas Secretary of State. The only exception is sole proprietors, but they usually have to register with their counties of operation. It is possible to register a business over the Internet or use your local county clerk office. One of the crucial steps in this procedure is to find a unique name for your business. Do this carefully because a business name can be a deal maker or a deal breaker for many modern consumers. (2)

  1. Check the permits

The next step is to learn more about the permits, licenses, certifications, and registrations that your business might need. There is no general business license in Texas, but almost every industry comes with regulatory agencies. Those selling taxable goods or providing taxable services should apply for sales and use tax permit.

  1. Create bank accounts

When it comes to taxation, this is one of the most important steps. Companies need EIN (Employer Identification Number) provided by the IRS. Sole proprietors can use their social security number for tax purposes. It’s possible to get an EIN online.

  1. Start promoting your business

There are thousands of businesses in Texas which means that you have to do something to get noticed. The last step of the process is to start promoting your new business. The good news is that there are many different marketing options for businesses today. So, you can use some classic forms of marketing like newspaper ads or TV commercials, but you can also use Internet marketing which has proven to be even more effective today.

If you want to speed up this process and finish it in the best possible way, feel free to contact TaxPM – our experts will be glad to help you.