Get answers to common questions about our business formation services
Common questions about our services
No, you don't need an attorney for basic business formation. Our services are designed to be more affordable than law firms while still providing professional, compliant setup. With 10+ years of banking industry experience, we guide you through the process correctly the first time. We handle all the paperwork, filings, and documentation. However, if you have complex legal issues, unique ownership structures, or intellectual property concerns, we can refer you to trusted attorneys.
The timeline depends on your state and service level chosen:
We prepare and submit your documents within 24 hours of receiving your information. The rest depends on your state's processing times.
No hidden fees - ever. Our service includes:
State filing fees are included in the package price. The only additional costs are optional add-ons like EIN service, corporate kits, or expedited processing. For complete pricing details, please visit our pricing page.
Yes! Our entire process is 100% online and paperless:
No office visits required. Everything from start to finish can be done from your computer or phone.
Yes! We offer EIN (Employer Identification Number) service as an add-on to any package. Your EIN is like a social security number for your business and is required for:
We handle the entire IRS application process and typically receive your EIN within 1-2 business days. You can also apply directly with the IRS for free, but our service saves you time and ensures it's done correctly. For pricing details, visit our pricing page.
Absolutely! Staying compliant is crucial for maintaining your business's legal protection. We offer comprehensive ongoing compliance support:
We also offer monthly compliance packages that include registered agent service, filing reminders, and ongoing support. For pricing details, visit our pricing page.
Questions about Limited Liability Companies
Our comprehensive LLC package includes everything you need to start your business:
State filing fees are included in our $595 packages. For complete pricing information, please visit our pricing page.
This is one of the most common questions! Here's the key difference:
Best for: Most businesses
Best for: Sole proprietors, side hustles
Our Recommendation:
If you're serious about your business, choose an LLC. The personal liability protection alone is worth it. You can always start with a DBA and upgrade to an LLC later, but it's easier and more cost-effective to start with an LLC.
You can form an LLC in any state, but for most small businesses, we recommend forming in your home state. Here's why:
Important: If you form in Delaware but operate in California, you'll need to register as a "foreign LLC" in California, which means double the fees and filings. We help you make the right choice based on your specific situation.
An Operating Agreement is a legal document that outlines how your LLC will be run. While most states don't require it, you absolutely should have one - even for single-member LLCs. Here's why:
Included in All Our Packages:
We provide a customized Operating Agreement tailored to your business structure, number of members, and management preferences. No generic templates - each one is personalized for your specific needs.
Technically yes, but we strongly recommend using a professional registered agent service. Here's why:
Our Registered Agent Service: First year included with all packages. For ongoing pricing, please visit our pricing page.
Banking Professional Insight:
When opening business bank accounts, having a professional registered agent service (rather than your home address) makes your business look more established and legitimate to banks.
Questions about Fictitious Business Names
DBA stands for "Doing Business As" (also called Fictitious Business Name or Trade Name). It allows you to operate your business under a name different from your legal name or LLC name.
Important Note:
A DBA does NOT provide liability protection. It's just a name registration. If you want legal protection for your personal assets, you need an LLC or corporation.
DBA filing costs vary significantly by state and county. Our service includes:
State and county filing fees vary by location. For detailed pricing information, please visit our pricing page.
Publication Costs:
Some states (like California and Arizona) require publishing your DBA in a local newspaper. We handle all publication arrangements for you.
Yes, DBAs expire and must be renewed. The renewal period varies by state:
What Happens If You Don't Renew:
We've Got You Covered:
All our DBA filings include a compliance calendar with automatic renewal reminders. We'll email you 60 days before your renewal is due so you never miss a deadline.
Absolutely! Many LLCs use DBAs, and it's a smart strategy for several reasons:
ABC Marketing LLC doing business as "Web Design Pro" and "Social Media Masters"
Smith Restaurants LLC doing business as "Downtown Bistro" and "Riverside Cafe"
Keep your LLC name private while operating under a public brand name
Launch new products/services without forming new LLCs
Best Practice:
Use your LLC for legal protection and tax benefits, then operate under DBAs for branding flexibility. This gives you:
Questions about S-Corps and C-Corps
Both are corporations, but they're taxed very differently. Here's a detailed comparison:
Pass-through taxation - profits flow to your personal tax return. No double taxation.
Can save 15.3% on self-employment taxes by splitting income into salary + distributions.
Max 100 shareholders, must be US citizens/residents.
Only one class of stock allowed.
Double taxation - corporation pays taxes, then you pay taxes on dividends.
21% flat corporate tax rate (can be advantageous for high earners).
Unlimited shareholders, can be foreign investors.
Multiple classes of stock allowed (common, preferred, voting, non-voting).
Tax Savings Example:
As an S-Corp, you can split your income between salary (subject to payroll taxes) and distributions (no payroll taxes). This strategic split can result in significant annual tax savings compared to an LLC taxed as sole proprietorship. The exact savings depend on your profit level and industry.
Yes! This is one of the most common and beneficial business moves. You don't need to form a new company - you just file Form 2553 with the IRS to elect S-Corp tax treatment.
Your LLC remains an LLC legally - this is just a tax election
Submit to IRS (we handle this for you)
Set up payroll to pay yourself a reasonable salary
Begin taking distributions and saving on self-employment taxes
For pricing details, visit our pricing page.
Important Deadline:
To have S-Corp status for the current tax year, you must file by March 15th. Miss this deadline and you'll have to wait until next year. We can help you file on time!
This is the #1 question S-Corp owners ask - and it's crucial to get right. The IRS requires S-Corp owners who work in the business to pay themselves a "reasonable salary" before taking distributions.
The IRS audits S-Corps specifically for this. If they determine your salary is too low, they can:
What would you pay someone else to do your job? Check BLS.gov, Glassdoor, Indeed for comparable positions.
How much time do you spend working in the business? Full-time = higher salary requirement.
Your education, training, and expertise in your field.
Your salary should be a reasonable percentage of total revenue/profit.
The reasonable salary varies significantly based on several factors:
*We provide personalized salary recommendations based on your specific situation
We Help You Get It Right:
Our S-Corp setup includes reasonable salary determination based on your industry, role, and business financials. We provide documentation to support your salary decision in case of an audit.
Ongoing requirements and obligations
LLCs have several ongoing requirements to maintain good standing. Missing these can result in penalties, loss of liability protection, or administrative dissolution.
Most states require annual or biennial reports (also called Statement of Information). These update your business address, registered agent, and member/manager information.
Due Date
Varies by state
Filing Fee
Varies by state
Late penalties apply for missed filings. We send reminders to help you stay compliant.
Depending on your industry and location, you may need various licenses and permits that require annual renewal.
Missing deadlines can have serious consequences. Here's what happens and how to fix it:
Penalties vary by state and filing type
Additional penalties accrue monthly
Can't get certificates of good standing
State can dissolve your LLC (usually after 2-3 years)
Personal assets may be at risk
Banks may freeze or close accounts
Submit the missed filing as soon as possible to minimize penalties
Include filing fee + late fees + any penalties
File reinstatement paperwork if your LLC was administratively dissolved
Use our compliance calendar to never miss another deadline
We Can Help:
Our compliance rescue service handles all late filings, reinstatements, and gets your business back in good standing. Contact us for a free assessment.
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