Small Business Packages

The most popular types of small businesses are Sole Proprietorship, Partnership, Corporation, and Limited Liability Companies. Taxation and legal liability depend on the form you use to start your company, so consider your decision carefully. Via Sole Proprietorship, an owner can run an organization as they want; however they are liable for debt obligations. The partnership type is suitable for those who want to pool their capital for business. Partners have to make all business-related decisions jointly. Also, regardless of the amount of investment, both partners are liable for debts. It’s more difficult and expensive to create a corporation. Plus, you pay taxes twice. An LLC offers an advantage of partnership and corporation but can be more expensive to start.

First, add how much you and your partner have invested in your company. Include contributions like money, real estate, and even skills. Then it helps you quickly determine which part of the company belongs to you. Share responsibilities between partners. Each of them needs to clearly understand what actions and results a company expects from them. Think about how you want to distribute the profit and bring up this topic. Finally, figure out how you’ll resolve a deadlocked dispute if one comes up.

A non-compete agreement protects a company from data leaks and workforce loss. Therefore, convincing employees to sign such an agreement can be a beneficial decision. However, some states don't consider such contracts to be valid. For example, California courts can accuse a company of unfair competition.

Small business owners often choose the S corp as their corporate structure. Technically, an S corp is any company that files taxes under subsection S. However, only qualifying businesses are eligible to become an S corp. According to the IRS, an S corporation must have 100 shareholders or less. Plus, all of them should be U.S. citizens or permanent residents.

Running several businesses from a single LLC is possible and legal. However, this trick has its pitfalls. If one of your businesses gets sued, other organizations will also suffer. Nevertheless, people opt to use one LLC to save on administrative maintenance fees.

Anybody can start a sole proprietorship and use it to sell goods and services. If you're a writer or consultant, a sole proprietorship suits well. Most freelancers register a sole proprietorship in order to provide services to several companies at once.

A sole proprietorship is an easy-to-create structure. You don't have to fill out piles of paperwork or pay fees. However, compared to LLC, a sole proprietorship owner is responsible for all company debts. In case of bankruptcy, the proprietorship owner loses their personal assets.

1. Get started with the questionnaire by choosing your state. It’s crucial because laws and regulations vary in different regions.

2. Select the corresponding type of organization you want to initiate.

3. Once you've finished answering the questions, you need to register with US Legal Forms and pick a subscription plan.

4. Log in, edit, fill out, eSign, and share your completed documents.