Frequently Asked Questions

An LLC (Limited Liability Company) offers management flexibility and pass-through taxation, meaning profits are not taxed separately at the corporate level but flow directly to the owners' personal tax returns.

A Corporation is a more formal structure consisting of shareholders, a board of directors, and corporate officers. It can be taxed as a C-Corp (double taxation—profits are first subject to corporate tax, then taxed again as individual income when distributed to shareholders) or elect S-Corp status to pass profits through to the owners' personal taxes.

In general, LLCs are easier to manage and require fewer formal procedures, making them a popular choice for small businesses. A Corporation structure may be more suitable for businesses seeking outside investment or planning to go public in the future.

No! You do not need to be a US citizen or a US resident to form a company in the United States. Foreign nationals can form LLCs or Corporations in most states. However, if you do not have an address in the US, you will need to use a registered agent service. We provide this service for you as well.

Formation time varies from state to state. Standard processing in most states takes 1–2 weeks, and expedited service options are available in most states. We can expedite your application based on your preference.

After state approval, you will need to obtain your EIN number from the IRS. If you have a US Social Security Number (SSN), the application is done online and can be received the same business day. If you do not have an SSN, the process is done via mail/fax and typically takes 4 business days.

An EIN (Employer Identification Number) is a type of tax identification number for your business. It is issued by the IRS and is required to open a business bank account, hire employees, file tax returns, and apply for business licenses.

Even single-member LLCs benefit from having an EIN to keep personal and business finances separate.

A Registered Agent is a person or company designated to receive legal documents, government correspondence, and tax notices on behalf of your business. By law, the company must have a physical address in the state where it is formed. If it does not, you are required to work with a registered agent.

With our Registered Agent service, we ensure you never miss any important legal or compliance documents sent to you.

Yes! You can form an LLC or Corporation in any US state regardless of where you live or operate. States like Wyoming, Delaware, and Nevada are popular for their business-friendly laws and tax advantages.

However, if you do business in a state other than your formation state, you may need to register as a 'foreign entity' in that state.

BOI reporting is a federal requirement under the Corporate Transparency Act. Most LLCs and Corporations must report information about their beneficial owners (individuals who own 25%+ or have substantial control) to FinCEN (Financial Crimes Enforcement Network).

Failure to file can result in significant penalties. We help ensure your BOI report is filed correctly and on time.

Missing compliance deadlines can result in late fees, penalties, and in severe cases, administrative dissolution of your business. For example, California charges $250+ for late Statement of Information filings, and your business can lose its 'good standing' status.

We help you track all deadlines and file on time to avoid these costly penalties.

DBA stands for 'Doing Business As' and is also called a Fictitious Business Name. You need a DBA when you want to operate your business under a name different from your legal entity name. For example, if your LLC is 'Smith Holdings LLC' but you want to do business as 'Smith Coffee Shop,' you'd register a DBA.

DBAs must be renewed periodically (typically every 5 years in California) to remain valid.

Filing renewal schedules vary by state and document type. For example, California LLCs must submit a Statement of Information every two years, while Corporations file annually. Most states also require annual reports and franchise tax payments.

We monitor all your filing deadlines and send timely reminders, ensuring you never miss a required submission.

Your company's tax obligations depend on your entity type, state of formation, and business activities. Common tax requirements include:

• Federal income tax
• State income tax
• Self-employment tax (for LLC members)
• Franchise tax
• Sales tax (if selling products)
• Payroll taxes (if you have employees)

We help identify all your tax obligations and ensure your filings are accurate and timely.

Franchise Tax is a state tax imposed on businesses for the privilege of operating in that state. It's not related to franchise businesses specifically. In California, LLCs pay a minimum $800 annual franchise tax. In Texas, it's based on revenue. Delaware charges an annual flat fee.

We help you understand and pay your franchise tax obligations on time.

If you sell tangible products (and some services) in states with sales tax, you likely need to collect and remit sales tax. This depends on having 'nexus' (a significant connection) in that state, which can be established through physical presence or exceeding economic thresholds.

E-commerce businesses often need to collect sales tax in multiple states. We help you determine where you need to register and file.

Key federal deadlines: Sole proprietors and single-member LLCs file by April 15 (Form 1040 Schedule C). Multi-member LLCs file by March 15 (Form 1065). S-Corps file by March 15 (Form 1120-S). C-Corps file by April 15 (Form 1120). Extensions are available.

State deadlines vary. We track all your deadlines and ensure timely filing.

The ideal frequency depends on your business volume. High-volume businesses should update monthly to stay on top of cash flow. Medium-volume businesses can often manage with quarterly updates. Low-volume businesses may be fine with semi-annual or annual bookkeeping.

We offer flexible bookkeeping packages to match your needs and budget.

The three core financial statements are: Profit & Loss Statement (Income Statement) showing revenue and expenses, Balance Sheet showing assets, liabilities, and equity, and Cash Flow Statement showing money moving in and out of your business.

These statements are essential for tax filing, loan applications, and making informed business decisions.

Bookkeeping is the day-to-day recording of financial transactions—categorizing expenses, reconciling accounts, and maintaining accurate records. Accounting takes those records and uses them for analysis, tax planning, financial forecasting, and strategic advice.

We provide bookkeeping services that give you clean, organized records ready for tax time or deeper accounting analysis.

Keep all income records (invoices, receipts, bank statements), expense receipts, payroll records, asset purchase documentation, and any contracts or agreements. The IRS generally requires you to keep records for 3-7 years depending on the type of record.

Our bookkeeping service helps you maintain organized, tax-ready records year-round.

License requirements vary by business type and location. Common requirements include: City business license, Seller's permit (for retail), Professional licenses (for regulated professions), Health permits (for food businesses), and Zoning permits (for physical locations).

We analyze your specific business to identify all required licenses and handle the applications for you.

Yes, if you operate in multiple cities or counties, you typically need separate business licenses for each location. Each jurisdiction has its own licensing requirements and fees. Some licenses, like seller's permits, may cover the entire state.

Processing times vary by license type and jurisdiction. Simple city business licenses can be issued same-day or within a few days. Professional licenses may take several weeks. Licenses requiring inspections (like health permits) can take longer depending on scheduling.

We help expedite the process by ensuring your applications are complete and accurate the first time.

A seller's permit (also called a resale license or sales tax permit) allows you to collect sales tax from customers and purchase inventory tax-free for resale. In California, you need one if you sell tangible personal property (physical goods) to customers in the state.

Service-only businesses typically don't need a seller's permit, but there are exceptions. We help determine if you need one.