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The Business Formation experts at CorpNet can file all the paperwork to help you start a business today. Whether you decide to Form an Limited Liability Company (LLC), C Corporation, Nonprofit, or simply file a DBA, our business filings experts can file your paperwork quickly and affordably. Plus, all our services are backed by our 100% Satisfaction Guarantee.*

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Why Should You Choose CorpNet for Business Formation and Compliance?

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Choosing the Right Business Structure

Choosing a business structure is a critical part of the business startup process. The structure you select will most likely have a significant impact on your personal liability as well as your tax liability.

Not sure which business structure is right for your business? Try the CorpNet Business Structure Wizard designed by business and tax attorneys to help small business owners choose the right business type.

A Limited Liability Company (LLC) is a legal business structure that is similar to both the corporation and the Sole Proprietor or Partnership. The LLC is a very popular form of business structure as it offers the same or similar level of asset protection as a corporation while requiring only minimal formalities be observed (similar to a sole proprietor or partnership).

Learn more about LLC business structures, the benefits of the LLC, and where to form an LLC in our Form an LLC Section.

Incorporating a business can be fast, simple, and affordable way to start a business. Learn about the benefits of incorporation, the different corporation business structures like the C Corporation, the S Corporation, and more.

Learn everything about incorporating a business in our comprehensive Incorporate section.

Starting a Business Checklist

The CorpNet Starting a Business Checklist is a free guide, written by attorneys and entrepreneurs, that is packed with information about naming your business, selecting a business structure, obtaining a Federal Tax ID Number, and more.

1. Check Name Availability

Once you have decided to start a new business, you will need to select a name. Before you invest too much in a great new name, you should do a company name search to make sure it is not already in use in a way that could create a conflict between another business and your own.

2. Assign a Registered Agent

A registered agent, sometimes referred to as a resident agent or an agent for service of process, is a person or company officially recognized by the state that resides within the state of incorporation and is designated by the corporation or LLC to accept service of process on behalf of the company. Learn more about our registered agent services.

3. File Formation Paperwork

Once you have decided on a name, you should determine the best form of legal entity for your business. There are many choices, including:

4. Obtain a EIN

Every corporation needs to apply for a Federal Tax Identification Number, as does any business regardless of the corporate form that hires employees. The tax ID number is also called an Employer Identification Number, or EIN. It is like a social security number for your business and is used by the Internal Revenue Service to identify the business for tax matters.

5. Obtain Business Licenses and Permits

Depending on the type of business you are operating, you may be required to have one or more business licenses or permits from the state, local (city and county) or even federal level. Depending on the type of business you operate and the laws of your jurisdiction, these can include, among others, a general business operation license, zoning and land use permits, sales tax license, health department permits, and occupational or professional licenses.

6. Register for Business Tax Accounts

If you are a new business that is planning on hiring employees, you will need to register for payroll taxes such as State Unemployment Insurance Tax (SUI) and State Income Tax (SIT). Payroll taxes are a legal requirement for hiring and paying employees in the United States.

Registering for sales and use tax is a requirement for both for-profit businesses and nonprofit organizations. This process allows a business to collect sales tax from customers and remit this tax to the state. All states, except for Alaska, Delaware, New Hampshire, Montana, and Oregon, require the collection, reporting, and submission of sales tax.

If your company is incorporated or does business in a state that collects income tax, you may need to register for a corporate income tax account, file returns, and pay income tax annually.

7. Maintain Compliance

Forming your entity is just the first step. Keeping it in corporate compliance is essential if you are to enjoy the benefits of having created a separate entity, including limited liability. CorpNet offers a free Compliance Portal to help you keep track of your business filings.

Do You Need a DBA?

DBA stands for “Doing Business As.” This filing is required when a business operates under a fictitious business name. By filing a DBA in the appropriate jurisdiction, a small business can operate under a fictitious name. In other words, this DBA filing allows the business to operate under a name that is different from its owner. View pricing and processing time required to file a DBA in your state and county.

What Makes CorpNet Different?

CorpNet offers a fast, reliable, and hassle-free experience with terrific technology, backed by even better humans.

Decades of Experienced

Founded by husband and wife lawyers/entrepreneurs, the core team at CorpNet have formed over 100,000 Corporations and LLCs for their customers.

Dedicated Business Filings Professionals At Your Service

Depending on your service tier, dedicated business filings experts may be available to assist you with all of your business filings needs. We’re available by phone, MMS/text, and email.

Honest, Upfront Pricing

Here’s what sets us apart from our competition – all pricing is displayed clearly, upfront, and with itemized details. No so-called “free” services from third parties trying to up-sell unwanted services. No hidden subscriptions and surprise charges.

Satisfaction Guaranteed

We love happy clients! If you are unsatisfied with our service for any reason, CorpNet will refund 100% of our service fees at your request. See our Terms and Conditions for full details.

Check out the CorpNet reviews, hosted by an independent third party review companies like TrustPilot of Google, to research and decide whether CorpNet is the right choice for you.

Start a Business FAQs

What are the benefits of incorporation?

The main reason to incorporate or form an LLC is to minimize your personal liability. Once your business is incorporated (either by forming an LLC or Corporation), it exists as a separate business entity. Essentially, you put a wall separating your personal assets from anything in the business.

Of course, there are other benefits too. Here are the top reasons to incorporate:

Minimize your personal liability and protect your personal assets.
Get more flexibility when it comes to taxes (talk to your CPA or tax advisor for specific advice on your personal situation).
Boost the credibility of your small business.
Add a layer of privacy (don’t use your personal name and home address to represent your business).
Start building your business credit.
Protect your business name and brand at the state level.

Can I reserve a business name?

Yes and CorpNet can help reserve your business name if you’d like. A business name reservation consists of a filing with the Secretary of State’s office to reserve a business name until you are ready to incorporate your business or form a Limited Liability Company. Generally, a name reservation will be effective and the name that you place on reserve will be on hold for 30-90 days. Once the name reservation expires, that name becomes available for use to the general public for anyone who wants to use it.

What is a Sole Proprietorship?

A Sole Proprietorship is the simplest structure for operating a business owned by one person (or a married couple). By default, states will consider a single-owner business to be a Sole Proprietorship unless the owner (the sole proprietor) files business registration paperwork to form an LLC (Limited Liability Company) or a Corporation. Sole Proprietors are not considered employees of their companies. They get paid by withdrawing funds (taking “owner’s draws) out of their businesses for personal use.

Many freelancers, consultants, and other professional service providers work as Sole Proprietorships. The Sole Proprietorship structure is also attractive to entrepreneurs in other industries, too (retail, landscaping, cleaning, and more). It’s common for entrepreneurs to start as Sole Proprietorships and then register their companies as formal business entities when they begin to grow or expand their businesses.

What is a Partnership?

A partnership is a legal entity where two (or more) people run a business. Like a sole proprietorship, each partner owns a portion of the assets and liabilities of the business. The main difference is that a partnership relies on an agreement between the partners. This document, the partnership agreement, details ownership, and responsibilities.

What is a Limited Liability Company (LLC)?

An LLC (Limited Liability Company) is a hybrid of a sole proprietorship/partnership and corporation. This structure is very popular among small businesses, and for good reason. The LLC limits the personal liability of the owners, but doesn’t require much of the heavy formality and paperwork of the corporation. This makes it a great choice for business owners that want liability protection but don’t want to deal with exhaustive meeting minutes, addendum filings or other paperwork you’d need to file as a corporation.

What is a C Corporation?

A C Corporation is a standard corporation. It is considered a separate entity from its owners. This means that the corporation is responsible for any of its debts and liabilities. This is often called the “corporate shield” as it protects the owner’s personal assets from debts and liabilities of the business.

A corporation has a formal structure consisting of shareholders, directors, officers, and employees. Every corporation must select at least one person to serve on its board of directors and officers are required to manage the day-to-day activities of the company.

As a separate business entity, a corporation files its own tax returns. As a C corporation owner, you’ll need to file both a personal tax return and a business tax return. In some cases, this can result in a “double taxation” burden for small business owners (see the question on double taxation below for more details).

What is an S Corporation?

An S Corporation begins its corporate existence similar to a C Corporation: Articles of Incorporation must be prepared and filed with the state office. Once filed, a “general for profit” corporation has been formed.

Next, the board of directors must meet and resolve to elect S Corporation status. This is achieved by preparing and filing IRS Form 2553 with the IRS. Some states also require a similar filing at the state office before a corporation will be recognized as an S Corporation for STATE tax purposes.

What is a DBA?

Whether that name is legally registered with the business’s home state or not, every business has a legal name. A DBA (or “Doing Business As” is a name that is different from the legal name of the company. A DBA is also referred to as the “trade name,” “assumed business name,” or a “fictitious business name.”

A DBA lets the public know the true owner of a business. DBA laws are consumer protection laws. They exist, so consumers have full transparency on which companies they are transacting business with. In other words, DBAs prevent dishonest business owners from running a company under a different name to avoid legal problems.

What is the difference between a C Corporation and S Corporation?

Corporations are subject to double taxation as described above. A C Corporation entity is required to pay tax at the corporate level. An S Corporation is considered a pass-through entity for tax purposes. This means that the company’s profits and losses are passed through to the individual shareholder’s tax return (and each shareholder is typically taxed on the company’s profits based on their share of stock ownership).

What Is the difference between how LLCs and S Corporations are taxed?

Both the LLC and S Corporation structures are taxed on a pass-through basis. Income taxes are paid at the individual owner level rather than at the entity level. Profits and losses get reported on the owners’ personal tax returns.

However, although LLCs and S Corporations are both pass-through entities, there are some differences in how taxes are handled.

Self-employment tax – Income of an LLC flows to the members involved with the business and is subject to self-employment tax. With an S Corporation, only salaries are subject to self-employment tax. Therefore, any distributions that paid out to S Corporation owners are not subject to Social Security and Medicare taxes.
Tax flexibility – The LLC offers a lot more flexibility in terms of how owners can be taxed. With an LLC, owners can determine their allocations for the year and be taxed accordingly. With an S Corporation, owners must be taxed based on their pro-rata ownership interests. For example, if one owner owns 50 percent of the business, then that person will be taxed on 50 percent of the company’s profits.

Where should I form my LLC or C Corporation?

You often hear of companies incorporating in Delaware, Wyoming, or Nevada. That’s because Delaware offers flexible, pro-business statutes, while Wyoming and Nevada feature low filing fees as well as no state corporate income, franchise, or personal income taxes.

However, as a general rule of thumb, if your business will have fewer than five members or shareholders, you should form your business in the state where you actually live or where your business has a physical presence (such as an office.) When you incorporate in a different state from your physical presence, you’ll need to deal with added fees and paperwork, since you’re considered “operating out of state.” And for most small businesses, the added hassle and fees just aren’t worth it.

What is a Registered Agent?

LLCs must designate a registered agent in the state(s) where the company is registered. A registered agent (sometimes referred to as a resident agent) is a person or company officially recognized by the state that resides within the state of incorporation. It is designated by the LLC to accept service of process on behalf of the company. A registered agent may be an individual or another business entity with a physical location in the state of incorporation.

Please note that a post office box or other mail service (e.g., UPS) is usually not sufficient to qualify as a registered agent. The agent is responsible for accepting official notices from the Secretary of State and service of process in the event the corporation is sued.

An LLC’s registered agent must be available Monday through Friday from 8 am to 5 pm at the location specified on the LLC’s Articles of Organization. The registered agent’s name and address are public information, therefore giving some privacy protection to an LLC’s owners.

Want to learn more? Visit our What is a Registered Agent article.

Why do I have to have a Registered Agent?

The Registered Agent must be available Monday – Friday 8am to 5pm at the location specified on your Articles in order to accept service of process. The registered agent’s name and address are public information. If you wish to keep your company’s address information confidential, designating CorpNet™ to act as your registered agent affords you that extra added layer of privacy.

Do I need an EIN?

Having an Employer Identification Number (or EIN) helps separate you from your business. If you don’t have one, you will use your social security number on any business licenses, permits, and tax forms. Using an EIN keeps your business at arm’s length.

Getting a Federal Tax ID number is optional if you’re a sole proprietorship, but if your business acts as a Corporation, Limited Liability Company, or a partnership, you are required by law to have one.

How do I keep my new business compliant?

Too many entrepreneurs don’t realize that once the state grants your business its corporation or LLC status, there are ongoing business compliance requirements to meet to stay in good standing. Your diligence—or lack of—in adhering to the corporate formalities that apply to you can mean the difference between failing or succeeding in business. If you neglect to follow the rules or miss deadlines, you could face late penalties or worse—the state might even administratively dissolve your company and place it in non-compliant status. The implications of that could be devastating.

Fortunately, CorpNet is here to help entrepreneurs meet the compliance requirements for business.

With our free online business compliance and monitoring tool*, the CorpNet’s Compliance Portal, you can stay on top of the many compliance requirements that apply to your company and their deadlines.