Business Registration | Concord CA

Located in East Bay California in dowtown Concord, CA and Arlington Virginia

At GAMARRA, CPA we advise our clients in entity selection and registration.  This includes preparing a strategic plan that helps our clients clarify their company's mission that serves as the blueprint for describing their company¡¯s competitive environment, management team, financial health, and business risks.  Below are the frequently asked questions for business planning and registration:

Question: What type of entity is ideal for my type of business?

Answer: This question requires a thorough analysis of your industry and tax consequences. Every industry has general and specific set of requirements. For example, if you are a small restaurant, landscaper, or convenience store then forming a limited liability company (LLC) may provide you with the most flexibility. However, if you are a professional then some States will not permit the LLC and require a corporation. In all cases, ensure to check with your State Corporation Commission before setting up an entity or contact either your lawyer or CPA to discuss the options available to you.

Question: Should I form an LLC?

Answer: Before forming and registering an LLC, consider the cost of forming, registering, and operating an LLC. Each State has specific requirements including filing fees, annual fees, and tax return filing requirements. In addition, accounting and legal fees should also be factored in. The general rule of thumb is that forming an LLC is protect assets against liability, but if there are no assets and the liability is relative low then an alternative would be to increase your insurance. Addressing this question requires consulting with your existing lawyer in concert with your CPA.

Question: If I registered my LLC in my primary State and I am conducting business in another State, do I need to register or pay taxes in the other State?

Answer: Yes, in most cases, you will need to register the LLC as a foreign entity in States in which you are conducting business. In addition, you will need to comply with their all their rules and regulations includes sales tax, income tax, and complying with their State laws.

Questions: I formed an LLC and want it to be taxed as C-Corporation? What must I do?

Answer: Generally, if you formed an LLC with just yourself then you will default to taxation of a sole-proprietor. If you decide to elect S-Corporation status, then you will need to request permission from the IRS by filing form 2553 to elect the small business pass through entity. If you proceed with this option, then add yourself on to payroll.

Question: What documentation is needed to in contributing to an LLC in exchange for membership interest?

Answer: At a minimum, documentation of capital contribution to an LLC should include the following:

- Name, address, and EIN of the member and the LLC

- Description of the property contributed

- Value of the property contributed

- Date of contribution

- Percentage interest in the LLC received for the contribution

- Liabilities assumed, if any

-Any other pertinent information relating to the transfer