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Business Entity
First Stop Business
First Stop Business
Business Formation Service
​​Choosing Your Business Entity

Entity Structure Impacts Liability, Taxes.

LLC

LLCs provide pass-through taxation for simplified reporting.

Pros

1. Limited Liability Protection

2. Flexible Tax Options

3. Fewer Formal Requirements

Cons

1. Limited Capital Access

2. Self-Employment Taxes

3. Annual State Fees

Things to Know

1. Operating Plan is important

2. State-Specific Rules

3. Personal Asset Protection
Start LLC

S-Corp

S-Corp status can add administrative complexities.

Pros

1. Pass -Through Taxation

2. Limited Liability Protection

3.Avoids Double Taxation

Cons

1. Stricter Eligibility

2. Ongoing Compliance 

3. Limited Shareholders

Things to Know

1. Salary and Dividends

2. Share Holder Restrictions

3. Corporate Formalities
Start S-Corp

C-Corp

C-Corps offer unlimited growth potential & separate legal status.

Pros

1. Unlimited Growth Potential

2. Separate Legal Entity Status

3. Access Capital through Stock

Cons

1. Double Taxation Risk


2. Compliance Demands

3. Costly to Maintain

Things to Know

1. Separate Legal Entity

2. Potential Tax Benefits

3. Formal Structure Needed
Start C-Corp

Non-Profit

Non-profits enjoy tax-exempt status and fulfill social missions.

Pros

1. Tax-Exempt Status

2. Fulfillment of Social Missions

3. Receive Donations and Grants

Cons

1. Limited Profit Potential

2. Compliance Burden

3. Political Activity Restrictions

Things to Know

1. Mission Alignment Essential

2. Public Disclosure Obligations

3. Fundraising Challenges
Start Non-Profit

What You Need to Be Official

The Four Essentials

Register Entity

Officially form your business by selecting the appropriate legal structure.

Registered Agent

Designate someone to receive legal documents and government notices. This is Required.

EIN

Obtain a unique number for tax filing and business identification.


Business Banking

Open a business bank account to manage finances separately and professionally.

Structure
Operating Agreement
Obtain EIN
Business Banking
Structure

How it Works Through First Stop Business

consultant

Talk to a Professional

  • Choose a Name: Ensure the name is unique and meets your state’s LLC naming requirements.
  • File Articles of Organization: Submit the Articles of Organization (or Certificate of Formation) to your state’s business filing office (usually the Secretary of State). This document includes essential information about your LLC, such as its name, address, and the names of its members.
  • Pay the Filing Fee:Pay the required state filing fee, which varies by state.
Operating Agreement

Documents

Create Operating Agreement

  • Draft an LLC Operating Agreement, which outlines the ownership and operating procedures of the LLC. While not always legally required, it’s an essential document for managing the LLC and resolving disputes among members.
Obtain EIN

Tax Identification

Submitting Your Documents

  • Apply for an EIN and you can get your EIN immediately upon completing the application.
Business Banking

Open Business Banking

Verifying Business Info

1. EIN from the IRS

2. Articles of Organization (proof of your LLC’s registration)

3. Operating Agreement (if required by the bank for LLC management verification)

4. Two forms of personal ID (e.g., driver’s license, passport)

5. Choose a Bank: Research banks for favorable business account terms, including low fees and good customer service.

Elevate Your Growth, Invest in Your Business, Invest in Yourself

Transform your entrepreneurial journey to Personal and professional development.

From Side Hustle to Thriving Business

Transform your passion into profit with our expert guidance. Build your business strategically, achieving extraordinary success and turning dreams into reality.

Invest in Yourself Through Your Business

Investing in your business is investing in yourself, enhancing skills, driving personal growth, and empowering you through each challenge and success.

Empower Yourself by Building Your Business

Building your business is a journey of self-investment. Challenges and successes sharpen your skills, unlocking your full potential.


Get Started

Maximize Your Income Potential

State-Specific Requirements

Understanding North Carolina's unique regulations to ensure your business complies with state laws.

Decision-Making Factors

Key elements to consider when choosing the right structure for your business.

Legal Considerations

Essential legal aspects to safeguard your business from potential risks.

FAQs: Key Steps for Starting Your Business

Essential Business Entity and Registration Answers.

What business entity should I choose?

Here are common options

  • Sole Proprietorship: Simplest form, where you and the business are legally the same. Best for single-owner businesses with minimal liability risk.
  • Partnership: Two or more people share ownership. Suitable for businesses with multiple owners who want to share responsibilities and profits.
  • Limited Liability Company (LLC): Combines flexibility of a partnership with liability protection. Owners are not personally liable for business debts.
  • Corporation: More complex structure offering strong liability protection and tax advantages. Best for businesses seeking to raise capital or expand.
    • Choose Entity
    How do I register my business name?

    To Register your business name

  • Choose a Unique Name: Ensure the name is not already in use or too similar to existing businesses.
  • Check Availability: Search state business name databases and trademark databases to confirm the name is available.
  • Register with State: File a business name registration with your state's business registration office or Secretary of State.
  • Consider Trademarking: Protect your business name by registering it as a trademark with the U.S. Patent and Trademark Office (USPTO).
    • Register Business
    What is a registered agent and why do I need one?

    What is a Registered Agent

    A registered agent is a person or business designated to receive legal documents and official government correspondence on behalf of your business. You need one to:

    • Ensure Compliance: Stay informed about legal obligations and court documents.
    • Maintain Privacy: Prevent your personal address from being publicly listed.
    • Meet Legal Requirements: Most states require businesses to have a registered agent.
    Learn More
    How do I set up a business bank account?

    To set up a business bank account

  • Choose a Bank: Select a bank that offers services tailored to your business needs.
  • Gather Required Documents: Typically, you'll need your EIN, business registration documents, and personal identification.
  • Open the Account: Visit the bank or apply online to open the account. Deposit the initial funds as required.
  • Separate Finances: Use this account solely for business transactions to keep personal and business finances distinct.
    • Set-Up Business Banking