Utilizing the Incorporation Process for Your New Business by Atlanta CPA

So you have started a new business and now need tax advice to take your business to the next level and to ensure that you set up as the correct/best legal entity type for your new business. Choosing to incorporate your business as a corporation will do much to protect your personal assets from legal liability issues while potentially shrinking your overall year-end tax obligation while also providing benefits for yourself, as well as your employees. We are here to serve you as you make this important decision. Over the decades we have helped thousands pursue the dream of owning their own business and helping them understand and utilize the entity choice that is best-suited for their business. Having served as a CPA in Atlanta for decades, selecting the right entity is perhaps the single most important financial business decision you will ever reach for your newly started business.

Incorporating 101

Incorporating in Georgia requires that you file for the company Articles of Incorporation with the Georgia/local Secretary of State's Office. Corporations should also be sure to prepare a legal posting/announcement for the legally authorized newspaper in the county's paper, establishing bylaws, election a Board of Directors, Officers and the issuance of stock.

When getting your new business started there are many details to be sure that you address the many and varied new responsibilities to ensure that you have no undue surprises in the establishment of your new business. Below is a sample letter one might use to ensure that all new business details are addressed for your new Corporation.

This is to confirm that we went over the rules of being an S Corporation and that you have opted to become same. You are aware of the need to have an annual Board of Directors, Officers, and Shareholder's Minutes meetings and that each year you should pay the annual fee with the Secretary of State's Office to renew your corporations annual registration.

Please be aware that you need to get a business license and always list your corporate title when signing any agreement and conduct all corporate business in the corporate name.

In your corporate book you will find several forms:
Employee forms - W-4, G-4, and I-9 and independent contractor forms W-9. After they complete these forms, you should keep these in their permanent files. There is also information on the Georgia New Hire Reporting Act and forms relative to that information. You are aware of the need to pay a reasonable salary and that you are going to retain a payroll service for your entire payroll and 1099 needs. Please be reminded that as long as you pay yourself a reasonable salary, you may also pay yourself shareholder distributions, which are devoid of FICA and Medicaid taxes. Per your advice you will not be required to file sales tax reports.

The following are recommendations to better manage your business:
Turn in a monthly expense report to the business and keep a daily log to track and support business miles.

I suggest we tax plan twice every year. Your corporate returns are due March 15th of each year.
You will need to trademark your business name to ensure that the name will always be yours.

Please forward a copy of your last year personal return along with a copy of the S Corporation acceptance, when it is received.

To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/  and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/  or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!