Company Formation Solutions
The most common form of business organization is the sole proprietorship. It's the simplest structure, typically involving one individual conducting business on their own without needing to formally register as a separate legal entity. While easy to set up, the owner is personally liable for all business debts and obligations, including any liability arising from the sales of a defective product or service provided. A sole proprietor is taxed as an individual.
While more complicated to set up and administer, personal liability can be mitigated both financially and legally using one of these types of formation:
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Limited Liability Company--Single Member
A Limited Liability Company (LLC) is a business structure that combines the benefits of a partnership and a corporation, offering its owners (members) limited liability protection while providing flexibility in taxation and management. LLCs are distinct legal entities, separate from their owners, which means the owners' personal assets are generally shielded from business debts and lawsuits. Members are typically not personally liable for the company's debts and obligations, protecting their personal assets. LCs offer flexibility in management and taxation, allowing for various operating structures and tax elections. LLC profits are typically passed through to the members and taxed at their individual income tax rates, avoiding the double taxation of corporations. LLCs can elect to be taxed as a partnership, an S-Corporation or even a C-Corporation. LLCs are taxed at a minimum rate of $800 per annum in California by the Franchise Tax Board, the state’s tax authority. It requires, a separate tax filing which depends on the tax structure you elect. A LLC in California can be a single member LLC or a multi-member LLC.​
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Testament Concierge services include:
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Register the LLC with the State of California-obtain formation number.
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Complete the Operating Agreement ready for your signature.
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Prepare the Tax election form to file with the IRS.
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File for a Federal Tax ID Number (Optional)
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Prepare and file a Beneficial Ownership Information Report (BOIR)
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$495
Limited Liability Company--Multi-Member
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A Limited Liability Company (LLC) is a business structure that combines the benefits of a partnership and a corporation, offering its owners (members) limited liability protection while providing flexibility in taxation and management. LLCs are distinct legal entities, separate from their owners, which means the owners' personal assets are generally shielded from business debts and lawsuits. Members are typically not personally liable for the company's debts and obligations, protecting their personal assets. LCs offer flexibility in management and taxation, allowing for various operating structures and tax elections. LLC profits are typically passed through to the members and taxed at their individual income tax rates, avoiding the double taxation of corporations. LLCs can elect to be taxed as a partnership, an S-Corporation or even a C-Corporation. LLCs are taxed at a minimum rate of $800 per annum in California by the Franchise Tax Board, the state’s tax authority. It requires, a separate tax filing which depends on the tax structure you elect. A LLC in California can be a single member LLC or a multi-member LLC.
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Testament Concierge services include:
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Register the LLC with the State of California-obtain formation number.
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Complete the Operating Agreement ready for your signature.
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Prepare the Tax election form to file with the IRS.
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File for a Federal Tax ID Number (Optional)
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Prepare and file a Beneficial Ownership Information Report (BOIR)
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$495
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A corporation is a legal entity, separate from its owners (shareholders), that is authorized to act as a single person under the law. This means it can own property, enter into contracts, sue or be sued, and conduct business in its own name. Corporations offer liability protection to their owners and can raise capital through the sale of stock. A corporation has its own legal identity, distinct from its owners who generally are not personally liable for the corporation's debts and obligations. A corporation can continue to exist even if ownership changes or if key individuals leave. Corporations can raise funds by selling shares of stock to investors. Corporations, if organized as a C-Corporation, may be subject to corporate income tax, and shareholders may also be taxed on dividends they receive. If a corporation is organized as an S-Corporation the tax code allows profits and losses to be passed through to the owners' personal income, avoiding double taxation. Corporations are taxed at a minimum rate of $800 per annum in California by the Franchise Tax Board, the state’s tax authority. It requires a separate tax filing which depends on the tax structure you choose.
Testament Concierge services include:
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Register the corporation with the State of California—obtain formation number.
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Complete the Articles of Incorporation ready for your signature(s).
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Prepare the standard Corporate By-Laws, ready for your edits.
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Prepare the Tax election form to file with the IRS—Sub-chapter “S” or “C.”
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File for a Federal Tax ID Number (Optional)
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$495
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Corporation—Delaware/California
Delaware is a popular state for incorporation due to its well-developed corporate law, business-friendly environment, and efficient legal system, particularly the Court of Chancery. It offers benefits like no state income tax for companies not operating within Delaware, and a streamlined process for formation and maintenance. Additionally, Delaware's corporate law is well-understood by investors, and the state provides a degree of privacy regarding company ownership. Companies incorporated in Delaware but not operating within the state are not subject to Delaware corporate income tax, and there's no state sales tax, personal property tax, or inheritance tax. Delaware law allows for a streamlined corporate structure, with one person able to hold multiple officer, director, and shareholder roles. However, it's important to note that Delaware incorporation may not be the best choice for all businesses. For example, smaller, privately held companies or those operating primarily in another state might find the additional costs and complexities of Delaware incorporation outweigh the benefits.
Testament Concierge services include:
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Register the corporation in the State of Delaware—obtain formation number.
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Register the corporation in California as a foreign entity.
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Complete the Articles of Incorporation ready for your signature(s).
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Prepare the standard Corporate By-Laws, ready for your edits.
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Prepare the Tax election form to file with the IRS—Subchapter “S” or “C.”
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File for a Federal Tax ID Number (Optional)
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$595
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In California all corporations and limited liability companies must have a registered agent that will receive service of process on behalf of your company when you cannot be served in the routine course of business. While TC offer two (2) years of registered agent services included with your package of either a corporation or limited liability company you may purchase additional years of registered agent services.
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Testament Concierge services include:
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Three additional years of registered agent services.
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Receiving, accepting, and handling of all forms and documents served by government entities and private litigants and their attorneys.
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$125
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