Legal Entity Creation & Tax Entity Services in Loveland, Colorado
Grey CPA helps small business owners set up the legal tax entity status of their business in order to get the most return on when it comes to tax season. We have been working for years with businesses across Northern Colorado with all of their accounting, financial, and tax preparation needs.
Setting up the proper tax entity for your business may seem trivial, but it’s anything but. The process can be complex, and difficult to decipher for entrepreneurs and potential business owners. You tax entity for your business is extremely important when it comes to liability and personal asset protection, so that if your business goes through hard times, you and your assets are protected. There are pros and cons to each different type of tax entity, so let our professional Loveland accountant at Grey CPA help you decide what is best for you.
The tax entity is a decision that is made during the formation process of your business, and can have tax implications as well. Grey CPA has a full suite of business start-up services, as well as tax planning, tax preparation, and tax compliance services to make sure that your business is in good standing, and takes home more money in tax season.
Contact Grey CPA for a free business consultation today! We would be honored to help your small business succeed.
Structuring your Business in Loveland, Colorado
Choosing the proper tax entity for your Northern Colorado business is critical because it can impact both your taxes and legal dealings with assets. Any good business plan has weighed the pros and cons of each tax entity type, and has chosen the tax entity that will be best for both you and your business. Here are the most common tax entities:
- Sole Proprietorship: this is the most common legal entity, and also the most simple for any small business. This is a business that is run by one person who operated most (if not all) of the business.
- Partnership: a partnership is exactly what it sounds like. It is two or more people that form a business together with combined resources and assets.
- Limited Liability Company: you might know these as an LLC. The main purpose of this legal entity is to protect the invested capital of each founding member.
Our Loveland tax accountant can advise you on which formation is best for your business during start-up, and Grey CPA can help you file to paperwork to make it official.
Pros and Cons of Legal Entities
There are different types of legal entities for small businesses because each and every business has different needs when it comes to taxation, liability, and legal protection. The main considerations when filing for a legal entity are:
- Liability: which founding member or members assumes financial risk and liability for the company?
- Taxation: who reports income and losses, and which aspects of the business are reported on taxes?
- Recordkeeping: what is personal, and what is business? Keeping records separate so the business and the founding member(s) can protect themselves.
These are just a few of the many considerations that you should be conscious of when you are creating your business.
Still have questions? That’s okay! Grey CPA is here to help you with all of your business start-up needs. We’ve helped dozens of Northern Colorado businesses incorporate, so we can help you decide which legal entity is right for you. Contact us for a free consultation today!