When can I open a business bank account?
After Articles of Incorporation/Articles of Organization are received from the State of Florida and a Federal Employer Identification Number (FEIN) is obtained from the IRS a bank account can then be opened.
What information does a bank require?
Articles of Incorporation and the Federal Employer Identification Number (FEIN).
How do I pay myself?
Depending on what type of entity is decided upon such as S-Corporation or LLC there are different ways to withdraw money out of your business. It is best to pay yourself through payroll which is taxed with FICA, Social Security and Withholding taxes. In addition to payroll on an S-Corporation you may take Distributions which are not taxed, an advantage of choosing the S-Corporation entity. You may also take payroll on an LLC however the language is slightly different when an owner withdraws money that is not payroll from an LLC or Sole Proprietor, it would be called a Draw and would not be an expense of the company.
How many shares of stock should I designate?
The most common amount is 100 shares.
What is an S-Corporation?
An S-Corporation is a type of business structure that has certain advantages over a C-Corporation such as the profit or loss passes through to your personal income tax return and avoids double taxation.
What if I have sub-contractors?
Upon hiring a sub-contractor a form called a W-9 would need to be filled out and at the end of the tax year a 1099 would be issued if the sub-contractor earns $600 or more in a tax year. A vendor can also sign a sub-contractor agreement acknowledging that they pay their own taxes.
Should I use QuickBooks Pro?
Quickbooks Pro is an excellent program to help an owner of a business track all income and expenses, create payroll, create invoices etc. NewCorpSetup offers training on Quickbooks.
Which bills do I pay out of my corporation and which do I pay out of my personal checking account?
NewCorpSetup will help you determine what expenses to pay from your business account and which to pay from your personal account as part of your free consultation.
How does incorporating affect my personal taxes?
The profit or loss from the company flows through to your personal tax return which is taxed at your current federal rate.
How do I handle credit card processing?
Most banks can set up a merchant account for you business. Quickbooks also handles credit card processing.