ACCOUNTING AND TAX SERVICES BY CPA'S
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How to Start Your Own Business


Why Incorporate?
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  • Personal asset protection      
  • Tax flexibility and incorporation tax benefits
  • Enhanced credibility
  •  Brand protection
  • Perpetual existence
  • Deductible expenses
Benefits of Forming a Delaware LLC or a Delaware Corporation

There are many Delaware LLC advantages, and benefits of forming a Delaware corporation.      The Delaware General Corporation Law is one of the most advanced and flexible corporation statutes in the nation.  The Delaware Court of Chancery mainly hears cases involving businesses and uses judges (not juries), which is a benefit for large LLCs or corporations with thousands of shareholders.  The state legislature works hard to keep the corporation statute and other business laws current.   Low franchise tax for small businesses and no state sales tax.   Members, shareholders, officers, managers or directors of an LLC or corporation are not required to reside in the state of Delaware.  

Disadvantages to Incorporating in Delaware?

Some smaller companies that only do business in their home state may not benefit from the advantages of incorporating in DE. If they intend to stay small and only operate in their state, incorporating in both Delaware and paying an additional fee to their home state will cost the company money that may not be needed.    However, the legal protections that are afforded you as a Delaware corporation or LLC may override this cost.     "Why do they go to Delaware? …You're concerned about flexibility, capital structure, and corporate purposes. The fact is that Delaware has more law and has answered more questions through its decisions. …It is easier to get an answer to a question under the Delaware Act than it is under say, the Illinois law, which has very few cases in the corporate area."    In the end, even a small company has good reason to choose Delaware for its incorporation advantages.

1. Determine the type of entity


Sole Proprietorship

      Advantages
     -  Low start-up costs
     -  Greatest control by owner
     -  Minimum working capital requirements
     -  Tax advantage to small owner
     -  All profits to owner
     Disadvantages
     -   Unlimited personal liability
     -  Lack of continuity
     -  More difficult to raise capital

Partnership

      Advantages
     -  Ease of formation
     -  Low start-up costs
     -  Additional sources of venture capital
     -  Broader management
     -  Limited outside regulation
    Disadvantages
    -  Unlimited personal liability
    -  Lack of continuity
    -  Divided authority
    -  Difficulty in raising additional capital
    -  Hard to find suitable partners


 

Limited Liability Company


    Advantages
     -  Limited liability
     -  Flexible management structure and ownership
     -  Continuous existence
     -  Legal entity
     -  Easier to raise capital
    Disadvantages
     -  More expensive to organize than a proprietorship or partnership
     -  More regulations than a proprietorship or partner



Corporation
      Advantages    
     -  Limited liability
     -  Specialized management
     -  Ownership is transferable
     -  Continuous existence
     -  Legal entity
     -  Easier to raise capital

     -  Unity of action account having centralized authority in board of directors
    Disadvantages 
     -  Closely regulated
     -  Lack of continuity 
     -  Charter restrictions
     -  Extensive record-keeping necessary
     -  Double taxation, except when organized as an S Corporation
     -  Difficult to liquidate investment


Fill out Form SS-4, sign and date it and

Mail it to:                                                                                 or Fax it to:                          or Apply Online Here

Internal Revenue Service                                                                   
Attn: EIN Operation                                                     (859) 669-5760       
Cincinnati, OH 45999
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2.  Determine Your Business Name ​

Bsiness Name Search (NJ) 

3. Obtain a Federal Identification Number (EIN)  (click on the button below)


Form  SS-4

Apply Online
Instruction to
Form SS-4
Guide to Doing  Business in New Jersey
Stating a Business in New Jersey Checklist

4. File Forms with your State and with you County Clerk

State of New Jersey Registration Packet
Most businesses formed in New Jersey and foreign (non-New Jersey) entities seeking authorization to do business in this state must file organizational documents with the State of New Jersey. This requirement applies to profit and non-profit corporations, limited partnerships, limited liability partnerships and limited liability companies.

Sole proprietorships and general partnerships are not subject to this requirement but will still need to register the business name with the clerk of the county where the business is located. Also, general partnerships may opt to file their partnership agreements with the Division of Revenue. As with all businesses, sole proprietorships and partnerships will also be subject to registration for tax and employer responsibilities.

Bergen County
Bergen County Clerk
One Bergen County Plaza
Hackensack, New Jersey 
07601
(201) 336-7000


Passaic County
Passaic County Clerk
401 Grand Street, Room 130
Paterson, New Jersey 07505
(973) 225-3632

Essex County
Essex County Clerk
Hall of Records
465 Martin Luther King Blvd.
Newark, New Jersey  07102
(973) 621-4920


Hudson County
Hudson County Clerk
257 Cornelison Avenue
Jersey City, New Jersey 07302
(201) 369-3470

Union County
Union County Clerk
2 Broad Street
Elizabeth, New Jersey 07207
(908) 527-4787



Morris County
Morris County Clerk
Administration & Records Building
P.O. Box 315
Morristown, New Jersey 07963-0315
(973) 285-6125

Call US at 201-444-9727 for More Information