We provide business management consulting service to start up and established companies. Our business consulting services include :
Tax Planning
Incorporation
Business plan Consulting
Payroll Administration
Record Keeping>
QuickBooks Training
Business Setup
The key to setting up and operating a successful business is "Organization". Organized financial records ensure that your business
operations will run more efficiently on a daily basis and are the foundation of a successful business. If you are thinking
about starting a business or already have a business then contact us by phone at
(580)-357-1315 or (888) 298-1315. or email to discuss your options and
insure all liabilities are covered.
Networking
If you are thinking about installing a network, upgrading an existing network or just need to make some changes then contact us by phone at
580-357-1315 or 888-298-1315
or email to discuss your options.
Business Types
Most small businesses choose to be either an "S" corporation or an LLC because these forms limit personal liability while
still allowing profits and losses to be passed through to the owner‘s personal tax returns. Call Layne or Dana
at (580)-357-1315 or (888) 298-1315.
or email us to see what business type is right for
your personal situation.
Sole Proprietor - being a sole proprietor is easy and cheap. You just file a schedule "C" on your tax return to report
business income. However, there are no legal protections for your personal assets. There are no limits to your personal
liability for business failures or mistakes. In order to limit libiality you must form "formal Corporation".
"C" Corporation - The most common type of corporation is the "C" Corporation,
which is a for-profit, state-incorporated business.
Articles of Incorporation are filed and appropriate fees are paid to set it up.
The "C" corporation is established as a unique business entity, which takes on a distinctly separate business and
tax identity from that of the owners (the shareholders).
Separate income taxes are filed (IRS form 1120), and corporate taxes are paid regularly for the business.
In return, the business owners are removed from personal liability for debt incurred by the corporation.
Should the business go bankrupt, or be faced with a lawsuit, the owner’s personal assets are protected. This is the most
significant reason why many business owners choose to incorporate.
Additionally, as a separate entity, a corporation can own property, make business deals, or even sue another
business independently of the shareholders.
"S" Corporation - "S" Corporations do not pay any income taxes.
Instead, the corporation‘s income or losses are divided among and passed through to its shareholders. The shareholders
must then report the income or loss on their own individual income tax returns.
"S" corporations are separate legal entities from their shareholders and, under state laws, generally provide their
shareholders with the same liability protection afforded to the shareholders of C corporations.
Income is taxed at the shareholder level and not at the corporate level.
Certain corporate penalty taxes (e.g., accumulated earnings tax, personal holding company tax) and the alternative minimum
tax do not apply to an S corporation.
Partnership/LLC - A LLC exists as a separate entity much like a corporation.
Owners of a LLC have the liability protection of a corporation.
Your liability is limited only to the amount of capital that you have invested in your company.
Members cannot be held personally liable for debts unless they have signed a personal guarantee.
You can distribute the income earned by any method, as long as it is agreed by all members.
You will also be liable to pay your taxes as an individual, in contrast to the double taxation that you may
have to pay if your business was incorporated as a C Corporation.
Corporations can live forever, whereas a LLC is dissolved when a member dies or undergoes bankruptcy.
Tax Id(s)
Federal Tax ID - If your business has employees, is a corporation or
LLC, you will need a Federal Tax Identification Number. This is commonly referred to by a number of initials — EIN.
(Employer Identification Number) or FEIN or FIN (Federal Employer Identification Number). Even if you are a sole proprietor,
you will be asked for a tax ID number by companies you do business with, and it may be safer and
more professional to give them your EIN instead of your personal social security number. It is easy and FREE to get an
EIN. Go to irs.gov, put "EIN" in the keyword search box. Or call the IRS Business Line at 1-800-829-4933. The IRS can
assign you an EIN over the Internet or the phone.
State Identification or Account Number - In certain states and situations you may be required to obtain a State
Identification number. The usual are: corporation number, employer account number, certificate numbers for specific licenses. Check with your
Secretary of State‘s office. A directory of all state websites can be found at StateLocalGov.net.
Business License/Permits - Most cities and counties require businesses to have a business license. You may not need one
for a home-based business. Check with your local city and county governments. States also require licenses or certification
to engage in certain types of businesses or professions, such as contractors, real estate agents, beauticians, optometrists.
Permits are required for particular actions, such as construction and building permits and permits for special events.
Permits are usually granted by local or county authorities.
Resale License - A resale license enables a company to purchase goods or materials for manufacture or resale without paying sales tax — because
the ultimate consumer pays the tax. Each state has its own requirements and terminology. Some states do not require a
license — just a signed statement of intent to resale goods.
"DBA" or FICTITIOUS BUSINESS STATEMENT - If you use any name other than your own name,
you will need to file a "doing business as" or fictitious business statement, usually with your county government. This enables
the public to know who is actually operating the company.
Don‘t be overwhelmed by these issues, Sterett Services is experienced in establishing new businesses and can provide the
on-going services to insure your success.