One of the first major decisions you will have to make as you start your new business is the form of legal entity it will take. To a large degree this decision may be dictated by the way you have organized your operations and whether you intend to work on your own or in conjunction with others.
The form of entity you choose can have a significant impact on the way you are protected under the law and the way you are affected by income tax rules and regulations. There are three basic forms of business organizations: sole proprietorships, partnerships and corporations. There are also two important variations from these: s-corporations and limited liability companies. Each has advantages and disadvantages and is treated differently for legal and tax purposes.
The Indiana Secretary of State web site does an excellent job of describing the different types of entities. It does not, however, describe the advantages and disadvantages of each type of entity. We at Roger Sipe CPA Firm can advise you as to the tax issues related to each type. The tax issues are sometimes more important than the legal issues, but both must be considered when doing a business start-up.
Information related to all types of business is found in the "corporations" section of the Secretary of States' web site. From there, click on "Starting a Business" for information or "Finding the Correct Forms" for any official forms needed to form your type of business entity.
Other tax forms you will need when starting your business are state tax forms and federal tax forms.
We can advise you as to which tax forms are needed and for what purposes. E-mail us at cpa@sipecpa.com or contact Roger directly at roger@sipecpa.com.