Home Business Startup Services Business Tax Services Individual Tax Services About Us Client Login
New Business Setup
We Have Been Helping New Businesses Get Started for Over 25 Years
If you are thinking about starting a business, Rosedale & Drapala, CPAs can give you the advice you need. We will help you decide whether forming a C Corporation, S Corporation or LLC is the right decision for you. Our office will file all the forms with the IRS and state to get you setup for sales tax (if applicable), payroll and mandatory business insurance.
Information About Various Entity Choices for New Business Owners
Entity Debt Liability Taxation Formation Maintenance
C Corporation Owners have limited personal liability for business debts. Owners can split corporate profit among owners and corporation, paying lower overall tax rate.
Separate taxable entity.
Fringe benefits can be deducted as business expense.
May have an unlimited number of shareholders.
More expensive to create than partnership or sole proprietorship.
Shares of stock may be sold to raise capital.
Formality requirements (e.g. annual reports, minutes, meetings) are required to maintain corporate status.
S Corporation Owners have limited personal liability for business debts. Owners report their share of corporate profit or loss on their personal tax returns.
Income must be allocated to owners according to their ownership interests.
Owners can use corporate loss to offset income from other sources.
Fringe benefits limited for owners who own more than 2% of shares.
More expensive to create than partnership or sole proprietorship. More formality requirements than for a limited liability company which offers similar advantages.
Non-Profit   Full tax advantages available only to groups organized for charitable, scientific, educational, literary or religious purposes.
Contributions to charitable corporation are tax-deductible.
Fringe benefits can be deducted as business expense.
  Formality requirements (e.g. annual reports, minutes, meetings) required to maintain corporate status.
Property transferred to corporation stays.
If corporation ends, property must go to another non-profit.
Professional Corporation Owners have no personal liability for malpractice of other owners. Owners have liability for own acts of malpractice.   Option when certain states do not allow professionals to form a C Corporation.
More expensive to create than partnership or sole proprietorship.
All owners must belong to the same profession.
Formality requirements (e.g. annual reports, minutes, meetings) are required to maintain corporate status.
Limited Liability Company Combines a corporation's liability protection and pass-through tax structure of a partnership. IRS rules now allow LLCs to choose between being taxed as partnership or corporation. More expensive to create than partnership or sole proprietorship. Sale of member interests may take place per company policy.
Significantly easier to maintain than a corporation.
Professional Limited Liability Company Same advantages as a regular limited liability company.
Members have no personal liability for malpractice of other members; however, they are liable for their own acts of malpractice.
  Gives state licensed professionals a way to enjoy those advantages.
Members must all belong to the same profession.
Not available in all states.
Sale of member interests may take place per company policy.
Significantly easier to maintain than a corporation.
Sole Proprietorship Owner personally liable for business debts. Owner reports profit or loss on his or her personal tax return. Simple and inexpensive to create and operate. No filing necessary.  
General Partnership Owners (partners) personally liable for business debts. Owners (partners) report profit or loss on his or her personal tax returns. Simple and inexpensive to create and operate. No filing necessary.  
Limited Partnership Limited partners have limited personal liability for business debts as long as they don't participate in management.   Suitable mainly for companies that invest in real estate.
More expensive to create than general partnership.
General partners can raise cash without involving outside investors in management of business.
General partners personally liable for business debts.
Contact Information
516-783-1515
Request for Consultation
 
 Business Owner   Individual
Name: 
Address: 
City: 
State/ZIP: 
Phone: 
Email: 
Message: 
 
ROSEDALE & DRAPALA • LONG ISLAND CPA FIRM • 2001 GROVE STREET • WANTAGH • NEW YORK 11793 • 516-783-1515

Copyright 2012 © Rosedale & Drapala, Long Island NY CPAs. All Rights Reserved.

Rosedale & Drapala is a New York CPA and Long Island CPA firm that provides a wide variety of small business accounting, corporate tax and individual tax preparation services. Our 1040 tax clients are located in towns throughout Long Island like East Meadow, Merrick, Baldwin, North Bellmore, Wantagh, Massapequa Park, Bellmore, Seaford, Westbury, Levittown, Hempstead, Freeport, Commack, Lindenhurst, Glen Cove, Massapequa, Roslyn, Manhasset, Hicksville, Garden City, Syosset, Great Neck, Woodbury, Valley Stream, East Hills, Huntington, Huntington Station, Melville, Plainview, Deer Park, Copiague, and more. While we provide CPA business accounting services in Nassau County and Suffolk County, Rosedale & Drapala also provide business tax services for our clients located throughout the tri-state area including New York City, Queens and Staten Island.