Why Choose R&G Brenner for Your Corporation Setup and Dissolution

In general, there are only two real reasons to form a business entity as opposed to doing business as a sole proprietor: to limit personal liability and to improve your tax situation. Liability is limited through many – though not all – business structures because they constitute separate “persons” in the eyes of the law. Most business entities provide the individuals involved with some protection against personal liability for the entity’s actions or behavior. The other main reason to do business through an entity is because in most cases this significantly alters the tax situation, opening new ways to save money through the many options in the tax code.

The American tax system is defined as being progressive, which means that it is not merely concerned with raising revenue for the government; but also seeks to encourage – and discourage – behaviors in accordance with what the political leadership believes offers the most benefit to country, state, or local jurisdiction. Therefore the tax code is regularly used to actively encourage people to save for their retirement, to send their children to college, or to donate to charity and at the same time it actively discourages people from investing internationally, operating in foreign currencies, or (at least recently) the creation of new financial instruments. One of the behaviors that is actively encouraged by the federal tax code – as well as many state tax codes – is small business creation and entrepreneurism. This behavior is encouraged by offering people that start new small businesses all kinds of tax credits, deductions, and other incentives that are only available to small businesses that operate through some sort of business entity.

The most traditional, and well known, type of business entity is the standard corporation, but realistically this may not be the best option for most small businesses. Instead, the modern tax code permits all kinds of more specialized entities that might be more appropriate like S-Corps and Limited Liability Companies. Further there are a range of other structures that can act like companies in some cases like partnerships and trusts. Determining which kind of business structure is most appropriate for your small business will probably require some consultation with a tax specialist that can explain all of the advantages and disadvantages of the various types of entities available.

R&G Brenner offers a range of company formation services to its clients, which include determining what type of entity is most appropriate, filing all the relevant paperwork to create the entity and explaining how it works and what you can – and can not – do with it. Further, R&G Brenner will get your entity’s Employer Identification Number (EIN) from the Internal Revenue Service (IRS) and show you what kinds of tax forms are required to be issued by the entity (like W-2 or various 1099 forms) and which forms have to be filed by the entity annually. Finally, R&G Brenner can also help you dissolve an entity in the proper way to avoid any accidental tax problems later on.

All business entity formation is controlled by the individual states in the United States, so R&G Brenner mostly deals with New York entities, though if necessary can arrange for company formation in other jurisdictions if it offers the client a significant tax benefit that can not be otherwise obtained.

Have a tax question? Ask one of our tax professionals.