Forming an INC or LLC is a complex process that requires filing paperwork with the state. Once the company is formed, you will need to obtain a tax identification number (TIN) from the IRS and open a business bank account. You may also need to obtain licenses and permits from the state or local government.

INCs and LLCs have different tax and legal characteristics. INC companies are taxed as corporations, while LLCs can be taxed as corporations, partnerships or sole proprietorships. The owners of an INC company are not personally liable for the debts and liabilities of the company, while the owners of an LLC can be held personally liable for the debts and liabilities of the company.

The best type of business entity for you will depend on your specific circumstances. If you are not sure what type of entity is right for you, you should consult with an attorney.

Tips for forming and managing an INC or LLC company

• Choose a name for your company that is memorable and easy to pronounce.
• Select a state of incorporation or formation that offers the best conditions for your business.
• Prepare the necessary documentation carefully, as any error may delay or even prevent the training process.
• Obtain a tax identification number (TIN) from the IRS as soon as possible.
• Open a business bank account to keep your business finances separate from your personal finances.
• Obtain licenses and permits as required.
• Maintain accurate and up-to-date financial records.
• Pay taxes on time and in full.
• Hire and manage employees as needed.
• Manage cash flow.
• Develop marketing and sales strategies.