Frequently Asked Questions

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INCORPORATION

What are the benefits of incorporation?

The main reason to incorporate (or form an LLC) is to minimize your personal liability. Once your business is incorporated (either by forming an LLC or Corporation), it exists as a separate business entity. Essentially, you put a wall separating your personal assets from anything in the business.

What are the drawbacks of incorporation?

The only real “drawback” of incorporating is that you’ll need to operate your business at a higher administrative level than you’re used to as a sole proprietorship. In addition, incorporating as a C Corporation can result in higher taxes for some small business scenarios due to double taxation.

What’s the difference between a C Corp and an S Corp?

As mentioned above, the C Corporation’s tax structure isn’t optimal for many small businesses, since business owners often are taxed twice on the profits. However, Corporations can elect for “S Corporation” tax treatment. Often called a “pass-through” entity, an S Corporation doesn’t file its own taxes. Rather, profits and losses of the business are passed through and reported on the business owner’s personal tax return.

What’s an LLC?

An LLC (Limited Liability Company) is a hybrid of a sole proprietorship/partnership and corporation. This structure is very popular among small businesses, and for good reason. The LLC limits the personal liability of the owners, but doesn’t require much of the heavy formality and paperwork of the corporation. This makes it a great choice for business owners that want liability protection but don’t want to deal with exhaustive meeting minutes, addendum filings or other paperwork you’d need to file as a corporation.

You can structure your LLC to be taxed as an S Corporation (as described above) where company profits flow through to the owners and are taxed at the personal income rate.

What’s a non-profit corporation?

A nonprofit is created for charitable, educational or other purposes (actually there are five recognized purposes: charitable, religious, scientific, educational and literary). Nonprofits cannot benefit the owners: all money above operating costs must be used to further the goals of the nonprofit. This allows nonprofits to operate tax-free. Approval is needed at both at the State and Federal (IRS) level.

Just like with other corporations or LLCs, a nonprofit corporation offers a corporate shield that helps protect the personal assets of the nonprofit’s stakeholders. In most cases, as long as the legal structure remains correct, stakeholders of nonprofit corporations are immune from individual liability.

When is the best time to incorporate?

In most cases, it’s best to incorporate or form an LLC as soon as possible. After all, the main benefit is liability protection and by waiting to incorporate, you can be exposing yourself to liability.

Keep in mind that your corporation’s start date is not retroactive. This typically means filing two business income tax returns for the year. For example, if your corporation was formed on June 1, you’ll need to file as a sole proprietor (or whatever your previous entity may have been) from Jan. 1 – May 31 and then file as a corporation from June 1 – Dec. 31.

What are the requirements for incorporation?

In order to incorporate your business, you’ll need:

• A unique business name

• A registered agent

• Incorporators (if you’re registering in Delaware)

Which is better: An LLC or S-Corp?

If you are planning on being the only owner and operator of your business, then you will want to go with the LLC. If you are looking at multiple owners and operators, or if you want to be able to pay yourself a salary for your work, then an S-Corp is probably the better choice.

What is a Registered Agent and why do I need one?

A registered agent is an organization or person who receives legal documents on behalf of your business. Most states require LLCs and corporations to have a registered agent.

The registered agent’s name and address appear on public record, so you’ll want to be sure to choose someone who can reliably meet this obligation for you. The registered agent must be available during standard business hours (9:00 a.m. to 5:00 p.m.) to receive any documents delivered for your business. If you are a small business owner, you may want to consider using a third-party registered agent like us rather than designating yourself as the registered agent for your business (though we recommend checking with your state first).

Should I trademark my business name?

Trademarking your business name gives you unique rights to your name within your industry. This prevents other businesses from using your business’s name and confusing customers who are looking for you. It also helps prevent competitors from doing business under names similar enough to yours that they could be mistaken for your company.

What happens if I move to another state?

The best way to deal with this is to either keep the corporation you set up and qualify it to do business in the new state, or set up a new corporation in the new state, acquire all of the stock of the current corporation, and then dissolve your current corporation.

Both of these approaches have their benefits. If you choose to keep your current corporation, it will be easier and cheaper, but it can be more expensive in the long run because you have to pay taxes to and comply with the rules of two states instead of one.

Where should I incorporate?

You often hear of companies incorporating in Delaware, Wyoming or Nevada. That’s because Delaware offers flexible, pro-business statutes, while Wyoming and Nevada feature low filing fees as well as no state corporate income, franchise or personal income taxes.

However, as a general rule of thumb, if your business will have fewer than five shareholders, you should incorporate in the state where you actually live or where your business has a physical presence (such as an office.) When you incorporate in a different state from your physical presence, you’ll need to deal with added fees and paperwork, since you’re considered “operating out of state.” And for most small businesses, the added hassle and fees just aren’t worth it.

How can I incorporate?

There are three common methods for incorporating or forming an LLC. Each has its pros and cons, depending on your needs:

  • Do-it-yourself: DIY is the lowest cost method, but you’ll need to do everything yourself. This is the best option if you’re more interested in saving money than time. With this route, you need to be able to deal with lots of details and arbitrary rules.
  • Online legal filing service: This option is slightly more expensive than DIY. An online legal filing service will complete and file the documentation for you. Like any legal document, the articles of incorporation and application are full of tedious details. A professional service can make sure that your application is done right and processed smoothly.
  • Lawyer: This is the most expensive option, but may be necessary in certain situations. For example, if you have complex requirements for how your stock should be allocated or you are working with millions of dollars, then you should turn to expert advice.

TAX

Where is my tax refund?

 You may visit https://www.irs.gov/individuals/get-transcript to request for a transcript of your individual tax returns. You have an option to request it online or by mail.

Is my tax refund lost?

We would like to keep you informed on this matter, however, you will have to get into the IRS website (irs.gov) so you can track the status of your tax refund.

What if I receive another tax form after I’ve filed my return?

If you’ve already e-filed or mailed your return to the IRS or state taxing authority, you’ll need to complete an amended return. You may contact our finance team and we can file a form 1040X for you. Additional fees may apply.

How long do you keep my filed tax information on file?

We retain your information for as long as your account is active or as needed to provide you services. We may retain or use your information as necessary to comply with our policies, legal obligations, resolve disputes, and enforce our agreements. The IRS requires us to retain filed tax returns for a period of at least three years. 

 

 

If you start, but do not complete, a tax return as part of our services, we will keep the tax return information you provide until the end of the tax season, after which it will be deleted from our system.

You can structure your LLC to be taxed as an S Corporation (as described above) where company profits flow through to the owners and are taxed at the personal income rate.

SERVICES

What are other services you offer?

Aside from the CFO Package, we also offer the following services:

  • Tax Preparation

  • Tax Resolution

  • Incorporation Services and Non Profit Setup

  • Financial Coaching

  • Grant Funding Service

 

To know more about these, we recommend you get in touch with us and we’d be happy to guide you through the services based on your needs.

What exactly is a CFO Package? How much is it?

The CFO Package is one of Bedrock Business Builder’s main services. It includes the following:

  • Monthly bookkeeping for (1) business entity (reconciliation and categorization of multiple accounts)

  • Tax Correspondence & Compliance: We will review and respond to any tax notices you receive.  Provide guidance & support in keeping your tax records in order and your business in full compliance

  • Own client profile in Bedrock Business Builder’s client portal, Secure File Pro for exchanging confidential documents such as bank statements, tax documents, personal identifications, etc…

  • Weekly Masterminds

  • Time with Joe: (1) 30-minute call per month with Joe DiChiara.

 

Our services start at $97/month for one (1) business entity. This is one of the most affordable and value-for-money kinds of service that any accounting firm can offer.

I have a new business and I wanted to incorporate it. What would be the best way<br /> to do it?

You certainly have visited the right page. Bedrock Business Builders offers incorporation services where we do the leg work for you in incorporating your company. The arrangements would depend on the state where you are in. It would be best to schedule a

Time with Joe to learn more about this service and see how we can best help you with this.

Can you help me apply for and get a grant?

You certainly have visited the right page. Bedrock Business Builders offers Grant Writing, Research and Grant Funding. There are plenty of grants available for every kind of business. We can help you determine which suits you best, we can help you with research and even apply for it. It would be best to schedule a Time with Joe to learn more about this service and see how we can best help you with this.

SUPPORT

How do I get technical support or assistance?

Feel free to email our Support Team for any support questions or assistance. Someone from our team will respond to questions within a reasonable timeframe.

I would like to speak to someone from your team. How do I contact you?

Email our Support Team for any support questions or assistance. Someone from our team will respond to questions within a reasonable timeframe.

I am having problems with my taxes. How do I ask for help?

Email our Finance Team for any support questions or assistance. Someone from our team will respond to questions within a reasonable timeframe.

How do I get help with my return that was prepared by Bedrock Business Builders?

Email our Finance Team for any support questions or assistance. Someone from our team will respond to questions within a reasonable timeframe.

How do I make sure that all my information is being kept confidential?

All information shared with us is being kept confidential and safe in a secure portal. Bedrock Business Builders doesn’t share, send or exchange essential information via email or any unsecured gateway. We have our own secure portal where our clients get to have their own account with a passcode and another pin for double security purposes.

This secure portal is the only way we share documents.

How do I update or delete my client portal account?

You may view and update your information through Bedrock Business Builder’s Secure File Pro. Deletion of an account however, may only be done by authorized personnel from the company.

When you update information, we may, however, maintain a copy of the unrevised information in our records. Additionally, if you request we delete your account or information, we may still retain and use your information as necessary to comply with our legal obligations.