Pennington Consulting Group Business Formation Services offers complete and affordable formation services to small businesses and professional throughout the United States.
Lowest cost 24 hours service guaranteed
Pennington Consulting Group Services has set the standard for high quality service. Our combination of experience, professionalism and affordability makes Pennington Consulting Group the FASTEST 24 HOUR FORMATION SERVICE FOR THE PRICE. The right choice for you and the smart choice for your business.We can assist you whether you are forming your first corporation or have formed one before and need only limited assistance. We guarantee your incorporation will be handled quickly and professionally by our courteous, well qualified staff.
If you are incorporating in a Foreign State or need Registered Agent Services in your home State, Pennington Consulting Group provides complete Agent Services for all types of entities.
After your business is incorporated you will be required to obtain a Federal Tax Identification Number or Employer Identification Number (EIN). This number is necessary for opening your bank account and is the number the IRS will use to identify your business. We provide complete preparation and filing of the required Form SS-4 to assist you with this important process.
Our pricing is simple. We will form your corporation or limited liability Company, in any state, for $300.00 plus the required State fee. The 4 hour same day expedited service is $600.00 plus State fee. Our goal is to provide better services at lower costs.
Pennington Consulting Incorporation Services guarantees that our service fees are the lowest that you will find. In fact, if you do find a lower service fee anywhere we will beat it OR WE GIVE YOU OUR SERVICE FREE OF CHARGE. We invite you to compare because we stand behind our low price Guarantee.
All legal and tax professionals agree, if your business is not incorporated you may be throwing away thousands of dollars in tax savings and deductions. In addition, all of your personal assets such as your home, cars, boats, savings and investments are at risk and could be used to satisfy any law suits, debt or liability incurred by the business. Forming a Corporation can provide the protection and tax savings needed to give you peace of mind and make your business even more successful and profitable.
Some of the benefits include:
Properly forming and maintaining a corporation will provide personal liability protection to the owners or shareholders of the corporation for any debt or liability incurred by the business. Personal liability of the shareholders is normally limited to the amount of money invested in the corporation.
Another important benefit is that a corporation can be structured many ways to provide substantial tax savings. You can minimize self-employment taxes and increase the number of allowable deductions lowering the taxes you pay on the income of the business. Many corporations structure retirement and tax deferred savings plans for their owners and employees which can provide even greater tax savings.
Sale of stock for the purposes of raising capital is often more attractive to investors than other forms of equity sales. A corporation can also issue Corporate Bonds to raise capital for expenditures without compromising the ownership of the business.
When deciding on exactly which type of entity to form it is necessary to consider short and long term goals of the business, the nature of the business and the benefits associated with each type of entity. We do suggest that the selection of a business entity be done with the assistance of a professional, such as your tax or legal advisor, as they may be more familiar with your specific needs. For more information below are types of corporations.
The “C" Corporation is still the most common form of ownership. It is a separate and legal entity that offers the greatest flexibility with respect to ownership and the free transferability of ownership interest. Although a “C" Corporation allows for many advantageous tax deductions and benefits, small business owners may be at a disadvantage due to the double taxation associated with a “C" Corporation. Income is first taxed at the corporate level at corporate tax rates. Then when the corporation issues dividends to its shareholders, the same money is taxed again at the shareholder level. The result is that the same income generated by the corporation is being taxed twice. Still, the popularity of the “C" Corporation is largely due to its overall recognition and acceptance in our society.
Limited liability protection, unlimited life, easy to raise capital, complete flexibility of ownership, may have various classes of stock, free transferability of ownership and tax benefits allowing for certain health and life insurance deductions.
Governmental regulations, double taxation, must maintain corporate formalities such as annual meetinand other resolutions.
A Subchapter S Corporation or “S" Corporation is similar to the “C" Corporation and operates primarily in the same manner.The main advantage associated with the “S" Corporation is that the income passes through to the shareholders, thus avoiding the double taxation of a “C" Corporation. However, the corporation must meet certain requirements to qualify for the “S" status under the current IRS rules. It also loses some of the tax deductions allowed to “C" Corporations.
Limited liability protection, avoids “double taxation" and has an unlimited life.
No more than 75 shareholders, limited ownership (Individuals, estates and certain trusts),limited to one class of stock, some tax deductions are lost as compared to “C" Corporation, subject to governmental regulations, must maintain corporate formalities such as annual meetings and other resolutions.
The limited liability company or LLC is a popular new form of business entity that combines the limited liability protection of a corporation with the simplicity and tax advantages of a partnership. It is a viable and practical alternative to forming your company as a traditional corporation. While state laws and federal regulations governing how LLC’s will be taxed are still evolving, recent developments have proved to be extremely favorable to small businesses. Most states have made it easier to form LLC’s and recent federal tax regulation changes have given LLC’s increased flexibility.
Similar to a corporation, all of the members (owners of an LLC are called members) of an LLC enjoy limited personal liability. Generally owners are not exposed to legal liability for the debts of the business, you only risk your share of the investment in the business.
An LLC with two or more members can choose how it wishes to be taxed. It can have the pass-through taxation of partnership or elect to be taxed as a corporation. Most LLC’s will choose to have pass-through taxation in order to have the profit or losses of the business pass-through to the to the tax returns of it’s individual members. Electing pass-through taxation avoids the possibility of the double taxation associated with traditional corporations. For LLC’s with only one member you can elect to be taxed as a sole proprietorship or a corporation. Most single member LLC’s will elect to be taxed as a sole proprietorship to avoid double taxation. Profits and losses from the LLC will be reported on your individual tax return.
An LLC can be managed by it’s members or it can designate a manager or managers who will run the LLC. It is common for the members of an LLC to be closely involved in the running of the day to day affairs of the business, this is referred to as a member managed LLC. Generally an LLC with only a few members will be member managed. If an LLC chooses to be run by a manger or managers it is referred to as a manager managed LLC. A member of the LLC can also act as a manager or a group of members can act as Managers.
Members of an LLC can distribute profits and losses any way they choose. You do not have to divide up the profits and losses according to the assets contributed by each member.
The LLC is a relatively new entity and rules and regulations regarding it’s operation and tax regulations are still evolving. In some cases the state regulations need catch up with current IRS rules. In 1997 the IRS Check the Box regulations made it easier for an entity to elect how it would like to be taxed. As a result many previous requirements for LLC’s became obsolete. Some states have yet to adopt these new rules.
An Operating Agreement is an agreement made between the members of the LLC as to how the business will be conducted. Operating Agreements are not part of the public record and do not need to be filed with state offices. This document is similar to the minutes and bylaws of a corporation and should contain provisions that address issues such as contributions, type and manner of distributions, allocations of profits and losses and other important operational matters. Our LLC Kit contains documents that can simplify and assist with this process.
An LLC’s flexibility and ease of operation make it very favorable to small businesses. An S-Corp, while having similar pass-through taxation benefits, does not allow for flexible distribution of profits or losses. Further, S-Corps must maintain statutory corporate formalities. An LLC can have multiple owners, without restrictions on type or classification, and may offer several different classes of ownership interest. An S-Corp is restricted to 75 shareholders, with restrictions on type and classification, and can offer only one class of stock. While the LLC and S-Corp both provide limited liability protection and similar pass-through tax advantages, the LLC has far less restrictions or formalities it must adhere to. We urge anyone who may need more guidance in choosing which entity is best suited for their business to consult their tax or legal advisor.
Most states require that an agent be registered with the state at the time of incorporation. The purpose of the Registered Agent is to receive governmental and legal correspondence, including your annual report, any delinquency notices and many other documents that your company may be required to respond to. The agent must have a physical address within the state of incorporation and be of legal age. An officer, director, employee or even a shareholder may act as the registered agent if they meet the state requirements. The registered agent may also be served legal summonses in a lawsuit. Pennington Consulting Group Services offers registered agent services in all states at affordable annual rates. (SERVICE FREE FOR ONE YEAR.)
Most states require that corporations and LLC’s designate an individual or professional corporation as Registered Agent. The state will make the agents name and address known to the general public in the event that someone should need to contact your company.
Pennington Consulting Group Services provide the following services in all 50 states:
Yes, you or any other individual who meets the state requirements and who agrees to act as agent for the company may serve as Registered Agent. However, keep in mind that the Registered Agent’s name and address are made part of the public record. It may be advantageous to use a professional registered agent service if your business is a home based or retail business.
Registered Agent fees are $140 per year and payable in advance. You may cancel registered agent services at any time as long as you provide proof that another agent has been named in the state of incorporation. Remember, in order for your business to maintain good standing status it must also maintain a Registered Agent.