How to form a C-corporation for Business Service Provider

Introduction

If you’re setting up a business, it’s important to understand how incorporation works. This is because corporations allow for more flexibility in terms of financial planning and tax liability than sole proprietorships or partnerships do. They also provide legal protection from liabilities that arise out of running a business as well as give you the ability to raise capital through loans or selling shares in your company. The process of incorporating your business can be broken down into five simple steps:

Incorporate your business

To form a corporation, you need to file Articles of Incorporation with the state. A corporation is an independent legal entity that has certain rights and obligations as well as limited liability for shareholders. This means that if you have a business, it’s often easier to incorporate than it is to start an LLC.

Here are some things to consider when deciding between forming a corporation or LLC:

• A corporate structure makes sense if you want your business to separate itself from personal assets like real estate and cars.
• A limited liability company gives owners more flexibility in terms of tax treatment; they can choose how much income will be taxed at the entity level versus being taxed directly on their personal returns—a benefit especially valuable for small businesses where profits may fluctuate considerably over time.

Apply for an EIN

To apply for an EIN, you must fill out Form SS-4. The IRS provides a guide to help you fill out the form. Once submitted, it will take up to 10 days for your EIN to be issued.

The EIN is essential because it allows your business to open a bank account and pay taxes as a corporation (or sole proprietorship with limited liability). The IRS uses this identifier so that they can track who owns what companies and how much profit those businesses are making annually. In addition, if someone asks you for your business’s tax ID number when doing business with them what they’re asking for?

Register a business name

As you might expect, different states have different requirements for doing this—so it’s important to check what’s required in your state.

Before filing your application with the state, make sure that no one else is already using that name for their business or organization. If two businesses use the same name, it can lead to confusion and potential legal problems down the line. It also helps if you do some research into whether there are any trademarks or service marks connected with any names you’re considering using—if they are already in use by someone else (even if they aren’t currently being used), then those other companies could have some say over whether or not it’s okay for another company to use those same words in its own branding efforts.

Choose a Registered Agent

• The registered agent is the person or company who is authorized to accept legal and official documents on behalf of your business.
• A registered agent must be located in the state where your corporation was formed.
• They must also be available during normal business hours.
• If you choose a licensed attorney, they cannot act as your registered agent; they must have an address separate from their law firm’s address, which means that you will need to hire an additional licensed attorney for this purpose.

Open a business bank account and credit card

As a business owner, you are required to keep track of your expenses and receipts. You will need to do this in order to be able to claim any deductions that may be available at tax time.

To start your business off on the right foot, open up a business bank account and credit card. It is important that you use this account for all business transactions related to your company so that it can be easily tracked by yourself or the tax office when it comes time for filing taxes.

Once this has been set up, set up a merchant account with one of the many payment processors out there. This will allow people who want services from you as well as other businesses who want products like clothing or lawn equipment from them etc., to pay through their website by making purchases through our system instead of having them write checks directly into our bank account which would then have trouble reconciling payments made throughout multiple months if not years later down the road after we’ve already closed out those accounts due

Do these five things in order to set up your business with the proper structure and some legal protections

•  Form a C-corporation
• Select a registered agent.
• Obtain an Employer Identification Number (EIN).
• Open a business bank account.
• Apply for a business credit card

Conclusion

After you’ve worked through the steps above, you’ll be ready to start your business. You might need some additional licenses, but these are usually fairly straightforward and fairly inexpensive.