Entity Formation

Overview

Entity Formation

Starting a business is an exciting step, but choosing the right legal structure is crucial for long-term success. At Cauchy Inc, we provide expert entity formation services, guiding you through the registration process to ensure compliance, liability protection, and tax efficiency.

What We Do

Business Formation & Registration

We assist in selecting and registering the right business entity for their needs.

Why Register a Business?

Limited Liability – Protects personal assets from business debts.

Credibility & Professionalism – A registered business earns trust from customers and suppliers.

Tax Benefits – Access to deductions and lower corporate tax rates.

Funding Opportunities – Easier access to business loans and investor funding.

Growth Potential – Enables business expansion and hiring.

Types of Business Entities in the U.S.

Sole Proprietorship – Owned by one individual, personally liable for debts.

Partnership – Two or more owners share profits and liabilities.

Limited Liability Company (LLC) – Combines liability protection with pass-through taxation.

Corporation (C Corp / S Corp) – A separate legal entity with shareholder ownership.

Nonprofit Organization – Tax-exempt entity for charitable, educational, or scientific purposes.

Business Registration Requirements

Business Name – Must be unique and legally valid.

Registered Address – A designated business location.

Formation Documents – Includes articles of incorporation, bylaws, and agreements.

Ownership & Governance – Structure of shareholders, directors, and managers.

Tax & Licensing – Obtain necessary tax IDs and business permits.

C Corporation Tax Requirements

Corporate Income Tax (21%) – Based on company profits (Form 1120).

Dividend Taxes – Shareholders pay taxes on received dividends.

Payroll Taxes – Employers must cover Social Security & Medicare taxes (~7.65%).

State Taxes – Varies by state regulations.

F. A. Q

Frequently Asked Questions

What is the best business entity for me?

It depends on your business goals. LLCs offer flexibility and liability protection, while corporations are better for growth and investment.

How long does it take to register a business?

Registration times vary by state, but most businesses can be registered within a few days to a few weeks.

Do I need an EIN (Employer Identification Number)?

Yes, most businesses need an EIN for tax purposes, banking, and hiring employees.

Can I change my business structure later?

Yes, but converting from one entity type to another requires legal and tax considerations. We can assist with the transition.

What documents are needed to start a business?

Typical documents include a business name registration, formation documents, tax IDs, and relevant business licenses.