Forming a business is the filing that creates it, and the decisions around it: which state, which structure, how it will be taxed, who the registered agent is and what has to be filed every year. We handle the filing and help you make those decisions with the tax result in mind.
We do not provide legal advice or act as your attorney. If you need legal advice about contracts, liability or ownership, we recommend speaking with a business attorney.
Choose your entity
LLC
A flexible structure for most small businesses. An LLC can be taxed as a sole proprietorship, partnership or, if elected, as an S or C corporation.
S corporation
A tax classification (not a type of entity) that lets eligible owners be paid partly as salary and partly as distributions, with payroll and a separate return. It is not right for every business.
C corporation
A separate taxpayer with its own tax return. Often chosen by businesses planning to raise outside investment.
Nonprofit
A nonprofit corporation, which can later apply for federal tax-exempt status. We can explain the steps.
What we handle
- Preparing and filing the formation document with the state (called a Certificate of Formation in Texas, and Articles of Organization or Incorporation in many other states)
- Applying for your EIN (federal employer identification number) from the IRS
- A registered agent in your state, if you need one
- Guidance on how your business will be taxed and whether an S corporation election is worth considering
- Setting up bookkeeping and, if you will have employees, payroll
- Reminders and help with annual reports and state filings, including Texas franchise tax
State filing fees
Every state charges its own filing fee, and they differ. You pick the state when you start an order, and the state fee is added so you see the full cost before you pay.
How it works
- 1
Pick your state and structure
Tell us where you are forming and what type of entity you want. If you are unsure, we can talk through it.
- 2
We prepare and file
We prepare the formation document and file it with the state.
- 3
We apply for your EIN
Once the entity exists, we apply for the EIN you need for banking, payroll and taxes.
- 4
We help you start clean
We point you to the next steps: operating agreement, bank account, bookkeeping, payroll and the S corporation question.
What we need from you
- The business name you want, and one or two alternatives in case it is taken
- The state and the type of entity
- Names and addresses of owners (members or shareholders) and their ownership percentages
- A registered agent name and address, or ask us to provide one
- The business address and a short description of the business
- A responsible party for the EIN application and that person's taxpayer ID
Not sure what applies to you? Send what you have and we will tell you what is missing.
Why work with BUTA Tax
- Tax preparation, bookkeeping, payroll, business formation and IRS help in one firm, so your records line up.
- A secure client portal for your documents and messages, available whenever you need it.
- Starting prices shown on this site and the questions that set your final price asked before you pay.
- An office in Frisco, Texas, and online service for clients across the United States.
Frequently asked questions
Which state should I form my business in?
Usually the state where you operate, or where most of your business happens. Forming elsewhere can mean registering in your home state as well and paying two sets of fees, so we help you check before you decide.
What is the difference between an LLC and an S corporation?
An LLC is a legal entity. An S corporation is a way of being taxed that an LLC or corporation can choose. Many S corporations are LLCs that made the election.
How much does it cost to form an LLC?
The cost is our service fee plus the state's filing fee, which varies by state. You see both when you start an order and choose the state, before you pay.
Do you get me an EIN?
Yes. We apply for your EIN after the company is formed. The IRS issues EINs at no charge, and our fee covers our work preparing and submitting the application.
Are you my attorney?
No. We are a tax and accounting firm. We prepare the filings and explain the tax effect of your choices, but we do not give legal advice.
What do I have to file after I form the company?
It depends on the state and the entity. Many states require an annual report, Texas entities generally file a franchise tax report, and every business with an EIN has federal tax filings. We can help you set up a calendar.