Business Registration
Consider your options
Review the organization structure options available in your state. If you choose to incorporate your business, then you should register the company in the state of its physical presence first. Contact us if you require assistance with organization and registration.
Additional business registration
In addition to the initial state filing fees, the state will generally require additional licensing and permits to operate a business in an industry or location. Consider these costs in your budget.
Elections
An entity will be classified under a default election based on the corporate structure and its owners, and where it is formed. An entity may choose to change its default classification for tax purposes and file a request to the government. US and Puerto Rico default tax treatment are not the same.
An entity formed in the US will file Form Form 8832 to the IRS. An entity formed in Puerto Rico will file Form 6045 Partnership Classificaion Notification or Election to the Department of Treasury of Puerto Rico.
Effective January 1, 2025, all businesses that are not otherwise exempt must report Beneficiary Ownership Information to FinCEN to avoid penalties.
