Start or expand a business...
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Most businesses fail within 5 years…only a few survive a decade. Why? Well,… preparation is the key, realistic preparation, with real business plans, marketing strategies, and committed ownership. We have experience in helping the new business owner get off the ground and keep flying. The following pages will help you and a personal interview with us is well worth your time. In any case review the following pages.
We will Help you develop a business plan so your business can be successful in finding investors, lenders, and develop expert marketing strategies.
Registers your business with the in Colorado and appropriate state agencies and then we file the necessary paperwork for your company with the IRS.
We work with the ownership group on legal matters such as contracts, independent contractors agreements, employee apps and payroll as well as accounting, bookkeeping and tax matters.
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An Open Letter to Businessmen and Women, Investors, Entrepreneurs and Independent Contractors
Some of you have the vision to start your own business., other worked hard to build and maintain their business…And America is a great place to do business. Our laws and general business atmosphere are conducive to success. We can find and serve clients and customers with a variety of ideas, services, and products. Our laws and government provide us with guidelines that establish ground rules we can live with everyday.
It certainly is a good time to be in business.
But the very factors that make success possible also harbor potential disaster for sole proprietors and entrepreneurs who put their future in jeopardy every minute of every day. None of us starts the day thinking we might have a heart attack, mess up a deal, cause or become a part of an accident. We trust our employees, partners, and independent contractors to do their jobs honestly, safely and well. Most of the time they do just that.
We hope our customers will recognize our skills, efforts and hard work and understand when things go wrong. However, sometimes they don’t.
Things sometime go wrong…LIFE HAPPENS: accidents, mistakes, carelessness, illegal acts, miscalculations and illness are common. Then too, businesses fail to pay us… or sue us… or file negative reports on us…Government and regulators change laws and rules and sometimes decide to enforce old ones…Employees or independent contractors acting in our name, and under our contract, do dumb things that create disaster…Perhaps the IRS or state or local auditors come looking at our books and don’t like what they see…STUFF HAPPENS.
For the sole proprietor or the independent contractor, an investor or the entrepreneur, the negative financial fallout can extend to their bank accounts, houses, cars, savings programs, retirement income (including social security payment)…And adverse judgments, liens, finds, penalties, credit reports, garnishments, etc can follow them (you?) personally for years and years.
Fortunately there is a way to protect you, or at least insulate you, from many of the business pitfalls that stare you in the eye every single day. That protection is the incorporation of your business. Please review the following pages on this web site as you make your decision.
Sincerely,
Denny
Denny Osborn
President
Far Point Colordao, Inc.
303-249-1486
Answering questions about incorporating in Colorado…
Q. Why would I want to incorporate my business?
A. There are many reasons, but perhaps the best reason is to protect your personal assets in case a client, competitor or government agency wins a monetary liability court case against you for real (or imagined) accidents, misdeeds, carelessness, etc. As a sole proprietor or partnership, the owners are responsible for payments of all judgments against the company… this may extend to personal assets such as your home, bank account and other personal property. It can even have implications on future business profits and wages as well as your retirement plan. Even social security payments can be tapped to pay for judgments that were business related. With a corporate structure, it is normally only the corporate assets that are at risk. While it is not a “corporation,” an LLC (Limited Liability Company) offers similar protection for its partners but its ability to pass on the company to others is also limited.
Q. Are there other why reasons why a business incorporation makes sense?
CONTINUE READING
Five Reasons To Form An “S” Corp
When organizing a business there are five main ways to do so: An individual can open a business as a sole proprietor or two or more individuals can form a partnership. These two models tend to be informal, inexpensive and easy to organize. The USA has other for-profit business models namely Limited Liability Companies, Sub-Chapter “S” Corporations and the regular so called “C” corporations. These latter three business organizational models give owners, shareholders, partners, and stockholders, as well as employees, important legal protections not afforded to sole proprietors and partnerships. Below are five reasons I favor the “S” Corp route for small businesses.
- An S Corp is easy and relatively inexpensive to organize. It can have from one to 100 members and starts with registration of the company with the Secretary of State and paying a small fee. The SOS will give the company a state ID, a registered name and certificate. Next the company rep applies to the IRS for a Federal Identification Number and Sub Chapter S tax status. It is now a legal corporation.
- The S Corp status limits the investor’s personal losses and debts of the corporation to those assets owned by the corporation while sole proprietors and partners may be personally responsible for the debts of their businesses and this can include putting at risk their own personal property, bank accounts and other assets. Courts can also attach future income as part of the debt settlement when things go south. An S Corp designation puts up a wall against personal loss from acts of the Corporation. If the S Corp makes a profit or a loss, it is passed thought to the shareholder.
- An S Corp shareholder/officer can also opt out of such state mandates as workman’s comp and unemployment payments (A warning: doing so can have devastating effects if there is a work related injury which is normally not covered by personal health plans and no unemployment benefits if the business goes under.)
- S Corp owners can also chose to take company profits as ordinary dividends and not pay social security payments on this income. (Again a warning: that money you saved, FICA, etc, is not available to go into your social security account.)
- Many companies and businesses, as well as government entities, prefer to do business with corporations over the less formal sole proprietor and partnership models. This is an important edge in a competitive world.
Incorporation Package
(For C, sub S, LLC)
$499Includes
- File for Corporate status with the State of Colorado and Register with IRS
- Register the business, its name, and associated information with the State of Colorado
- Obtain an FIN/EIN from the Internal Revenue Service
- Obtain an official IRS cover letter confirming that EIN/FIN is valid with the IRS
- Obtain a valid Colorado Account number for company taxes and other legal matters
- Obtain a Colorado Sales Tax account number for all tax matters
- Obtain sales tax licenses from city revenue department ($25 each additional city/county)
- File required initial paperwork with Colorado Workman Comp and Department of Labor
- Provide, review and establish employee personal file to include:
- Provide required information and forms necessary for banking insurance, etc
- Conduct and provide forms for “First Board Meeting” and legal notices
NOTE #1: This $499 fee is for Far Point Colorado only and does not include fees, deposits, etc set by government entities for filings, records, reviews, inspections and miscellaneous services. While the new business entity does not pay the Far Point fee until all paperwork is finished and approved, a $250 deposit is required to pay for such filing fees as maybe necessary. This is a “pass through” charge only and the exact amount for these fees will vary. Any unused deposit fees will be returned to client.
NOTE #2: The Employee files will be include up to five employees/officers. There is an additional fee of $25 per employee/officer thereafter.
NOTE #3: One general announcement/notification letter is included for banks, government agencies, insurance etc. Additional letters are $30 each. Professionally written and tested Business Plans and Policy Manuals are available at an extra charge.