Digital Business Services

1. As an IT company, we can help customers with company formation without needing to work directly with an attorney or CPA. Many company formation tasks are straightforward administrative processes, like filling out and submitting the necessary forms to the state, applying for an EIN, and handling other setup details.

A “simple” company formation typically involves straightforward ownership and organizational structure, minimal regulatory requirements, and limited liability exposure. Here are key scenarios often considered “simple”:

1.1 Single-Member LLC

Ownership: One person owns the LLC, making it a single-member LLC.

Management: Usually managed by the owner, so no complex management structure or additional agreements are needed.

Tax Filing: The IRS treats single-member LLCs as “disregarded entities” by default for tax purposes, meaning income and expenses are reported on the owner’s personal tax return, simplifying tax filing.

1.2 Single-Owner S Corporation

Ownership: One person owns the entire corporation and elects S Corporation status with the IRS.

Management: Managed by the owner, who can also be the only officer.

Tax Filing: The S Corp election allows for pass-through taxation, so profits are reported on the owner’s tax return, potentially reducing self-employment taxes.

Limitations: S Corps has limitations on shareholders (e.g., only U.S. individuals, up to 100 shareholders), but a single owner avoids these issues.

1.3 Single-Owner C Corporation

Ownership: One person owns all the shares in the corporation.

Management: The owner can be the sole officer and director.

Tax Filing: C Corporations are taxed as separate entities, meaning the company pays corporate taxes. However, this can be simple for small businesses if the owner understands corporate tax requirements.

Drawbacks: Double taxation occurs if profits are distributed as dividends, but this impact is minimal for small companies that reinvest profits.

1.4 LLC with Multiple Owners (Members), No Complex Agreements

Ownership: 2-3 people, generally with equal ownership and no complex arrangements.

Management: Members agree to manage equally or appoint a managing member.

Operating Agreement: While required in some states, the operating agreement is simple and states the basic terms of operation and ownership.

Not Simple” Formations:

Multiple-member LLCs with complex profit-sharing or management structures.

Partnerships or companies involving multiple stakeholders with differing roles or rights.

International Owners require additional compliance.

High-risk industries or those requiring extensive licenses and regulatory approvals.

Service Fee of  Company Formation (LLC or Corporation)

The Service Fee for Company Formation (LLC or Corporation) ranges from $350 to $1,000. This includes preparing and filing the necessary paperwork with the state and ensuring compliance with local regulations.

Additional state filing fees also apply, depending on the state. The service fee for Texas filing is $200,

EIN Application:

Since the EIN application with the IRS is free, the service fee is $85 if it’s done on behalf of the client.

UPC Code Application:
UPC codes from GS1, the primary provider, typically cost $30 to $50 each for small quantities. However, GS1 also charges an initial setup fee, which can range from $250 to $750 based on the number of codes needed.

Service fees for assistance with UPC applications are $150, depending on the number of codes needed and the complexity of the application.

Summary of Average Service Fees: