Business Formation Consultation Services

Starting a business involves more than choosing a name and beginning operations. Your business structure can affect tax treatment, accounting responsibilities, filing requirements and how you manage the business as it grows.

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What Is Business Formation?

Business formation generally involves establishing a business structure and addressing the ownership, tax, accounting and other operational considerations associated with operating that business.

The IRS identifies sole proprietorships, partnerships, corporations, S corporations and LLCs among the common business structures and notes that legal and tax considerations can affect the choice of structure.

Business formation consultation can help you look at these issues from a tax and accounting perspective before decisions are finalized.

True Tax Advisor’s role is to help clients understand relevant financial and tax considerations. Legal formation work, legal opinions and legal advice should be handled by an appropriately qualified attorney when required.

Tax and Accounting Considerations When Starting a Business

Starting a business creates financial responsibilities that should be considered early rather than addressed only when the first tax return is due. Depending on the business, relevant considerations may include:

Business Tax Classification

The legal structure and federal tax classification are related but are not always the same thing. For example, an LLC may receive different federal tax treatment depending on its ownership and elections.

Federal and State Taxes

Tax obligations can depend on your business structure, activities, location, employees and other factors.

Estimated Taxes

Some business owners may need to make estimated tax payments. The specific requirements depend on the taxpayer and circumstances.

Bookkeeping

Accurate bookkeeping provides the financial records needed to understand business performance and support tax reporting.

Payroll

Hiring employees can introduce additional payroll and employment-tax responsibilities.

Sales Tax

Businesses selling taxable products or services may have sales-tax obligations that vary by jurisdiction and business activity.

Need Help Understanding the Tax Side of Your New Business?

Talk through your plans with a tax professional.

How Our Business Formation Consultation Works

True Tax Advisor approaches business formation from a tax and accounting perspective. A consultation can help you discuss relevant considerations such as:

Business Structure Considerations

Review the characteristics of potential structures and how they may relate to your business circumstances.

Tax Considerations

Discuss how different structures may affect tax reporting and ongoing tax responsibilities.

Accounting Setup

Consider the financial systems, recordkeeping practices and accounting processes you may need as the business begins operating.

Ongoing Business Tax Needs

Connect your formation decisions with future business tax filing and planning responsibilities.

Financial Organization

Establish a clearer understanding of how business financial information should be organized and maintained.

Future Planning

Consider how today’s formation decisions may interact with future growth, employees, revenue and tax planning.

Our Consultation Process at a Glance

Our consultation process is designed to provide a clear starting point for understanding your tax needs and determining the appropriate next steps. We begin by learning about your financial circumstances, income sources, residency status, and any specific tax concerns you may have.

During the consultation, we discuss your potential filing and reporting responsibilities, review relevant documentation, and identify areas that may require further attention. Whether you need individual tax return assistance, business tax compliance, proactive tax planning, or support with existing tax matters, our approach focuses on understanding your specific situation.

Business formation is only the beginning. Our consultation follows four simple steps:

01

02

03

04 Planning a New Business or Structure Change?

Talk through your plans from a tax and accounting perspective.

Choosing the Right Business Structure

One of the most important formation decisions is determining which business structure may fit your circumstances. The IRS recognizes several common structures, while state laws determine many of the legal requirements surrounding business entities.

Business Structure	What to Know
Sole Proprietorship	General characteristics: Business owned and operated by one individual. Tax considerations: Business income generally reported through the owner's individual tax return. Common considerations: Simple structure, but generally does not create a separate legal entity.
Partnership	General characteristics: Business owned by two or more owners. Tax considerations: Tax treatment depends on the partnership and applicable rules. Common considerations: Ownership, allocations and partnership arrangements should be considered.
LLC	General characteristics: Entity created under state law with one or more members. Tax considerations: Federal tax treatment can vary depending on ownership and elections. Common considerations: Flexible structure with state-specific requirements.
S Corporation	General characteristics: Corporation or eligible entity with an S corporation tax election. Tax considerations: Income generally passes through to shareholders under applicable rules. Common considerations: Eligibility, payroll and tax requirements need careful consideration.
C Corporation	General characteristics: Separate corporation owned by shareholders. Tax considerations: Generally subject to corporate income tax rules. Common considerations: Often considered when corporate ownership and capital-raising objectives are important.

Business Services to Support Your Next Steps

Business formation is connected to the financial responsibilities that follow.

Business Tax Return Services

Once your business is operating, accurate tax preparation becomes an important part of maintaining compliance

Bookkeeping Services

Organized financial records provide the foundation for understanding business performance and preparing accurate tax information.

Payroll Services

If your business hires employees, payroll processing and related tax responsibilities may become part of your ongoing operations.

Individual Tax Return Services

Individuals may need accurate tax return preparation and filing support based on their income, deductions, credits, and applicable tax requirements.

Proactive Tax Planning

Tax planning can help business owners consider tax implications throughout the year instead of waiting until filing season.

Strategic Tax Planning for Businesses

Strategic tax planning can help business owners consider tax implications throughout the year and make informed decisions before tax filing season

Our Business Formation Consultation Process

Every individual return is different. The preparation process can change depending on the taxpayer’s income, family situation, financial activity, and filing requirements.

01

Understand Your Business

We begin by understanding your business activity, ownership, current operating status, goals, expected operations, and growth plans. This helps provide context for discussing the business structure and related tax and accounting considerations.

02

Review Structure & Tax Considerations

We discuss relevant business structures and the tax and accounting considerations that may apply to your situation. The goal is not to recommend the same structure to every client. Instead, the discussion focuses on the factors that may influence your decision.

03

Identify Practical Next Steps

Once the relevant considerations have been discussed, you can move forward with a clearer understanding of the financial and tax issues that need attention. Where appropriate, this may include identifying accounting, tax or compliancerelated next steps.

04

Plan for Ongoing Tax & Accounting Needs

Business formation is only the beginning. As your business operates and grows, you may need ongoing support with bookkeeping, business tax returns, payroll, sales tax, tax planning, and financial organization. We help you understand these needs and plan for them as your business develops.

Ready for a Clearer Starting Point?

Discuss your business and the tax considerations that may apply.

Why Choose True Tax Advisor for Business Formation Consultation?

Tax-Focused Guidance

Business formation decisions can have tax and accounting consequences. True Tax Advisor's broader service offering allows formation discussions to connect naturally with ongoing tax needs.

Personalized Consultation

Business circumstances differ. Your ownership, activities, income expectations and future plans may require a different approach from another business.

Clear Financial Perspective

True Tax Advisor's services are focused on helping businesses keep financial information organized and understand their tax and financial responsibilities.

Ongoing Business Support

Formation does not end the relationship between a business and its financial responsibilities. True Tax Advisor offers business tax, bookkeeping, payroll, sales tax and tax-planning services that may become relevant as the business develops.

Practical Guidance

The objective is to help you understand the financial and tax considerations surrounding your business decisions so you can determine the appropriate next steps.

When Should You Consider Business Formation Consultation?

Getting guidance early does not mean that every business needs a complicated structure. It means you have an opportunity to understand the relevant considerations before making a decision that could affect your tax reporting and accounting responsibilities.

Business formation decisions can influence your future tax reporting, accounting processes and financial responsibilities. You do not have to figure out every tax and accounting consideration on your own.

You may want professional guidance if you:

Get In Touch

Ready to Take the Next Step With Your Business?

Talk with True Tax Advisor about your business plans and get a clearer understanding of the financial considerations involved in moving forward.