Deciding how to structure your business is a process that can ebb and flow as your situation changes and as your business grows. Just because you've already established an entity does not mean it is set in stone. If you are starting a new business, or if you think you might need to restructure, here are a few things to consider.
A sole proprietorship is the most basic type of business, and it is definitely a good way to start. You alone own the company, and you are responsible for all of the company's assets and liabilities. There is no legal separation between you and the company. No formal action needs to be taken when establishing a sole proprietorship, but like all businesses, you will need the appropriate licensing and permits.
It's relatively inexpensive and fairly simple to set up a sole proprietorship. Some advantages are that you have complete control over all aspects of your business, and the tax preparation is not usually very complicated. However, there are a few disadvantages to consider. Because there is no legal distinction between you and your business, you are personally liable for any debt or wrongful actions of the business, including the actions of your employees.
A partnership is a single business where two or more people share ownership, with each partner contributing to all areas of the business, including property, money, labor, and skill. Each partner, in return, shares the profits and losses of the business. Because partnerships involve more than one person, it’s important to discuss a wide variety of issues up front and develop a legal partnership agreement. Although partnership agreements are not required, they are strongly recommended.
Corporations (also know as a C-corp) are more complex and generally suggested for larger, established companies with multiple employees. It is an independent legal entity owned by shareholders. This means that the corporation itself, not the individuals who own shares of the company (shareholders), is held legally liable for the actions and debts the business incurs.
An S-corp is similar to a C-corp, but you are taxed only on a personal level. What makes the S-corp different from a traditional corporation (C-corp) is that profits and losses can pass through to the personal tax returns of the shareholders. So, the business itself is not taxed, but the owners of the company are taxed.
Another common business entity is a Limited Liability Company, also know as an LLC. An LLC is a sort of legal "mix" between a corporation and a sole proprietorship (or partnership). The LLC provides the limited liability features of a corporation with the the tax efficiency and operational flexibility you enjoy in a sole proprietorship or partnership.
The "owners" of an LLC are referred to as "members," and depending on the state, the members can consist of one person, two or more people, corporations or other LLCs. But, unlike shareholders in a corporation, LLCs are not taxed as a separate business entity. Instead, all profits and losses pass through the business to each member. LLC members report profits and losses on their personal tax returns, just like sole proprietors and owners in partnerships.
This post is only meant to give you a brief explanation of the most common types of business entities. There are many legal and tax considerations to discuss before you determine how you would like to structure your business.
For over 14 years, Sonnenburg Consulting has been assisting clients with new business start-up, established business restructuring, and proper business registration. Our team of experienced consultants can help you determine what business structure best suits your needs, and we will help you in every aspect of registering your business to be in full compliance with national, state, and local laws.
Employer Quarterly Payroll Reports Due
Federal law also requires you to pay toward the employer's portion of social security and Medicare taxes. This portion of social security and Medicare taxes is not withheld from your employees.
File your first Form 941 for the quarter in which you first paid wages that are subject to social security and Medicare taxes, or subject to federal income tax withholding. After you file your first Federal Form 941, you must file a return every quarter (every 3 months), even if you have no taxes to report. There are a few exceptions to this rule, such as special rules for some employers and for seasonal employees.
Your Quarterly Payroll Report is due by the last day of the month that follows the end of the quarter. For example, for the quarter of January, February, and March, the report is due on April 30. The report due this week is for the quarter of July, August, and September. If you are unsure whether you should file a quarterly report, or if you need help with your reports or any type of bookkeeping, please give us a call. We would love to assist you!
Meet Ted Sonnenburg
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TED H. SONNENBURG, PE, LEHSVice President
Ted is a professional environmental engineer and works mainly as the Vice President of a nationwide environmental firm. He has operated his own small businesses in the areas of specialty construction and environmental consulting. He has previously worked for the health department as an environmental enforcement officer and with the police department investigating environmental crimes. He assists Sonnenburg Consulting in the areas of compliance with federal and local environmental and safety regulations, risk assessment and business maintenance.
Meet Annette Calveri Sonnenburg
ANNETTE CALVERI SONNENBURGPresident
Annette started her career with a nationwide securities broker dealer. She was licensed under Series 7 (Registered Representative), Series 24 (General Securities Principal), Series 53 (Municipal Securities Principal), Series 4 (Options Principal) and Series 27 (Financial and Operations Principal). She then went on to become the Chief Compliance Officer, Chief Financial Officer and Chief Operations Officer of a regional firm before returning to management at a national company.
After providing all accounting functions, analyzing securities cases and consulting for clients of a local law firm, she decided to start her own business and provided business consulting, risk assessment and accounting services for law firms, construction companies, investment advisors, broker dealers, and extended her services to an action sports company, two large night clubs, and a movie production.
Annette is most appreciated by her clients for her strong work ethic, attention to detail, thorough analysis of all needs of the business and efficiency standards.
Our Team
Sonnenburg Consulting is dedicated to providing our clients with the highest level of service. We accomplish this through the hard work of our highly experienced and qualified employees. Whether you have a large or small project, we commit the full resources of Sonnenburg Consulting to help your business succeed.
ANNETTE CALVERI SONNENBURG
President
Annette started her career with a nationwide securities broker dealer. She was licensed under Series 7 (Registered Representative), Series 24 (General Securities Principal), Series 53 (Municipal Securities Principal), Series 4 (Options Principal) and Series 27 (Financial and Operations Principal). She then went on to become the Chief Compliance Officer, Chief Financial Officer and Chief Operations Officer of a regional firm before returning to management at a national company.
After providing all accounting functions, analyzing securities cases and consulting for clients of a local law firm, she decided to start her own business and provided business consulting, risk assessment and accounting services for law firms, construction companies, investment advisors, broker dealers, and extended her services to an action sports company, two large night clubs, and a movie production.
Annette is most appreciated by her clients for her strong work ethic, attention to detail, thorough analysis of all needs of the business and efficiency standards.
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TED H. SONNENBURG, PE, LEHS
Vice President
Ted is a professional environmental engineer and works mainly as the Vice President of a nationwide environmental firm. He has operated his own small businesses in the areas of specialty construction and environmental consulting. He has previously worked for the health department as an environmental enforcement officer and with the police department investigating environmental crimes. He assists Sonnenburg Consulting in the areas of compliance with federal and local environmental and safety regulations, risk assessment and business maintenance.
ANNETTE CALVERI SONNENBURGPresident
Annette started her career with a nationwide securities broker dealer. She was licensed under Series 7 (Registered Representative), Series 24 (General Securities Principal), Series 53 (Municipal Securities Principal), Series 4 (Options Principal) and Series 27 (Financial and Operations Principal). She then went on to become the Chief Compliance Officer, Chief Financial Officer and Chief Operations Officer of a regional firm before returning to management at a national company.
After providing all accounting functions, analyzing securities cases and consulting for clients of a local law firm, she decided to start her own business and provided business consulting, risk assessment and accounting services for law firms, construction companies, investment advisors, broker dealers, and extended her services to an action sports company, two large night clubs, and a movie production.
Annette is most appreciated by her clients for her strong work ethic, attention to detail, thorough analysis of all needs of the business and efficiency standards.
TED H. SONNENBURG, PE, LEHSVice President
Ted is a professional environmental engineer and works mainly as the Vice President of a nationwide environmental firm. He has operated his own small businesses in the areas of specialty construction and environmental consulting. He has previously worked for the health department as an environmental enforcement officer and with the police department investigating environmental crimes. He assists Sonnenburg Consulting in the areas of compliance with federal and local environmental and safety regulations, risk assessment and business maintenance.
Our Clients
Sonnenburg Consulting is based in Utah and serves clients throughout the United States in multiple industries, including:
Broker Dealers
Investment Advisers
Law Firms
Accounting Firms
Real Estate Development
Construction
Nightclubs
Movie Production
Action Sports
Service-based Businesses
For more than 10 years, we have managed various aspects of our clients' businesses, allowing them time to focus on their long term objectives. Whether you need advice or require complete management of your business operations, we can design a plan to meet your needs.
Broker Dealers
Investment Advisers
Accounting Firms
Real Estate Development
Construction
Nightclubs
Movie Production
Action Sports
Service-based Businesses
Our Services
We offer expertise in the areas listed below, and we work with other professionals across all industries to
assist with those needs beyond our scope of service. No matter your situation, you are in good hands.
• Bookkeeping and accounting
• Payroll
• Billing and accounts receivable
• Accounts payable tracking and payment
• Annual tax forms and reports
• Management and supervision of financial and legal matters
• Insurance applications and review
• Trust administration for domestic and overseas trusts
• Financial and operations management and consulting (including FOCUS filings for broker dealers)
• Compliance with federal, state and local laws
• Monitoring and managing trademarks and domains
• Securities account analysis and review
• Detailed document review and revisions
• Updating corporate documents
• Branch audits
• Broker dealer registrations and amendments
• Legal and regulatory liaison
• Full start-up and dissolution of companies
• Project management
• Human resource management
• Company clean-up
• Business process analysis and management
• Webpage design and maintenance
• Blog creation and maintenance
• Social media branding, marketing, advertising, and management
• Traditional marketing and advertising
Whether you have a one-time project or need ongoing services, give us a call and we can customize a plan for your needs. Services are billed at an hourly rate or as a flat fee estimate. Our hourly rates ranged from $15 to $75 per hour, depending on the services and expertise required.
We know trust is important, so feel free to contact us for a list of references.
assist with those needs beyond our scope of service. No matter your situation, you are in good hands.
• Bookkeeping and accounting• Payroll
• Billing and accounts receivable
• Accounts payable tracking and payment
• Annual tax forms and reports
• Management and supervision of financial and legal matters
• Insurance applications and review
• Trust administration for domestic and overseas trusts
• Financial and operations management and consulting (including FOCUS filings for broker dealers)
• Compliance with federal, state and local laws
• Monitoring and managing trademarks and domains
• Securities account analysis and review
• Detailed document review and revisions
• Updating corporate documents
• Branch audits
• Broker dealer registrations and amendments
• Legal and regulatory liaison
• Full start-up and dissolution of companies
• Project management
• Human resource management
• Company clean-up
• Business process analysis and management
• Webpage design and maintenance
• Blog creation and maintenance
• Social media branding, marketing, advertising, and management
• Traditional marketing and advertising
Whether you have a one-time project or need ongoing services, give us a call and we can customize a plan for your needs. Services are billed at an hourly rate or as a flat fee estimate. Our hourly rates ranged from $15 to $75 per hour, depending on the services and expertise required.
We know trust is important, so feel free to contact us for a list of references.
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