I'm developing a web application and will soon need to incur AWS and GitHub fees. Before I do this, I want to create a business so that I can go get a dedicated bank account. I don't care about having a board, investors, or equity. And I plan on being the only employee. What's the best way to go about this? Should I incorporate via Clerky, or should I create a local LLC? Or is there some other better option?<p>Thanks in advance.
The last time I did this, it was the LLC. I worked directly with the Secretary of State, and did not use a service to do it for me.<p>If you are a 100% owner with no partners, you can file your paperwork as a "Disregarded Entity" which means that you have less tax returns to prepare at tax time. If you have partners, maybe a "C" corp. would be better, but this is where I'd talk to an attorney.<p>You will need a Taxpayer Identification number to create an LLC in the State of California. These are easy to get from the IRS.<p>In California, you will still need to file some paperwork with the Secretary of State on bi-annual basis, and pay the $800 franchise fee annually. Also, you will pay a separate franchise tax on any sales over $250,000 per annum. You have to file form 586 with the Franchise Tax Board annually.<p>One last thing: Although a corporation can protect your personal assets from being taken, you should also have business E&O and liability insurance. The courts may look unfavorably at any corporate entity which does not have insurance, especially if it is obvious that the corporation
was set up in a risky area of business, and was only incorporated to protect the owner's personal assets.
IANAL<p>I have <i>heard</i> that, if you are looking to sell some time in the future, then a corporation is greatly preferred to an LLC, by investors and the larger companies who would be interested in purchasing your company.<p>A corporation, though, has strict rules (including annual meetings for which you must maintain accurate records, sign contracts as a representative of the corp, etc). If you do not comply with the rules, then it is possible for someone to "pierce the corporate veil" and come after you personally.<p>IANAL. I repeat, IANAL.
If you're okay with being treated as a Sole Proprietor, then you can get a "Does Business As" name, and get a bank account in that name.