Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
https://d25eic0jctudgb.cloudfront.net/images/site/general/answers-to-answers-8743d0241f5d8c2c996225efe2063f89
https://d25eic0jctudgb.cloudfront.net/images/site/headlines/articles.jpg-5fa541d76bf4be9016b1176147b3bc96

How to set up a party planning business

Asked by: V - 14 February, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 ??y friend and i want to start a party planning business in NJ. Should we use LLC or S Corp or C Corp? Also should we incorporate in NJ or Delaware?
Answered by: Robert Kowalski - 14 February, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/35.jpg-687fc92d5f6c5febcbdccb6895b08b8c Dear V,

If you will base your operations in NJ with most of the business expenses, business activity and clients, and probably assets, then it would make it easier to simply form your company in New Jersey. You could still register it in Delaware, but then you would almost certainly be required to register the company in New Jersey as Foreign Entity.

As far as entity type goes, corporation is a more formal business entity, with more formalities to maintain than LLC and quarterly filing requirements. LLC is also a more flexible entity from taxation point of view - by default it would be taxed as partnership (in your case), and you can also elect it to be taxed as S-Corporation (or even C-Corporation) if that would be more advantageous from tax perspective (however here you need a help of experienced CPA to advise you further).

Corporations have certain advantages that are beyond the scope of that answer, however in your case I would say an LLC would be a suitable business entity to run this business under.

Comments:

Connect With Us

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

https://d25eic0jctudgb.cloudfront.net/images/site/general/payment-methods-footer-052a63251a379d6e5ece1801f07470fc Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment