Caputa & Associates professional accounting services

New Business Formation and Advisory Services

We'll help you choose the right entity type for your business, which will have an impact on how much you pay in taxes and the personal liability you face.

Start on the Right Foot

Build Your Business on a Solid Foundation

The decisions you make when forming your business — entity type, tax structure, state registration — have long-term consequences. We help you get them right from day one so you can focus on growing your business instead of fixing costly mistakes later.

Entity Selection Guidance.: We analyze your situation — income level, number of owners, liability concerns, growth plans — and recommend the entity type that saves you the most in taxes while protecting your personal assets.
Tax Structure Planning.: Your entity type directly affects how much you pay in income tax, self-employment tax, and payroll tax. We help you structure your business to minimize your total tax burden from the start.
Compliance Setup.: From obtaining your EIN to registering with the state and setting up your accounting system, we make sure every compliance requirement is handled before you open for business.

New business formation advisory services

Know Your Options

Business Entity Types Explained

Each entity type has different implications for taxes, liability, and how you run your business. Here's a quick overview to help you understand the landscape — and why the right choice matters.

Sole Proprietorship: The simplest structure — no formal registration required. You report business income on your personal return (Schedule C). However, you have unlimited personal liability and pay self-employment tax on all profits.
LLC (Limited Liability Company): Provides personal liability protection with flexible tax treatment. A single-member LLC is taxed like a sole proprietorship by default, but can elect S-Corp taxation to potentially reduce self-employment taxes as the business grows.
S-Corporation: A popular choice for profitable small businesses. Profits pass through to your personal return, but only the salary you pay yourself is subject to payroll taxes — distributions are not. This can save thousands in self-employment tax each year.
C-Corporation: A separate legal entity that pays its own income tax. Best suited for businesses planning to raise outside investment or retain significant earnings. Be aware of double taxation — the corporation pays tax on profits, and shareholders pay tax again on dividends.
Partnership: For businesses with two or more owners. Income and losses pass through to each partner's personal return based on the partnership agreement. Offers flexibility in how profits and losses are allocated among partners.

Full-Service Formation

What's Included in Our Advisory Services

We don't just help you pick an entity type — we guide you through the entire formation process and set you up with the accounting and tax infrastructure you need to operate smoothly.

EIN Registration.: We help you obtain your Employer Identification Number from the IRS — the federal tax ID your business needs to open bank accounts, hire employees, and file returns.
State Filing Guidance.: We walk you through registering your business with the Illinois Secretary of State and any other required state agencies, including sales tax registration if applicable.
Operating Agreement Guidance.: For LLCs and partnerships, we advise on the key provisions your operating agreement should include — ownership percentages, profit distribution, and decision-making authority.
Initial Accounting & Tax Setup.: We set up your bookkeeping system, chart of accounts, and tax calendar so you're organized from the start and ready for your first business tax return.
First-Year Compliance Calendar.: We provide a clear timeline of every filing deadline, estimated tax payment, and compliance requirement you'll face in your first year of operation so nothing catches you off guard.

How It Works

From Idea to Operating Business

We guide you through every step of starting your business — from the initial conversation to your first day of operations and beyond.

1 Free Consultation: We sit down with you to understand your business idea, goals, and financial situation. We discuss entity options, tax implications, and what structure makes the most sense for where you are and where you want to go.
2 Entity Selection & Formation: Once you've decided on an entity type, we help you register with the state, obtain your EIN, and file any necessary elections (such as S-Corp election with the IRS). We make sure the paperwork is done correctly the first time.
3 Ongoing Support: After formation, we set up your bookkeeping, handle your payroll if you have employees, and prepare your business tax returns. You'll have a team that knows your business from the ground up.

Questions We Hear Often

Common Questions About Starting a Business

Should I form an LLC or an S-Corp?: It depends on your expected income and situation. An LLC is simpler and less expensive to maintain. An S-Corp can save you money on self-employment taxes once your business is consistently profitable, but it requires payroll and more complex tax filings. Many of our clients start as an LLC and elect S-Corp status when the time is right — we'll help you determine when that transition makes financial sense.
When should I incorporate instead of staying a sole proprietor?: Consider forming an entity when your business has meaningful income, when you want to separate personal and business liability, or when the tax savings from an LLC or S-Corp structure outweigh the additional costs. If you're earning consistent profit from freelance or contract work, it's likely time to have the conversation.
What does it cost to form a business in Illinois?: State filing fees for an LLC in Illinois are currently $150. S-Corp election with the IRS has no filing fee but requires careful timing. Our advisory fees cover the consultation, entity recommendation, and guidance through the formation process. Schedule a free consultation to discuss your specific situation and costs.
Do I need a separate bank account for my business?: Yes. Keeping business and personal finances separate is essential for liability protection, accurate bookkeeping, and clean tax reporting. We'll help you set this up as part of the formation process and ensure your accounting system is connected from the start.

Related Services

Services you'll need as your business grows.

Starting a Business? Let's Build It Right.

The decisions you make in the first year — entity structure, payroll setup, bookkeeping system — have lasting tax and legal consequences. We'll guide you through all of it.