Business Formation & Entity Selection
Choose the right structure (sole proprietor, LLC, S corporation or C corporation) and set it up correctly from day one.
How BATS handles business formation & entity selection
The way your business is structured decides how its profit is taxed, how owners are paid and what paperwork follows each year. We compare structures using your real numbers, help you form the entity, get an EIN and set up the accounting so you start clean.
We work with clients in all 50 states and Washington, D.C., so state-specific rules are covered whether you are in one state or several.
Who this is for
- New business owners deciding how to organise
- Sole proprietors whose profit is rising
- Partners bringing a new co-owner into a business
- Founders preparing to raise outside investment
Everything covered in this service
Entity comparison using your projected profit
LLC or corporation formation guidance
EIN application
S corporation election (Form 2553) when it fits
State registration and payroll account setup
Chart of accounts and bookkeeping setup
The paperwork behind business formation & entity selection
| Entity comparison | Total tax and admin cost under each structure, using your projections |
|---|---|
| Form SS-4 | Application for an employer identification number (EIN) |
| Form 2553 | Election to be taxed as an S corporation |
| Form 8832 | Entity classification election, such as an LLC choosing corporate treatment |
| State registrations | Withholding, unemployment and sales tax accounts where required |
| Bookkeeping setup | Chart of accounts and bank feeds ready from day one |
What we'll need from you
Have these ready and your first meeting goes much faster. Don't worry if something is missing; we'll help you find it.
- Expected revenue and profit for the first two years
- Owners and ownership percentages
- States where you will operate or have employees
- Any existing registrations or EIN
- Plans to raise outside investment
How it works, step by step
Model the options
We compare total tax and admin cost under each structure.
Decide
We walk you through the trade-offs and you choose.
Form and register
We guide formation, EIN, elections and state accounts.
Set up the books
We configure your accounting so the first year is clean.
Why clients choose BATS for business formation & entity selection
Numbers, not guesses
Every recommendation is modelled with your actual figures.
Before the deadline
Planning happens while there's still time to act, not after the year closes.
Conservative and documented
Strategies are supported by the tax code and backed by proper paperwork.
Coordinated
Books, returns and strategy handled by one team that sees the whole picture.
Business Formation & Entity Selection FAQs
11 answers to the questions clients ask us most. Don't see yours? Ask us directly.
Is an LLC an S corporation?
No. An LLC is a legal entity formed under state law. An S corporation is a federal tax election that an LLC or a corporation can make.
When should I elect S corporation status?
Usually once profit is high enough that paying yourself a reasonable salary and taking the rest as distributions saves more in self-employment tax than the extra payroll and filing costs.
Which state should I form in?
For most small businesses, the state where you operate. Forming elsewhere often adds a second set of fees and filings without a real benefit.
Do I need a lawyer too?
For operating agreements, liability questions and investor documents, yes. We handle the tax side and work alongside your attorney.
Can a C corporation make sense for a small business?
Sometimes. C corporations pay a flat 21% federal rate and can retain earnings, and qualifying stock may be eligible for the Section 1202 gain exclusion. The trade-off is a second layer of tax on dividends.
Can I change my structure later?
Yes, but some changes have tax consequences and timing limits. For example, after revoking an S election you generally must wait five years to elect again.
What is a registered agent?
A person or company designated to receive legal papers for your business in the state where it is registered. Every state requires one.
Do I need a separate bank account?
Yes. Keeping business money separate protects your liability shield and makes bookkeeping and tax preparation far simpler.
Do you recommend aggressive tax shelters?
No. We only recommend strategies supported by the tax code and IRS guidance, and we explain the risk and paperwork behind each one.
Can you work with my financial advisor or attorney?
Yes. Tax decisions often affect investments, estate plans and legal structures, and we coordinate with your other advisors.
How do you measure results?
Every recommendation comes with an estimated tax impact, so you can see the value before you act.
Often paired with this service
S Corporation Tax Strategy
S corp elections, reasonable salary analysis, payroll setup and annual 1120-S compliance that turn the election into real savings.
Learn moreAccounting & BookkeepingBookkeeping Services
Monthly bookkeeping, bank reconciliations and financial reports so your numbers are always current and tax-ready.
Learn moreAccounting & BookkeepingPayroll Services
Full-service payroll with direct deposit, federal and state payroll tax filings, W-2s and new-hire reporting.
Learn moreBusiness Formation & Entity Selection in every state
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, D.C.
- West Virginia
- Wisconsin
- Wyoming
Popular cities
- Birmingham, AL
- Anchorage, AK
- Phoenix, AZ
- Little Rock, AR
- Los Angeles, CA
- Denver, CO
- Bridgeport, CT
- Wilmington, DE
- Jacksonville, FL
- Atlanta, GA
- Honolulu, HI
- Boise, ID
- Chicago, IL
- Indianapolis, IN
- Des Moines, IA
- Wichita, KS
- Louisville, KY
- New Orleans, LA
- Portland, ME
- Baltimore, MD
- Boston, MA
- Detroit, MI
- Minneapolis, MN
- Jackson, MS
- Kansas City, MO
- Billings, MT
- Omaha, NE
- Las Vegas, NV
- Manchester, NH
- Newark, NJ
- Albuquerque, NM
- New York City, NY
- Charlotte, NC
- Fargo, ND
- Columbus, OH
- Oklahoma City, OK
- Portland, OR
- Philadelphia, PA
- Providence, RI
- Charleston, SC
- Sioux Falls, SD
- Nashville, TN
- Houston, TX
- Salt Lake City, UT
- Burlington, VT
- Virginia Beach, VA
- Seattle, WA
- Washington
- Charleston, WV
- Milwaukee, WI
- Cheyenne, WY
Get help with business formation & entity selection
Book a consultation and get a clear plan for your taxes and books, wherever you are in the U.S.