Three Ways Delaying Date of Incorporation Could Benefit Small Business Owners
BizFilings Explains Entrepreneurs Could Save Money in 2010 by Choosing a 2011 Effective Date
MADISON, Wis. (November 9, 2010)
BizFilings, a leading provider of online incorporation services, encourages entrepreneurs who are thinking about incorporating at the end of the year to explore the advantages of a delayed effective date.
The end of the year is a great time to incorporate a business, especially when it is possible to take advantage of using a delayed effective date of incorporation. Certain states allow for business owners to pick a date one to two months in the future for when their business will officially be formed as a corporation or LLC. This allows entrepreneurs to take care of the paperwork in 2010 and ask for an effective date in January 2011.
Three ways a delayed effective incorporation date can be beneficial for small business include:
- Save money. Avoid being taxed and also avoid filing an annual report in the current calendar year. This can be a savings of hundreds of dollars.
- Save time. Avoid the end of season rush. States typically encounter a backlog at the beginning of the year. By filing prior to the end of the year, small business owners can avoid the rush.
- Save resources. Avoid being taxed in the current calendar year. Filing a tax return is only required for the calendar year that the business was effectively incorporated.
“Delayed filing has many potential benefits for entrepreneurs,” says Karen Kobelski, general manager of BizFilings. “When you declare an incorporation date in 2011, you can avoid paying franchise taxes for 2010, and eliminate excessive paperwork with filing one income tax return.”
Visit BizFilings’ Learning Center for additional guidance on the benefits of incorporation.
BizFilings is a full-service, online incorporation service provider, offering small-business owners a fast, easy and economical way to form a corporation, limited liability company (LLC) or other business structure online or by phone. BizFilings also offers a full range of business filing and compliance products, including nationwide Registered Agent Service, helping keep businesses in compliance with state regulations. BizFilings can be found online at www.BizFilings.com. BizFilings is a part of Wolters Kluwer, www.wolterskluwer.com, a leading global information services and publishing company. Wolters Kluwer, with 2009 annual revenues of €3.4 billion, employs approximately 19,300 people worldwide, and maintains operations in over 40 countries across Europe, North America, Asia Pacific and Latin America.