After you've made a decision about your business form, you must determine two business names. The first is the name of your corporation or Limited Liability Company. You may not use MOLLY MAID in any corporate or limited liability company name . Next you need to establish your assumed name (typically referred to as your DBA for “doing business as”). Standard format for MOLLY MAID assumed names are “MOLLY MAID of ________” and should contain a descriptor of your geographical service area. Our team will offer some suggestions, based on your geographic area. Once you have received approval of your DBA from our Legal Department, you must file it with the state for approval. 1.5.1 Legal Organization of Your MOLLY MAID Business One of the first things to consider at the outset of starting your business is the legal form under which it will operate. Confer with your legal and accounting advisors for guidance. Ultimately, you and your business advisors must choose the appropriate legal form for the business to meet your needs. The two primary issues involved in deciding which type of entity to choose are: 1. Liability for the actions and debts of the business. 2. Taxation of the business. The basic forms of operation in which business is conducted are: the corporation and the Limited Liability Company (LLC). Each has its own legal and tax characteristics that determine its relationship to the individual owner(s) and to society in general. Corporation A “C” Corporation (regular or tax-paying Corporation) is a separate legal and tax entity. Shareholder liability is generally limited to the amount contributed or paid for the stock. A regular corporation’s income is subject to “double taxation”: first at the corporate level and then to the shareholders when distributed as dividends. Major advantages are:
Limited liability
Continuous life
Tax advantages, in some cases
The disadvantages are:
Relatively high cost of formation and administration
Relative lack of freedom
Double-taxation of income in some cases
Subchapter S Corporation This is a regular corporation that elects to be treated by the IRS according to Subchapter S of the Internal Revenue Code. This form has many of the advantages of the corporation but is treated as a partnership or proprietorship for tax purposes (avoiding the double taxation problem).
MOLLY MAID Right Start Manual Copyright 2015, Molly Maid, Inc.
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