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Welcome to
Sapphire Formation
Our comprehensive range of services covers everything from legal and administrative tasks to strategic planning, ensuring that you have a solid foundation for success.
As your trusted partner for business formation services, whether an aspiring entrepreneur or a seasoned professional looking to start a new venture, we guide you through forming your business with efficiency.
Let us handle the complexities of business formation while you focus on turning your dreams into reality.
Secure Your Future
Formation Structures Matter
Forming your business correctly is essential for long-term success, offering key advantages including legal protection that shields personal assets from business liabilities, enhanced credibility and professionalism that appeals to customers and partners, valuable tax benefits through optimized strategies and deductions, and improved positioning for future growth opportunities such as attracting investors and entering new markets.
Business Formation Journey
Sapphire Formation provides comprehensive business formation services tailored to your needs, including expert guidance on entity selection (considering factors like liability protection and tax implications), thorough name registration and availability checks, preparation of essential legal documentation such as articles of incorporation and operating agreements, assistance with obtaining necessary licenses and permits based on your industry and location, and streamlined acquisition of your Employer Identification Number (EIN) for tax reporting and banking purposes.
Why Choose Our Services
Our business formation services stand out through our team of seasoned professionals who provide expert guidance and stay current with regulations, while offering customized solutions tailored to your unique needs and long-term goals, maintaining a client-centric approach with open communication and dedicated support, and delivering time and cost efficiency by handling complex paperwork and compliance matters so you can focus on growing.
Let’s get started!
Entity & Classification
Legal entity represents the identity of a
business at the state level
Tax classification determines how the IRS
will tax at the federal level
Limited Liability
- Single-Member LLC
- Multi-Member LLC
- Restricted LLC
- Professional LLC
- Series LLC
- Low Profit LLC (L3C)
- Anonymous LLC
- Domestic LLC
- Foreign LLC
- Nonprofit LLC
Partnerships
- Small-Member (SMLLC)
- Family Limited Partnership (FLP)
- General Partnership (GP)
- Limited Partnership (LP)
- Limited Liability Partnership (LLP)
- Limited Liability Limited Partnership (LLLP)
- Master Limited Partnership (MLP)
- Public Private Partnerships (PPP)
- Joint Venture/Silent Partnership
- Equity/Non-Equity Partnership
Corporations
- C-Corp - Form 8832
- S-Corp - Form 2553
- B-Corp - Form 2553
- Close Corporation
- Nonprofit Corporation
- Professional Corporation
- Cooperative Corporation
- Public Corporation
- Private Corporation
- Limited Liability Company (LLC)
Not-For-Profits
- 501c3 Charitable/Others
- 501c4 Welfare Organization
- 501c5 Labor Organization
- 501c6 Trade Association
- 501c7 Membership
- 501c8 Insurance Company
- 501c10 Social/Religious
- 501c13 Cemetery
- 501c19 Veterans Organization
- Section 527 Political Groups
Compare Structures
Ownership
One Person
Liability
Unlimited Personal Liability
Taxes
Self-Employment Tax
Personal Tax
Ownership
Two or more people
Liability
Unlimited Personal Liability unless structured as a limited partnership
Taxes
Self-Employment Tax (except for limited partners)
Personal Tax
Ownership
One or more people
Liability
Owners are not personally liable
Taxes
Self-Employment Tax
Personal Tax
Ownership
One or more people
Liability
Owners are not personally liable
Taxes
Corporate Tax
Ownership
- 100 people or fewer
- certain trusts and estates
- no partnerships, corporations, or non-resident aliens
Liability
Owners are not personally liable
Taxes
Personal Tax
Ownership
One or more people
Liability
Owners are not personally liable
Taxes
Corporate Tax
Ownership
One or more people
Liability
Owners are not personally liable
Taxes
Tax-Exempt, but corporate profits can’t be disturbed
The following table is intended only as a guideline.
Launch with Confidence
- Name Your Business – Choose the perfect business name that is not taken. Use a name database to brainstorm, and the SOS for restricted wording and name confirmation.
- Choose a NAICS Code– Choosing this code helps with tax filing and developing a business classification.
- Get a Domain/Matching Email – Choose the best option for website use.
- Get a physical/virtual office -This is good for registering your business. To change your home address to a business address, use this form to get started, and be sure to amend the necessary forms with the Secretary of State.
- Get an 800 or local office number– Ensure you receive business calls separate from your personal line.
- Pick Your Registered Agent – As a requirement, this is the person or business that will receive all legal and/or official documents for the business, that is 18 years or older.
- Gather State Documents – Obtain a copy of your state’s Articles of Organization or Certificate of Formation form from the Secretary of State, to complete basic information.
- Prepare State Documents – Based on your state requirements, at a minimum include the business name, business address, business purpose, way the LLC will be structured, registered agent contact information, duration of the LLC, and signature.
- File State Documents – Double check the information on the form before paying to file, if applicable per the state. Approval of the form from the state provides a certificate of registration. This certificate will be useful for the Employer ID Number (EIN) and bank accounts.
- Form Operating Agreement – Double-check the information on the form before paying to file, if applicable per the state. Approval of the form from the state provides a certificate of registration. This certificate will be useful for the Employer ID Number (EIN) and bank accounts.
- Get LLC Agreement – Keep the LLC active, engaged, and in good standing. This includes paying annual revenue fees and/or reports.
- Business License & Permit – Refer to your secretary of state for details,. Be mindful of requirements, deadlines, renewals, and fees due. This will help keep the business in good standing.
- Get Employer Identification Number – This is the business’s social security number and helps keep the business in good standing.
- Open a Business Account – Enhance financial control, and remedy tax deductions & audits.
- Register with 411.com – This can provide visibility, creditability, and accurate information for SEO and marketing for potential customers.
- Request a Duns & Bradstreet # – A DNB # to help with sourcing business funding and establishing credit.
- Maintain Good Standing – Keep the LLC active and engaged.
- Name Your Partnership – Select a unique partnership name that is not already in use. Use name databases and check with the Secretary of State (SOS) for restricted terms and name availability.
- Choose a NAICS Code – Select the appropriate NAICS (North American Industry Classification System) code to categorize your business for tax filings and industry classification.
- Get a Domain/Matching Email – Secure a domain and email address for business communications and website use.
- Secure a Physical or Virtual Office – This will serve as the official business address for registering the partnership and receiving correspondence. To change your home address to a business address, use this form to get started, and be sure to amend the necessary forms with the Secretary of State.
- Get a Business Phone Number – Obtain an 800 number or local business line to keep business calls separate from personal ones.
- Designate a Registered Agent – Appoint a person or company to receive legal documents on behalf of the partnership. The agent must be 18 years or older.
- Gather State Documents – Obtain the necessary formation documents, such as a Certificate of Partnership or similar, from the Secretary of State.
- Prepare Partnership Agreement – Draft a partnership agreement that outlines the business name, address, partner responsibilities, capital contributions, profit-sharing ratios, and management structure.
- File State Documents – Review and file the necessary formation documents with the state, ensuring accuracy before submission. The state’s approval grants legal recognition to the partnership.
- Obtain a Partnership Agreement – Formalize the partnership with a legally binding agreement that outlines the terms and conditions of the partnership.
- Acquire Business Licenses & Permits – Refer to local and state regulations to obtain the required business licenses and permits. Be aware of deadlines and renewal processes.
- Get an Employer Identification Number (EIN) – Obtain an EIN from the IRS to use for tax purposes and to open a business bank account.
- Open a Business Bank Account – Create a separate business account to manage partnership finances and simplify tax filing.
- Register with 411.com – List your partnership on business directories like 411.com to increase visibility and credibility.
- Request a Duns & Bradstreet Number (DUNS) – Apply for a DUNS number to establish business credit and enhance your ability to secure funding.
Maintain Good Standing – Keep the partnership in compliance by paying necessary fees, filing reports, and adhering to state requirements.
- Name Your Business – Choose the perfect business name that is not taken. Use a name database to brainstorm, and the SOS for restricted wording and name confirmation.
- Choose a NAICS Code– Choosing this code helps with tax filing and developing a business classification.
- Get a Domain/Matching Email – Choose the best option for website use.
- Get a physical/virtual office -This is good for registering your business. To change your home address to a business address, use this form to get started, and be sure to amend the necessary forms with the Secretary of State.
- Get an 800 or local office number– Ensure you receive business calls separate from personal calls.
- Appoint Directors – Per your state requirements, a board should be appointed before forming the corporation. The number of members will vary.
- File State Documents – File a copy of your state’s Articles of Incorporation. Complete basic information such as the business name, business address, business purpose, the way the LLC will be structured, registered agent contact information, and name and address of incorporators/board members.
- Draft Corporate ByLaws – These are the rules and regulations of the corporation’s operation. This roadmap will describe the roles of officers, business decisions, location and time of shareholder meetings, % of shareholders needed for decisions, and where & when dividends are paid.
- Hold First Board Meeting – The first meeting appoints the board members, approves the bylaws, assigns the daily officer duties, and establishes the accounting year and insurance stocks. Store the meeting minutes with the corporate documents.
- Issue Stock – This is the first course of action and outlines ownership percentages. The articles or incorporation lays out the shareholders.
- Draft a Shareholder Agreement – This optional document is a contract between all owners describing how duties should be carried out if another owner cannot carry out their duties, along with a plan to avoid disagreements.
- Get Employer Identification Number – This is the business’s social security number and helps keep the business in good standing.
- Open a Business Account – Enhance financial control, and remedy tax deductions & audits.
- Register with 411.com – This can provide visibility, creditability, and accurate information for SEO and marketing for potential customers.
- Request a Duns & Bradstreet # – A DNB # to help with sourcing business funding and establishing credit.
- Get Business License, Permit, and DBA – Refer to your secretary of state for details. Be mindful of requirements, deadlines, renewals, and fees due. This will help keep the business in good standing. If applicable, get a DBA (doing business as) if operating under another name.
- Maintain Good Standing – Keep the corporation active and engaged.
- Research Feasibility and Needs – Ensure the cost, support, people, is the economy stable, whether can you commit, and what internal factors the organization will face compared to competitors.
- Compose a Charter – Solidify a vision, mission, purpose, name, and board for the organization. Include these into a charter (aka articles of incorporation) to make the existence and reason of the corporation stand out. A Charter can also describe how the organization’s corporate responsibility is a priority.
- Name Your Business – Choose the perfect business name that is not taken. Use a name database to brainstorm, and the SOS for restricted wording and name confirmation.
- Choose a NAICS Code– Choosing this code helps with tax filing and developing a business classification.
- Get a Domain/Matching Email – Choose the best option for website use.
- Get a physical/virtual office -This is good for registering your business. To change your home address to a business address, use this form to get started, and be sure to amend the necessary forms with the Secretary of State.
- Get an 800 or local office number– Ensure you receive business calls separate from personal calls.
- Pick Your Board Members – Have names in mind to host meetings and document votes.
- Pick Your Registered Agent – As a requirement, this is the person or business that will receive all legal and/or official documents for the business, that is 18 years or older.
- File the Articles – Obtain a copy of your state’s Articles of Organization to file. Once approved, obtain the employer identification number (EIN).
- File for Exemption Status (federal & state) – File specific forms for a certain exempt status.
501(c)(3) – Form 1023-EZ
501(c)(4) – Form 8976 & 1024-A
501(c)(7) – Form 1024 - Open a Business Account – Enhance financial control, and remedy tax deductions & audits.
- Register with 411.com – This can provide visibility, creditability, and accurate information for SEO and marketing for potential customers.
- Request a Duns & Bradstreet # – A DNB # to help with sourcing business funding and establishing credit.
- Obtain required licenses/permits -Required if participating in federal programs, otherwise, it’s not needed.
- Maintain Exemption Status – Ensure to adhere to the by-laws, keep good records, and file federal & state taxes.
The following table is intended only as a guideline.
Entity Pros & Cons
Sole Props
Limited Liability Corps
Partnerships
C-Corps
S-Corps
Not-For-Profits
Sole Props
Pros:
1) Minimal paperwork to set up the business
2) Tax setup is simpler and straightforward
3) Minimal to no filing fees with the secretary of state
4) Sole owner and have full control of business decisions
Cons:
1) Business faces personal debts financial obligations and liability
2) Higher self-employment taxes
3) Cannot add partners to the business
Limited Liability Corps
Pros:
1) Protect personal assets against debt and lawsuits
2) Tax preparation is easier
3) Establish quality and creditability to the business
4) Pay less in taxes
5) Flexible to manage your business
Cons:
1) Cannot issue stock certificate or raise funds
2) Can be dissolved is not in good standing
3) Responsible for Social Security & Medicaid taxes
Partnerships
Pros:
1) Shared decision-making, resources, and expertise to enhance business capabilities
2) Income is not taxed at the entity level but is reported on individual tax returns
3) Establish the entity fairly easily with the structure of the partnership profit-sharing
4) A partnership gains more access to capital and less commitment to expense responsibility
Cons:
1) Share unlimited liability and business expenses
2) Differences in opinions and conflicting management styles
3) Profits are shared per an agreement leaving other partners dissatisfied
4) The partnership agreement must specify the terms of the exit clause for long-term planning
C-Corps
Pros:
1) Creditors cannot go after the personal assets of board members
2) Independently exist with board members
3) Raise money by issuing stock
4) Option to go public
Cons:
1) Must adhere to strict and complex tax schedules
2) Tax preparation is complicated with employee tax requirements
3) File annual reports, hold board meetings, keep minutes, and hold bylaws
S-Corps
Pros:
1) Provide legal protection to safeguard personal assets
2) Owners can be employees and receive a salary
3) Ownership can be transferred with the dissolution
4) Able to avoid double taxation
Cons:
1) Limited to U.S. citizens and permanent residents
2) Limited to 100 shares of ownership
3) Scrutinized more by the IRS
Not-For-Profits
Pros:
1) Exempt from taxes
2) Legal protection for members from nonprofit debt
3) Works towards a greater good in the community
4) Get to support causes versus seeking profits
5) Tax exempt
Cons:
1) Must raise funds to start up
2) Keep accurate and precise records for tax purposes
3) Scrutinized more by the public versus IRS
The following table is intended only as a guideline.
Book with us today!
Business Formation Packages
A biennial statement is a required filing every two years for specific LLCs, LLPs, and corporations under Business Corporation and Limited Liability Company Laws.
Non-profits and limited partnerships are exempt from this requirement.
The statement must be filed with the Department of State.
State Filing Fees
Standard
Package
Includes State and County Filing Fees(Final fees vary based on preferred state and document filings)
up to
$700*
$700*
-
Business Name Check
-
Official Filing Process
-
Tax ID Number
-
Business License(s)/Permit(s)
-
Business Privilege Tax Filing
-
Duns & Bradstreet Number
-
FinCEN BOI Report
Complete
Package
Includes State and County Filing Fees(Final fees vary based on preferred state and document filings)
up to
$900*
$900*
-
All of Standard Package Features
-
Customized Operating Agreement
-
Customized Business Resolution
-
Non-Disclosure Agreement
-
Vision Statement
-
Mission Statement
-
Corporate Charter
Best Value
Nonprofit
Package
Includes State and County Filing Fees(Final fees vary based on preferred state and document filings)
up to
$1500**
$1500**
-
Required Features of Complete Package
-
File Form 1023-ez ($275) if needed
-
File Form 1023-ez ($600) if needed
-
Customized Business Resolution
-
Customized By-Laws
-
Meeting Minutes Template
-
Financial Tracker
Packages show Alabama fees. Other state fees may increase or decrease the final service cost.
*LLC annual meeting minutes are not required but is good practice to have per the operating agreement, bank, or state law requirement
**3-month turnaround required for tax exemption requests
Do-It-Yourself Template
-
Limited Liability Corporation/PLLC Templates $115
Articles of Organization, Organizational Meeting Minutes, Operating Agreement, Membership Certificate, Annual Meeting Minutes, Banking Resolution, NDA
-
C-Corporation Templates $115
Articles of Incorporation, By-Laws, Meeting Minutes (Annual, Shareholder, Director), Stock Certificate, Bank Resolution, Shareholder Agreement, NDA
-
S-Corporation Templates $125
Same as above with the 2553 Election Form
-
Not-For-Profit Templates $125
Articles of Incorporation, By-Laws, Meeting Minutes, Vision & Mission, Board Member Contract w/Duties, Board Commitment