Business Entity Formation
Whether you choose an LLC, an S Corp, or a C Corp depends solely on your type of business. Fill our Contact us form or write us through the Live Chat at Prestige Auditors and we will advise the best entity for your business.
A business entity is an organization created by one or more individuals for a trade. Business entity refers to the structure of a business and is an essential identifier of your business.
An S Corp is a type of corporation in which the owners report the revenue of the company as their personal income, and the company does not pay taxes. A C Corp pays taxes on whatever income it generates, as well as the income, which is received by the owner or the employees. For more information, you may refer to the business formation section on our website.
LLC stands for Limited Liability Company. It is a type of entity, in which the owners are not personally responsible for company debt or possible lawsuits. An LLC does not pay income taxes as an entity. Rather, the owners list losses and profits on their personal tax returns.
Choosing an entity for your e-commerce business is subjective on a case-per-case basis. However, most e-commerce businesses opt for LLC and Sole Proprietorship. Contact us at Prestige Auditors and we will guide you in choosing the entity which is best suited for your business.
To form an LLC, you need to first choose a suitable title, then apply for Articles of Organization. A fee will be required on your side. Afterwards, you must create an operating agreement, and finally, acquire all the necessary licenses and permit. We at Prestige Auditors can help you acquire these and form your LLC.
Each state has different regulations for choosing names; however, the most common rules are 1) your name must be genuine to your own business. Do not copy another company’s name. Your company should also include an entity designator which clarifies what your company is: a Corporation, an LLC, etc. Prestige Auditors knows all the regulations for names; you may contact us anytime for assistance.
Articles of Incorporation are documents which validate that your business exists with the United States, and Canada.
That is correct. A sole proprietorship owner will be personally responsible for all aspects of the business.
Sales tax exemption refers to excluding income from double taxation on a federal level, or on a state/local level.
It is recommended that businesses, who are involved in the resale of products or services. This includes, but is not limited to retailers, dropshippers, wholesale FBA sellers, online arbitrage, private label, and others. You can click here and watch the video for more information.
Yes, some states require fees to granting businesses tax-exempt status.
We onboard your business registration process for tax exemption in certain states, after which you will get your documents for your tax-exempt status from said states though mail.
Ideally, the registration process should take 1-2 days after the application. However, it may take up to 10 working days for states to process the application and mail the documents.
As Prestige Auditors values the privacy of it clients, your personal information will remain strictly confidential at all times and will not be released to the public.
Your company may be required to become tax exempt based on any updates in the law. It may also be required on part of a seller, from whom your company purchases goods for resale. For more detailed information, please click here and watch the video.
You will be required to give monthly reports about your sales volume to certain states, in which you will get tax-exempt status.
No. If you do not have tax-exempt status, your business will be taxed twice with sales tax. Once while making a purchase, and afterward when reselling said purchase. What we will help with at Prestige Auditors is excluding the first taxation to make sure you pay once for a resale cycle.
No. All marketplace facilitators are required to collect sales taxes for marketplace sellers. Therefore, marketplace sellers are not required to collect sales tax for the resale. They may only be required to get tax-exempt status.
Sales Tax Analysis
Sales tax analysis is a service designed to help businesses meet IRS requirements regarding thresholds and economical nexus regulations.
We will find out whether your business needs to get tax exempt in a certain state, and send the result of our analysis to you for your reference.
We have two packages for this service. (You can view the service here) The first one is a one-time analysis which takes up to 3-4 days to process. The second one is a yearly subscription and analysis results will be updated at the end of each month throughout a year.
A high volume of sales may affect exceeding thresholds in a short period of time, posing the risk of being fined by the government, as it’s required to get tax exempt in a certain state immediately after your business is operational.
That is of no importance if you are a reseller and make sales out of your state of incorporation. Each state has its own laws about sales and use tax, which should be met by any out-of-state seller.
That depends in which state you are residing it, as each state has its own laws regarding what products/services are subject to sales tax. You can contact us and we will help you figure out the laws in your state.
Incorrect. Sales tax refers to the tax on the sale of a product/service that is taxable and is charged to the end customer. Use tax, however, refers to a tax on a product/service that is taxable that has received no sales tax payment.
By conducting a sales history analysis, you will be able to pinpoint whether or not you need a resale certificate for tax exemption. We will do the analysis for you. Refer to our website for more information.
The higher sales over a vast area you have, the better it is to conduct a sales tax analysis to make sure that you are covered in all 45 states. We have a package specifically designed for sellers with a high sales volume.
Governments make use of sales tax to support and sustain educational systems, public services, police departments, and other similar services and facilities.
E-Commerce Store Audit
An audit is a systematic examination of a business’s financial transactions, as well as internal activities. Audits are used to pin-point errors and any illegal activity within a business.
Regular audits will help expose any shortcomings within your business, keep your financial transactions in check, and root out potential internal issues such as fraud committed by employees. Audits increase business efficiency over the long run.
It is recommended that audits be carried out on a yearly basis to ensure businesses are running smoothly. However, different cases may require less, or more audits per year. You can contact Prestige Auditors to assess your business’s need for an audit.
Any entity or business may have an internal auditor within its structure. However, it is recommended that an independent auditor be used for conducting a company audit, as the audit will remain objective, especially when issuing an opinion.
Yes. There are mainly three types of audits. An internal audit, which is conducted by an auditor who is part of the business itself. An external audit, which is conducted by a third party such as a firm, which looks at your business inside out. Sometimes, the IRS will conduct audits of companies in cases of severity regarding taxes.
Depending on the business, an internal audit may include interviews with management, examination of how you handle internal operations, investigation of documents you have available, and conducting analytical reviews.
It is preferred to have your business audited not by yourself, but by an independent auditor. This will ensure completely objectivity during your audit.
A financial audit is conducted to make sure that your business’s financial transactions are in-tune with your finance strategies, and to pinpoint any issues which may have gone unnoticed.
The auditor would be expected to assess the situation in a fair manner, carry out the auditing process while observing auditing standards, and produce an accurate audit report of the company’s reference.
Whether an internal audit, or an external audit, the audit report will include what is commonly referred to as “opinions.” These can be either unqualified opinions, qualified opinions, adverse opinions, or a disclaimer of opinion. Contact Prestige Auditors for more information on the auditing process.
An ITIN, or an International Taxpayer Identification Number, is a number designated to processing taxes, which is issued by the IRS for individuals who are obligated to possess a US taxpayer ID number, while not possessing or not being eligible to possess an SSN.
An ITIN is needed for opening a US bank account, making your business tax exempt, if you’re a company representative, filing a tax return, receiving salaries in the US, buying/selling property, and many other reasons.
In general, if you are a company owner whose name is displayed in the company’s operational agreement, your ITIN application will be approved by the IRS, without any difficulties. However, if you are not a company owner, we will need you to get in touch with us and explain your reason for acquiring an ITIN. We will then expedite your case and get back to you.
We apply to the IRS for your ITIN to the best of our abilities after you submit your application on our website. That being said, it takes up to 7 weeks for the IRS to review and approve your ITIN application.
Incorrect. An EIN, short for Employee Identification Number, is granted to US and non-US companies which operate their business within the US. An ITIN is for non-US citizens and acts as an SSN, short for Social Security Number, which is given to US citizens as their individual number for tax purposes.
You can apply for an ITIN from abroad through Prestige Auditors. You will need to provide documentation to Prestige Auditors, such as verified copies of non-US passports, company’s operational agreement in case of company owner needs an ITIN, etc. You can contact us for more information.
Yes, if you are a non-US citizen, you may obtain an ITIN when filing a joint tax return.
Yes, ITINs are valid for five years. After the expiration date, you may request a new one. If you do not file your annual income taxes, the ITIN will expire.
You may not have a joint ITIN. Unlike a joint bank account, an individual ITIN is assigned per person who is listed on a tax form.
In case I am not able to provide the sufficient documents for an ITIN, can I instead opt for a Social Security Number?
You may apply for a social security number only if you are qualified to do so. In this case, you should refrain from obtaining an ITIN. ITINs are reserved only for those who are not eligible to obtain an SSN.
Got Suspended is an Amazon suspended account reinstatement service which helps suspended sellers get out of Amazon suspensions and resume their selling career on Amazon’s platform. Once Prestige Auditors has finished with forming your business, you may refer to Got Suspended for account management and reinstatement in case of suspensions.
Prestige Auditors will take care of the legalities concerning business formation, such as getting resale certificates, obtaining tax-exempt status, and other facets of forming a business. Once an Amazon is set up, it is likely to get hit with a verification suspension. This is where Got Suspended come in. With their skillsets and resources, they will be able to have any account reinstated.
Oftentimes, clients make mistakes and cross-contaminate between different seller accounts if not properly guided and educated. Prestige Auditors and Got Suspended work in conjunction to make sure your account isolation process is seamless, and any possible reinstatement can be dealt with in a prompt manner.
An Amazon suspension occurs when a seller on Amazon commits an act which is against Amazon’s many policies and guidelines. The seller account is subsequently shot down and funds are held by Amazon until the case is resolved.
Got Suspended offers Amazon reinstatement services tailored per client. Many clients are unaware of Amazon’s intricate policies and often find themselves faced with seller account suspensions. This may include any reason from verification issues, to account linkage.
Account linkage, whether directly or indirectly, can occur due to numerous reasons: clients opening the accounts using the same IP address, the same Wi-Fi router, same physical address, using a VPN services (which is not recommended, since supercookies are installed on your system regardless of a VPN), as well as bank related linkage (using the same bank accounts, credit cards, etc.).
While many sellers can and do appeal their suspensions on their own, it is recommended to use an Amazon reinstatement service as they are up-to-date with all of Amazon’s regulations, and their in-depth knowledge of the marketplace allows them to see things which normal sellers would otherwise miss, or misunderstand, which could lead to self-deprecating statements in the appeal that will only serve to worsen the situation.
Depending on the severity of the case, reinstating a suspended Amazon account could take up to three months and more. You can contact Got Suspended with your suspension, and an assessment of your case will be made to determine a time frame.
Got Suspended will perform at the best of their abilities to get your account reinstated. In the event that this proves beyond our capabilities, Prestige Auditors will step it to assist you with forming a new business. If you are using a previously existing business entity, make sure you communicate with our Prestige Auditors staff in detail. We will need to be in contact with the person who formed the business entity.
After purchasing one of the services from Prestige Auditors and finalizing the technical aspects of business formation, you may present your Prestige Auditors invoice to Got Suspended and utilize all the services Got Suspended has to offer.