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Every LLC, corporation, or other entity that was created by filing a document with a secretary of state or equivalent office must file a BOI report unless it qualifies for one of the CTA’s exemptions.

No, if you have no employees, you typically do not need workers' compensation insurance as a sole proprietor; however, this can vary depending on your state and industry, particularly if you are in a high-risk profession like construction, where you may need coverage even without employees.

Deciding between setting up your business as a Limited Liability Company (LLC) or a Corporation (Inc) depends on several factors, including your business goals, the level of complexity you're comfortable with, and your tax preferences. Here are some key considerations for each:

LLC (Limited Liability Company)

Advantages:

• Flexibility: LLCs offer flexible management structures and fewer formalities than corporations.

• Pass-Through Taxation: Profits and losses can pass through to your personal tax return, avoiding double taxation.

• Limited Liability: Owners (members) have limited liability for business debts and obligations.

Disadvantages:

• Self-Employment Taxes: Members may need to pay self-employment taxes on profits.

• Limited Life: An LLC may dissolve upon the death or withdrawal of a member unless specified otherwise.

Corporation (Inc)

Advantages:

• Limited Liability: Shareholders are generally not personally liable for corporate debts.

• Easier to Raise Capital: Corporations can issue stock, making it easier to attract investors.

• Perpetual Existence: Corporations can exist indefinitely, regardless of changes in ownership.

Disadvantages:

• Double Taxation: Corporations may face double taxation on profits—once at the corporate level and again at the shareholder level when dividends are distributed.

• More Regulations: Corporations are subject to more regulatory requirements and formalities, such as holding annual meetings and maintaining corporate minutes.

State accounting requirements for tax write-offs can vary significantly by state and depend on the type of business entity you operate. However, here are some general guidelines that apply to many states:

1. Record Keeping

• Documentation: Maintain detailed records of all income and expenses. This includes receipts, invoices, bank statements, and any other relevant documentation.

• Organized Accounts: Use accounting software or systems to track income, expenses, assets, and liabilities.

2. Expense Categories

• Clearly categorize expenses, such as operating expenses, travel, meals, equipment purchases, and home office expenses, as they may have specific rules for deductions.

3. Business vs. Personal Expenses

• Keep business and personal finances separate to ensure that only business-related expenses are claimed as deductions.

4. Compliance with State Tax Laws

• Familiarize yourself with state-specific tax laws regarding deductions, as they can differ from federal rules. Some expenses might be deductible at the federal level but not at the state level.

5. Filing Requirements

• Follow the state's specific filing requirements for business tax returns. Some states require additional forms or schedules for claiming deductions.

6. Consulting a Tax Professional

• Given the complexity of tax laws, it's advisable to consult with a tax professional or accountant familiar with state regulations to ensure compliance and optimize your deductions.

CalSavers is a retirement savings program established by the state of California to help employees save for retirement. It is designed for businesses that do not offer a retirement plan, allowing employees to contribute to an Individual Retirement Account (IRA) through payroll deductions.