Business Formation & Entity Selection

Choose the right business structure from day one — with a CPA, not just a registered agent.

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Business formation tax planning involves selecting the optimal legal structure for your business based on your tax situation, ownership, and growth plans. Monaco CPA provides entity selection analysis, S-Corp election filing, NJ business registration guidance, and first-year tax planning for new NJ businesses.

The entity you choose for your business affects how much tax you pay, how you are protected legally, and how your business is valued when you eventually sell. Making the wrong choice on day one creates expensive problems that can take years to fix.

As a CPA, I help you think through the tax implications of each structure — not just the legal formalities. I provide entity selection analysis, coordinate with NJ business attorneys for formation documents, handle S-Corp election filings, and set up your accounting system.

Monaco CPA serves new business owners across New Jersey who want to start correctly, whether you are launching a side hustle, going full-time, or spinning off a new entity.

What's Included

Entity type analysis (LLC, S-Corp, C-Corp, sole proprietor)
NJ-specific entity tax comparison (CBT, BAIT election)
Federal S-Corp election (Form 2553)
NJ S-Corp election (NJ-2553)
EIN application with IRS
NJ business registration guidance
Initial chart of accounts setup
Estimated tax payment schedule for year 1
Payroll setup guidance for S-Corp owner-employees
First-year tax planning consultation

How It Works

1

Entity Analysis

I analyze your projected income, ownership structure, state nexus, and growth plans to model the tax cost of each entity type.

2

Formation & Elections

I handle S-Corp and C-Corp election filings with the IRS and NJ, and coordinate NJ business registration with your attorney.

3

Accounting Setup

I set up your bookkeeping system, chart of accounts, and payroll structure so you are compliant from day one.

4

Year-1 Tax Planning

I project your first-year tax liability, set up quarterly estimated payments, and ensure you are maximizing available deductions from the start.

Frequently Asked Questions

What is the tax difference between an LLC and an S-Corp in NJ?
A single-member LLC is taxed as a sole proprietorship by default — all profit is subject to self-employment tax (15.3% on the first $176,100 in 2025). An S-Corp pays the owner a W-2 salary but distributions above the salary are not subject to SE tax. If your net profit exceeds roughly $40,000–$50,000 per year, the S-Corp election often saves more than it costs. NJ also imposes CBT on S-Corp income, so the analysis is more complex than the federal picture.
When should I elect S-Corp status?
The S-Corp election is most beneficial when net self-employment income exceeds roughly $40,000–$50,000 annually, after factoring in administrative costs. For a sole proprietor netting $100,000, the SE tax savings can be $5,000–$10,000 per year.
Is there a NJ-specific S-Corp election?
Yes. In addition to the federal Form 2553, New Jersey requires a separate NJ S-Corp election on Form NJ-2553. Without the NJ election, your entity will be treated as a C-Corp for NJ CBT purposes.
Should I use a C-Corp if I am raising venture capital?
C-Corps (specifically Delaware C-Corps) are the standard for venture-backed startups because they allow multiple stock classes, QSBS exclusions under IRC section 1202, and cleaner cap table management. If you are planning a VC-backed startup, a Delaware C-Corp is almost always the right choice.
Can I change my entity type after starting?
Yes, but timing and method matter. Converting from an LLC to an S-Corp is common and can usually be done prospectively. Converting to a C-Corp from an S-Corp involves a built-in gains tax risk period of 5 years. I can model the tax cost of conversion options.

Ready to Get Started?

Start your tax return or send a message to discuss how I can help.

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