Forming a business is a huge step, but doing it incorrectly can lead to legal headaches, missed tax opportunities, and expensive rework down the line. At Basso & Guida, we help new business owners get it right the first time.
To help you feel more confident in your next steps, here’s a quick FAQ covering some of the most common incorporation mistakes we see (and help clients fix).
Should I just form an LLC because everyone else is?
Mistake: Choosing the wrong entity type based on hearsay.
Why it’s a problem: Many business owners default to an LLC because it “seems easier” or someone else recommended it. But your ideal structure depends on your business goals, tax bracket, number of owners, and whether you’ll take a salary or distribution.
What to do instead: Let a professional help you evaluate whether an LLC, S-Corp, or C-Corp is best for your specific situation.
Can I use my home address for my business?
Mistake: Using your personal address as your business’s registered address.
Why it’s a problem: This can expose your home address to public records and cause issues with zoning, privacy, and credibility.
What to do instead: Consider using a virtual business address or your accountant’s address as your registered agent (which we offer at Basso & Guida) NOT SURE IF YOU DO THIS BUT WAS RECOMMENDED BY SOME OTHER CONTENT I’VE SEEN OUT THERE.
Do I really need an EIN if I’m the only employee?
Mistake: Skipping the Employer Identification Number (EIN) because you’re a solo operator.
Why it’s a problem: An EIN is essential for opening a business bank account, hiring employees, and filing taxes properly. Without it, you’re likely to run into banking and IRS issues.
What to do instead: Get your EIN early, we’ll even help you apply for it as part of our incorporation service.
I just opened, so I don’t need an accountant yet… right?
Mistake: Waiting too long to bring in an accountant.
Why it’s a problem: Many of the biggest issues we see (missed tax elections, messy recordkeeping, wrong business structure) happen because a business owner “winged it” early on.
What to do instead: Bring in your accountant at the beginning. When you incorporate through Basso & Guida, we set you up for long-term success from day one.
Is filing with an online service enough?
Mistake: Using a DIY service without professional guidance.
Why it’s a problem: While online platforms can handle basic paperwork, they don’t advise you on what to file, how to structure ownership, or how to optimize for taxes. They won’t help you avoid missteps, and fixing those mistakes later can be expensive.
What to do instead: Work with a professional who can explain the nuances and guide you with strategy, not just templates.
Do I have to file anything else after I incorporate?
Mistake: Thinking you’re “done” once the business is formed.
Why it’s a problem: Depending on your entity and location, you may need to file:
- Annual reports
- S-Corp elections (Form 2553)
- Business licenses
- Sales tax registration
- Payroll tax accounts
Missing these deadlines can lead to fines or worse, loss of good standing with the state.
What to do instead: We keep your filings on track with reminders and support as part of our ongoing services.
Should I open a business bank account right away?
Mistake: Mixing personal and business finances.
Why it’s a problem: This leads to messy books, audit risk, and limited legal protection.
What to do instead: Open a separate business bank account right after forming your business. We’ll guide you on the required documentation.
What’s the smartest way to incorporate my business?
The smart move: Incorporate with your accountant, not after.
At Basso & Guida, we make sure every decision is aligned with your financial goals, tax plan, and long-term business strategy. You don’t just get forms filed, you get a partner in your success.
Start Strong with Basso & Guida
Don’t fall into the trap of common incorporation mistakes. Whether you’re launching a side hustle, opening a studio, or building the next big thing, we’re here to help you set up the right way.
Contact us today and we’ll help you get started, THE RIGHT WAY!!!
