Business-as-a-Service
Starting a business means a stack of decisions and filings: which entity to form, how to form it, how to stay compliant, and how to run the money behind it. Here's every major piece in plain English — what it is, and why it matters.
The Financial Angel runs your back office end to end: it explains your options, recommends the entity and setup that fit your goals, files the formation and compliance paperwork, keeps your books and bank accounts in order, and hands anything that needs a license to a vetted CPA or attorney.
The default when one person does business without forming anything. It's automatic and free, but there's no legal separation — your personal assets are exposed to business debts and lawsuits.
Good fit if — you're testing a low-risk side venture and want the simplest possible start.
A business owned by two or more people. In a general partnership all partners share liability; in a limited partnership, limited partners invest but stay shielded while a general partner runs things and bears the risk.
Good fit if — you're going into business with partners and want to define who runs it and who just invests.
The popular default for small businesses: a state-formed entity that shields your personal assets while keeping paperwork light and taxes flexible. Profits pass through to your personal return by default.
Why it matters — it gives you a liability shield and credibility without the formality of a corporation.
Not an entity but a tax election an LLC or corporation can make. It lets owner-employees split income into salary and distributions, which can cut self-employment tax once profits are steady and high enough to justify running payroll.
Good fit if — your business earns consistent profits and you want to reduce self-employment tax.
A separate taxpaying entity that pays corporate tax on its profits. It's the standard for raising venture capital or issuing multiple stock classes, but earnings can be taxed twice — once at the company and again as dividends.
Good fit if — you plan to raise outside investment or grant equity to many shareholders.
An LLC that can hold multiple internal "series," each with its own assets and liability shield, under one umbrella filing. Available in some states — a way to segregate risk across several ventures or properties.
Good fit if — you hold several distinct assets (e.g. rental properties) and want to wall off each one's liability. For deeper structuring see entity structuring.
Your entity has a legal name registered with the state; a DBA ("doing business as," or fictitious name) lets you operate under a different public-facing name. Check availability so you don't collide with an existing business or trademark.
Why it matters — the right name has to be legally available before you can register or brand around it.
A person or service you designate to receive legal notices and state mail at a physical in-state address during business hours. Nearly every state requires one for an LLC or corporation.
Why it matters — miss a served lawsuit or state notice and you can lose by default or fall out of good standing.
The formation document you file with the state to legally create your entity — "articles of organization" for an LLC, "articles of incorporation" for a corporation. Filing it (with a fee) is the moment your business exists.
Why it matters — this filing is what actually creates the entity and its liability shield.
A free federal tax ID from the IRS — a Social Security number for your business. You need it to open a bank account, hire employees, and file taxes. Most applicants get it instantly online.
How the Angel helps — it prepares and files your EIN application and stores the number with your entity records.
The internal rulebook: an operating agreement for an LLC or bylaws for a corporation. It sets ownership percentages, voting, profit splits, and what happens if an owner leaves — even single-member LLCs benefit from having one.
Why it matters — it prevents disputes and reinforces that your entity is separate from you personally.
Most states require a periodic report (and often a fee or franchise tax) to keep your entity in good standing. Miss it and the state can charge penalties or administratively dissolve your business.
How the Angel helps — it tracks each entity's deadlines and prepares the filings so nothing lapses.
Depending on your industry and location you may need a general business license, professional or occupational license, or local zoning and health permits. Requirements stack across state, county, and city.
Why it matters — operating without a required license can bring fines or force you to shut down.
A beneficial-ownership report to FinCEN under the Corporate Transparency Act, disclosing who owns or controls a company. The rules have changed significantly and remain subject to ongoing rulemaking, so confirm whether you must file.
Why it matters — the requirement is in flux; check your current obligation before assuming you do or don't need to file.
If you sell taxable goods or services, most states require you to register for a sales-tax permit, collect tax from customers, and remit it on a schedule. Economic-nexus rules can trigger obligations in states where you have no physical presence.
How the Angel helps — it flags where you likely owe, registers you, and keeps collection and remittance on schedule.
A dedicated account keeps business and personal money separate — essential for protecting your liability shield, clean books, and tax time. Open it with your EIN and formation documents.
Why it matters — mixing funds ("commingling") can pierce your liability protection. See the banking guide.
Recording income and expenses accurately and consistently so you know your numbers, can file taxes, and can prove them if audited. Good books are the foundation everything else stands on.
How the Angel helps — it categorizes transactions, reconciles accounts, and keeps books current. Deep-dive in the bookkeeping guide.
Once you pay yourself as an S-corp owner-employee or hire staff, you must run payroll — withholding taxes, filing payroll returns, and issuing W-2s or 1099s. Getting this wrong invites IRS penalties.
Why it matters — payroll tax filings and worker classification are common, costly places to slip up.
A credit profile in the business's name — built through vendor accounts, a business card, and on-time payments — that can eventually let the company borrow on its own strength rather than yours.
Good fit if — you want financing options that don't lean entirely on your personal credit. See the financing guide.
The written agreements that run a business — client and vendor contracts, service terms, NDAs, and independent-contractor agreements. Clear contracts prevent disputes and protect you when one arises.
How the Angel helps — it drafts and organizes your standard agreements, then routes anything needing legal review to a licensed attorney.
That's what the Angel is for. Tell it what you're building — it recommends the right entity, files the formation and compliance paperwork, sets up your books and banking, and connects you to a licensed CPA or attorney to finalize.
Start your profileThese are plain-language definitions for education, not legal, tax, or investment advice. Entity, tax, and compliance rules vary by state and change over time — the Financial Angel drafts and recommends; a licensed attorney or CPA reviews and executes.