Start Your S-Corp

Start with the right business structure

Answer a few easy questions to help you decide which one may be your best choice

What Distinguishes an S-Corporation?

The structure of a business can make a profound difference in its function and in how its success impacts its owners. Choosing to form a s-corporation can sound like an intimidating and needlessly complex undertaking before your business even begins operation. In reality, selecting a structure recognized for longevity, stability, and dynamic adaptability can make a profound difference in the degree of success experienced.

Needless to say, there are no guarantees in the world of business but it just makes sense to give yourself the very best chance at success. Deciding to start a s-corporation can set you on the right path.

Why Choose DoMyLLC?

We make it simple to file a s-corporation; our streamlined two-step operation ensures that customers enjoy faster results. Because we handle all of the paperwork, you can feel confident that it is being handled correctly. In fact, our outstanding experience handling the incorporation process has made us a preferred choice in business filings and trademark services. Thanks to competitive pricing, you never have to wonder if you would get a more comprehensive service package anywhere else.

Do My LLC offers 100% customer satisfaction. If you have questions, we have live support available to resolve your concerns.

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Advantages of An S-Corporation

While general corporations, or C-Corps, are the most frequently filed, s-corporations remain a popular choice. These corporations are created with the help of IRS tax elections. In most cases, a corporate entity experiences a double tax burden – once as a business and then once for the shareholders. An s-corporation avoids this particular drawback of general corporations.

In order to pursue the necessary tax elections a business must first be incorporated. This takes place in the state where the company headquarters can be found. Because state tax laws can affect the tax burden of a company some business owners go through a lot of effort to find a location that provides the perfect balance of favorable tax codes and access to necessary resources and employees.

Like a general corporation an s-corporation is regarded as a distinct legal entity without personal connections to any shareholders. This prevents the shareholders from experiencing personal asset loss as a result of financial liability associated with the company.

Comparison Chart

LLC

C-Corp

S-Corp

DBA

LLCs provide personal liability and asset protection. Members (owners) are not held personally liable for the debts of the company.

C-Corps provide personal liability and asset protection. Officers, Directors, and Shareholders are not held personally liable for the debts of the company.

S-Corps provide personal liability and asset protection. Officers, Directors and Shareholders are not held personally liable for the debts of the company.

Owners have no personal liability or asset protection. Owners are held personally liable for the debts of the company.

Pass through taxation. LLCs are not taxed at the Corporate level. The profits and losses pass through to the members to report with their personal income tax.

C-Corps are double taxed. The company is taxed at the corporate level and dividends distributed to share holders are taxed as well.

Pass through taxation. S-Corps are not taxed at the Corporate level. The profits and losses pass through to the shareholders to report with their personal income tax.

DBA's are not taxed at the corporate level. Profits and losses are report by the owner/owners with their personal income taxes.

Although fees vary by state, LLCs are required to pay a filing fee along with the article of organization to set up an LLC.

Although fees vary by state, C-Corps are required to pay a filing fee along with the articles of incorporation to set up an C-Corp.

Although fees vary by state, S-Corps are required to pay a filing fee along with the articles of incorporation to set up an S-Corp.

Most DBA filings are done at the county level and do not require a state formation fee. Some states de require a state level registration and filing fee.

LLCs can be member managed or manager managed. In a member managed LLC the owners of the company are the ones that manage the day to day activities of the LLC. In a Manager-managed LLC the member elected a manager or managers to manage the day to day activities of the LLC.

C-Corps have shareholders, directors and officers. The shareholders are the owners of the company. The directors are elected by the shareholders and they appoint/elect officers to run the day to day activities of the business. People can hold multiple offices A C-Corp can have one person who is the only shareholder, directors and officer.

S-Corps have shareholders, directors and officers. The shareholders are the owners of the company. The directors are elected by the shareholders and they appoint/elect officers to run the day to day activities of the business. People can hold multiple offices A S-Corp can have one person who is the only shareholder, director and officer.

DBA owner/owners run ALL day to day activates of the company and have no restrictions within their role.

LLCs have a very informal business structure. LLCs have become very popular to form for this reason. LLCs are not required to hold meetings, documents minutes of meetings, issue stock or elect directors.

C-Corps have a very formal structure. C-Corps are required to have bylaws, hold annual meetings, documents minutes of meetings, issue stock and elect directors. Failure to comply with these formalities could cause the corporate veil to be pierced.

S-Corps have a very formal structure. S-Corps are required to have bylaws, hold annual meetings, documents minutes of meetings, issue stock and elect directors. Failure to comply with these formalities could cause the corporate veil to be pierced.

No corporate formalities are required.

LLCs can be either perpetual or have and finite end date. The existence term of an LLC is usually document in the operating agreement of the company. Some states require on the article of organization to list a termination date or list a perpetual existance. If perpetual the company will continue to exist the member die or if member interests are transferred.

C-Corps are a separate legal entity and have a perpetual existence. The corporation survives death and or transfer of stock of the owners.

S-Corps are a separate legal entity and have a perpetual existence. The corporation survives death and or transfer of stock of the owners.

A DBA ends with the death of the owner/owners or upon closing the business.

Most states require LLCs to file a annual report of pay franchise taxes on a yearly or biennially. Some states do not require any filings.

Most states require C-Corps to file a annual report or pay franchise taxes on a yearly or biennially. These fees can range from $10-$1,000 depending on state guidelines Some states do not require any filings.

Most states require S-Corps to file a annual report or pay franchise taxes on a yearly or biennially. These fees can range from $10-$1,000 depending on state guidelines. Only a handful of states do not have a annual or biennial filing requirement.

No ongoing maintenance or yearly filing requirements.

Since LLCs do not have stock to issue they can not sell stock to raise capital. LLCs are a separate legal entity and can earn credit, they can also obtain bank loans to raise capital. LLCs can get capital from existing member to take on additional member if approved in their operating agreement.

C-Corps can raise capital through selling varies types of stock. Once someone purchase stock they become a shareholder and business owner. Since C-Corps are a separate legal entity and can earn credit they can also obtain bank loans to raise capital.

S-Corps can raise capital through selling varies types of stock. Once someone purchase stock they become a shareholder and business owner. Since S-Corps are a separate legal entity and can earn credit they can also obtain bank loans to raise capital.

Capital is generally raised through bank loans since DBAs can not issue stock.

FAQ

A corporation that is only taxed once, according to Section S.

To let shareholders enjoy the benefits of the protections offered by a corporate structure without the typical tax burden. Business profits and losses pass through to shareholders, who are responsible for reporting this activity on their own tax returns.

A company must have less than 100 shareholders at a time, have only one type of stock, and have shareholders that are US citizens or resident aliens.

See our complete FAQ list here.

Ready to Start Your S-Corporation?

For just $99 + applicable state taxes, you can begin forming a s-corporation. Only two steps are required. Simply complete your order and then sign and verify the documents we provide. The rest of the paperwork will be handled by our dedicated team of business filing professionals.

Package Includes:

  • Name Availability Check
  • Articles of Incorporation
  • Sample Bylaws
  • Notices of Various Corporate Meetings
  • Minutes to Document Meeting
  • Compliance Calendar

If you’re interested in more info on forming an S-Corp, please call 888-366-9552.