Forming an S-Corp
Don't be intimidated by forming a corporation. We will take the stress out and tell you everything you need to know about what corporate filings need to be done. While we do this, you'll gain strong liability protection of your personal assets. Establishing a Corporation is a great way to sell shares and bring in investors.
The income and losses of an S-Corp are spread evenly between the shareholders and are taxed at the personal level.
What Distinguishes an S-Corporation?
An S Corporation (S Corp) is a legal entity owned by its stockholders. It’s regarded as a singular entity regardless of how many people start it together, however, a single business owner is all that’s required to start an S Corp.
Though not as common as a C Corp, an S Corp is another popular choice of business structure. S Corp election can be done by general for profit corporations, professional corporations, and LLCs.
Longevity, stability, and dynamic adaptability are characteristics of the S Corp business structure.
The main advantage of an S Corp is that it’s only taxed once according to section S of the Internal Revenue Code.
The corporation “elects” to pass on its income, losses, deductions, and credits to its shareholders for tax purposes. This pass through taxation allows the corporation to avoid paying double taxes on income.
Like a C Corp, an S Corp also offers personal liability and asset protection. This means that the officers, directors, and shareholders are not held responsible for the company’s debts.
Requirements for forming an S Corp include:
- Must have less than 100 shareholders at a time
- Must have only one type of stock
- Must have shareholders that are US citizens or resident aliens
- Must be a domestic corporation
- Must use a calendar year as its fiscal year, unless it can provide proof it satisfies a
- business need to have otherwise.
Forming an S Corp includes these steps:
- Choosing a business name
- Designating a Board of Directors
- Registering the Articles of Incorporation
- Drafting bylaws
- Drafting a shareholder agreement
- Obtaining a Federal Employee Identification Number (EIN) from the IRS
- Opening bank accounts in the corporations name
- Holding an initial corporate meeting with the board of directors
- File S-Corporation Election form 2553
Why choose DoMyLLC to help form your S Corp?
- Streamlined 2-step process
- We provide personalized support at every stage of the filing process
- We help form your S Corp quickly and efficiently
- We streamlined the steps to make the process as easy, fast, and convenient as possible
- We offer unparalleled experience
- We offer live support services
- Complete customer satisfaction guarantee
- Price match guarantee
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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.