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.

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?

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
  • Obtaining any necessary licenses, permits, insurance, etc.
    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

Schedule a free consultation/Speak to Specialist

Our package includes:

Name availability check

Articles of Incorporation

Sample bylaws

Notices of Various Corporate Meetings

Minutes to Document Meeting

Compliance Calendar

Comparison Chart

  • Liability Protection

  • Pass Through Taxation

  • Articles of Organization

  • Complex Management Structure

  • Formal Business Structure

  • Perpetual Existence

  • Year Compliance Requirements

  • Raising Capital

LLC

  • Liability Protection

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

  • Pass Through Taxation

    LLC‘s are not taxed at the Corporate level. The profits and losses pass through to the members to report with their personal income tax.

  • State Filing Fees

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

  • Complex Management Structure

    LLC‘s can be Member-Managed or Manager-Managed. In a Member-Managed LLC the owners(s) of the company run the day to day activities of the LLC. In a Manager-Managed LLC the member(s) elect a manager(s) to run the day to day activates of the LLC.

  • Formal Business Structure

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

  • Perpetual Existence

    LLC‘s can be either perpetual or have a finite end date. The existence term of an LLC is usually documented 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 if the member(s) die or if member(s) interests are transferred.

  • Year Compliance Requirements

    Most states require LLC‘s to file an annual report or pay a franchise tax on a yearly or biennial basis. Some states do not require any filings.

  • Raising Capital

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

C-Corp

  • Liability Protection

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

  • Pass Through Taxation

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

  • State Filing Fees

    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.

  • Complex Management Structure

    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.

  • Formal Business Structure

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

  • Perpetual Existence

    C-Corps are a separate legal entity and have a perpetual existence. The corporation survives death and the transferring of stock by the shareholders.

  • Year Compliance Requirements

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

  • Raising Capital

    C-Corps can raise capital through selling various types of stock. Once someone purchases 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-Corp

  • Liability Protection

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

  • 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.

  • State Filing Fees

    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.

  • Complex Management Structure

    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.

  • Formal Business Structure

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

  • Perpetual Existence

    S-Corps are a separate legal entity and have a perpetual existence. The corporation survives death and the transferring of stock by the shareholders.

  • Year Compliance Requirements

    Most states require S-Corps to file a annual report or pay franchise taxes on a yearly or biennially timeline. 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.

  • Raising Capital

    S-Corps can raise capital through selling various types of stock. Once someone purchases 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.

DBA

  • Liability Protection

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

  • Pass Through Taxation

    DBAs are not taxed at the corporate level. Profits and losses are reported by the owner/owners with their personal income taxes.

  • State Filing Fees

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

  • Complex Management Structure

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

  • Formal Business Structure

    No corporate formalities are required.

  • Perpetual Existence

    A DBA ends with the death of the owner(s) or upon closing the business.

  • Year Compliance Requirements

    No ongoing maintenance or yearly filing requirements.

  • Raising 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.