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Starting a s-corporation is an exciting time for small business owners. There are many things to consider when starting a business; tax structure being one of the most important topics.
Here at DoMyLLC, our trained LLC specialists understand the needs of small businesses and are dedicated to providing excellent customer service. Incorporating with DoMyLLC takes 15 minutes of your time. Simply place an order and provide a signature if needed. We make it that easy to DO.
Have Questions? Speak with a DoMyLLC specialist at (888)-DoMyLLC (366-9552).
An S-Corporation is a tax election made with the IRS by Corporations to avoid the potential double taxation of a General for Profit Corporation. Once approved by the IRS, all the profits of the company will pass thru the business to the shareholders (owners) to report with their individual income tax return. The corporation itself does not pay income tax like it does in a General for Profit Corporation.
Because this election allows the company to avoid potential double taxation, the election is very common among small business owners. ORDER NOW!
S-Corporation Requirements:
- May not have more than 100 shareholders.
- All shareholders must be U.S. citizens or residents however, some authorized trusts, estates and charitable organizations may be shareholders.
- Must be a Domestic Corporation.
- Maintain only one class of stock.
- Must use a calendar year as its fiscal year unless it can provide proof it satisfies a business need.
For a newly filed corporation or LLC, the election needs to be made within 75 days from the date of formation. For existing companies, the election needs to be made by March 15th to be taxed accordingly for that year.
What are the requirements to file for S Corporation?
- May not have more than 100 shareholders.
- All shareholders must be U.S. citizens or residents however, some authorized trusts, estates and charitable organizations may be shareholders.
- Must be a Domestic Corporation.
- Maintain only one class of stock.
- Must use a calendar year as it fiscal year unless it can provide proof it satisfies a business need.
Why elect S Corporation Status?
The main reason to elect for S-Corporation status is to avoid the potential double taxation of a General for Profit Corporation. With an S-Corporation all the profits of the business pass thru the business to the shareholders who report the profits with their individual tax returns.
Who can elect for S Corporation status?
- General For Profit Corporations.
- Professional Corporations.
- Limited Liability Companies (LLC).
Comparison Chart– Compare all entity types to determine the proper structure for your business.
Tax Savings Calculator – See how much in taxes can potentially be saved when filing for S Corporation status.
For more information on how we can help you start an LLC please call our office toll free at (888)-DoMyLLC (366-9552). ORDER NOW!