Register your S Corporation
An S Corporation (S Corp) is a special type of corporation in the USA that meets specific Internal Revenue Code requirements. It allows profits to be passed directly to shareholders and avoids double taxation, similar to a partnership, while still offering limited liability protection.
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Goods and Bads
S Corporation comes with its own pros and cons which is very important for decision making purposes
Advantages
- Limited Liability Protection for shareholders
- Pass-through taxation
- Avoids double taxation
- Enhanced credibility
- Perpetual existence
Disadvantages
- Limited to 100 shareholders
- Only one class of stock allowed
- Shareholders must be U.S. citizens or residents
- Stricter IRS scrutiny and regulations
- Potentially higher tax rates on some income
Process
Step by Step Process
Choose a Name
Select a unique name for your S Corp that complies with state naming requirements.
File Articles of Incorporation
Prepare and file the Articles of Incorporation with the Secretary of State in the state where you are forming the S Corp.
Appoint a Registered Agent
Designate a registered agent who will receive legal documents on behalf of the corporation.
Create Corporate Bylaws
Draft corporate bylaws that outline the management structure and operating procedures of the S Corp.
Hold Initial Board Meeting
Hold an initial board meeting to adopt bylaws, appoint officers, and address other organizational matters.
Issue Stock
Issue stock certificates to the initial shareholders of the S Corp.
Obtain an EIN
Apply for an Employer Identification Number (EIN) from the IRS for tax purposes and to open a business bank account.
Register for State and Local Taxes
Register for any required state and local taxes, including sales tax and employer taxes.
Tax and Compliances
Following are the Compliances that will be required
Pass-through Taxation
S Corp profits are not taxed at the corporate level. Instead, profits and losses are passed through to shareholders' personal tax returns and taxed at their individual tax rates.
Self-employment Taxes
Shareholders who are also employees must be paid a reasonable salary, which is subject to payroll taxes.
State Taxes and Fees
S Corps may be subject to state-specific taxes and annual fees. The amount varies by state.
Annual Reports
S Corps must file annual reports and pay associated fees to the state.
IRS Compliance
S Corps must comply with various IRS regulations, including filing Form 1120S (U.S. Income Tax Return for an S Corporation) and issuing Schedule K-1 to shareholders.
Documents Required
Following are the documents that will be required
Identity Proof Residents
US Residents can provide SSN or Driving License.
Identity Proof Non-Residents
Non residents who wish to register an LLC will be required to provide Passport Copy.
Detailed Nature of Business
A detailed business nature will be required from the business owners.
Recent Bank Statement
If non resident, a bank statement providing recent bank statement (less than 60 days) would be required
Deliverables
The service package includes a comprehensive list of deliverables which includes the following.
Certificate of Incorporation
Corporate Bylaws
Employer Identification Number (EIN)
Registered Agent Service
Stock Certificates
Form 2553 Confirmation
State Compliance Checklist
Business Bank Account Setup Assistance
Hear from the Entrepreneurs
Discover what our clients say about their journey with us. Real stories, real experiences, real success.
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