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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

An S Corp is suitable for small to medium-sized businesses that want the liability protection of a corporation and the tax benefits of a partnership. It is ideal for businesses with fewer than 100 shareholders who prefer pass-through taxation and do not plan to issue multiple classes of stock.

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

1
Choose a Name

Select a unique name for your S Corp that complies with state naming requirements.

2
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.

3
Appoint a Registered Agent

Designate a registered agent who will receive legal documents on behalf of the corporation.

4
Create Corporate Bylaws

Draft corporate bylaws that outline the management structure and operating procedures of the S Corp.

5
Hold Initial Board Meeting

Hold an initial board meeting to adopt bylaws, appoint officers, and address other organizational matters.

6
Issue Stock

Issue stock certificates to the initial shareholders of the S Corp.

7
Obtain an EIN

Apply for an Employer Identification Number (EIN) from the IRS for tax purposes and to open a business bank account.

8
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

Frequently Asked Questions

Answered all frequently asked questions, Still confused? feel free to contact us.

Hear from the Entrepreneurs

Here is a jist of what some of our customers had to say about our services. We tend to work relentlessly to create smoother experiences for the clients.

  • Jalal JC3 Property Store Private Limited

    Wonderfull service in minimum charges. I recommended to who want register your company and need of all official services. Taxkriya is the best choice.

  • Krishna ChaitanyaCognikey Technology Solutions Private Limited

    Taxkriya is a wonderful experience for me they helped me to do smooth process in forming company for me and very friendly persons who takes our inputs and also suggest which is best for us.

  • Ganta Sai AkhilSketchz engineering LLC

    I genuinely recommend Taxkriya and found this as one of the smoothest process in forming an LLC. The support from the team was absolutely good and support from Mr. Gowtham was purely exceptional.