Maximize Tax Benefits with an S Corporation
Flexible, Tax-Efficient Solutions for Small to Medium-Sized Businesses
$450
+ State Fee
S-Corporation Package ($450) + State Fee
This business structure combines aspects of a corporation and a partnership. It lets income and losses pass through to shareholders’ personal tax returns, helping avoid double taxation. Small to medium businesses often choose this option for tax benefits and flexibility.
What does this package include?
By-Laws: The rules for how your business operates, covering the roles and responsibilities of members and directors.
Shareholder and Director Organizational Minutes: Written records of decisions made in the first meetings of the corporation.
IRS Document to Obtain the EIN:The Employer Identification Number (EIN), needed for taxes, opening bank accounts, and hiring employees. The format of an EIN is XX-XXXXXXX.
2553 Form (S-election): The form to choose S-corp tax status, letting profits and losses pass through to owners’ personal tax returns.
Articles of Incorporation: Legal papers filed to officially create your corporation, outlining its structure and purpose.
Understanding IRS Requirements
Key Considerations for S-Corporations
IRS Requirements for S-Corporations
Like limited liability companies (LLCs), S-corporations are intended to support the unique needs of small businesses better. The IRS imposes certain requirements on how S-corp businesses can function. S-corporations need to adhere to size, location, and complexity guidelines to operate legally under this status. This business’s articles of incorporation, articles of organization, or bylaws often outline these requirements to ensure directors and other leaders align on the same page. Businesses that are classified as S-corporations need to be relatively small for their tax differences to make sense. An S-corporation can consist of no more than 100 shareholders, while most other types of businesses have higher limits or allow an unlimited number of shareholders. A business must be incorporated within the United States to qualify as an S-corporation. Although an S-corporation may conduct certain types of business with international companies, its shareholders must be U.S. citizens.
Advantages & Disadvantages of S-corporations
Classifying your business as an S-corporation may be an excellent fit for you, but it may not work well for every small business owner. Here are some of the most important things to consider before obtaining S-corporation status for your small business.
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Weighing Options
S-Corporation Advantages and Disadvantages
Classifying your business as an S-corporation may be an excellent fit for you, but it may not work well for every small business owner. Here are some of the most important things to consider before obtaining S-corporation status for your small business.