Elect S corp status Apply for state and local S corp business licenses Create S corp bylaws Schedule and hold annual meetings 1. Choose a business name for your S corp First, choose a unique name for your new business that isn’t already registered to another business entity in your state...
Learning how to start an S-corp can potentially help business owners avoid double taxation. Read our guide to learn about the five steps to starting an S-corp.
Can I still use my DBA name if I elect to be an S corp? LLCs and corporations that operate under a “doing business as” (DBA) name can choose the S corp election.
In order to elect an S corporation status for tax purposes, corporations will need to file form2553 Election by a Small Business Corporation. The form must be signed by all shareholders and must be filed within two months and 15 days after the start of the initial tax year. ...
LLCs Filing Taxes as an S Corporation Finally, an LLC can choose toelect S Corporation statusand avoid the double taxation associated with a C Corporation. As an S Corporation, the LLC can decide how much of the company’s profits are allocated to salary and how much to dividends. Only ...
Get the worry-free services and expert support you need to elect S Corporation tax status today. Learn how to start an S Corp and how this tax designation can provide significant tax advantages for your company. What is an S Corp?
S-Corp: A tax designation An S-corp, or S-corporation, is not a type of business structure but rather a tax designation that you can elect for your business. You can choose to have your LLC (or even a corporation) taxed as an S-corp by filing a specific form with the IRS—Form ...
Alternatively, LLCs can choose to elect to be taxed as an S corporation (S corp) or C corporation (C corp). If S corporation tax status is elected, LLC members can be taxed as employees of the business; potentially reducing tax burden....
Alternatively, you can ask the IRS to tax your LLC like a C-Corporation or S-Corporation. Married Couples: Instead of having your LLC taxed as a Partnership, married couples can elect to be taxed as a Single-Member LLC (aka Qualified Joint Venture). This is allowed because California is ...
The tax savings afforded by S Corp tax status apply to only federal FICA taxes, as states don’t charge these taxes. Which forms will you have to file? What tax forms your LLC must file depends on how it’s structured and its tax election: LLCs that elect S Corp status must file a...