Structuring an LLCas s corp can hold tax benefits, and may simplify the conversion of an LLC to an S-corp later on. The best time to consider making the change is whenLLCtaxes reach a certain point. For an LLC, when income taxes are larger than the tax burden that would be faced by...
Going from an S corp back to a C corp is usually simpler. In most cases, you just need to file your taxes as a C corp, and the IRS will automatically treat you as one. When is it better to create an LLC instead of a C corp or an S corp? With all this talk aboutcorporations,...
An S corp is a business structure with pass-through tax status. Learn how to start an S corp for your next venture.
Articles of Incorporation vs. Other Documents Articles of Incorporation vs. Bylaws While the articles of incorporation are externally-filed formation documents, bylaws are more of use to a company when used internally. Bylaws set the internal processes and organization of how the company should be ru...
Sabrina Delean
Articles of incorporation assign a corporate form— like a Corporation, S Corp, or LLC—and liabilities to various entities. Bylaws set up rules about how your firm runs, can help resolve disputes, and more. Founder/Shareholder Agreements If there are multiple founders or shareholders, this ...
Can an LLC become an S corp? Yes, an LLC can elect for S corporation taxation by filing Form 2553 with the IRS. The LLC benefits from the tax structure of an S corporation while still having the operational flexibility and limited liability protection of an LLC. ...
LLCs may also elect to be taxed as an S corp, or as a sole proprietorship or partnership (depending on the number of members it has). As a separate legal entity, corporations are responsible for paying taxes on the corporate level. The federal corporate income tax rate is currently 21%....
To maintain S corp status, your company must hold regular meetings with directors and shareholders and record meeting minutes per company bylaws. Depending on your state of incorporation, you may also need to pay an annual filing. Check your state’s business site to learn if that’s the case...
Why choose an S corp over an LLC? You may choose an S corp over an LLC for potential tax savings. S corps allow income, deductions, and credits to flow through to shareholders and be taxed at individual rates, avoiding double taxation. Additionally, S corps can help reduce self-employment...