Resources for Form S-Corp

The guidelines required to form S-Corp companies are similar to those required to form C-Corp companies. An S-Corp company is simply a standard corporation legally recognized as an individual entity separate from its owners or shareholders. The primary difference between a C-Corp and the formation of S-Corp businesses is that to form S Corp companies, you need to choose a special tax status with the IRS.

The S-Corp is not required to pay taxes itself. With the formation of S-Corp companies, all individual owners are required to file personal tax returns to report any income or loss associated with the S-Corp company. Take the following steps to start an S-Corp company:

1. Explore benefits associated with the formation of S-Corp companies.

2. Determine if you qualify for S-Corp status.

3. Find a form S-Corp provider to help you incorporate your company.

Review special tax advantages of S-Corp companies

S-Corp companies are generally audited less frequently. Business owners who form S Corp companies can also enjoy the structure of a standard corporation with pass-through taxation. A professional firm skilled in setting up the different types of businesses--S-Corp, C-Corp and LLC--can help you establish an S-Corp.

Seek professional advice about qualifying for S-Corp status

To be eligible for S-Corp status, there are specific criteria that business owners must meet. Criteria include strict ownership guidelines. For example, all owners of an S-Corp must be U.S. citizens and no owner can be recognized as other corporations, limited liability corporations or partnerships. Additionally, there are certain limitations on the type of business operations you can conduct under S-Corp status. An experienced form S-Corp provider can give you additional details about guidelines and your specific eligibility.

File required paperwork to register S Corp status

To register S-Corp companies, you must file official documents, such as articles of incorporation with your state. In addition, you must also file all required tax documents. Be sure to seek professional business services to ensure you file all appropriate documentation in a timely and legal manner.