How Do You Form An S Corporation?
A subchapter “S” Corporation is a business that chooses special tax status after it becomes incorporated. An S Corporation limits the owners’ liability of business debts and allows them to save money by taking distribution payments as opposed to salary. Once your business becomes incorporated, it’s simple to change to S Corporation status. Begin by forming a regular corporation (C Corporation). The Company Corporation can help you form a corporation in any state. Call them at (800) 818-0204 and have them file the proper paperwork with your state to form the corporation. Receive the paperwork back from the state. The papers will include your Employer Identification Number. You need this number to become an S Corporation. Obtain the form 2553, Election by a Small Business Corporation. You can download this form from the Internal Revenue Service website. Follow the instructions and fill out the form completely. Be sure to include your Employer Identification Number, date and state of inco
