How Do You Set Up An S Corporation?
A small business or even a sole proprietorship can be registered as an S corporation (small business corporation). Doing so can help protect you from personal liability when it comes to business debts and obligations. There are other advantages, too. An S corporation does not pay taxes. Instead the profits or losses are distributed to the shareholders who then pay the taxes as individuals. S corporations have many benefits of both being a corporation and of being a small business. Use the forms provided by your state and file your Articles of Incorporation with your state’s secretary of state or use an on-line agency that can do this for you. There will be a fee. Elect directors and appoint your officer(s). These positions can be filled by the same person. Again, the forms are standard. Prepare by-laws — information on the day to day operation of your business. Calculate the shareholders basis and distribute shares to the shareholders. Keep all your papers and records together in a sa
