Forming an S-corporation is one of the easiest, most efficient ways to help separate and protect your personal assets and your business assets. But even a small error in the filing process can render your small business out of compliance and potentially unprotected in the eyes of the law. That's why so many people turn to a trusted legal services provider for help establishing their S-corp. These businesses make the process of forming your business simple and secure.
Your S-Corp Comes With Satisfaction Guaranteed
CorpNet was formed by entrepreneurs with plenty of small business experience. In fact, it was started by a husband and wife team who ran their first business out of an apartment cluttered with stacks of paper, office supplies, and ringing phones. The company focuses on more than just helping their clients establish a legally sound S-corp; they also help to educate and inform people who are new to the complex corporate world. CorpNet offers everything from step-by-step guides to dealing with common S-corp issues, such as how to issue shares or establish a DBA. They also have an active and informative blog, and the CEO regularly posts helpful video content that elucidates many of the finer points a business owner needs to know. You'll appreciate the support the first time you set out to establish a disbursement plan or insurance policy.
Your Customized S-Corp Is Just Days Away
LegalZoom has been in business for a decade and a half now, and during that time they have helped establish more than a million small businesses. Their approach to the incorporation process is simple and straightforward. First a client completes a thorough questionnaire, then LegalZoom creates and files the paperwork for you. Once they receive your approved paperwork -- also known as Articles of Incorporation -- back from the state, they send you all needed formation documents along with instructions for the next steps you need to take. But your relationship doesn't just end there: you can check in with your LegalZoom representative throughout the year for information on proper tax procedures, necessary ongoing filings, and any other items required to keep an S-corportation in good standing. And if you need help writing a will or establishing a family trust, they can help you with that, too.
The Brand That Legally Has Your Back
Rocket Lawyer is almost obsessive in its dedication to proper compliance. They will help you establish an S corporation that is 100% in compliance with all local, state, and federal laws and ordinances, and are always just a phone call or email away after you have successfully formed your business, ready to give legal guidance, to create or review documents, and to ensure that your business remains compliant as the years go by and as your corporation grows and develops. Think of them not so much as a provider of incorporation services, but as a one stop shop for all things legal.
The Affordable S-Corp Professionals
Incfile's pithy motto speaks volumes. They claim to be the place "Where Business Begins," and indeed for tens of thousands of successfully incorporated small businesses, they have been just that. A member of the Incfile team will help you choose which type of corporate entity is right for your needs; an LLC, a C-Corporation, or the flexible, reliable S-Corp, and then help you file with the state and establish your business's operating structure. And they do all that for much less cash than most competitors charge. In fact, their basic incorporation service fee costs less than fifty dollars, plus associated fees charged by the government.
The S-Corp: A Smart Move For A Small Business
Running a successful small business is an aspiration shared by millions of Americans. The chance to create and sell products and services about which you are passionate, and the potential to support yourself and your family in so doing, is in fact a manifestation of the fabled American Dream. But running a business that you haven't taken the time to incorporate, or one that is not properly incorporated, can quickly turn into a nightmare if you ever face a lawsuit, a compensation dispute, an audit by the IRS, or any of the other potential woes that can come with business ownership.
Forming an S-Corporation -- also known as an S-Corp and more formally referred to as a Subchapter Corporation based on its definition in the government's Internal Revenue Code -- is often the simplest way for a person or group to form a business entity that offers them legal protections and benefits. And when you work with a professional legal services provider, the process of forming your S-Corp is a turnkey operation that's both affordable and efficient.
Basic S-Corporation Requirements
In order to form an S-Corp, your business must meet several requirements. First, it must be a domestic only business; that is, a company based in and doing business in the United States. Second, an S-Corp can have a maximum of 100 shareholders, each of whom must be a citizen or at least a legal resident of the United States. (Each shareholder is permitted to sell or transfer their shares at will, whereas other types of entity, such as an LLC, make transfer of ownership more difficult.) In certain cases, a trust or estate may be permitted as an S-Corp shareholder. And finally, an S-Corp must have only one class, or type, of stock. So if your shareholders want to be paid partially in equity and partially in unexecuted warrants, tell them to look elsewhere.
The Benefits Of An S-Corp
An S-Corporation is primarily designed to offer legal protection to the personal assets of those involved in the business. If someone brings a lawsuit against you predicated on an issue caused by your business's products, facilities, or services, they can only pursue compensation or damages from the company's assets and can't go after your personal property, cash, or other assets.
S-Corps also prevent the double taxation faced by many larger companies; double taxation occurs when a business's profits are taxed and then its stock holders again pay taxes based on their dividend payments. S-Corp profits and losses are passed through to its shareholders, who then pay taxes on their personal tax returns.
Choosing an S-Corp is also a wise idea because it's relatively easy to do. If your business qualifies for S-Corp status and doesn't need the added protections that come with a C-Corporation, then there's no reason to opt for a more complicated incorporation. Working with a legal services advisor makes the process of filing for S-Corp status simple, and most providers of such services are well within the budget of most small businesses.
A Few Things To Know About S-Corps
While forming an S-Corporation is a good way to protect assets and avoid any personal impact caused by issues with your business, there are issues to consider prior to forming your S-Corp. To remain in legal compliance and in good standing, the legal filings and accounting work of the S-Corp must be stringently recorded and maintained, and regular meetings of the directors and shareholders, complete with minutes from said meetings, are required by law. So forming an S-Corp means adding a good amount of work to your potentially busy life. All shareholders also have to receive reasonable annual compensation, and failure to do so may result in an unpleasant interaction with the IRS.
Whilst every effort is made to ensure that the information provided on this website is accurate at the time of writing, the information provided is for general guidance only and is not a substitute for professional legal advice. Always consult a qualified Intellectual Property lawyer operating in your local jurisdiction.