4 Best Ways To Form An S-Corporation | April 2017


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.


S-Corporations: In-Depth

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.

Please note

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.


Recently Updated Ezvid Advisor Guides

Background Check Services

Finding a decent site that offers background checks can be a major gamble. A lot of these sites will promise you everything, while only delivering about 75% of what you require (and 150% of what you don't). Worse yet, the majority of these background service sites will demand payment in full before allowing you a comprehensive look behind the curtain.... read more

Image Copyright Registration Sites

The process of registering an image you have created for an official copyright may seem daunting at first, but in fact it requires only a handful of minutes and costs less than an average Friday night bar tab. Contrast that against the potential legal fees you will pay to dispute the infringement of your improperly protected or unregistered artwork, and... read more

Ways To Make A Website

Most of the people that visit your website are going to judge you, and they're going to judge you hard. A pixelated image, a broken link, or just the wrong choice of font can turn anybody off, no matter how good your band sounds or how innovative or durable your product is. Going at it alone, even if you know... read more

Ways To Send Faxes Online

In the age of advancing technology, one would think that hooking up a fax machine to a stone age phone line would be a thing of the past for businesses. It's true that a lot of business is conducted electronically using email, file share services, and video chat services. However, depending on the nature of your business, you're still going... read more

Ways To Get A Business Logo

Your logo is like your face; if you could have had some say in its design before you got stuck with it, you probably would have made some changes. Don't make the mistake of thinking the logo you may already have, or the one you're planning to design yourself, is going to be good enough. Not if you really think... read more

Cheapest Textbook Rental Websites

Don't waste your hard-earned cash forking money over to those money-grubbing textbook publishers! Renting your textbooks can save you as much as 90% off the sticker price of that volume on chemistry, calculus, or macro economics, and it doesn't take an economist to tell you that saving money is a good thing. With online textbook rentals, you can enjoy instant... read more

eTextbook Sites

As books go the way of the dinosaurs (it's only a matter of time before we're burning them for fuel), the industry is finding exciting new ways to provide students with reliable educational materials. As with so much of the education industry, you might expect these advancements to come with absurdly high price tags, but the market has–at least for... read more

Services To Trademark Your Logo

An organization's logo is the most recognizable symbol of its brand. The more respected an organization becomes, the more inherent value its logo will retain. Fortunately, trademarking a logo is easy, and doing so will protect your organization's emblem from any threats of infringement. While there are any number of trademark services available, there are only a handful that have... read more