Corp nation
get your s-corp
but what is an s-corp?
s-corporation
Getting your S-Corp is not hard. The question is, is the S-Corporation the right structure for your business?
Here are a few things to consider:
S-Corporations and nearly identical to C-Corps, but they’re designed for smaller businesses. Thus, the ‘S.’
Later, if needed, you can convert your S-Corp into a C-Corp.
The major difference between S-Corps and C-Corps is that of tax structure.
4 Essential Benefits
Perpetual
Perpetual is a fancy word. It means, ‘continues on,’ or something like that. S-Corps (any types of corps) are perpetual in nature. They exist past the life of their owners. Because, as mentioned above, they’re separate legal entities.
Pass-Through Tax Entity
S-Corps (like any kind of corp) are separate legal entities–meaning separate from yourself, though you may own or run the corporation.
As such, they typically receive a tax of their own.
Such is NOT the case with S-Corps.
Liability and Asset Protection
As with any corporation type, the s-corp provides the corporate shield, protecting your personal assets from danger if the business were to go south (not as in ‘south of the border’ as in ‘hotwater’ — and by ‘hotwater’ we mean ‘trouble’ and by trouble we mean… well, hopefully you get the point).
That’s that. Asset protection. Pretty simple.
Form 2553
By filing form 2553 you’re electing to be taxed as a pass-through entity.
This means that the entity itself (your S-Corp, or even your LLC, if your LLC elects to be taxed as an S-Corp) doesn’t have to pay income tax at the federal level.
Instead, the taxes “pass through” to the income received by the shareholders.
S-Corps Filed
more about s-corps
Getting your S-Corp is not hard. Actually, it’s pretty easy. And awesome. And beautiful. Like the picture above. And San Francisco (joking about the last part).
Cool Name
You need a cool name for your S-Corporation. So sit on the end of your bed (or a bed — perhaps visit IKEA) and think deeply. Once you have a cool name, the rest will follow.
Will Follow
Just because you’re a “small” business does not mean you have a small brain. In fact, your brain might be abnormally large.
Highly Recommend
If S-Corps were a movie, we’d give it five stars. If it were a tv show, we’d give it all of our popcorn. So don’t hesitate to file your S-Corp.