get your s-corp
but what is an s-corp?
Getting your S-Corp is not hard. 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.
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.
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.
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.
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).
– Different from C-Corps, S-Corps can only have up to 100 shareholders.
– The shareholders can’t be nonresident aliens (or outer-space aliens — there is no legal precedent as of yet).
– Only one class of stock.
– It must be domestic.
– S-Corps are not suitable for banks or insurance companies.
– Final thing to note here: shareholders can’t be other corporations.
Like all great things in life, you must start your S-Corp by filing articles of Incorporation. You must also have a registered agent (we’re a registered agent — you found us fast 🙂
Everyone always says, there’s always next year. You know what I always say: do it now. Why? Because, procrastination will only ever dump you in a hole behind a pile of flaming dumpsters.
You know what won’t lead you to that end: starting your S-Corp.
And being awesome.
Like a possum.
In the section below, we’ve written three stupid jokes. Feel free to skip those like a hop-scotch court. Or free scotch. Or Scotch tape.
HOWEVER, below that section, we’ve copied and pasted a video that explains S-Corps in a way that even I could never understand.
And also consult your watch, because lawyers are expensive. In fact, I’d rather buy a watch than a lawyer, because at least watches aren’t lawyers.
That being said, consult a lawyer for inquiries or to determine what structure is right for your business.
You need to choose your business name (unless you’ve already chosen one) and file your Articles of Incorporation.
We offer incorporating services (because we’re awesome) and we know you want to use our services (because you’re awesome).
Unlike many of the other incorporating services, we’re based in America, in sunny Southern Cal. Your information is safe with us. And you can get a hold of us (if needed) through email or even through a telephone conversation.
Which is our favorite type of conversation.
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.
Just because you’re a “small” business does not mean you have a small brain. In fact, your brain might be abnormally large.
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.