By default ALL Corporations are “born” as C-Corps when you incorporate in any State. If you choose to elect the S Chapter provisions in the tax code for your corporation, then this option is processed with the Internal Revenue Service (IRS) within 75 days after formation. We make it easier for you and if you are planning on incorporating your business under S-Chapter provisions for tax purposes, you just need to indicate this preference in the comments section of your order right before you process payment. We then take care of all the paperwork immediately after filing it.

Because this is a post-incorporation election, if you have formed or want to form an LLC, instead of a corporation, you can still choose to be treated as an S-Corp for tax purposes if you so choose to.

S-Corporations are often chosen by small businesses with a single member or a single shareholder, especially if they intend to work for the company as employees and if they intend to withdraw all the profits from the company. There are some limitations to consider, mainly: 1) Only US Citizens and Permanent Residents may choose these tax provisions and 2) You are limited to a maximum of 100 shareholders.

The main feature of an S-Corp is that, opposed to how a C-Corp is taxed, the S-Corp, will still file a separate, annual tax return, yet the net income liabilities flow through and are allocated to the individual shareholders. If shareholders work for the company they need to take a reasonable salary; therefore avoiding being taxed at a self employment rate. There are other tax benefits in choosing an S Corp Classification, make sure you run your research and talk to your tax advisor to ensure this is the right fit for your project.

Ready to incorporate your business? Click HERE or the button below to select your type of company and State.