How to Register an S Corporation

Introduction

An S Corporation, or S Corp, is a type of business structure that combines the limited liability protection of a corporation with the tax benefits of a partnership or sole proprietorship. If you’re looking to register an S Corp, there are several important steps you should take to ensure that your business is properly registered.

Choose a Business Name

The first step in registering an S Corp is to choose a unique business name. Your business name must not be already in use by another business and must comply with the naming rules and regulations of your state. You can check the availability of a business name by searching for it on the Secretary of State’s website or by consulting with a business attorney.

File Articles of Incorporation

Once you have chosen a business name, you will need to file articles of incorporation with the Secretary of State. The articles of incorporation will include the business name, the registered agent’s name and address, and the names and addresses of the incorporators.

Obtain an EIN

An Employer Identification Number (EIN) is a unique number assigned to your business by the Internal Revenue Service (IRS). It is used to identify your business for tax purposes and you can obtain an EIN by filling out an online application on the IRS website.

Create an Operating Agreement

An operating agreement is a document that outlines the rights and responsibilities of the shareholders, the management structure of the corporation, and any other important information about the business. The operating agreement is not required by law, but it is highly recommended to have one as it helps to keep the business organized and can be used to resolve disputes.

Comply with State and Local Regulations

S Corps are required to comply with state and local regulations such as obtaining business licenses and permits, registering for

state taxes, and complying with other regulations that may be specific to your business. It’s important to research the regulations that apply to your specific business and comply with them accordingly.

Hold an Organizational Meeting

An organizational meeting should be held to adopt the bylaws, elect the initial board of directors and issue shares of stock to the shareholders. This meeting should be documented and minutes should be kept.

File an S Corp Election with the IRS

After you have completed the previous steps, you can file an S Corp election with the IRS. This is done by filing Form 2553, which must be filed within the first 75 days of the tax year. This form is used to inform the IRS that the corporation has elected to be taxed as an S Corp.

Keep Records

It’s important to keep accurate records of all business transactions, including financial records, meeting minutes, and other important documents. This will help you stay organized and make it easier to file taxes and comply with other regulations.

Comply with Annual Requirements

S Corps are required to hold annual meetings, file annual reports with the state, and keep the business updated with any changes in the business such as changes in ownership, directors, and officers.

Conclusion

Registering an S Corp can be a complex process. By following these steps, you can ensure that your business is properly registered. It’s important to choose a unique business name, file articles of incorporation, obtain an EIN, create an operating agreement, comply with state and local regulations, hold an organizational meeting, file an S Corp election with the IRS, keep accurate records, and comply with annual requirements.

USPTO Trademark Filing in Just $49

Register Your Trademark with USPTO Today & Get Serial No. in 24 Hours

Related Posts

Start a Nonprofit in Wisconsin
How to Start a Nonprofit in Wisconsin?
Start a Nonprofit in West Virginia
How to Start a Nonprofit in West Virginia?
Start a Nonprofit in Washington
How to Start a Nonprofit in Washington?
Start a Nonprofit in Virginia
How to Start a Nonprofit in Virginia?