File for an S-Corporation Online

After a corporation has been formed, it may elect "S-Corporation Status" by adopting an appropriate resolution and completing and submitting a form to the Internal Revenue Service (some states require their own version). Once this filing is accepted by the IRS, the corporation does not pay corporate income taxes on profits. Instead, the income is "passed-through" to the shareholders for purposes of computing tax returns. Each shareholder simply adds the profits onto their personal tax return.

The S-Corporation is extremely popular, especially with companies that have fewer than 20 shareholders and do not wish to have complex corporate structures (own or be owned by other companies) or multiple classes of stock. We prepare the IRS Form for your corporation to elect "S-Corporation Status" as well as the required corporate resolution.

Step 1: Choose a State

Step 2: Get an Instant Price Quote and Order Online!

More Information on Forming an S-Corporation

Benefits of the S-Corporation:

• The main benefit is that profits are not taxed twice as with C-Corporations. This means that if you are the sole shareholder and you earn $100,000/year and pay yourself a reasonable salary of $40,000, the remaining $60,000 is not subject to a) the Corporate Income Tax (currently at 15% up to $50,000 in profits, with rates ranging from 25-39% above $50,000) and b) FICA taxes (Social Security, Medicare and Medicaid taxes that applies to salary). The profits would simply be added to your personal tax return and taxed at your personal rate.

There are some restrictions on S-Corporations that you should consider:

• S-Corporations cannot deduct certain items that regular "C-Corporations" can like healthcare and travel. Ask your tax advisor for specifics.
• Are restricted to 100 shareholders or fewer and those shareholders must be U.S. Citizens. Note that a spouses are treated as a single shareholder, as are family members in most cases.
• Are restricted to one class of stock (e.g. no Class A, Class B or preferred shares, just Common shares).
• S-Corporations cannot own or be owned by other business entities (corporations, LLC's, trusts, etc.)

Learn More:

• Frequently Asked Questions About Starting a Corporation
• C-Corporation vs. S-Corporation
• Compare our Incorporation Services to our competitors.
• View our Business Startup Checklist