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Without making any election, newly created for profit corporations are treated as C Corporation for tax purposes. C corporations are subject to corporate income tax or double-taxation where their earnings given to their shareholders will be taxed once at the corporate level and then again when it is distributed to the shareholders. In order to give small business corporations a tax break and avoid this double taxation, the Internal Revenue Service created an S corporation election for newly created small business corporations. Upon making this election, the S Corporation receive the benefits of flow-through taxation where income is taxed only once at the shareholder level and shareholders can also claim corporate losses. However, to be eligible for this election, the corporation must not have more than 75 shareholders, and the S corporation election must be made within 75 days of the earliest following activities: (i) issued stock to shareholders; (ii) conduct business as a corporation; or (iii) acquired assets. The election is for federal tax purposes only, otherwise an S corporation status is no different than a C corporation.
You can file your S Corporation application with CorpLLC Corporation. All you will need to do is answer our questions and CorpLLC Corporation will draft and file your application. Within a few weeks, you will be able to operate your business under the protection of your new s corporation.
CorpLLC S Corporation Election Description:
Typically within a few weeks, you will be able to operate with the benefits of your new S Corporation.
Performing an S Corporation Election has never been easier! Follow the 6-step process:
1. Create your free member’s account.
2. Select S Corporation business service.
3. Fill out the easy-to-read online questionnaire. To make it as easy, save your work as you go and check your completion status along the way.
4. After your questions have been answered and your forms are complete, submit your application by selecting the “Submit Forms” button. Your forms will then be submitted for CorpLLC internal review and processing.
5. CorpLLC will use the information that you provided to complete the official application for filing with the appropriate government agency. At our current run rate, you will receive notification within 24 hours with initial results and/or follow-up request(s) for further information/clarification if necessary.
6. Your applications will then be submitted, and depending on the state's processing times, your filed documents will be forwarded to you.
If you require incorporation services we can provide Incorporation, LLC, S Corporation Election, Registered Agent Services, Corporate Kit, FEIN, and expedited service. If your business requires intellectual property protection, the CorpLLC Corporation can provide Trademark and Copyright services as well. All this can be done from your personal online account!
Click here to Begin the S Corporation Election
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