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Starting a new s-corporation

Asked by: what's your name? - 18 July, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 How do you start a s-corporation from scratch?
Answered by: Ray Albert - 18 July, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/194.jpg-630c771619e92bede7e6f696b56767b9 Brandon,

Forming an entity that would be taxed as S-Corporation from scratch would require you to register it either as Corporation or an LLC with the state where the business would be located/conducted. Once the company is registered with the state, you would obtain the EIN, and then elect the entity to be taxed as an S-Corp with the IRS. In certain states the S-Corp election is required to be filed with the state as well.

Keep in mind, either an LLC or a Corporation may elect to be taxed as an S-Corp, and this election does carry certain limitations. You can read more about the formation and structure of the S-Corporation here.

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