Annotate Legal Kansas Startup For S-Corporation Forms For Free

The cost to start an S corp varies by state, based on filing fees and state taxes, but you can expect to pay between $800 to $3,000, excluding any lawyer's fees, should you choose to hire one.

The S corporation is the only business tax status that lets you save on Social Security and Medicare taxes while avoiding double taxation. An LLC taxed as an S corp offers the benefits of a corporation while also providing flexibility on income treatment.

How do I make my business an S corp? Your business will first have to be either an LLC or a C corporation. Then you can apply for S corporation status by filing Form 2553, Election by a Small Business Corporation, provided your business meets the IRS's requirements.

What paperwork is required to form an S corp? To form an S corp, you must prepare and file Articles of Incorporation or a Certificate of Incorporation with the proper state authorities. You must also pay filing fees and any applicable initial franchise taxes or other fees.

To form an S Corp in California, you must file Form 2553 (Election by a Small Business Corporation) with the IRS and then complete additional requirements with the state of California, including filing articles of incorporation, obtaining licenses and permits, and appointing directors.

It's fast and easy. File Form 2553 with the IRS to elect to be treated as an S Corporation for tax purposes. You can file Form 2553 as you're forming your LLC or afterward ? within two and a half months of forming your LLC or before March 16 in any tax year after formation.