Autofill Legal North Carolina Startup For S-Corporation Forms For Free

Forming an S corporation is straightforward. First, you start a business as a corporation by filing articles of incorporation with the Corporations Division of the North Carolina Secretary of State's Office. Next, to elect S corporation status, all shareholders in your company must sign and file Form 2553 with the IRS.

Although you can theoretically calculate, file and pay all of your S Corporation income and self-employment taxes manually, in practice, it's much, much easier to use a dedicated payroll service. These payroll platforms will charge a monthly fee but will save you a considerable amount of time and frustration!

Setting Up an S Corp in North Carolina Choose a name. First, choose a name for your LLC. ... Designate a North Carolina registered agent. Select a registered agent in North Carolina. ... File North Carolina Articles of Organization. ... Create an operating agreement. ... Apply for an EIN. ... File the form for S corp election.

Property that you convert becomes your capital contribution to the S-Corp, which would form your basis for a capital loss or gain if you later sell your interest. The value of the property becomes the corporation's basis in it.

The minimum franchise tax is $200. For S-Corporations: The tax rate for an S-Corporation is $200 for the first one million dollars ($1,000,000) of the corporation's tax base and $1.50 per $1,000 of its tax base that exceeds one million dollars ($1,000,000).

In computing stock basis, the shareholder starts with their initial capital contribution to the S corporation or the initial cost of the stock they purchased (the same as a C corporation). That amount is then increased and/or decreased based on the pass-through amounts from the S corporation.