Esign Legal Indiana Startup For S-Corporation Forms For Free

The main tax difference between sole proprietors and S Corps has to do with your taxable income. As a sole proprietor, you'll be required to pay income taxes on all income your business makes. But if you file as an S Corp, you will only be responsible for taxes on your set salary (hint: no federal corporate tax).

To form an Indiana S corp, you'll need to ensure your company has an Indiana formal business structure (LLC or corporation), and then you can elect S corp tax designation. If you've already formed an LLC or corporation, file Form 2553 with the Internal Revenue Service (IRS) to designate S corp taxation status.

File Formation Paperwork State formation documents are what legally create your business in Indiana, and officially create the separation necessary to protect your personal assets. To form an Indiana LLC, file Indiana Articles of Organization. To start an Indiana corporation, file Indiana Articles of Incorporation.

Indiana, like many other states, because it recognizes the S corporation election, does not tax the S corporation at the corporate level; it does, however, require each S corporation shareholder to pay tax on their appropriate share of the corporation's income at 3.23 percent once it is adjusted as grown income.

In Indiana, that means choosing an entity name, filing articles of incorporation, and paying a filing fee. In order to become an S Corp, the corporation must then file what is known as an ?S Election??Form 2553?with the Internal Revenue Service (?IRS?).

You may find the current year tax Indiana Individual forms online by going to .in.gov/dor/tax-forms/ and selecting the Individual Tax Forms download bar.