Fill Out Legal Washington Startup For S-Corporation Forms For Free

If you wish to be treated as an S-corporation (Form 1120S for pass-through taxation), you must complete Form 2553 ? Election by a Small Business Corporation within 75 days of forming your business (see Form 2553 Instructions). The IRS doesn't recognize LLCs as a classification for tax purposes.

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.

member LLC can be taxed as an S Corporation if it meets the IRS's eligibility criteria. In fact, both singlemember and multimember Limited Liability Companies can elect to be treated by the IRS as either an S Corporation or a C Corporation if they meet the requirements.

Can I set up an S corp myself? While it is possible to file articles of incorporation and go through the S corporation election process alone, S corp requirements are both strict and complex. To ensure you're following the rules, we recommend consulting an attorney or tax professional.

A Washington S corporation doesn't pay income taxes. Even if a corporation with more than one shareholder has to file tax returns, the owners have to include their share of the income or loss on their own tax returns, just like with LLCs or partnerships.

The 60/40 rule is a simple approach that helps S corporation owners determine a reasonable salary for themselves. Using this formula, they divide their business income into two parts, with 60% designated as salary and 40% paid as shareholder distributions.