Prepare Legal Maine Startup For S-Corporation Forms For Free

An LLC offers a more formal business structure than a sole proprietorship or partnership. While LLCs and S corporations are two terms that are often discussed side by side, they actually refer to different aspects of a business. An LLC is a type of business entity, while an S corporation is a tax classification.

There is a $175 one-time state filing fee to form a Maine LLC. There are also ongoing fees (like a $85 Annual Report fee), which we discuss below.

Step 1: Name Your Maine LLC. It is important that your Maine LLC has a name that attracts customers and follows Maine naming requirements. ... Step 2: Choose a Registered Agent. ... Step 3: File the Maine Certificate of Formation. ... Step 4: Create an Operating Agreement. ... Step 5: File Form 2553 to Elect Maine S Corp Tax Designation.

Here is a brief overview of the tax forms a typical S corporation needs to file with the IRS. Form 2553 ? S Corporation Election. ... Form 1120S ? S Corporation Tax Return. ... Schedule B ? Other Return Information. ... Schedule K ? Summary of Shareholder Information. ... Schedule K-1 ? Individual Shareholder Information.

An S corp can own an LLC. However, an LLC would generally not be able to own an S corp. An exception to this rule is if the LLC 1) is a single-member LLC that is treated as a disregarded entity for federal income tax purposes and 2) meets the eligibility requirements to be an S corporation shareholder.

Use Form 1120-S to report the income, gains, losses, deductions, credits, etc., of a domestic corporation or other entity for any tax year covered by an election to be an S corporation.