Form with which a corporation may resolve to alter its corporate status top that of a subchapter (S) corporation.
S Corporation With No Employees In Phoenix
State:
Multi-State
City:
Phoenix
Control #:
US-0046-CR
Format:
Word;
Rich Text
Instant download
Description
Free preview
Form popularity
FAQ
S Corporations and the Pass-Through Entity Election The Arizona Pass Through Entity (PTE) income tax is assessed at a rate of 2.5% of the income attributable to the S Corporation's resident shareholders and the income derived from sources within Arizona attributable to the nonresident shareholders.
You do not have to convert your LLC into a corporation. Instead, the LLC simply makes an election with the IRS to have the LLC taxed as an S corporation by having all members of the LLC sign an IRS Form 2553 and then file the signed Form 2553 with the IRS. See the Instructions to IRS Form 2553.
How do I form an S corp in Arizona? First, you'll need to form an LLC or C corporation, if you haven't already done so. To elect S corp status, you need to file Form 2553, Election by a Small Business Corporation, with the IRS.
Corporations taxed as S Corporations under Subchapter S of the Internal Revenue Code (IRC) must file Arizona Form 120S. Qualified subchapter S subsidiaries are not treated as entities separate from the parent corporation and would be included on a single Arizona Form 120S filed by the parent S Corporation.
You do not have to convert your LLC into a corporation. Instead, the LLC simply makes an election with the IRS to have the LLC taxed as an S corporation by having all members of the LLC sign an IRS Form 2553 and then file the signed Form 2553 with the IRS.
Every corporation subject to the Arizona Income Tax Act of 1978 must file an Arizona corporate income tax return. A limited liability company that makes a valid federal election to be taxed as a corporation must file an Arizona corporate income tax return.
For Arizona income tax purposes, Arizona recognizes a corporation's federal subchapter S election and, to the extent that S corporation income is included in federal adjusted gross income, it will be included in Arizona gross income and subject to Arizona tax.
The IRS doesn't limit S corporation income. S corporations are incorporated companies that have made an election to be taxed as a pass-through entity rather than have double taxation.
Only a green card or meeting the IRS' “substantial presence test” enables an alien to be eligible to be an S Corporation shareholder.
How to Start an S Corp in Arizona Name your LLC. Appoint an Arizona Statutory Agent. File Articles of Organization. Create an operating agreement. Apply for an EIN. Meet the publication requirement in Arizona. Apply for S Corp status with IRS Form 2553.
More info
Choose an entity type for the business (corporation, nonprofit corporation, or limited liability company ("LLC")). Corporations may use Form 120A if it files its return on a separate company (separate entity) basis and it is taxable entirely within Arizona.IRS Requirements for S Corporation Application. 1. How and where do I submit documents for filing? 2. Why won't ACC staff help me fill out my form? This kit gives clear, comprehensive instructions to direct you as you complete the steps of forming your own S corporation. This kit gives clear, comprehensive instructions to direct you as you complete the steps of forming your own S corporation. If your corporation has fewer than 100 shareholders, you might be qualified to select the S corporation classification using Form 2553. Corporations may not claim this credit. A partnership may not pass the credit through to its partners.