Title: Louisiana Sample Letter Regarding Articles of Incorporation — Election of Sub-S Status Introduction: In Louisiana, when a corporation wants to elect Subchapter S (Sub-S) status, it is required to submit a formal letter along with the Articles of Incorporation to inform the Louisiana Secretary of State. This letter signifies the corporation's intent to be treated as an S Corporation for federal tax purposes. This article will provide a detailed description of what the Louisiana Sample Letter regarding Articles of Incorporation — Election of Sub-S Status entails, including various types of such letters. Keywords: Louisiana, sample letter, Articles of Incorporation, Election of Sub-S Status, S Corporation, federal tax purposes, letter template. 1. Purpose and Importance: The purpose of the Louisiana sample letter regarding Articles of Incorporation — Election of Sub-S Status is to formally notify the Louisiana Secretary of State about the corporation's decision to elect Sub-S status. This election allows the corporation to be taxed similarly to a partnership rather than a traditional corporation, which offers certain tax advantages for shareholders. 2. Components of the Sample Letter: The sample letter includes the following key components: a. Corporation Information: The letter begins with the corporation's legal name, address, and Employer Identification Number (EIN). This ensures accurate identification and record-keeping. b. Statement of Intent: The letter explicitly states the corporation's intent to elect Sub-S status for federal tax purposes. It should mention that the corporation has met the eligibility requirements as outlined by the Internal Revenue Service (IRS) and Louisiana law. c. Effective Date: The letter must state the desired effective date for the start of Sub-S corporation taxation. Generally, this date is January 1st of the current or upcoming tax year, but it can vary as per the corporation's needs. d. Shareholder Consent: If required, the letter must include the unanimous written consent of all shareholders to elect Sub-S status. This consent demonstrates the agreement of all shareholders to the change in tax treatment. 3. Types of Sample Letters: Based on the unique circumstances, there can be several types of Louisiana sample letters regarding Articles of Incorporation — Election of Sub-S Status. Some common types include: a. Initial Incorporation: This type of sample letter is used when a corporation is initially incorporating and wants to elect Sub-S status from its inception. b. Change of Tax Status: If an existing corporation wishes to convert its tax status to Sub-S, a specific sample letter is required for this purpose. It highlights the corporation's history, current tax status, and the proposed change. c. Amended Articles of Incorporation: In some cases, a corporation may need to amend its Articles of Incorporation to reflect the election of Sub-S status formally. This type of letter includes both the amendment request and the Sub-S election notice. Conclusion: The Louisiana Sample Letter regarding Articles of Incorporation — Election of Sub-S Status is a crucial document that enables a corporation to elect Sub-S status for federal tax purposes. By using the appropriate sample letter, corporations ensure compliance with Louisiana law and provide the necessary information to the Louisiana Secretary of State. The different types of sample letters cater to various scenarios faced by corporations in relation to Sub-S elections.
Louisiana Sample Letter regarding Articles of Incorporation - Election of Sub-S Status
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How to fill out Louisiana Sample Letter Regarding Articles Of Incorporation - Election Of Sub-S Status?
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FAQ
In order to become an S corporation, the corporation must submit Form 2553, Election by a Small Business Corporation signed by all the shareholders. See the Instructions for Form 2553PDF for all required information and to determine where to file the form.
C corporations file taxes on Form 1120. S corporations file taxes like a sole proprietorship or a partnership. The profits (or losses) pass through an S corp to the shareholders, who pay taxes and report them on their personal tax returns. S corporations file on Form 1120-S.
Some jurisdictions?the District of Columbia, Louisiana, New Hampshire, New York City, Tennessee, and Texas?do not recognize the federal S corporation election and, for the most part, tax S corporations like other business corporations.
The articles should include: The corporation's name, location, and purpose. The number of shares the corporation is authorized to issue. The registered agent's name and registered office's address. Each incorporator's name and address. The names of each initial director. The corporation's purpose and primary activities.
In order to qualify for S corporation status, the IRS requires the corporation to be residentially located in the United States, retain fewer than 100 shareholders limited to individuals, trusts, and estates (excluding partnerships, corporations, and nonresident alien shareholders), issue only one class of stock, and ...
LLCs can have an unlimited number of members; S corps can have no more than 100 shareholders (owners). Non-U.S. citizens/residents can be members of LLCs; S corps may not have non-U.S. citizens/residents as shareholders. S corporations cannot be owned by corporations, LLCs, partnerships or many trusts.
Requirements for filing for S corp status Be a domestic corporation. Have only allowable shareholders. Allowable shareholders include individuals, certain trusts, and estates. Non-allowable shareholders include partnerships, corporations, or non-resident aliens.
Technically an S Corporation is a pass-through entity but Louisiana income tax law does not recognize Subchapter S corporation status. An S corporation is required to file income tax in the same manner as a C corporation.
