S Corp
S Corp Formation is Easy Online
Our three-step process will have you filing an Tax 2 Permit
24x7 Access
Best customer support experience 24*7
We file the paperwork
We incorporate your S Corporation by preparing all required documents and filing them directly with the Secretary of State.
Receive your documents
Once your incorporation documents have been approved by the state, you will receive your completed S Corp package by mail.
Pricing Plans
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Premium
- $259
Same Day LLC Filing* & Expedited Shipping
- ★ Fastest processing speed
- ★ Access 250+ customizable legal & business documents
- ★ 1-year domain subscription from Squarespace
- Personalized Founders Kit to help stay compliant
- Free Statement of the Incorporator to open a business bank account
- 24/7 online access dashboard
Standard
- $179
5 Day Express LLC Filing* & Expedited Shipping
Includes Basic package, plus:
- ID required to file taxes
- Custom Corporate Bylaws
- Custom Organizational Minutes
- Instant electronic delivery of state documents upon formation
Basic
- $0
10 Day LLC Filing* & Standard Shipping
Includes:
- Comprehensive name check
- Document filing with the Secretary of State
- Lifetime customer support (phone & email)
Advantages of Forming an S Corporation
Business Perpetual Existence
While an LLC’s life depends on the terms of the Operating Agreement, S and C Corps are separate entities that survive the death or transfer of stock of the owners or major shareholders.
Option to Sell Shares
While LLCs are not allowed to sell stock, an S Corp may issue one type of stock, which may be sold to a maximum of 100 shareholders. Any equity to third parties’ sales must comply with SEC regulations.
Pass-Through Taxation
Unlike C Corporations, S Corporations are not taxed at the corporate level. Instead, all profits and losses are reported with the personal income taxes of each shareholder (owner).
Are You Ready to Start Your S Corp Filing?
File an S corp online today starting at $0 + state fees.
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S Corps in California
S Corp is a popular choice for business owners in California because it offers various tax, financial and legal benefits. However, several factors need to be considered when considering whether to set up an S Corp or have your LLC taxed as an S Corp in California
The Basics of an S Corp
An S Corp, or a Subchapter S Corporation, is a corporation that elects to pass Corporate income, losses, deductions, and credits through shareholders for federal tax purposes. Shareholders report a flow-through of income and losses on personal tax returns at their individual tax rates, allowing S Corps to avoid double taxation on corporate income. The S Corp is an ideal option for entrepreneurs and business owners looking for an advanced business organizational structure.
In addition to meeting the conditions outlined by local laws, several requirements must be met to qualify as an S Corp. These include:
- Having no more than 100 shareholders;
- Having only one class of stock;
- Being unable to be owned by certain types of organizations, such as partnerships or LLCs;
- Having U.S.-based shareholders who are all individuals;
- Have U.S.- based residents as shareholders; and
- Other various restrictions
Overall, An S Corp provides plenty of advantages for small businesses and entrepreneurs wanting maximum asset protection.
Advantages and Disadvantages of Filing as an S Corp in California
When deciding whether or not to file as an S Corp in California, it is essential to understand the advantages and disadvantages of doing so.
Disadvantages of Filing as an S Corp in California
Firstly, there are limits on who can own shares of an S Corp and restrictions on how many shareholders it may have at most. Secondly, filing fees or S Corp costs in California often tend to be higher than other forms of corporations since the state and IRS require additional documentation regarding shareholders’ interests.
Operating an S Corp can entail much more complex rules and regulations than other types of companies do since special care must be taken when dealing with things like distributing corporate profit amongst shareholders or cutting dividend payments so as to avoid running afoul of local laws. While pass-through taxation can be beneficial in some cases, it can also lead to an increased tax liability for higher-income shareholders
You ask, we answer
An S Corp in California is a filing designation with the IRS paired with an underlining entity. This combines the beneficial attributes of a corporation and a limited liability company with preferential tax treatment.
Ownership of an S Corp requires at least one shareholder who may be either a U.S. citizen or a permanent resident alien. Also, there cannot be more than 100 shareholders overall. Shareholders must be 18 years or older to qualify.
Whether you’re an established business or starting out, forming an S Corp in California can provide many tax and financial benefits. It’s important to understand all the requirements for registering as an S Corp to take advantage of these benefits and ensure that you’re in compliance with state regulations. While it may seem overwhelming initially, it will be well worth the effort once you’re set up and running.
FREQUENTLY ASKED QUESTIONS
Advantages of Filing as an S Corp in California
- Maximium of 100 owners
- S-Corp is a tax status for LLCs and not an official business entity type
- Owners must pay themselves a reasonable salary for their industry
- Avoids double taxation on profits
What`s the protections & Taxation
- LLC owners filing as an s-corp can save money on their personal taxes
- Pass through taxation—similar to an LLC, profits are only taxed at the owner level
Drawbacks to Consider
- Ongoing filings and fees to stay in compliance
- All owners must be U.S. citizens and meet all IRS requirements
- Closer IRS scrutiny for the business
