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
Works Has Never Felt So Good
A descriptive paragraph that tells clients how good you are and proves that you are the best choice that they’ve made.
Premium Interstate ( 50 States )
- $1300
Express Filing* & Expedited Shipping
- Free Statement of the Incorporation to open a business bank account
- Article
- Tax ID
- Dot & Mc Authoirty
- Fmcsa Documents
- DMV Work ( EPN ) etc
- IRS Assistance
- 24/7 online access dashboard
Standard Intrastate ( California only )
- $800
Filing* & Expedited Shipping
- Full Corportation Filing
- Dot
- Fmcsa Documents
- Article
- DMV Work ( EPN ) etc
- IRS Assistance
Corporation Only
- $400
10 Day S Corp Filing* & Standard Shipping
Includes:
- Article of Incorportation
- Name Registration Work
- Get New Tax ID ( Banking Process)
- IRS Work
- Statement of Information File
Advantages of Forming an S Corporation
Pass-Through Taxation
No Double Taxation: The main advantage of an S Corporation is that it avoids double taxation, which is typical of C Corporations. In a C Corp, the business pays taxes on its income, and then shareholders pay taxes again on dividends. With an S Corp, the company itself does not pay federal income taxes. Instead, income, losses, deductions, and credits pass through to shareholders, who report these on their personal tax returns
Self-Employment Tax Savings
Lower Taxes on Dividends: Unlike a sole proprietorship or partnership, where all business income is subject to self-employment taxes (Social Security and Medicare), an S Corp allows owners to pay themselves a “reasonable salary,” which is subject to payroll taxes. However, any additional profits distributed as dividends are not subject to self-employment taxes, which can result in significant savings.
Reduced Risk of IRS Audits
Lower Audit Risk: Studies have shown that S Corporations are less likely to be audited by the IRS compared to sole proprietorships or partnerships, primarily because of the structure's formalities and the way income is reported. However, this doesn't mean S Corps are immune to audits.
Are You Ready to Start Your S Corp Filing?
File an S corp online today starting at $0 + state fees.
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