How Much Does It Cost to Set Up an S Corp?

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Setting Up an S Corp

  • Costs of Setting Up an S Corp
    • Articles of Incorporation filing fees, typically around $100 to $250.
    • Corporate Seal, usually around $50.
    • Payroll processing fees vary but expect at least $45 per month.

S Corporation Overview and Setup Details

  • Key Features of S Corp
    • Protecting personal assets and avoiding double taxation.

Eligibility and Taxation

  • S Corporation Taxation
    • Shareholders report income and losses on individual returns and pay ordinary tax rates.
  • Comparison with C Corp
    • C corps are taxed first at the corporate level, then shareholders pay taxes on dividends. An S corp passes income directly to shareholders.

Benefits and Considerations of S Corp Formation

  • Factors to Consider Before Setting Up an S Corp
    • Evaluating whether an S corporation is the best strategy for your business.
    • Comparing S corporation requirements and advantages with other business structures like LLCs.

Post-Approval Procedures

  • Post-Approval Procedures
    • Filing Form 1120S with the IRS each tax year and a state S Corporation tax return, if applicable.

Payment Options and Benefits as an S Corp Owner

  • Payment Options for S Corp Owners
    • Owners have the flexibility to pay themselves through salaries, distributions, or both.
  • Asset Protection and Tax Advantages
    • Personal asset protection and tax benefits compared to self-employment tax obligations in partnerships.

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