Sacramento Business Start Up Formation S Corp
The complexity of a Business Start-Up / Formation plan does not have to be so overwhelming. Especially when it comes to classification of your business. Many smaller businesses actually decide to form an S Corp rather than any other option. In this case an S Corp actually offers more of a clear taxation than any other option. Not to mention that becoming a classified S Corp is not extensively difficult and can be done fairly simple. However, that does not mean that you will not have questions along the way so it is always a solid business practice to confer with your legal representative before signing or filing any documents.
There are three basic standards that a company must meet in order to even consider applying for an S Corp certification. First of all there must be less than 100 shareholders that currently hold stock of the company. Also, those shareholders must unanimously agree to allow the company to be an S Corp. The reason that the shareholders must be in agreement is simply because the company pays no income tax itself. Instead it allocates the minimum $2.2 million between all shareholders. The third standard to determine whether a company can apply for an S Corp is simple; the company has to have issued only one class of stock.
You will want to make sure that you have a unique name to your company. This will actually showcase you above the rest of your competition. However remember it is only after you receive the S Corp that you will be able to incorporate ‘Inc.’ or ‘Incorporated’ after the name.
When you are ready to discuss the requirements and stipulations involved in an S Corp call the office of Abrate & Olsen. We will be happy to sit down with you and answer any questions you have in regards to filing your company as an S Corp.