Setting up a Utah S Corporation
If you are an entrepreneur or business owner running a profitable small business, you should consider electing to operate as a Subchapter S Corporation. In order to do this in the state of Utah, you must be set up as an LLC or corporation. Our kit walks you through setting up that entity type, getting an employer identification number (EIN), and shows you how to fill out Form 2553 with the Internal Revenue Service, to make the s-election.
This tax treatment allows you to avoid paying hefty self-employment taxes, which run at a rate of approximately 15% on the first $120,000 of your businesses income, and potentially saves an additional 3-4% on profits that exceed $120,000. That’s right, 15% on the first $120,000.
Our Utah S Corporation kit
At this point you may be asking, “Which kit should I go with?” If you are, we recommend you should go with the LLC option. There are generally fewer requirements and less “red tape” with a limited liability company over a corporation. Plus, they provide some additional tax flexibility and can be treated as a sole proprietorship or partnership prior to making the s-election. This can really be useful if you are unsure of your profits for the first year in business.
As a bonus, we include entity governing documents, so the corporation kit has bylaws and the limited liability kit contains single and multi-member operating agreements.
Available below is the LLC version of the kit:View Cart
Click underneath for the corporation option:View Cart
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C-Corporations vs. S-Corporations: A Short Primer: Specifically interested in corporations? Compare them here.
Hiring Your Children as a Tax Loophole: There are many potential benefits in hiring your kids.
Making Shareholder Distributions Look Reasonable: As an S Corporation, you’ll have a mix of income as payroll and distributions.