Delaware is a very popular state for incorporating. In all honesty, for all but the largest of businesses — if you are going to do it — you should probably just organize in your home state.
If you are “in the know” about forming in Delaware, you should probably make sure you’re “in the know” about Subchapter S corporations as well. This federal tax designation will likely save you way more, and prove to be far more valuable, than the state you choose for incorporation.
An s-corporation helps small business owners avoid a portion of self-employment taxes. That’s all there is to it. The biggest tax loophole isn’t some magical deduction you qualify for. It’s the one you can designate as soon as you start generating significant profits.
Our Delaware S Corporation kit
In order to form an s-corporation, you must first create an eligible entity. This would be either a corporation or a limited liability company.
The do it yourself kits we provide walk you through the pros and cons of your entity choice, how to complete and where to file the necessary forms in Delaware, procedures on getting an EIN, as well as filling out and filing Form 2553 for the s-election with the IRS.
We recommend most use the LLC version of our s-corporation kit, which you can purchase below:
If you want to use a traditional corporation as the base entity type, click below:
Note: LLCs generally have fewer filing requirements than corporations, thus, making them simpler. And simpler, in these cases, is usually better.
Money Back Guarantee
If, after purchasing one of our Delaware kits, you don’t think our instructions helped or if you are unsatisfied, ask for a refund. The e-mail address to contact is steve.nelson@stephenlnelson.com.
Additional Resources
C Corporation vs S Corporation: A Short Primer: Came here looking to incorporate in Delaware? Check out some comparisons first!
Hiring Your Children as a Tax Loophole: Check out some of the potential benefits, and perhaps more importantly, the right way, to take advantage of this.
How Taxes Kill Successful Businesses: In a period of growth? Be sure you can support it!