Are you running your own small business? If not, are you interested in doing so? If you are operating as a “regular” sole proprietor, LLC, or corporation, making a Subchapter S election with the IRS could save you thousands of dollars in self-employment taxes. You read that right. Thousands. For all the details on the “how’s” and “why’s,” be sure to check out some of our additional resources and articles on the topic.
S-corporations aren’t for everyone. If you keep your day job and are running a side business or earn less than, say, $50,000 in profits annually, making the election could cause more trouble than it is worth. But if you are lucky enough to anticipate profits in six figures, it makes a lot of sense.
Our Louisiana S Corporation kit
In order to operate as an s-corporation, you must first set up an eligible entity — either an LLC or corporation. Our kits walk you through that process, including examples of forms that will need to be filed with the state. It also walks you through the process of getting an employer identification number and filing Form 2553 with the IRS. They also provide templates of corporate bylaws or an LLC operating agreement to set up how your new entity will be managed.
If you are wondering “Which option should I go with?” the answer is probably the limited liability company. The have less regulatory red tape and a bit more tax flexibility.
The LLC kit is available by clicking this button:
Below is the corporation version of the kit:
Money Back Guarantee
Sometimes writing and reading styles don’t line up. If you still think this process is too much for yourself after reading through the kit, we will offer a full refund. Just e-mail us at steve.nelson@stephenlnelson.com.
Additional Resources
What Are the Advantages of an S Corporation?: An article on some of the reasons why an s-corp may be beneficial for you.
Quick and Dirty Payroll for One-person S Corps: If you are a one-man operation able to form your own s-corp with these instructions, payroll could be made simpler by this free article.
Required Tax Returns for a New Small Business: Becoming an s-corp should save on taxes, but does increase your tax complexity. Be sure to get everything filed!