"C" or "S" Corporation Setup Fee

We incorporate the corporation in California only. The following forms are needed toincorporate the following Corporatio

“C” Corporation:

  • Article of Association with Dollor $ 100.00 Fee
  • On Certification of Article from the Secretary of State, California, we would arrange the Federal ID (EIN NO) at no cost to you)
  • Statement of Information i.e. List of directors and officers to be filed within 90 days From the date of incorporation. The fee to file $ 25.00
  • Minute to open the account with bank – no cost to you

“S” Corporation:

  • Article of Association with Dollar $ 100.00 Fee
  • On Certification of Article from the Secretary of State, California, we would arrange Federal ID (EIN No) at no cost to you.
  • Apply with IRS for Status of "S" Corporation on IRS form 2553. This is an application to IRS to approve the corporation "S" Status. Normally it is easy to get it
  • Statement of information i.e. List of directors and officers to be filed within 90 days from the date of incorporation. The fee to file S 25.00
  • Minute to open the account with bank — no cost to you.

ELIGIBILITY AND ELECTION - S CORPORATIONS

Eligibility requirements of S corporation and the S corporation election process:

  • Qualifying Corporations:
    • Must be domestic corporation
    • Must not be a prohibited entity
    • May have no more than 100 shares
    • Meet qualifying rules
    • Meet one class of stock rules
  • Domestic corporations rule:
    • Under Reg.301.7701-5, an S corporation must be a domestic US corporation organized In the United States under federal law or state law.
    • PLR 9512001 allowed a domestic corporation to retain its status if it is a domestic Corporation that is also registered as a corporation in a foreign country.
  • Entities prohibited from becoming an S corporation include:
    • Domestic International Sales Corporation
    • Insurance companies
    • Corporation electing to use the possessions tax credits or A financial institution (blank) using the reserve method of accounting for bad debts.
  • Numbers of Shareholders
    • An S corporation may not have more than 100 shareholders.

S Corporation shareholder Table

Permitted Shareholder Non-permitted shareholders
US Citizen or Resident Corporation
Estate Partnership
Bankruptcy estates LLC`s (single member)
QSSTs IRSs and Roth IRSs
IRC Section 501c (3) LLPs
ESBTs SEPs
ESOPs SIMPLEs
Qualified Pension Plans Indian Tribes
Qualified Profit Sharing Plans State and Local Government

S Corporation Tax Structure

An S corporation is not taxed at the corporate level

S corporation pass through items of income, loss, deduction or credit to its shareholders who report those items on their personal returns. The pass through items are reported in total on the Form 1120S, Schedule K, and each shareholder`s; pro rate share of the pass-through items is reported in on schedule K-1

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