Setting Up an S Corp

Joseph S. Caracuel

When establishing your own company you first need to decide how to structure the business. An "S Corporation" is a very attractive option for many small businesses. An "S Corporation" is a corporation that elects to be taxed under Subchapter S of the Internal Revenue Code (enacted in 1958 and periodically amended) and receives IRS approval of its request for Subchapter S status. As a legal entity (an artificial person), the S corporation is separate and distinct from the corporation’s owners (the stockholders).

  1. The first step is to evaluate the advantages, limitations and tax implementations of each form of business. The University of Nebraska’s Web site, "NebFacts", provides a comprehensive view of what you should consider before setting up an "S Corporation". One should search this site as a first stop in the process to researching the possibility of starting an "S Corporation."

    2. http://www.ianr.unl.edu/pubs/NebFacts/nf255.htm

  2. Once you have decided that an "S Corporation" is the right option, the question is where should you start your business. The web site "Incorporation: is it good for you", is a logical next site to visit. This site explains the advantages of starting your company in Nevada or Delaware and gives very useful "Do-it-yourself Guide."

http://www.connectsac.com/INCORPS.html

  1. It is also very important to understand the tax implications of starting an "S Corporation." Therefore, I recommend visiting the, "Wolf Taunton, P.C." Certified Public Accountants site. This site gives a good overview of the most recent tax laws that will affect "S Corporations."

http://www.wolftaunton.com/jan97.html

  1. In additional to researching the tax laws, it is also essential to research the legal aspects of setting up a "S Corporation." I found the web site by Louis E. Madere very useful. It was perhaps the most comprehensive site that dealt with the legal issues of establishing an "S Corporation." From liability issues, to employment laws to filing mortgage records.

http://www.madere.com/afterinc.html 

  1. Finally, when you are ready to go on line and register your company, you can visit the site of TLM Corporate Agents, Inc. On this web site, you can register your company as an "S Corporation" very easily. It is probably the most straightforward and cheapest site to register your company.  

http://www.delcorp.com/subsfrm.htm