What's an S-Corp - and when do you need it?

An S-Corporation (S-Corp) is a corporation designed for small businesses that want the protection of a corporation, but more financial flexibility than an LLC.

It is a small corporation with fewer than 100 shareholders (all US citizens) and only one class of stock. It’s formed at the state level but falls under Subchapter S of the Internal Revenue Code.

It limits your liability by keeping your personal and business finances separate so people can’t reach too deep into your pockets if they sue you.

An S-Corp may be right for you if…

• You’re comfortable with greater complexity in tax and business filings.
• You’re an established entrepreneur.
• You’re consistently making over $100,000 in gross income.
• You want to limit your liability + exposure.
• You want to raise your credibility by having an actual corporation.

Legal Love™ Tip: Third eye chakra nudging you? It’s a sign it’s time to level up with an S-Corp.

Note: If you’re a licensed medical practitioner, reach out to us before forming any corporate entity. An S-Corp may not be legally appropriate for you.

Why do you need it?

Every day that you DON’T have an S-Corp, you’re exposing your personal finances + business income to risk.

The best reasons to form an S-Corp are…

• No one can access your personal assets (like your house, checking account, and investments) if you’re sued for business reasons.
• No one can access your business assets (like your business bank accounts) if you’re sued for personal reasons.
• You can receive significant tax savings that you can’t get with an LLC (but be sure to talk with your accountant.)

Want to protect your assets + save taxes? S-Corps make it simple.

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What’s included?

• Your S-Corp Formation + Filing Package includes:

• S-Corp Formation + Filing – to compile + file the required paperwork to create your S-Corp.
• S-Corp Formation Prep Sheet – to get you clear about your desired S-Corp name, corporate policies + more.
• 30-Minute Prep Call – to share info about you + your business for the S-Corp filing in a 1-on-1 phone call with Lisa’s team member.
• S-Corp Articles of Incorporation – to have an official record of your S-Corp formation.
• Federal Tax ID Number – to have for opening your biz bank account, hiring employees + other business ventures.
• S-Corp Corporate Bylaws – to have your S-Corp governing document (most attorneys charge separately for this document!)
• S-Corp Election Form - to select S-Corp tax status.
• 60-Minute Walk-Through Call – to walk through your S-Corp formation with Lisa after it’s granted, explain your corporate documents, answer your questions + discuss next steps.
• And more!

Can I do it myself?

If you’ve had an S-Corp before, you can probably do it yourself. If not, dealing with government filings can be tricky.

Here are common mistakes when doing it on your own:

• Choosing the wrong business entity, like an S-Corp when you really need an LLC or PC - or vice versa. (I see this all the time.)
• Not filling out ALL of the required state and federal forms.
• Not knowing which documents to file at the federal, state and local levels.
• Not knowing how or when to renew your S-Corp + the paperwork and fees required.

You don’t know what you don’t know.

Don’t take that risk.