Registering as an S-Corporation (S-Corp) for contractors means setting up a business structure that provides the liability protection of a corporation while being taxed similarly to a sole proprietorship or partnership. As an S-Corp, your business income, deductions, and credits flow through to your personal tax return, avoiding double taxation. This setup can provide tax savings, especially on self-employment taxes. To register, you'll need to file articles of incorporation with your state, obtain an Employer Identification Number (EIN) from the IRS, and submit Form 2553 to the IRS to elect S-Corp status. This structure also offers liability protection, separating your personal assets from business debts and obligations.
We can help you get incorporated for as low as $449.00.
As an individual contractor, you would need to ensure your business structure meets these criteria. Additionally, make sure all necessary documentation and filings are completed with the California Secretary of State and the IRS to elect S Corporation status. This typically involves submitting Form 2553 to the IRS after your corporation is formed.
In an S-Corporation, the terms "shareholder" and "owner" are often used interchangeably. Both refer to individuals or entities that own shares in the corporation. Here’s a breakdown of the concepts:
In essence, all owners of an S-Corporation are shareholders, as ownership is represented by holding shares in the corporation.
Registering as a C-Corporation (C-Corp) for contractors means setting up a business structure that provides the liability protection of a corporation. Unlike S-Corps, C-Corps are subject to double taxation; the corporation pays taxes on its profits, and shareholders pay taxes on any dividends received. However, this structure offers significant benefits, such as the ability to have an unlimited number of shareholders and to issue multiple classes of stock. Additionally, C- Corps can attract more investment due to these flexible ownership structures.
To register, you'll need to file articles of incorporation with your state, obtain an Employer Identification Number (EIN) from the IRS, and comply with any state-specific requirements. This structure also offers liability protection, separating your personal assets from business debts and obligations.
We can help you get incorporated for as low as $449.00.
As an individual contractor, you would need to ensure your business structure meets these criteria. Additionally, make sure all necessary documentation and filings are completed with the California Secretary of State and the IRS.
In a C- Corporation, the terms "shareholder" and "owner" are often used interchangeably. Both refer to individuals or entities that own shares in the corporation. Here’s a breakdown of the concepts:
In essence, all owners of a C-Corporation are shareholders, as ownership is represented by holding shares in the corporation.
Registering as a Limited Liability Company (LLC) for contractors means setting up a business structure that combines the liability protection of a corporation with the tax efficiencies and operational flexibility of a partnership. LLCs are not subject to double taxation; instead, profits and losses pass through to the members' personal tax returns. This structure offers significant benefits, such as ease of formation, flexible management structures, and fewer compliance requirements compared to corporations.
To register, you'll need to file articles of organization with your state, obtain an Employer Identification Number (EIN) from the IRS, and comply with any state-specific requirements. This structure also offers liability protection, separating your personal assets from business debts and obligations.
We can help you form a Limited Liability Company for as low as $449.00.
If you are an out-of-state corporation or LLC and wish to conduct business in California, you will need to register as a foreign corporation or LLC. The registration process is similar to registering a new corporation or LLC, with some additional requirements. You'll need to complete a different form and provide a Certificate of Good Standing from the state where you are currently registered.
We can assist you in registering your foreign corporation or LLC in California for as low as $449.00.