Do-it-yourself New York S Corporation Kit
If you're thinking about forming a Subchapter S corporation for your business, you may think you need to pay an accountant or attorney to do this work. But you could do the work yourself--and save hundreds of dollars.
The process of turning your business into an S Corporation is actually quite simple. All you need to do is fill out a few forms with really basic information, like the name of your business and where the business will be located. The most confusing part is figuring out which forms you need to fill out, and the order in which the steps need to be completed.
To assist you with this, we've written (and sell for a modest price) two short e-books detailing the two different options for forming a New York S Corporation. There are two different options because an S Corporation isn't really a corporation. Rather, it is an eligible entity that has made an election to use the tax accounting rules describes in Subchapter S of the Internal Revenue Code to do its federal and New York state tax returns. The two most common platforms (or types of eligible entities) for election are a limited liability company (LLC) or a traditional corporation. And both platforms are available to New York businesses.
Option 1: Using an LLC to make the Subchapter S Election
We recommend this approach to setting up an S Corporation, and many other knowledgeable accountants and attorneys agree. LLCs are often easier to manage than regular corporations; you don't have to set up regular board meetings or annual stockholder's meetings.
Our affordable New York LLC-based S corporation kit helps you do this by first discussing the benefits of creating an S corporation using a limited liability as your platform. The kit of course gives you step-by-step instructions for setting up an LLC in New York, obtaining a federal tax identification number, and how to elect to have your LLC treated as an S corporation to maximize your tax savings.
As a bonus, we include two sample operating agreements that you can use for your LLC. One is for single member limited liability companies, and the other is for multiple member limited liability companies.Purchase and Download
Option 2: Using a Regular Corporation to make the Subchapter S Election
You can also make the Subchapter S election for a traditional corporation. Again, in most cases a business should use an LLC as its platform to make the S corporation election, but there are reasons why a regular corporation may be the right choice for your business. If, for example, you really want to have the name of your business include "corporation" or "Inc.", you may choose a traditional corporation rather than an LLC.
For those of you that choose a traditional corporation, we've also written (and again sell for a very modest price) a 42-page e-book, which describes the benefits and drawbacks of using a traditional corporation as the base for your S Corporation. This kit gives detailed instructions on how to incorporate your business, get a federal tax identification number, and how to elect to have your corporation treated as an S Corporation.
(Note: The longer length of the regular corporation kit as compared to the LLC kit hints at the extra complexity and administrative overhead related to using a corporation for your S corporation.)
The regular corporation version of the New York kit also includes a set of sample corporate by laws, which can be used as a starting point for creating your own corporate bylaws.Purchase and Download
Additional Information You May Find Useful
If you want additional information about how to maximize the tax savings related to running a business or investment venture, you may also be interested in one of our downloadable e-books (see descriptions below). Each book covers a category of tax planning topics that easily save a business owner significant amounts of income or self-employment taxes (potentially thousands of dollars a year) and is instantly downloadable.
Often the best tax saving tool private companies have? The Section 199A deduction which allows them to avoid taxes on the last 20 percent of their income.Read More
Using an S corporation for your business? To maximize savings, you need to minimize the salary paid to shareholders. But this decision is tricky.Read More
Nearly secret, the federal government's employee retention credits provide tremendous payroll tax savings for most small businesses... A new book from our firm explains.Info here