If you want to benefit from certain tax advantages while starting a business in Indiana, you might want to think about setting up a S corporation (S corp). An S corp is a particular kind of corporation that transfers its profits, losses, credits, and tax deductions to its shareholders for inclusion on their personal tax returns. Contrary to C companies (C corps), this enables S corps to avoid paying federal income tax at the corporate level.
Observe these steps to form a S corporation in Indiana: First, decide on a name for your company. Your name needs to stand out from those of other businesses registered with the Indiana Secretary of State. By using the Indiana Business Entity Search tool, you can check the availability of names online.
Articles of incorporation should be filed. This is a legal document outlining the objectives, ownership structure, and other specifics of your organization and establishing it as a distinct legal entity. The Indiana Secretary of State accepts online or postal filings. There is a $100 filing fee. 3. Ask the IRS for an Employer Identification Number (EIN). Your corporation is identified by this special nine-digit number for tax purposes. Applying for an EIN is possible online, by fax, or by mail. An EIN can be obtained for free. Adopt bylaws
5. Hold a gathering for the organization. This is the first meeting of the shareholders and directors of your corporation during which the bylaws, officers, and other organizational matters will be adopted.
6. Send the IRS Form 2553. It is possible for your corporation to be recognized as a S corp for federal tax purposes by using this election form. Within two months and fifteen days of the start of the tax year in which you wish the election to take effect, you must submit this form.
A well-known online legal resource called LegalZoom provides a range of business creation services, including LLC formation. Even though LegalZoom has a lot of satisfied customers, there are some disadvantages to using their services.
One possible problem is that LegalZoom charges larger filing fees than you would if you dealt with your state’s Secretary of State office directly. Additionally, some clients have complained about delays or mistakes in their files, and LegalZoom’s customer assistance can be hit or miss.
Despite the fact that LegalZoom is a trustworthy and respectable business, it’s critical to realize that their services do not replace legal counsel. The best course of action if you have complicated legal requirements or inquiries is to speak with a lawyer who can offer specialized advice.
There is no need to “get rid of” LegalZoom if you utilized them to create your LLC or other business entity. However, if you’re unhappy with their services, you can decide to cancel your subscription or stop utilizing them in the future if you require legal assistance.