It’s possible that you have thought about creating a S company if you intend to launch a business in Florida. A type of organization known as a S corporation allows its owners to avoid double taxation while providing limited liability protection. Here are the steps you must take if you want to create a S corporation in Florida.
Select a Name for Your S Corp in Step 1 Choosing a company name is the first step in creating a S corporation in Florida. The name you select cannot be in use by another Florida-based company. By conducting a search on the Florida Department of State Division of Corporations website, you can determine whether the name you have in mind is available.
File Articles of Incorporation in Step 2 The articles of incorporation must next be submitted to the Florida Department of State Division of Corporations. The name of the corporation, the name and address of the registered agent, and the names and addresses of the corporation’s directors and officers must all be listed in the articles of incorporation.
Obtain an EIN in Step 3 The Internal Revenue Service (IRS) must then provide you an Employer Identification Number (EIN), which you must then provide. An EIN is a distinct nine-digit number that serves as your company’s tax identification number.
File for S Corporation Status in Step 4 By submitting Form 2553 to the IRS, you can choose to become a S corporation. Within two months and fifteen days of the commencement of the tax year in which you desire to be taxed as a S corporation, you must submit this form.
Depending on your company’s complexity and the services you require, Florida S corporation formation costs can change. There is an additional price for name reservations, registered agent services, and other legal services in addition to the $70 filing fee for articles of incorporation.
Depending on the workload of the Florida Department of State Division of Corporations, the time it takes to establish a S corporation in Florida can change. The processing of the articles of incorporation and issuance of a certificate of incorporation typically takes 5-7 business days.
The answer to this query is based on the particular requirements of your company. An S company provides limited liability protection and potential tax savings, whereas an LLC gives more flexibility in terms of management structure and tax alternatives. The best way to decide which course of action is best for your company is to speak with an experienced lawyer or accountant. Does Florida accept S Corporations?
S corporations are accepted in Florida, and they have the same legal protections as regular corporations. However, the company needs to meet specific eligibility standards and submit the required papers to the IRS in order to be recognized as a S corporation for tax reasons.
The number of shareholders, revenue, and tax situation of the owner should all be taken into account when deciding whether to form a S corporation. If you want to know if switching to a S corporation is the best option for your company, you should speak with a tax expert or an attorney.