Let’s first go through what a S company is and why you might decide for this choice before getting into the steps to convert to one. A corporation that is taxed differently from a typical corporation is a S corporation. Income, credits, and deductions from the business are transferred to the shareholders’ individual tax returns rather than being taxed as corporate income. For business owners, this may mean huge tax savings. Why Opt for a S Corporation?
You can decide to change your LLC into a S corporation for a number of reasons. An S corporation can first and foremost result in large tax savings. Furthermore, the ownership and management structure of a S corporation may be more flexible. For instance, whereas an LLC can have an infinite number of members, a S corporation is limited to 100 stockholders. Illinois S Corp closure
If you’re thinking about closing your S corporation in Illinois, the procedure is rather simple. You must first submit articles of dissolution to the Secretary of State for Illinois. Additionally, you’ll need to submit your final tax return and settle any unpaid taxes. Finally, you must revoke any licenses or permissions the business has obtained.
Depending on the kind of business you select, the process will change if you’re wanting to incorporate in Illinois. However, in general, you must submit articles of incorporation to the Illinois Secretary of State and get all required company licenses and permits. You must also designate a registered agent to receive legal documents on your corporation’s behalf.
In conclusion, transforming your LLC in Illinois to a S corporation can result in significant tax benefits and more management and ownership freedom. However, the procedure might be confusing, so it’s crucial to speak with a legal or financial expert to be sure you’re taking all the right steps. It’s also crucial to comprehend the procedures involved if you’re thinking about dissolving your S corporation or incorporating yourself in Illinois.