In Massachusetts, there are a number of procedures and legal requirements to start a S Corporation. A type of organization taxable under Subchapter S of the Internal Revenue Code is a S organization, sometimes referred to as a Small Business Corporation. While avoiding double taxation, this kind of organization offers its stockholders the advantages of limited liability protection. This tutorial will provide you all the details you need to get started if you’re interested in forming a S Corp in Massachusetts.
Select a Name for Your S Corp in Step 1 In Massachusetts, choosing a name for your organization is the first step in forming a S Corp. Your chosen name must be distinct from that of other corporations registered with the Massachusetts Secretary of State. By conducting a search on the Massachusetts Secretary of State website, you can determine whether the name you want is available.
File Articles of Incorporation in Step 2 Articles of incorporation must then be submitted to the Massachusetts Secretary of State. The Articles of Incorporation are a legally binding document that declares the existence of your business and contains details like the name and objectives of your organization as well as the first directors’ names and addresses. The articles of incorporation can be submitted online or by mail.
Step 3: Obtain an EIN
Once your articles of incorporation have been submitted, you must apply for and receive an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is a special nine-digit number that your corporation uses to be identified for tax purposes. Applying for an EIN is possible online, by mail, or by fax.
Register for taxes in Step 4 After obtaining an EIN, you must register for both state and federal taxes. Depending on the nature of their operation, S Corporations in Massachusetts may also be liable to other taxes in addition to the corporate excise tax. Through the website of the Massachusetts Department of Revenue, you can register for taxes online.
You might also wonder how Massachusetts taxes llcs. Massachusetts taxes LLCs as a corporation, partnership, or sole proprietorship. An LLC is taxed as a sole proprietorship if there is just one member. An LLC is taxed as a partnership if it has two or more members. An LLC may, however, choose to be taxed as a corporation by submitting Form 8832 to the IRS.
How long does it take Massachusetts to authorize an LLC? In Massachusetts, processing times for LLC filings typically range from 5 to 10 business days. However, there is an extra charge for expedited processing.
In Massachusetts, do I need a business license? Depending on the kind of business you’re launching and where it will be located, the answer to this question will vary. In addition to any possible state licenses or permissions, certain Massachusetts cities and towns also demand that enterprises get municipal business licenses or permits. You can find out if a business license is necessary by contacting your neighborhood city or town hall.
In Massachusetts, is I allowed to act as my own registered agent? In Massachusetts, you are allowed to act as your own registered agent. You must make sure that you have a Massachusetts physical address where you may receive legal documents during regular business hours since a registered agent is someone or something that is chosen to receive legal documents on behalf of a corporation.