Tennessee S Corporations: Recognition and Requirements

S corporations, or businesses that chose Subchapter S status for federal tax purposes, are recognized in Tennessee. This prevents double taxation by allowing the corporation’s income, deductions, and credits to transfer to the shareholders’ individual tax returns. The Internal Revenue Service (IRS) has set forth a number of standards that the corporation must satisfy in order to be eligible for S corporation status.

The corporation must first submit a certificate of incorporation to the Secretary of State’s office in Tennessee before it can become a S corporation. This document contains crucial details about the corporation, including its name, objectives, and registered agent. The corporation must submit Form 2553 to the IRS within 75 days of incorporation, or by March 15 of the tax year in which the S corporation status would apply, after the certificate of incorporation has been approved.

You can ask the Secretary of State’s office for a copy of your certificate of incorporation if you require one. Your request can be made in person, via letter, or online. A certified copy costs $20, and processing time is usually two to three business days. For a smaller cost of $5, you can alternatively ask for a simple copy.

A letter of good standing confirms that the corporation is in good standing with the state of Tennessee. It is also known as a certificate of existence or certificate of permission. This indicates that the company has cooperated with all state laws and rules that are relevant, including filing yearly reports and paying taxes. A letter of good standing can be obtained from the Secretary of State’s office upon request; a certified copy costs $20.

While it is not necessary to have a certificate of good standing in order to function as a S corporation in Tennessee, some organizations, including banks or other financial institutions, may demand one when you open a business bank account or request for a loan. Additionally, if the organization conducts business in a certain state, several governments could want a certificate of good standing.

In conclusion, S companies are recognized in Tennessee, and the procedure to establish one entails submitting Form 2553 to the IRS and filing a certificate of incorporation with the Secretary of State’s office. A letter of good standing and a copy of the certificate of incorporation are both available from the Secretary of State’s office. A certificate of good standing could be required for particular commercial operations, even though it is not necessary for S corporation registration.