How to form an S-corporation for Common metals

Introduction

An S-corporation is a type of corporation that is taxed by the IRS in the same way as a partnership or sole proprietorship, but with limited liability protection. That means that if anything goes wrong with your business, you’re only responsible for paying back the debts of your company and not those of its shareholders. Additionally, S-corporations have some special tax benefits when compared to other types of corporations.

S-corporations have some special tax benefits

• They don’t pay income tax.
• Profits and losses pass through to shareholders.
• They can be owned by a single person or by a group of people.
• Setting up an S-corporation is easy and inexpensive compared with setting up other types of corporations.

Contact the Secretary of State to register your company

This is a legal requirement, and it will cost you a small fee. You’ll also need to fill out some paperwork, which includes providing information about yourself, what type of business you’re forming, how many shareholders there are, etc.

Get an employer identification number from the Internal Revenue Service

You’ll need an employer identification number (EIN) to open a business bank account, which you’ll use to pay payroll taxes and other income-related fees. The EIN is also necessary when you file your corporate tax return, so it’s best to simply get one from the IRS early on in the process.

You can apply for an EIN online. You can also download Form SS-4 and send it via fax or mail.

Create bylaws for your company

Bylaws are the rules and regulations that govern your business. They establish its foundation, define how decisions will be made, and establish its legal entity.

Creating these bylaws is a necessary first step in forming an S-corporation, because they’ll give you direction in all areas of running the business.

Hire a lawyer who specializes in business law

The lawyer will help you register your business, and can also draw up contracts for employees and customers. Additionally, they can help create bylaws that outline the rules of your corporation.

Your attorney will also be able to find a location for your company and negotiate the lease agreement on your behalf; in most cases, tenants don’t have any legal training when it comes to negotiating leases on their own.

Get a high-quality insurance policy

A good insurance policy is a must-have for any business, but it’s especially important if you’re running your own S-corporation. You need to make sure that both the corporation and its shareholders are protected in the event of an accident or legal action.

Find a location and negotiate a lease agreement

The location for your S-corporation is one of the most important decisions you will make. It can be a key determinant in whether or not your business succeeds, so it’s crucial that you find an office space that meets the needs of both your employees and customers. Here are some things to consider:

• Think about what kind of first impression a potential client might get if they visit your company’s office, and whether they’ll feel comfortable doing business there.
• Find an area where there are already plenty of other businesses—especially those who do exactly what yours does—so that people in the community already know what to expect when they come into contact with yours.

Design a logo and website for your business

• Think about what kind of logo you want.
• Make sure the domain name for your website is available.
• Make sure your website looks good on mobile devices: If people visit from their phones or tablets, they should still be able to navigate through it easily enough.

Set up an online bank account

You’ll need to be able to pay employees, bills, and take payments from customers. It’s also important that you have a way to track your finances and deposit checks, as well as transfer money between accounts.

Register the trade name of your business

You will need to register your trade name with the state and federal government, as well as with the county clerk’s office.

You can find details about how to do this on their website. They may also require a copy of articles of incorporation or LLC operating agreement for proof that you are legally allowed to do business under this particular name.

Get the appropriate permits, licenses and certifications you need to run your business legally

Now that you have formed your corporation and are ready to get started, it’s time to obtain the necessary permits, certifications and insurance.

• The most important thing to do is make sure that your business is legally permitted by the local government in which you plan on doing business. You will need to check with both state and municipal governments for this information.
• Next, ensure that your company has all of the proper certifications needed for operating a successful business in its industry.
• Make sure that any employees working under contract with you have proper training certificates required by law before beginning employment at your company.

Starting your own business isn’t easy, but it’s worth it to create something you’re proud of and to be your own boss

It takes a lot of hard work. Not all businesses succeed, but with the right knowledge and preparation, yours can be one of them! The more you know about your business and what you’re doing overall, the better equipped you will be to make decisions that will help ensure its success.

Conclusion

Starting a business can be an exciting and rewarding experience, but it’s also a lot of work. The good news is that you don’t need to do everything yourself. Make sure you have access to the right tools and resources at all times, so you can focus on running your company instead!