How to form an S-corporation for Communication Equipment

Introduction

If you’re selling communication equipment, then you may want to consider forming an S-corporation. This is a type of business entity that is similar to a partnership or LLC but offers some tax advantages over those types of businesses. In this article, we’ll discuss how to form an S corporation for communication equipment, including how to choose your name for the business and file the forms with the IRS to elect S corporation status.

Decide what kind of communication equipment to sell

• Decide what kind of business to start (a telecommunication services company or a manufacturing company).
• Determine whether you want to offer your products or services directly, as a dealer, or both.
• Find the right kind of equipment to sell and buy it from suppliers that give you the best price.

Decide if you want to sell new or used equipment. You can buy and sell used telecommunication equipment at a lower cost than new equipment, but it’s more difficult to find the right type of gear for resale.

Choose a name for your company

A good name is:

• Unique: You want to make sure that no one else has the same legal entity, so don’t include common words like “inc” or “corporation,” or you may run into trouble with the IRS later on. Instead, use something like “My Cool S Corp.”
• Clear: The longer it takes someone to figure out what your company does, the less likely they are to trust it! Make sure all of your messaging is clear and succinct, so people know what you do from just a glance at your website or social media presence.
• Check with trademark databases before finalizing a name– especially if it’s an acronym (like SCOR)

Find and contact an attorney

The first step in forming an S-corporation is to find and contact an attorney who can help you file the articles of incorporation for your business. The attorney will help you with the legal documents that are required, as well as any financial documents that may be needed. He or she will also review all of these documents prior to filing them with state officials so they comply with state laws.

When looking for this type of professional help, it’s important to choose someone who has experience in filing articles of incorporation for communication equipment businesses and/or other related industries.

Be sure that you have all the necessary documents, such as your articles of incorporation, up-to-date and filed correctly

Make sure you have a good filing system for your business records so that when tax time comes around you don’t have to hunt down or guess where everything is.

And remember, if you’re a business owner, you’re also an entrepreneur. So stay on top of not just your taxes but also your business finances so that you know how much money is coming in and where it’s going out.

File forms with the IRS to elect S corporation status

To form an S corporation for communication equipment, you need to file Form 2553 with the IRS. However, you can also file Form 2553 electronically, which is easier and less time consuming than paper filing it. You should file your election within 75 days of the beginning of the tax year that you want your corporation to be considered an S corporation, so if you’re starting a new business or are interested in converting a C corporation into an S corporation at any point during tax year 2019 (or thereafter), then this would be something worth doing.

Owning a business is fun but it has many challenges

The first step in overcoming those is to recognize them for what they are, and prepare for them before they come up. These can include:

• Lack of capital
• Lack of expertise in one or more areas needed to run the business
• Failure to get your product out on time due to poor planning or lack of experience with manufacturing and shipping processes

If you recognize these issues as they come up, you will be able to find ways around them. The best way is often just asking someone who has been there before how they did it. Perhaps someone else has already formed an S-corporation for communication equipment! In this case, ask them about their experiences running the company and what advice they would give others looking into starting their own businesses today.

Conclusion

You can form an S-corporation for your communication equipment business. There are many advantages to doing so, but be sure you’re equipped with the knowledge and experience necessary to make it a successful venture.