How to form an S-corporation for Forestry

Introduction

If you’re looking to start an S-corporation for forestry, it can be helpful to know where to get started. The first step is choosing a name for your business. Once you have that, you can move on to the location of your business and filing requirements. After that, it’s time to register the business with the Department of Revenue and apply for an Employer Identification Number (EIN). Next up is creating and filing Articles of Incorporation as well as drafting your Operating Agreement. Then you need some permits, licenses, and insurance before protecting yourself from liability by using limited liability company agreements (LLCs) or other legal structures such as trusts or partnerships.

Step 1.  Choose a Name for Your Business

The most common mistake made by new S-corporation owners is to use a name that’s too long, difficult to spell or remember, and/or too similar to another company’s name.

Here are some tips for choosing a good one:

• Make sure it’s unique. You don’t want there to be any confusion in the market about who owns and operates your business—that can lead customers away from you. If the name has multiple meanings, it may be best not to use it at all (e.g., “Woodland Forestry” could refer to a type of forest management technique as well as an urban area).
• Make it easy for others to remember how they heard about you in case they need something else later on down the line!

Step 2.  Choose the Location for Your Business

In this step, you will choose the location for your business. You should be aware of several factors when choosing a location:

• Your home. The ideal location for your S-corp is near your home. That way, it’s easy to go back and forth between work and home, which keeps both your mind focused on the task at hand and reduces overhead costs (especially if you have kids).
• Your customers. Wherever possible, choose a place that’s close to your customers so that they don’t have far to go when picking up their orders or dropping off materials like wood chips or sawdust. This will cut down on delivery times—which means happier customers!
• Your suppliers/business partners/employees who live nearby so don’t have far to travel when transporting goods between parties involved in transactions related businesses such as logging operations employing these services provided via mobile apps.

Step 3.  Check In On Filing Requirements

Now that you’ve gotten your business plan in place and your S-corporation setup, it’s time to move on to the next step. This process will require some legwork if you don’t already have these things in place for your forestry business. Depending on where you live, there may be additional requirements for filing a business license, getting tax identification numbers, and worker’s compensation insurance. You should check with any other agencies or organizations that would be involved with your company (such as the IRS) to make sure everything is squared away before continuing with this step of forming an S-corporation.

Step 4.  Register the Business with the Department Of Revenue

Once you have filed for an EIN, you will need to register your business with the Department of Revenue. The DOR can help you do this by walking through the process and filing forms online, or they can file them on your behalf if you prefer. When registering with DOR, be sure to ask about tax exemptions and other benefits that may be available based on what type of business entity is being formed (e.g., partnership versus S-corp).

Step 5.  Apply For an Employer Identification Number (EIN)

An EIN is a nine-digit number assigned by the IRS to identify your business. It’s required to open bank accounts, hire employees and pay taxes as an S-corp. You can apply for an EIN online or through the mail in about 10 minutes using Form SS-4.

If you decide to apply for an EIN online: You must have a valid Social Security Number (SSN) or Employer Identification Number (EIN) of your own, which can be found on account statements from your bank or credit union.

Step 6.  Create and file Articles of Incorporation

This is the foundation of your corporation. It’s also a legal document that tells people around you what type of business you’re running.

As an S-corporation, your articles should include information about:

• The number of shareholders (including yourself) and their percentage share ownership in the company
• A name for the business
• How much money each shareholder invested in starting up the company
• States where it does business or might do business in the future

Step 7.  Draft your Operating Agreement

The operating agreement is a contract between the partners that outlines how the business will operate. It can be as simple or complex as you want it to be, but all partners should sign it and keep a copy for their records.

Step 8.  Applying for permits, licenses, and insurance

When it comes to getting a business license, you’ll have to decide which type of business you want your S-corp to be: sole proprietorship or partnership (also known as a general partnership). In either case, your state will require information about your partners/partnerships and may require you to submit an application that includes their signatures.

Takeaway

If you’ve ever considered forming an S-corporation, now’s your chance. By following the steps outlined above, you’ll be able to form an S-corporation in no time. The benefits include lower taxes and better personal liability protection than with a C or LLC.

Conclusion

We’ve covered a lot of ground here and hope we’ve given you some insight into how to form an S-corporation for forestry. Now that you know what you need to do, it’s time to get started with your new business!