How to form an S-corporation for Games and sporting Goods

Introduction

If you’re considering starting a company, you’ve probably heard about the benefits of an S corporation. This type of structure, also known as a pass-through entity, is designed to shield business owners from liability while still offering them access to all their profits.

Choose a name for your S corporation

In most states, you can easily check this by Googling the name and seeing if anything comes up. If so, you can either choose a different name or create a new one.

You should also make sure that your chosen name reflects your business. It’s also important to consider how easy it will be for others to remember or spell out this particular combination of letters when they see it written down—as well as whether using words together makes any sense at all.

Check state Availability

You can do this by visiting the IRS’s website and searching for “S-Corporation” in your state. If your state is listed, then it’s available—but if not, it might be possible to incorporate as an LLC instead. In this case, you may want to consult with a tax professional before making any decisions; they will help guide you through the process of forming a business.

Fill in the Articles of Incorporation

An S corporation differs from a C corporation in that it has several distinct advantages over the latter:

• It’s easier to form. Unlike a C corporation, an S corporation can be formed without having to pay filing fees.
• It offers more tax deductions. An S corporation is not taxed as high as a C corporation is on its profits, which means it pays less in taxes overall and retains more money for itself and its shareholders (you).
• It’s simpler to establish ownership rights for each owner or shareholder than with other business structures like LLCs or partnerships.

Have the Articles of Incorporation filed

The Articles of Incorporation are the legal document that establishes an S-corporation. They should be filed with your state’s secretary of state, who will charge a fee for doing so.

Once filed, they must then be signed by a minimum of one director and one shareholder (all directors must sign in order to incorporate).

Draft Bylaws

Corporate bylaws are the rules that govern the operation of an S corporation. They normally include:

• The identity and addresses of the company’s directors.
• How often board meetings are held and when they must be held.
• How many directors are required to conduct a valid meeting (majority or unanimity).
• What notice must be given prior to any meeting, including special meetings called for emergency reasons.
• Whether shareholders can participate in general meetings via teleconferencing or other electronic means and whether electronic voting is allowed during general meetings.

Hold your first meeting

The first meeting of your board of directors is an important one. In it, you’ll discuss the purpose of the meeting, details about its agenda and minutes from previous meetings. You’ll also discuss where your business is currently at and what its future direction will be.

You should also go over any financial information that has been previously sent to all board members.

Apply for tax ID

• Register your business with the state, and if applicable, the county or city where you’re located.
• Register your business with the IRS (if it’s a corporation).
• Register your business with your local chamber of commerce and any other trade organizations relevant to your industry or niche market (if applicable).

Obtain business licenses and permits

The type of license or permit you need will depend on the nature of your business. For example, if you plan to have employees working for you, then you’ll need an employer identification number (EIN) from the IRS and a state unemployment insurance tax account number from your state’s unemployment agency. If you’re selling products in other states or countries—or even just shipping them out of state—you may also need permission to do so from each state that has jurisdiction over your company.

In some cases, licenses and permits can be obtained online through state websites; in others they require filing paperwork at an actual office in person.

Open a business bank account & credit card

You will need both of these things, as you’ll use them frequently in the future. Your business bank account will serve as your payroll account, while your credit card can be used for all sorts of things, including purchases and travel expenses.

You should also know how to use both types of accounts before you open them. Have someone who has experience with bookkeeping teach you how they work before taking on this task yourself!

Conclusion

Congratulations! You’ve now formed your own S corporation for games and sporting goods. Now the fun part begins: running a business. Incase, if you need further assistance feel free to contact us right now!