How to form an S-corporation for Poultry

Introduction

An S corporation is a special type of business entity that allows you to limit your personal liability for the debts and liabilities of your company. An S corporation is formed by filing articles of incorporation with your state’s Secretary of State office. Once the Articles are filed, you will then need to submit an application with the IRS to obtain tax-exempt status as an S corporation with Form 2553 and Form 8832. To learn more about how to form an S-corporation for poultry farming and other types of small businesses, keep reading!

Name your business

The first thing to do is pick a name for your business. While you might want to choose something creative and catchy, keep in mind that this name is going to be used as part of the IRS’s official identification of your company. This means it needs to be easy for them—and everyone else who may need to refer back to it—to remember. Try not to make your title too long or complicated, as this can make it difficult for people who are not familiar with your industry and may have trouble remembering what each aspect stands for; also, avoid offensive or inappropriate titles if possible because this can reflect badly on the business itself.

Incorporate the company

To form an S-corporation, you need to incorporate your business as an S-corporation. You can do so by filing a corporate charter with the state in which you want to operate. The process varies from state to state and may require additional paperwork such as articles of incorporation or bylaws. In most states, however, incorporation is fairly straightforward and inexpensive; some states allow companies to incorporate online via their websites for just a few hundred dollars per year.

Find a market for your chickens

If you want to form an S-corporation for your chicken business, it is a good idea to find a market that will pay a fair price and pay on time. You should also look for a market that will buy in bulk, and ideally one that will buy all or most of your chickens.

Get certified as an S-corporation

In order to form an S-corporation, you’ll need to run a few steps. First, you’ll need a Federal Employer Identification Number (EIN). This number is basically a social security number for your business and it can be obtained by filling out Form SS-4. A website allows businesses to register online. Next, you’ll need to file Form 2553 through the IRS in order to get certified as an S-corporation. Finally, once these steps have been completed successfully, you may begin organizing your corporation’s structure and finances in order to ensure that all necessary taxes are paid appropriately throughout the year.

Review your corporate bylaws

Corporate bylaws are the rules of your corporation. They are the foundation on which your business is built and will help you avoid legal trouble and make important decisions as a group.​

Corporate bylaws should include:

• The name of the corporation
• Its address, including its mailing address and headquarters location if applicable
• The names and addresses of all shareholders, directors, officers, employees and agents (like attorneys) who may act on behalf of the corporation

Secure credit from creditors

It’s important that your small business has a credit line to use whenever you need it. Credit can be used to purchase equipment, supplies and other assets that are essential to the success of your company. You can also use this credit line to hire employees if you need more help or want to expand into new markets.

Takeaway

In summary, here’s what you need to know about forming an S-corporation:

• You can only form an S-corporation if your business has fewer than 100 shareholders.
• Shareholders must be individuals or trusts. Corporations and partnerships cannot be shareholders in an S-Corp.
• Only natural persons (humans) are considered shareholders of a corporation, not other types of entities such as LLCs or corporations.

Conclusion

These are the basics for how to form an S-corporation for poultry. There are many other things you need to do in order for it to be successful, but these steps will get you started on your way. If you want more information about how this business works and what kinds of legal documents are required, we recommend researching online or contacting a professional attorney who can help guide you through the process.