How to form an S-corporation for Warehouse Management

Introduction

As a warehouse manager, you may want to protect yourself and your business by forming an S-corporation. An S-corporation is one of the most common types of corporations. It’s easy to form and has many benefits over other types of entities such as LLCs or partnerships. However, before you can set up your new corporation, there are some steps that must be taken first:

Determine if you need an S-corporation

Before you form an S-corporation, make sure you meet the following requirements:

• You must be a citizen or resident alien of the United States.
• You must be a single-member LLC, partnership, or corporation. If your business is not eligible to form an S-corporation, it can still elect to be taxed as a C corporation by filing Form 2553 with Internal Revenue Service (IRS). This applies even if the business has multiple members; however, it will not get any tax benefits from being an S corporation and may actually have higher taxes than if it were taxed as a C corporation.
• You cannot be a tax-exempt organization such as a church or charity. However, if your business does meet these requirements then you can continue reading to learn how to form an S-corporation for warehouse management.

Name your corporation

When naming your corporation, it’s important to keep a few things in mind. Some of the key considerations are:

• Use your name or a variation of it. While you can use anything you like, using something that is similar to your name will make it easier for people and businesses to find you.
• Don’t use the word “corporation,” “limited,” “incorporated,” or any other variant such as Inc., Incorporated, or Limited Liability Company LLC. These terms will confuse others who may not know what they mean and could lead them down another path when trying to locate information about your business.
• Also, before you begin the process of forming an S-corporation, you should check to see if your business’ name is already taken. Your state might have a waiting period before you can incorporate it with your preferred name. In addition, your state may not allow businesses to use certain words in their company name (like “bank” or “loan”).

Create a logo for your S-corporation

When you form your S-corporation, you will also want to create a logo for it. This logo will be used on all of the stationery and documents that your company uses, including business cards and invoices. Your logo should be simple enough that it can be easily read by anyone who sees it. It should also reflect the nature of what your company does—you wouldn’t use cartoons or silly fonts if you’re selling real estate.

Hire a lawyer to draft articles of incorporation

Articles of incorporation are the legal documents that describe how your corporation will operate and what it will do, including how much money can be distributed as dividends and who can be officers and directors. These documents must be filed with your state’s secretary of state, along with other forms required by law.

Though hiring a lawyer may seem like an expensive proposition, there are both pros and cons that should be considered before taking this route:

• Pro: A lawyer will know exactly what information needs to go into the articles of incorporation based on the requirements in your state. They’ll also know if you need additional paperwork or applications before filing them (for example, some states require certain tax forms). Having someone else prepare this important document can save you time down the road when you want to expand or dissolve your business structure—it’s easier than trying DIY methods!
• Con: Hiring a lawyer doesn’t come cheap; however, he or she may work with you pro bono (for free) if they believe in the importance of what you’re doing for society. Asking around for recommendations from other entrepreneurs who’ve gone through similar processes could help cut down on costs as well—and perhaps even provide insight into how others were able to reduce their fees through ingenuity!

Obtain an EIN number from the IRS

It stands for Employer Identification Number and will be used to open your business’s bank account. You can apply online or by phone, or you can apply in person at any post office or other tax processing center. The process of obtaining an EIN number is free.

It can protect warehouse managers and their assets

An S-corporation is a pass-through entity. This means that the business itself does not pay income taxes, but rather the company’s profits and losses are passed through to its shareholders. The shareholders then report those earnings on their individual returns and pay tax on them at their own rates.

It is a separate legal entity that can offer the same protections as an LLC to warehouse managers and their assets, but with more flexibility when it comes to how much capital has been invested in the business.

Conclusion

If you’re looking to start a warehouse management S-corporation, we recommend hiring an accountant who can help you with the paperwork and get you on track to set up your company.