How to form an S-corporation for Waste Management

How to form an S-corporation for Waste Management

Introduction

In this article, we’ll walk you through the steps of forming an S corporation for waste management. We’ll talk about how to check your state requirements, determine how many shares to issue, write a business plan, find a registered agent and register with the Secretary of State. We’ll also show you how to set up your corporation’s location and name so that it’s ready for issuing stock certificates–and what not to do before issuing those certificates!

Check your state requirements with your state

You also need to register with the Internal Revenue Service (IRS). This can be done online at IRS.gov or by calling. Some states charge a nominal fee for filing required paperwork and/or annual fees for maintaining registration; others require no payments at all.

Determining number of shares

This is an important decision because it will determine the individuals who can own shares and how many they can own.

There are two main rules:

• The total value of all outstanding shares must be equal to or less than $50 million dollars, which is determined by dividing the corporation’s net worth by 1 million dollars.
• You cannot have more than 100 shareholders unless you get permission from the IRS.

If these rules don’t apply to you or if you aren’t sure whether they apply, then we recommend seeking legal advice from an attorney who specializes in business law or tax law.

Write a business plan

By writing down your vision for success, you can clarify how you want to achieve it. A good business plan will also help you organize your thoughts and make sure that you are thinking about all aspects of running a company.

Find a registered agent

You can find a registered agent online or in your area. It doesn’t cost very much to hire one, but it’s worth having their help because they’ll:

• Keep track of all important documents
• Send out notices from the IRS on behalf of your company
• Help you avoid fines from delinquent filings

Choose an S-corporation name

Your S-corporation name should include the word “corporation” or “incorporated.” It cannot contain the words “company,” “limited,” or other similar terms. Keep in mind that any words used to describe your business, such as a trade name or DBA (Doing Business As) must also be distinct from other corporations or businesses and cannot be misleading.

Choose a location for your corporation

It should be convenient for you and your partners, as well as the customers and employees who come into contact with the corporation.

• Convenience for you: If you live in a rural area, however, consider opening up shop somewhere more central—like on one side of town or another—so that people don’t have to travel far just to meet with you.
• Convenience for customers: If most of your business comes from customers who live nearby anyway, then it might make sense for them not only drive by but also walk into the corporation’s offices once they arrive at its location each morning.

File articles of incorporation with the Secretary of State

You must file these documents in every state where you are conducting business operations. If you don’t intend to expand into other states, this step is optional and will not be required by your state’s laws.

• You’ll need at least one shareholder to sign on as an officer and director for your new business entity.
• Choose someone who has experience managing an S-corporation or a similar type of business entity; this person should also be willing and able to keep accurate financial records for tax purposes throughout each year in which he or she serves as an officer or director.

Create stock certificates, but don’t issue them yet

The IRS does not require stock certificates for S-corporations. However, many states do require them as a way to establish ownership of shares in corporations. You may want to use stock certificates because it is a common practice among shareholders and has been for centuries. Also, if you are going to be issuing shares, it makes sense to create the certificates first so that you have something to hand out when your business gets off the ground.

Hold directors’ and shareholders’ meetings

You’ll also be required to hold regular meetings of the board of directors and shareholders. The minutes from these meetings should be recorded, filed, and kept in the business’s files. If you have a corporate seal, you can use it on your documents; otherwise, your signatures will suffice.

The corporation is an entity separate from its owners—and it needs its own legal identity to operate efficiently. This means that when you start an S-corporation for waste management.

Wave off all expenses

Pay all expenses before issuing stock certificates to shareholders. Pay any taxes owed. Pay any fees owed to the state. Pay any fees owed to the Secretary of State. Pay any fees owed to the registered agent.

You can do it!

It’s true that you will need to consult with a lawyer before filing your paperwork, but it’s not necessary to hire one. The IRS has created a simple form that anyone can fill out, and the process is fairly straightforward. In fact, if you’re familiar with how to start an LLC or corporation in your state, then forming an S-corporation will be easy.

Conclusion

It might seem like a lot of work, but it’s really not that difficult. It just takes some planning and patience. If you can make it through the steps above, then you are well on your way to becoming an official S-Corporation.