How To form an S Corporation in Louisiana


An S corporation is a type of corporation that allows for pass-through taxation. This means that the company pays no corporate income tax on its profits, and instead the shareholders pay taxes in their own names on the proportionate share of net income or losses. In addition to providing limited liability protection to its shareholders, an S corporation is also eligible to take advantage of certain tax breaks not available to regular corporations or LLCs (limited liability companies). These include special rules for determining capital gains, losses and depreciation deductions as well as provisions which allow them favorable treatment under certain pension laws.

Check for Business Name Availability

  • Check the Louisiana Secretary of State
  • Check the name on the internet
  • Look in your local phone directory: make sure no one else is using it.
  • Go to your local post office and check for any mail labeled to that name.

File Articles of Incorporation

The first step in the process of forming an S corporation is filing articles of incorporation with Trademark Avenue. The articles of incorporation must include the name and address of the corporation, the name and address of its registered agent, a statement regarding your intent to operate as an S corporation, and a statement regarding whether or not you intend to operate as an LLC under state law. You also need to include your own personal information (name and address) along with those of any other owners/shareholders that may be involved in this business venture. Finally, you will need signatures from all shareholders who want their shares included in this new business entity.


Appoint a Registered Agent

You also need to appoint a registered agent for your business. A registered agent is a person or business that accepts legal documents on behalf of a company. This is the most important step in forming an S corporation, as it allows you to avoid personal service of court papers and help ensure that your corporation will receive notice of lawsuits filed against it. Registered agents usually include lawyers, accountants or other professionals.

Create Corporate Bylaws

Once you’ve formed your corporation, it’s important to create a set of bylaws. The main purpose of the bylaws is to govern the operations of the corporation. They will not be legally required, but they can help ensure smooth operation and governance between shareholders and officers.

The S Corporation should retain an attorney to draft its corporate bylaws or consult business attorneys who specialize in this area. These attorneys will be able to ensure that your company has all necessary documents drafted and filed properly with state government agencies. They also may recommend other actions you can take that could make it easier for your entity to operate as an S Corporation down the line (such as obtaining tax ID numbers for each shareholder).

Once these documents are finalized and filed with Louisiana State Government offices, they can be amended at any time by a vote among shareholders—so if something needs changing, then it’s possible for them to do so without having to file additional paperwork with local authorities first!

Hold a Meeting of Shareholders and Directors

You will need to hold a meeting of shareholders and directors. The shareholders elect the directors at this meeting. The directorate can also include officers, who are elected by the directors, and any other person appointed by the board or bylaws.

At this initial meeting, you will:

  • Hold elections for officers (president and secretary) if you choose to have them;
  • Adopt bylaws (rules for your corporation) if you want;
  • Approve stock purchase agreements with new investors;

Designate Tax Year and Accounting Method

After you have formed your S corporation, you need to designate a tax year and accounting method. If you choose a calendar year, then your business’ taxable year will end on December 31st. However, if you are an accrual basis taxpayer (which most businesses are), then the taxable year for your company would be determined by when income is reported and expenses are paid in relation to the time period covered by that particular tax return. The fiscal tax year is another option that allows a business with one or more owners to choose from either a calendar or fiscal year.

In addition to choosing between these three different options for establishing an annual reporting period for taxes owed on income earned by an S corporation, there are two possible methods used for calculating profits: cash method or accrual method. Under the cash method of accounting, revenues are recognized when they’re received while under the accrual method they’re recognized when they’re earned (due no matter how long after delivery).

S Corporation Status can be Achieved in Several Steps

S corporation status can be achieved in several steps. The first step to forming an S corporation is to check for business name availability. After you’ve secured your company’s name, you’ll need to file articles of incorporation with the state and appoint a registered agent. Next, you’ll want to create corporate bylaws and hold a meeting of shareholders and directors within 90 days of incorporating your business. These documents will provide guidelines on how your corporation should function while establishing its legal identity as an entity separate from its owners (shareholders). Finally, you must designate your tax year—usually January 1 through December 31—and accounting method (accrual or cash basis) before submitting all necessary paperwork.



Congratulations, you’re ready to start your new S corporation!

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