Before you can get your small company rolling, you need to decide on abusiness structure. Your business entity impacts everything from taxes to profits and losses, so it’s essential that you choose a structure that works for your company. One popular small business structure is an S corporation.

According to the SBA,47.3% of small employer firmsstructure as S corporations. So, what is an S corporation? Learn the ins and outs of S corporations, what makes them attractive business structures for small businesses, and how to form one.

What is an S corporation?

An S corporation, or S Corp, is a type of corporation that is a separate legal entity from its owners. S Corp owners, called shareholders, enjoypass-through taxation和有限的责任保护。

Unlike C corporations, S corporations are not taxed twice. An S Corp is only taxed at the personal level, similarly to sole proprietorships and partnerships. But unlike sole proprietorships and partnerships, shareholders are not personally liable for the S Corp’s losses.

Because of the benefits of S Corp taxes and limited liability, choosing this business structure is an attractive option for many business owners.

If you own an S Corp, you can receive both wages and distributions. A salary is subject topayroll taxes，虽然分布不是。但是，您必须付钱给自己reasonable salary—that way, the IRS will not think you are paying yourself high distributions and low wages to avoid employment taxes.

You can only structure your business as an S Corp if you meet the following IRS requirements:

• Your business is in the United States
• There are 100 or fewer owners
• All owners are U.S. citizens or permanent U.S. residents
• You have one class of stock
• 所有股东都符合资格要求（例如个人）

In most states, S Corp owners are required to pay annual fees, such as特许税. However, S Corp fees are generally minimal.

如果您决定追求S公司业务结构，则需要注册。

S Corp registration

Toform an S Corp, you first need to structure your business as a corporation.

To structure your business as a corporation, filearticles of incorporation与您的状态。您还需要获得联邦雇主身份证号（FEIN)。确保你获得适当的普杜拉。布辛ess permits, issue stock certificates, and appoint directors and officers.

Once you have formed a C Corp, you can file Form 2553, Election by a Small Business Corporation, to elect S Corp status. You must file this S corporation form within two months and 15 days within starting your business or starting a new tax year. And, all shareholders need to sign Form 2553.

If the IRS accepts your S Corp application, they will notify you in writing.

Check with your state for additional S Corp registration requirements.

S Corp filing

To report your S Corp’s profits and losses, you must file Form 1120S, U.S. Income Tax Return for an S Corporation. And, owners need to fileSchedule K-1报告其个人纳税申报表的利润和损失。

The S Corp filing deadline for tax reporting is March 15 of each year.

What are the other business structures?

尽管有好处，但S Corp可能并不是您的最佳业务结构。仅有的4.7% of businesses without employeesstructure as S corporations.

如果您决定不想组建S Corp，则可以选择。其他业务结构包括：

• Sole proprietorships
• Partnerships
• Corporations
• Limited liability companies (LLCs)

Research business entities before structuring your business. And, meet with a small business lawyer for guidance.

No matter how your business is structured, you need to maintain accurate accounting books. With Patriot’s onlineaccounting software, you can easily record income and expenses. Plus, we offer free, U.S.-based support. Get your free trial today!

This is not intended as legal advice; for more information, please点击这里。