Let’s break it down.

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What Is an S-Corp?

An S-Corporation isn’t a separate type of business entity—it’s a tax election. That means your business (usually an LLC or corporation) chooses to be taxed as an S-Corp.

With this election, your business’s income “passes through” to you as the owner, avoiding the double taxation that happens with traditional corporations.

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Benefits of an S-Corp

Here’s why so many business owners choose S-Corp status:

• ✅ Tax Savings – Pay yourself a reasonable salary and take the rest as distributions, which aren’t subject to self-employment tax.
• ✅ Liability Protection – Protect your personal assets from business debts and lawsuits.
• ✅ Professional Image – Many clients and lenders see corporations as more established.
• ✅ Pass-Through Taxation – Avoid corporate-level taxes.

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Requirements for an S-Corp

Not every business can elect S-Corp status. To qualify, you must:

• Be a U.S.-based business
• Have 100 or fewer shareholders
• Have only one class of stock
• Shareholders must be individuals (not partnerships or corporations)

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How to Form an S-Corp

Forming an S-Corp involves a few key steps:

1. Form an LLC or C-Corp (if you don’t already have one)
2. File Form 2553 with the IRS to elect S-Corp status
3. Stay compliant with tax filings and shareholder requirements

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Common Mistakes to Avoid

• Missing IRS filing deadlines
• Paying yourself too little (the IRS requires a “reasonable salary”)
• Failing to maintain corporate compliance
• Mixing personal and business expenses

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How We Can Help

Forming an S-Corp can get tricky if you’re not familiar with the rules. With our service:

• ✅ We handle all paperwork and IRS filings
• ✅ Ensure you meet all requirements
• ✅ Help you maximize your tax savings
• ✅ Keep your business compliant year after year

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Get Started Today

📩 Click here to start your S-Corp formation today!