Sub Chapter S Corporation

Protect your personal assets by forming an S corporation. LegalFilings offers fast, reliable, and guaranteed incorporation services to get your business started today.

We can form an S corporation, in any of the 50 states. Our corporation package includes:

• Company name availability check for the state you select
• Preparation and filing of your articles of incorporation
• Payment of the state filing fees for your selected state
• Payment of the initial franchise tax (if this tax is due upon filing of the articles)

The S corporation is a taxation election you can choose when you incorporate. It is not a completely separate form of corporate entity. Many small business owners elect S corporation status because it combines many of the advantages of sole proprietorships, partnerships, and corporate structures.

S corporations have the same primary advantages and disadvantages as C corporations, but they have special tax provisions. In a standard C corporation, the profits are taxed at the corporate level by the federal government. When the profits are distributed to the shareholders as dividends, they are once again taxed as income to the individual shareholder.

By electing S corporation status, a corporation does not pay taxes on its profits, and taxes are only paid when dividends are distributed to shareholders as personal income. Thus, by choosing to use an S corporation, a business owner can avoid the "double-taxation" of a C corporation.