How To Register S Corp In Texas

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A regular C corporation is taxed twice—one tax at the corporate level on the corporation's internet income, and and so a second tax when profits are distributed to shareholders. You can avoid this double taxation past electing to get an Due south corporation. File articles of incorporation with your country to become your corporation off the ground. And then fill up out the appropriate IRS course to elect to get an South corporation.^[1]

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Choice your corporate name. Your name must exist unique. It tin't be the aforementioned or too similar to a name currently used in your state.^[2] Your Secretary of State's website should take a database you can use to search. Detect out whether the proper noun is available.
- Consider reserving the proper name if it is bachelor. Typically, you will complete a form and file it with your Secretary of state. You typically need to pay a fee, and the reservation is good for a express amount of time.
- Also bank check whether the proper name has been trademarked. You can search the federal trademark database at https://www.uspto.gov/trademarks-awarding-procedure/search-trademark-database. You shouldn't use the name if someone has trademarked it.
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Fill out articles of incorporation. You lot comprise by filing articles of incorporation with your land.^[iii] Check with your Secretary of State's office, which should take "fill in the bare" forms. More often than not, you'll need to include the following information:
- Your corporation'due south proper noun.
- The address for your principal place of business.
- The proper name and contact information for your registered amanuensis. This person will receive legal papers in case your corporation gets sued.
- The proper name of at to the lowest degree one director.
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Submit your articles of incorporation. Depending on your state, you might exist able to fill out and submit your articles online. In other states, you take the pick of completing paper manufactures and submitting the through the mail.
- You'll need to pay a fee to file. If you file online, you can commonly pay with a debit or credit bill of fare.
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Typhoon bylaws . Your bylaws are the operating manual for the corporation. Y'all won't need to file them with your state. However, you should typhoon them and continue them at your principal office. Bylaws typically contain the following information:^[four]
- Your corporation's identifying information, such as name, address, and main place of business.
- The number of directors and corporate officers.
- Your procedure for calling and holding manager or shareholder meetings.
- A description of how corporate records will exist kept, including who can inspect them.
- A conflict of interest statement. This policy will prohibit how directors, officers, and managers personally benefit from the corporation's dealings.
- The procedure for amending your bylaws and articles of incorporation.
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Obtain other permits. Depending on the business, you lot might demand other licenses to operate. Each state is different. Contact your county government and maybe consult with an attorney.
- Your nearest Small Business Development Center (SBDC) tin assist y'all identify what licenses or permits you need. Notice your nearest SBDC at http://americassbdc.org/domicile/find-your-sbdc/.
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Convene a board of directors. At their beginning meeting, they should prefer the bylaws and select corporate officers. You might as well need to elect other directors at the meeting.
- Your directors should qualify stock certificates for all shareholders. Note the names of shareholders in your corporate records book.^[5]
- Your lath should also approve applying for South corporation status. Make sure all directors review the requirements of an S corporation earlier voting.
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Register with your state and local taxing authority. Find out what taxes yous demand to pay. For case, if yous sell goods or services directly to the public, y'all must collect and remit sales or use tax. Yous'll demand a registration number from your state.

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Have 100 or fewer shareholders. Big corporations can't become Due south corporations. You must have no more 100 shareholders in order to qualify.^[6]
- You tin can too take only one class of stock. Voting rights don't need to be identical, just all stock should confer the aforementioned rights to distribution and liquidation gain.^[7]
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Brand sure you lot take simply allowable shareholders. Partnerships, corporations, and non-resident aliens cannot be shareholders in your concern. Even so, individuals, estates, and certain trusts may own stock in the company.^[eight]
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Satisfy other requirements. Ostend that your business organization will satisfy the post-obit, otherwise y'all can't class an S corporation:^[9]
- You must be a domestic corporation.
- You can't be an ineligible corporation. Certain corporations, such as financial institutions, insurance companies, and domestic international sales corporations don't qualify.
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Consult with an attorney if y'all have questions. Y'all might non know if becoming an Southward corporation is right for yous, or you might not know if you encounter the requirements. Only a qualified attorney can listen to your situation and offer tailored advice.
- Obtain a referral past contacting your nearest bar clan.
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Complete IRS Grade 2553. You lot must complete and submit this class in order to get an S corporation. The form is available at the IRS website: https://www.irs.gov/businesses/pocket-size-businesses-self-employed/south-corporations. As well download instructions from the same website.
- You should either impress neatly or blazon your information directly into the PDF. Provide all requested data.
- This form must also exist signed by all shareholders.^[10]
- Read the instructions to observe out where to submit the grade. The mailing address will depend on where your corporation is located. Make a copy for your records before submitting.
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Submit on time. You must submit your grade no later than 2 months and 15 days from the get-go of your tax yr. If you miss this deadline, then the S corporation status won't take effect until the next tax year.^[11]
- For example, your tax year might run from January 1, 2018 to December 31, 2018. If you lot want S corporation status for 2018, you must submit before March 15, 2018.
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Receive your notification. You volition be notified if your election has been accepted. Mostly, it volition take about lx days to hear back. If yous don't hear anything within two months, you should follow upwards and call 1-800-829-4933.^[12]
- Once approved, your South certification stays in effect until you revoke it or until the IRS cancels it.
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