After incorporating an s-corp, are there any mandatory steps?

Asked over 2 years ago - San Jose, CA

Hi there,

I just incorporated my s-corp and got my bank account as well. I will appreciate if someone can let me know if there are any mandatory steps that I need to take as per the law?

Thanks all.

Attorney answers (5)

  1. Dana Howard Shultz

    Contributor Level 20

    9

    Lawyers agree

    1

    Best Answer
    chosen by asker

    Answered . In addition to the mandatory matters that my colleagues have cited, there are many other matters that you should at least be aware of, even if you choose not to act on them. Please see the nine-page document at the link below.

    This information does not constitute legal advice and does not establish an attorney-client relationship.
  2. Kenneth Allyn Sprang

    Contributor Level 15

    9

    Lawyers agree

    Answered . You said you have incorporated an S corporation. However, one simply establishes a corporation. All corporations begin life as a C corporation. An "S corporation" is really a status for tax purpose. If you want to be taxed as an S corporation, you must file an IRS Form 553 with the IRS within 75 days of commencement of your business or within 75 days of the beginning of a new tax year. You should consult with your accountant for details. You can get a great deal of information form IRS.gov if you look up the 2553 and accompanying instructions.

  3. Michael Charles Doland

    Contributor Level 20

    7

    Lawyers agree

    Answered . Yes. You need to adopt bylaws. You neeed to file a statement of information with the Secretary of State. You need to prepare to pay the annual $800 franchise tax fee. You need to issue shares under a permit or an exemption from a permit. This is why 99 percent of all online corporate formations are defective. You should really consider three ongoing aids to your business, a CPA, an insurance agent and a business attorney. If you were not at the other end of the state we would offer to serve, but I honestly believe a local attorney will be more beneficial. However, if you wish you may contact us through the Avvo profile.

    The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may... more
  4. Shawn Regis Jackson

    Contributor Level 15

    7

    Lawyers agree

    Answered . Yes, there are at least seven more items you will need to complete, most of which are embraced within the requirements of an organizational meeting. Additionally, you may need such documents as a shareholders agreement along with any necessary employment or independent contractor agreements...see websites below.

    By Grace...
    Shawn Jackson ESQ. (707) 584-4529
    Business Development Attorney EMAIL: Attorneys@CaliforniaBusinessDevelopment.com
    www.CaliforniaBusinessDevelopmentAttorneys.com
    www.CaliforniaBusinessDevelopmentCenter.com
    www.CaliforniaBusinessDevelopmentPlans.com
    www.CaliforniaBusinessDevelopmentIncubator.com


    No communication resulting herein shall create an attorney-client relationship unless a separate retainer agreement is signed by attorney and client. The information provided neither is legal advice nor is it conveyed in the course of an attorney-client relationship, but is intended merely as a general overview with regard to the subject matter covered. You should not act upon this information without seeking professional counsel such as any attorney in this office in a subsequent email communication (agreement) and the formation of an attorney client relationship.

  5. Bradley Richard Thompson

    Contributor Level 8

    7

    Lawyers agree

    Answered . What do you mean by incorporate an s corp? For state law purposes it is a plain Jane corporation or an LLC. Then for federal (and possibly state) tax purposes you file paperwork electing for corp to be a s corp (or LLC to be classified as a corp and also electing to be a s corp). Have you done the tax filings in addition to state formation?

Related Topics

Incorporating a small business

Incorporation is the act of forming a corporation, a separate legal entity whose rights and liabilities are distinct from its shareholders.

Small business c-corporation

A C corporation is taxed separately from its owners. Earnings and profits distributed to the corporation's owners are taxed as dividends.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

23,146 answers this week

2,866 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

23,146 answers this week

2,866 attorneys answering