What are the Benefits of an S Corp?

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When you start a new business, you must decide between many different business formations. One of these options includes an S corp, which is a designation used by the Internal Revenue Service for federal tax purposes.

The Benefits of An S Corp

If you decide to apply for an S corp, there are many advantages associated with this decision. These include some of the following:

  • The personal assets are protected by the shareholders. This means creditors cannot pursue personal assets, including real estate and bank accounts.
  • S corporations do not pay federal taxes on the corporate level.
  • Those who are a shareholder of an S corporation are allowed to be employees of the organization and retain their salaries with an employee status.
  • When interests in an S corporation change, they can easily be transferred to new ownership without adverse tax consequences.

Establishing a business as an S corporation can also help new companies enhance their credibility with their employees, potential customers, partners, and vendors.

The Application Process

To become an S corp business, you must be a domestic corporation, have only once class of stock, have no more than 100 shareholders, and not have any partnerships. Businesses that want to move forward applying for an S corporation can simplify the process using the services from IRS EIN Tax ID Filing Service. The filing process and obtaining an S corp EIN is efficient and effective, and if you need help along the way, our 24/7 support staff is available to assist you.

Don’t Put Off the Process

After you complete the application and establish your federal tax ID, we will email this information directly to you, so you can get back to focusing on building your brand, retaining customers, and marketing your products and services. Contact us if you have any questions or if you are ready to get started forming an S corporation.

Select Your Entity Type to Apply for a Federal Tax ID Today