Setting up a small business corporation
To take advantage of these personal protections, you can set up your Articles of Incorporation with an on-line agency or directly by contacting your secretary of state for the proper forms. There are even online S corporation kits available that will provide forms and help to walk you through the process.
Submit the fees with the filled out forms and elect your directors. You will also appoint officers of your corporation. If your business is small, the same person can hold multiple positions.
Prepare information that covers the daily operations of your business. These are the by-laws and form part of the package you will be putting together to incorporate.
An attorney or a good accountant can then help you calculate the shareholders basis so you can assign the shares to be distributed to your shareholders. You can be both an officer and a shareholder in your S corporation.
Keep all your records and papers organized and in a safe location so you can access them easily.
Making your business into an S corporation has both tax and personal advantages. Make sure you follow all the proper steps and call in a professional if you aren’t sure how to handle any of the forms required.