Join Dana Robinson for an in-depth discussion in this video Choosing the S election, part of Setting Up Your Small Business as a Legal Entity.
- I'd like to take a minute to describe…the difference between a C and an S Corp.…There's a lot of confusion about…the difference between C and S Corporations.…Let me set the record straight.…A corporation is a corporation, period.…There's no structural difference…between a C and an S Corporation.…You don't form a C Corporation or form an S Corporation.…The C and S are tax designations.…The corporation is filed only one…way with the secretary of state.…The choice of how to be taxed is a choice…that you can make after the corporation is formed.…
The choice of S or C status is made when you first file…your application for a tax ID, not when you incorporate.…So first, you file the articles of incorporation,…again, without regard for whether you're going…to be an S or a C Corporation.…And then you file the tax ID application…where you choose S or C tax status.…And third, you file an IRS form called form 2553…to finalize the status as an S Corporation.…For a C status, there's nothing else to do…after filing your tax ID application…
DISCLAIMER: This course is taught by an attorney and addresses US law concepts that may not apply in all countries. Neither LInkedIn nor the attorney teaching the course represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate basic information to help viewers understand the basics of intellectual property.
- What is a sole proprietorship?
- Understanding corporate entities
- Exploring corporations and LLCs
- Choosing a corporate entity
- Creating an operating agreement
- Exploring incorporating examples
- Establishing an IRS tax ID