Do-it-yourself Connecticut S Corp Kit

Turning your Connecticut business into an S corporation can save you hundreds, or even thousands of dollars a year in taxes, and the set-up is probably easier than you think. Essentially all you do is complete three, relatively straightforward forms (forms which are available for free from IRS and state websites!).

I'm going, therefore, to describe the process a bit so you know how easy it is... After that, just in case you're interested, I'll describe how you can purchase and download some Connecticut S corporation kits we publish. The kits provide richer instructions, example forms, and sample by-laws and operating agreements.

Form 1: Certificate of Incorporation/Articles of Organization

The first form you fill out will either be a Certificate of Incorporation, if you choose to form a corporation, or an Articles of Organization, if you choose to form a limited liability company. Either a corporation or an LLC can serve as the base for your S corporation. From this base, you will elect to have your business treated as an S corporation. This means the Internal Revenue Service will treat your business using the tax law described in Subchapter S of the tax code.

The Connecticut Secretary of the State website provides all of the forms you will need for the first step of this process. A list of all the available forms as well as links for downloads is available here: http://www.sots.ct.gov/sots/cwp/view.asp?a=3177&q=472426#llc.

Form 2: SS-4 Application for Employer Identification Number

Once you fill out and submit either a Certificate of Incorporation or an Articles of Organization, fill out an SS-4 form (found on the IRS website). This is your application for an Employer Identification Number, or EIN. Submit this form to the Internal Revenue Service. Take your time when filling out this form; it is a bit more complicated than the previous state forms. You should receive your EIN in a few weeks.

Form 3: 2553 Election by Small Business Corporation

Once you receive your EIN from the Internal Revenue Service, you can fill out the 2553 form. This form tells the IRS that you want your business to be treated as an S corporation. Submit this completed form to the Internal Revenue Service Center in Cincinnati, Ohio. (If you are making the S corporation election in a state other than Connecticut, be sure to check which Internal Revenue Service Center you send this form to; there are two IRS Centers, and different states are required to send this form to different locations.)

If you would like some guidance throughout the process, please consider using one of my do-it-yourself S corporation kits. These kits are an easy, affordable alternative to paying an accountant or attorney a few hundred dollars to set up an S corporation for you. I created two versions of the Connecticut do-it-yourself kit: one for LLCs and another for traditional corporations.

LLC Version of Connective S Corporation Kit

The LLC version of my do-it-yourself kit provides detailed instructions for filling out all three forms, as well as an in-depth analysis of the positives and negatives of forming a Connecticut LLC. It also includes a set of operating agreements for single member (single owner) LLCs, and another set for multiple member (multiple owner) LLCs.

Purchase and Download

Traditional Corporation Version of Connective S Corporation Kit

I also provide a traditional corporation version of my do-it-yourself S corporation kit. This kit describes how to balance the benefits of incorporating in Connecticut with the drawbacks, and gives detailed instructions for completing the Certificate of Incorporation, SS-4 and 2553 form. For additional help, I included a sample set of corporate bylaws to help you create your own set of corporate bylaws.

Purchase and Download

 

Additional Information You May Find Useful

If you want additional information about how to maximize the tax savings related to running a business or investment venture, you may also be interested in one of our downloadable e-books (see descriptions below). Each book covers a category of tax planning topics that easily save a business owner significant amounts of income or self-employment taxes (potentially thousands of dollars a year) and is instantly downloadable.

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