Do-It-Yourself Missouri S Corporation Kit

Setting up a Missouri S corporation can typically save your business thousands of dollars in income and payroll taxes. And most business owners find the set-up quite easy. You take just three simple steps:

Step 1: Form an Eligible Entity

You first need to build a platform on which to base your S corporation. In most cases, you use either a regular corporation or a limited liability company. To form an LLC, you fill out an Articles of Organization form, complete with a $105 filing fee, and submit it to the Secretary of State in Jefferson City. For a corporation, you fill out and submit an Articles of Incorporation form along with $58 (or more, depending on the number of shares).

Step 2: Getting an Employer Identification Number

After you form your LLC or corporation, you get an Employer Identification Number, or EIN. An EIN functions like a social security number for a business. For this, you fill out an SS-4 form (available from the IRS website). Take care and and take your time when filling out this form. The SS-4 form provides more opportunities for error than either of the state forms.

Step 3: Making the S Corp Election

Once you receive your EIN, you take the final step: making the election to be treated as an S corporation. Specifically, this means you elect for your business to be treated using the tax law described in Subchapter S of the tax code.

To make this election, you fill out a 2553 form, and submit it to the Internal Revenue Service Center in Ogden, Utah. Then, the IRS evaluates whether or not you are eligible to make this election, and whether or not you followed correct procedure in making the election. Once they approve your election, your S corporation exists.

If you feel confident with this process, don't hesitate to begin forming your S corporation yourself. If you feel you need a bit more guidance, please consider downloading one of my easy, affordable do-it-yourself kits. I created two versions of my do-it-yourself kits for Missouri: one for LLCs and another for traditional corporations.

Option One: LLC Version

Almost every business should use an LLC as the platform from which they make the S corporation election. LLCs are easier to maintain than traditional corporations. With an LLC, for example, you skip worrying about setting up shareholders meetings, running a board of directors, and other hassles like that. In my do-it-yourself kit, I analyze the pros and cons of forming an LLC in Missouri. I also provide clear, detailed steps to guide you through the entire process, along with completed examples of all the forms you need to fill out for reference. Additionally, I include two sets of operating agreements, which you can use for your LLC. One set is for single-member LLCs, (LLCs with a single owner,) and another for multiple member LLCs (LLCs with more than one owner).

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Option Two: Regular Corporation Version

In special situations, a regular corporation better fits a business. In some industries, for example, people expect businesses to operate as traditional corporations.

Accordingly, I provide a regular corporation version of the Missouri S corporation kit. In the regular corporation version of the kit, I discuss how to balance the benefits of incorporating in Missouri with the drawbacks. Clear steps walk you through the entire process of forming an S corporation, with examples of completed forms for reference. Additionally, I included a set of sample corporate bylaws, which you or your attorney can use as a starting point for drafting up your own corporate bylaws.

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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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