Oklahoma S Corporation Kit
Due to the healthcare laws commonly referred to as "Obamacare" and the expiration of the Bush tax cuts, Oklahoma business owners face a startling rise in 2013 and beyond. Luckily, S corporations provide business owners with a way to keep taxes down by reducing both payroll and income taxes. And most business owners can set up an S corporation themselves. It just takes three simple steps.
Step One: Forming an Eligible Entity
The eligible entity is the foundation for your S corporation. In most cases, it will be either a limited liability company or a regular corporation. I personally prefer and recommend using an LLC as the base for your S corporation. They don't require regular board meetings or stockholder's meetings, so they are significantly easier to manage. To form an LLC, fill out an Articles of Organization form. Submit the form and the $100 filing fee to the Secretary of State in Oklahoma City.
If you don't want to use an LLC as the foundation of your S corporation, you can instead go "traditional" and use a corporation. To form a corporation, fill out a Certificate of Incorporation and send it with the $50 minimum filing fee to the Secretary of State.
Step Two: Applying for an EIN
After you form the eligible entity, the next step is applying for an Employer Identification Number, or EIN. To apply for your EIN, complete an SS-4 form and submit it to the IRS. The IRS supplies a downloadable version of this form on its website.
Step Three: Making the S Corporation Election
Once you receive your EIN from the IRS you can make the S corporation election. To do this, you fill out a 2553 form and submit it to the Internal Revenue Service Center in Ogden, Utah. This form tells the IRS that you want your business treated using the tax laws from Subchapter S of the Internal Revenue Code. Once the IRS receives your 2553 form, they will check that you followed correct procedure in making the S corporation election and that you are eligible to make the election.
If you feel confident in this process, don't hesitate to begin forming your own S corporation right away. If the brief instructions above have left you with some questions, or you don't feel totally confident doing this on your own, my do-it-yourself kits are here to help. I created two affordable do-it-yourself S corporation kits for Oklahoma businesses owners. One walks you through forming an S corporation using an LLC, and the other using a traditional corporation.
Option 1: LLC Kit
Option 2: Corporation Kit
I also provide a corporation version of the do-it-yourself S corporation kit. This kit analyzes the positives and negatives of incorporating in Oklahoma and how to balance them. It gives detailed instructions to walk you through every step of the process. It also includes a set of sample corporate bylaws for you or your attorney to use as a reference when creating your own 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.
One of the most powerful tactics for saving small business taxes is maximizing your deductions. You can literally save thousands in taxes each year.Read More
Using an S corporation for your business? To maximize savings, you need to minimize the salary paid to shareholders. But this decision is tricky.Read More
Tax laws provide active real estate investors with giant tax planning loopholes. A little upfront planning on your part could save you thousands a year...Read More