Do-it-yourself Oregon S Corporation Kit
The expiration of the Bush tax cuts and the new taxes stemming from the Patient Protection and Affordable Care Act mean that some Oregon business owners will face a dramatic increase in taxes starting in 2013. Fortunately, there is a way to keep your taxes down. S corporations can save a business owner hundreds or thousands of dollars a year in payroll and income taxes. And, what's even better news is that most business owners can set up an S corporation themselves. They just have to fill out three forms:
Form One: Articles of Organization/Articles of Incorporation
The first form you will need to fill out will either be an Articles of Organization form or an Articles of Incorporation form. An Articles of Organization form creates a limited liability company, and an Articles of Incorporation form creates a corporation. Either the LLC or the corporation will be the foundation for your S corporation. Submit your form and the $100 filing fee to the Corporations Division of the Secretary of State in Salem.
Form Two: SS-4 for EIN Application
The second form you will fill out is an SS-4 form, which is the application for an Employer Identification Number (EIN). An EIN is like a Social Security Number for a business. This form is available for download from the IRS website. Download, complete and submit this form to the IRS. You should receive your EIN in a month or so.
Form Three: 2553 for S Corporation Election
The third form you need to complete is a 2553 form, which is also available from the IRS website. With this form, you elect to have your business treated using the tax laws described in Subchapter S of the Internal Revenue Code. Submit your completed form to the Internal Revenue Service center in Ogden, Utah. Once the IRS receives your submission, they will check that you followed correct procedure and that you are eligible to make the election before you receive S corporation status.
If you feel confident in completing this process, by all means don't hesitate to get started. If you would like some additional friendly coaching, please consider downloading one of my do-it-yourself kits. I created two separate versions: one for businesses using an LLC and one for businesses using a traditional corporation.
Kit Version 1: Using an LLC
I highly recommend using a limited liability company to build your S corporation. LLCs are much easier to manage than traditional corporations because they don't require regular stockholders meetings or board meetings. This kit provides all the necessary information for forming an S corporation using an LLC. It analyzes the positives and negatives of forming an LLC in Oregon. The kit walks you through all three steps of forming an S corporation, and it includes completed examples of all the forms for reference.Purchase and Download
Kit Version 2: Using a Corporation
I also provide a corporation version of my do-it-yourself kit. While most businesses will benefit more from using an LLC, there are instances where a business will benefit more from using a corporation. For example, a business may need to be a corporation, or have the word "Corporation" or "Inc" in its name to gain credibility in a certain field. The "corporation version" of my Oregon S corporation kit provides valuable information for businesses in this situation. In it, I explain positives and negatives of incorporating in Oregon and how to balance them. My detailed instructions walk you through all three steps. As a bonus, I also included a set of example corporate bylaws, which may be used by you or your attorney 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.
Often the best tax saving tool private companies have? The Section 199A deduction which allows them to avoid taxes on the last 20 percent of their income.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
Nearly secret, the federal government's employee retention credits provide tremendous payroll tax savings for most small businesses... A new book from our firm explains.Info here