Do-it-yourself Virginia S Corporation Kit
This web page both describes the process for setting up an S corporation in Virginia (you've got a couple of ways you can do this). And the web page provides the links you can use to purchase and download one of our affordable S corporation set-up kits you can use for establishing a Virginia S corporation.
If you're not quite yet ready to set up an S corporation and still need to do some research, be sure to check out my FAQ page. But if you are done with your "general" research and ready to begin the wee bit of work necessary to form an S corporation in Virginia, review the steps the formation requires (see following paragraphs) and then, after that, download the apprropriate free kit.
1. Form an Eligible Entity
To begin you will form an eligible entity, which will be the base for your s corporation. Usually this is either a limited liability company or a corporation. Form an LLC by filling out an Articles of Organization form and then sending it and the $100 filing fee to the State Corporations Commission in Richmond.
You follow a very similar process to form a corporation: You fill out an Articles of Incorporation form and send it to the State Corporations Commission.
2. Apply for an EIN
Once you establish your corporation or LLC, you can apply for an Employer Identification Number. Employer Identification Numbers, or EINs, function like Social Security Numbers for businesses. To apply for yours, fill out an SS-4 form and submit it to the Internal Revenue Service. You can find this form on the IRS website.
3. Make the S Corporation Election
Finally, you will need to make the S corporation election. To make the election, fill out a 2553 form, which is available from the IRS website as well. This form tells the IRS that you want your business to be treated using laws from Subchapter S of the Internal Revenue Code. Once the IRS receives your election, they will evaluate your 2553 form to check that you are eligible to make the election, and that you followed correct procedure in making the election.
Virginia S Corp Kit (LLC Version)
I strongly recommend using an LLC as the base for your S corporation. In most cases, they benefit the business more than using a corporation would. My do-it-yourself kit provides all the necessary information to create an S corporation on your own. I start by explaining the benefits and drawbacks of forming an LLC in Virginia, then I detail the steps of how to form an LLC, apply for an EIN and make the S corporation election. I also include filled-out examples of all the forms you will use for reference.As a bonus, the LLC version of the kit includes sample LLC operating agreements.Purchase and Download
Virginia S Corp Kit (Corporation Version)
There are some instances where a corporation will benefit a business more than an LLC, and I provide a kit for businesses in that situation as well. In the corporation version of my S corporation kit, I explain the positives and negatives of incorporating in Virginia and how to balance them. I give clear, detailed steps to guide you through forming a corporation, applying for an EIN and making the S corporation election. As a bonus, I also include a set of sample corporate bylaws, which may be used by you or your attorney as a guide 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