Sub-Chapter S Establishment
Is your company still operating under a regular corporation status? Are stockholders having much burden in paying double taxation? Then, you might need the help of our Expert Los Angeles Attorneys who can assist in your sub-chapter S establishment.
An S corporation is much more like a common corporation that chose to shift to "S tax status" through a stockholders' meeting and voting. This type of business structure entitles you to have a limited liability that is given to a corporate shareholder regarding federal and state taxes but still pay your taxes like a sole proprietor or a partner. This is unlike a regular corporation wherein the business itself has to pay its taxes aside from the taxes paid by the incorporators.
In a sub-chapter S establishment, you can be allowed to include the company's losses to your own income tax declaration. You can also enjoy lower taxes if you opt to sell the company, better than if you happen to operate your company as a common corporation. Different from a limited liability corporation, its shareholders are free from paying 15% of their income for self-employment taxes. Thus, a sub-chapter S status is indeed beneficial to both the company and its owners.
However, the California Corporations Code provides strict and intricate provisions for a sub-chapter S establishment. These rules include having not more than 100 owners or shareholders who are actually U.S citizens or residents among others. More so, the election should be done between two months and fifteen days prior to the start of the taxation year. An S corporation status can also be restored in its former regular corporation state if the shareholders believed that it would be more advantageous for them in doing so.
To understand further the procedures in putting-up a sub-chapter S corporation, you will need the guidance of our Expert Los Angeles Attorneys who are very much adept on the associated laws. They are extensively trained to handle various problems that you may encounter in establishing the type of business entity that you wish to set-up such as S corporations.
Dial our toll-free number now and schedule a meeting with our legal counsels. We will definitely provide you the best assistance that you can never experience in all other law firms in Los Angeles, California.
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