How to Form a Nevada S Corporation
A C corporation is the standard, default type of corporation, income for C corporations are taxed twice. Although one can request to become an S corporation at a point in the future, they are forced to pay gains tax when switching from an C to an S corporation.
To form a Nevada S Corporation you need to file your S election within 75 days of forming your corporation. The benefits are many as you avoid the costly process of conversion and avoid the obvious burden of being taxed twice. It is in your best interest to file as an S corporation when you are first opening your business. However there are some things you may want to consider.
1) The accounting rules are complicated for S corporations and it is difficult for C corporations to convert to S corporations after the fact.
2)You can only have 100 shareholders if you file as an S corporation.
3)You can opt in to voting rights and if having multiple classes of stock, only difference in voting rights are allowed.
The process of forming an S corporation can be confusing, but it doesn’t need to be. Although you can accomplish this task yourself you can also hire someone else to help you with this process. CorporateNevada.Com maybe able to assist you.
Please contact us and let us help you along the way. We will be happy to discuss our services and explain more about the benefits of choosing us.