How to Save Money with the Formation of an S-Corporation in Nevada
After the expiration of the Bush taxes, additional taxes added from the healthcare laws to the business industry in the form of Affordable Care Act and Patient Protection, or more commonly referred to as the ObamaCare. This meant that many businesses big or small in Nevada or in any state are subject to more taxes since new laws formulated.
Fortunately enough, you can cut down on the taxes in many ways in Nevada in particular. One of the more effective ways is to lower your taxes by electing your corporation to form an S-corporation in Nevada. This can save business owners a substantial amount of money, as many as thousands of dollars per annum, in income taxes and payrolls. The process to form a Nevada S-corporation is as simple as filling the three forms mentioned below:
1. Articles of Incorporation
Prior to filling in your first form, you need to make a choice between a Limited Liability Company (LLC) and a regular corporation to serve as the base of your profitable S-corporation. Most companies choose an LLC because they are easier to maintain but they require more paperwork on the other hand. It’s totally up to you to decide it.
Later on, as you have chosen the base of your S-corporation, you are required to fill in the form for Articles of Organization for the required type. The form is easily available from the Secretary of State’s website. Submit your finished form to the Office of Secretary of State in Carson City.
2. SS-4 Form for EIN or Employer Identification Number
The next form that you need to fill in order to form a Nevada S-corporation is the SS-4 form. You’ll then obtain your Employer Identification Number with IRS or the Internal Revenue Service. The IRS provides you with downloadable versions of this form on their website. You need to submit the finished for to the office of IRS.
3. 2553 Form for Election
In order to elect to form a Nevada S-corporation, this third form namely 2553 form needs to be filled out and submitted to the IRS in Ogden, Utah. This form specifies to the IRS that your business should be treated in accordance with the Subchapters of the Internal Revenue Code. Once your application is received, the IRS checks if your business is actually eligible to be elected for an S-corporation.
Forming an S-corporation is a wise choice in order to save your profit and pay lesser taxes, however, the above procedure and requirements needs to be kept in mind in order to avoid any pitfalls in the applications process.