Post a new topic
    11 Replies Latest reply on Dec 22, 2008 8:43 PM by eyeteam

    S corp steps please help

    mochipa Newbie
      Hi,
      I applied for the EIN and I also filled out form 2553 Election by a Small Business Corporation.
      Do I need to register the name of the business as well? Was I suppose to do that before anything else?
      I got a form on the mail asking me to fill out my bank account information in order to pay taxes to the IRS? Should I do that?
      I havent opened a Business acc with the bank yet, is that necesary or can I keep one of my personal accounts as my business acc?
      Im currently searching for the best business credit card in the market, any suggestions?

      Please help me with the right steps to open an S CORP. Thanks.
        • Re: S corp steps please help
          Lighthouse24 Ranger

          Your profile shows that you're in FL. Have you registered your corporation with the Florida Department of State? If not, then yes, you need to do that before anything else. You can visit http://www.sunbiz.org/ for more info. Hope that helps. Welcome to the community and best wishes on your new enterprise.

          • Re: S corp steps please help
            Bridge Navigator
            Open a business checking account. Pay all business expenses from your business account. This will assist you in your taxes and show the IRS that you have a "business" in the unlikely event of an audit.

            It has been a while, but I do not remember sending my bank account infomrtaion to anyone so that I could pay taxes. Who did this letter come from?
            1 of 1 people found this helpful
            • Re: S corp steps please help
              LUCKIEST Guide
              S corp steps please help, Welcome to this web site.

              Every person in business should have an Accountant, A Lawyer and
              maybe an Insurance Agent.

              If you are a S Corp you should have a business checking account.

              Do you know about SCORE?? SCORE is FREE and can help you succeed.

              LUCKIEST
              1 of 1 people found this helpful
              • Re: S corp steps please help
                mochipa Newbie

                Thanks for the quick answers. I filled out the documents to register the business with the Division of Corporations of Florida. Do I need to wait for their answer before opening the bank acc?

                I received in the mail an enrollment for EFTPS (Electronic Federal Tax Payment System). I dont know what to do with that. Please advice.

                 


                Thanks again.
                  • Re: S corp steps please help
                    Bridge Navigator
                    You can tegister your business on-line in FL, it is quicker.

                    If you enroll in EFTPS, you can pay your payroll taxes online. You will still need to file paper returns.

                    For Florida, you can pay and file on-line.
                    1 of 1 people found this helpful
                    • Re: S corp steps please help
                      Lighthouse24 Ranger

                      The link should explain the EFTPS:

                      http://www.irs.gov/efile/article/0,,id=98
                      005,00.html

                      The IRS all but requires you to pay corporate taxes electronically (you can pay by check using an 8109 Deposit Coupon, but why?). There are also other options (paying with your corporate credit card for example, and getting the points/miles) -- but there is a 2.49 percent convenience fee for credit card payments and EFTPS is free. So you should get enrolled in it (or have another payment option laid out) before your first quarterly payments are due.
                    • Re: S corp steps please help
                      jad_cpa Wayfarer
                      Mochipa,

                      Since your have recieved your EIN, your next step is to regiister you company with the state of Florida. This will establish you a legit corporation within the state. The purpose of this is when you are conducting business and person or another company can search to see that you are a real company. In addition, you should never comingle funds. Meaning your personal checking account is for your personal expensese. As a corporation you should open a business checking account. I would suggest three checking accounts. One for general expenses, the second as a payroll account, and the third as a saving acccount. Any bank you go to open a business account will required that you have your article of incorporation, and those are registered with the state you are incoporated in. One other things you should know, by establishing a S-Corp you are required to give yourself a paycheck after a certian sales volume. But I would suggest that you giver yourself a paycheck nonetheless, so that you pay something in Social Secruity and Medicare. If you have any questions please do not hestitate to contact me. Also if you need to establish credit in your company name. I have a pamphlet from my experience. It tells you everything you need to do to establish credit in corporation name. I had to find this out the hard way. I hope I have helped you. www.kallp.co.cc or email me at jair@kallp.co.cc
                        • Re: S corp steps please help
                          mochipa Newbie

                          I really appreciate your help.
                          I got a letter in the mail from the Division of Corporations. It says that I need to include the number of stocks in order for the articles to be complete. I dont know what to do because Im not familiar with stocks. I dont have employess or partners.
                          If you have any input please let me know.

                          Thanks again
                            • Re: S corp steps please help
                              Lighthouse24 Ranger

                              It appears that you are asking jad_cpa for an answer, but if it's okay, I'll offer a response.

                              The number of shares you create initially is up to you, and really depends on how you expect to use them down the road -- for instance if you were anticipating a round of VC funding or an IPO for your company in the future, you'd probably want to create a lot (like a million or ten million, but you'd have probably started with a C Corp if you were planning that). If you anticipate that the company will always remain closely held, then you will need considerably less.

                              I think Florida requires documentary stamps on stock in proportion to its par value. Each share of stock you create will have an initial par value equal to the total amount of your (stockholder's) initial financial contribution divided by the total number of shares you issue (so if you contributed $8,000 to launch the firm and issued a thousand shares, their initial par value would be $8 a share). In Florida, I think you pay a documentary stamp tax of $0.35 per $100 par value (so with 1,000 at $8 each, you'd pay $28). For that reason, most attorneys advise that you issue no more shares than you'll really need (many recommend 1,000 for a closely held S Corp) and value them as low as possible initially to reduce the tax bite.

                              You'll notice that I wrote "I think" a few times (I'm not in Florida, but had a business partner there -- so I have some knowledge). Anyway, I'd suggest that you run all this by an attorney or an accountant to be sure -- but at least maybe my response will help you ask the right questions. Hope so. Best wishes.
                                • Re: S corp steps please help
                                  mochipa Newbie
                                  Thank you very much. Actually the answer wasnt for anybody in particular but I guess I made a mistake somehow.
                                  I contacted my accountant.. unfortunately She is on vacation.
                                  I was wondering if anybody knows what is the minimun of stocks that I can register and what is the minimun dollar amount for each.
                                  You have been very helpful. Thank you all.
                            • Re: S corp steps please help
                              eyeteam Wayfarer
                              Hi, to be sure you make the right decision and the legal decision you may want to consult with professionals that will lead you in the right directions and answer your questions legally and directly. Go to www.smallbiztoolbox.info and click on the watch video link to give you more info.

                              Good Luck!