How To Register Small Business Corporation

How to start a corporation you can start a corporation by filing formation documents with your state and setting up a board of directors.

How to register small business corporation. See the instructions for form 2553 pdf for all required information and to determine where to file the form. The irs taxes company profits at corporate tax rates and dividends paid to shareholders at individual tax rates. In order to become an s corporation the corporation must submit form 2553 election by a small business corporation signed by all the shareholders. If your business is an llc corporation partnership or nonprofit corporation you ll need a registered agent in your state before you file. The registered agent must be located in the state where you register.

The government will tax partners in the business depending on the share of ownership. It is a personal service entity that employs at least 3 full time employees which are at the centre of the company s operations. To legalize your small business apply for the right business permits and licenses from your local authority. For this reason you may hear tax professionals refer to double taxation of a c corp. There are two options for forming a corporation.

Market your business. It has the primary responsibility of implementing comprehensive policies and program to assist msmes in all areas including but not limited to finance and information services. A registered agent receives official papers and legal documents on behalf of your company. You need to get out and spread the word about your product or service to the right people to generate business. You can hire a professional formation service to set up your corporation for a small fee.

You can further choose to be taxed as an s corporation but that is a tax election separate from business registration. Small business corporation sbc does your company qualify to be a small business corporation sbc. 8 obtain licenses and permits needed to legally operate the corporation. C corporations c corps file irs form 1120 to report corporate income to the internal revenue service. You can register a business as a partnership an llc or a corporation.

Small business corporation is a government financial institution created in january 1991 under r a. If the answer if yes you will receive numerous tax advantages when registering a pty. Many small businesses come up with a great business idea and then fail to market it successfully. Advertising and selling are part of the process but there is much more involved.