UPDATE: tutorial for the NEW Bizfile system: kzread.info/dash/bejne/nWSdqLSIh6WxYbg.html

This video saved me $800 because I was about to form a corporation in California in mid-December and now I’m going to wait to form until Jan 1st.

@ElizabethPW

Жыл бұрын

Great to hear!!

@BelenRodriguez-jn5hs

3 ай бұрын

I lost $800 for not watching this video before opening my corp :(

Thanks so much for the video. You’re the best! I created my corporation playing back the video as I went along. The most entertaining part of video is when you state at 8:35 that the state is 4 days behind reviewing applications. You pause and then say which is great! Awesome work Elizabeth!

@ElizabethPW

Жыл бұрын

Lol :) and glad it was helpful!

Thanks for this step-by-step helpful information!

So helpful! As a noob this gave the confidence that I was doing it right. Your examples helped. I caught myself in a couple mistakes! Thank you!

@ElizabethPW

Жыл бұрын

Great to hear!

Thank you you are such a great person for Sharing all of this and taking the time to do it.

@ElizabethPW

2 жыл бұрын

You are so welcome

Looking forward to watch new updated video next week. Thank you.

@ElizabethPW

2 жыл бұрын

Just posted it :)

Thank you, this was super helpful! I love the way you explained everything and emphasized on most important things!

@ElizabethPW

Жыл бұрын

Glad it was helpful!

@uswaytransport8092

Жыл бұрын

How to get us dot number and tax is number and MC number and CA number

You are very good at teaching. This was super helpful. thank you.

@ElizabethPW

2 жыл бұрын

Glad it was helpful!

Thank you so much, you provide very clear steps without any extra crazy nosy like what some other may have.

@ElizabethPW

9 ай бұрын

Welcome!

This was a super helpful video, Elizabeth....thank you!

@ElizabethPW

Жыл бұрын

You are so welcome!

Hi, Elizabeth, your video is very helpful. now I have an idea which one to do first. Thank you very much.

@ElizabethPW

2 жыл бұрын

I'm glad it was helpful!

So helpful! Thank you. Saved me from a few headaches!

@ElizabethPW

2 жыл бұрын

Glad it helped!

Thank you for being so informative!

This video was extremely helpful and easy to follow. I will have to wait until weekday for IRS sites hours of operation to file my EIN Other than that, I filed my application for a corporation with no problems. Thank you!

@ElizabethPW

2 жыл бұрын

You’re welcome! Yep that weekday-only thing is weird :)

Such an easy to follow video, thank you so much!

@ElizabethPW

Жыл бұрын

Glad it was helpful!

Thank you very much for your contributions, love all of your videos! BTW, this is my very first comment on KZread , so appreciate what you have done for your audiences, take care and keep going !

@ElizabethPW

2 ай бұрын

Thanks, great to hear!

I love this video I like how you explain it all!!! And actually do it step by step!!!! Pls keep your videos!!!! And keep explaining step by step like if we are 6 year old!

@ElizabethPW

5 ай бұрын

glad it was helpful!

Thank you so much Ms. Elizabeth. I just formed my S corp thanks to your video. Bless your heart madam.

@ElizabethPW

Жыл бұрын

Great to hear!

Great video! Thank you Elizabeth.

@ElizabethPW

2 жыл бұрын

You are so welcome!

Thank you so much, Elizabeth, your video on forming an S Corp is very informative and helpful. THANK YOU.

@ElizabethPW

2 ай бұрын

Glad it was helpful!

Your video was so helpful and easy to understand. Thank you!

@ElizabethPW

3 ай бұрын

Glad it was helpful!

This was a huge help! Thanks!!

@ElizabethPW

2 жыл бұрын

Glad it helped! You're welcome

This was so helpful! Thank you so much!

@ElizabethPW

8 ай бұрын

Glad it was helpful!

Very informative thank you so much!!

@ElizabethPW

2 жыл бұрын

You are so welcome!

Hi Elizabeth, thank you for this video 🙏. how about filling "Articles Of Incorporation" ? Do i need that?

@ElizabethPW

2 жыл бұрын

Yep the first filing you do in California is Articles of Incorporation

hello, first of all, thank you for your great videos! they are very helpful! may I please know if there is any time limit when initial authorized shares need to be paid up by the shareholder who created the corporation? is this time limit differs between S Corp and C Corp? Thank you!

@ElizabethPW

2 жыл бұрын

Until the shareholder pays for the shares, the shares would not be issued and there would not be any owners. This could be okay for a short while but if the corporate formalities are not observed in this way, it would create problems later (the corporate veil could be pierced). Also, you would not be able to be an S Corp because the shareholders have to sign the S Corp election form.

Hi, first off I want to start thank you so so so much for this video. I have followed all these steps and have been officially approved after filing to form corporation. I just want to make sure, my next step is to file and hopefully get the EIN number online and then complete the form on IRS to make it an S corporation?

@ElizabethPW

2 жыл бұрын

Great progress! Yep get your EIN online, and then do the IRS pdf form to have it be an S Corp.

Thank you for sharing! Would this be similar to forming an LLC in Caliifornia?

@ElizabethPW

2 жыл бұрын

Hi - here's the video on that: kzread.info/dash/bejne/nXqil6NtqN3UdZc.html

Great video, do you have another video for the rest of the S corp formation steps?

@ElizabethPW

Жыл бұрын

check out this playlist kzread.info/head/PLd0wcIHXfOTevNzacwRLCICRt8Mer8_T6

Hi Elizabeth, thank you so much for such an informative video! I have a question about utilizing a coworking space (for example) as business address if I'd be working from home. Is this something I have to be renting out or could I simply find a coworking space near me and put that address down?

@ElizabethPW

Жыл бұрын

Yes you'd need to rent out space there or have a membership there (spaces have different models of how they work)

Great Job. Thanks

@ElizabethPW

Жыл бұрын

Welcome!

Hi just saw your video very helpful, I am starting to process for S corp once I file and pay fees will I get a binder for the laws and minutes , etc...

@ElizabethPW

2 жыл бұрын

Here's a book I recommend to use to create your corporate records - www.amazon.com/Corporate-Records-Handbook-Meetings-Resolutions/dp/1413326455 Nolo Publication's "Corporate Records Handbook, The: Meetings, Minutes & Resolutions"

Super helpful!!!

@ElizabethPW

7 ай бұрын

Great to hear!

Thank you for the video. When I file for a corporation, following the instructions in the 1st half your video, does it automatically handle Minutes Meeting, Bylaws, etc.? And how do you link your Business Bank Account to your recently opened Corporation?

@ElizabethPW

2 жыл бұрын

No you need to do the minutes/bylaws/etc yourself. I recommend this book / set of templates from Nolo store.nolo.com/products/the-corporate-records-handbook-cormi.html - and for your business bank account, you'd need to set up a corporate bank account using the corporation name & EIN.

Hi, thank you for this video. Perfectly explained and easy to follow through. I do have a question. Once I make my LLC into an S Corp using form 2553 and send it to the IRS, Do I also need to do inform the state of California that I will be converting to an S corp?

@ElizabethPW

2 жыл бұрын

Good question -- in California, you don't have to file anything special to elect to be an S Corp -- they rely on the federal form. (note for anyone else reading this -- in some states you do have to file an s corp election with the state)

@ezsplitters7807

2 жыл бұрын

@@ElizabethPW Perfect. If you don’t mind, can I send you a private message.

Hi, I love your videos! Ty. Would a KZreadr in Los Ángeles starting an LLC / filing as an S Corp need to ALSO get a business license as well?

@ElizabethPW

8 ай бұрын

In the city of LA they want every business to have a license finance.lacity.gov/

wow you are awesome !!! thank you

@ElizabethPW

2 жыл бұрын

You're welcome!

You are amazing. Please share more info about how to file sales tax and payroll tax, multi-state home filing, TIA!

@ElizabethPW

Жыл бұрын

great ideas, thanks!

Elizabeth, great video. Thank you! Quick question: For independents contractors , working from home (fully remote), services offered to businesses elsewhere but residing in CA, would you recommend that that file S-Corp in California or alternate states like Delaware, Wyoming , Nevada etc. Are there pros and cons that should influence decision-making?

@ElizabethPW

6 ай бұрын

Usually it makes sense to do in your own state if you have clients there and you'd need to register as a "foreign corporation" in that state anyway.

So I have an LLC and am looking to switch to S Corp. I already have an EIN - do I need a new one when I switch over? Thanks in advance! Your video is perfect! Clearly explained and easy to follow!

@ElizabethPW

Жыл бұрын

If you are electing the LLC to be treated as an S Corp for tax purposes, then same EIN. If you are converting the LLC to an S Corp, then usually the same EIN. But if you are using a merger process to change the business from being owned by an LLC to being owned by an S Corp, then a new EIN.

Thank you so much for your formation, I Owen business men’s suit store for 14 years i’ve been sole proprietorship now it’s the time to switch to S Corp. please I need some advice. Thank you so much for your help

@ElizabethPW

Жыл бұрын

Do you have any specific questions about converting your business from a sole prop to an S Corp? Also you can check out the Discord as a place to ask questions: discord.gg/Sz95qBTE

Thanks, great podcast, I followed it and created s corp, already received 2 spam letters that need to pay 90$ for getting a certificate of status and 125 $ to get a poster for a Labor law compliance notice. It would be great if you will have some podcast about not falling into scams.

@ElizabethPW

Жыл бұрын

Oh yes good idea -- that spam drives me nuts! There are very misleading and should be illegal. The worst is when someone files a trademark -- they send "invoices" for $1400+ for "your international registration" which doesn't exist but people get so confused!

Hi Elizabeth, I am just barely starting an S corporation. This video was done a year ago, so hopefully nothing changed. I am a pharmacist so I starting a consultation using an s corporation. Are we subject by laws of limitations by the board of pharmacy when setting up an s corporation ?. Hopefully you can answer me. More power to your channel !!

@ElizabethPW

Жыл бұрын

To make sure we are on the same page, a pharmacist business needs to be a "professional corporation" in California, but that professional corporation can be taxed as an S Corp. Here's a vid I did on prof corps in CA kzread.info/dash/bejne/amd7rrV-YM3Fnso.html and then you just follow the S Corp video directions on how to get the S Corp election with the IRS.

Awesome video! If you are just starting out do you need to start with a S corp? I am doing a business part time and of course want to grow it big and go full time but can I do it later after I grow? Nd also since we are early in the year it may make sense to do it January 1st 2024 like you said. Thank so much in advance

@ElizabethPW

Жыл бұрын

It can be a great plan to start out as a sole proprietorship or even an LLC taxed as a sole prop, to keep it more simple / less expensive, and then change it later to be an s corp when it makes financial sense. Just make sure to get insurance and have written contracts.

Thank you thank you thank you 🙏

@ElizabethPW

2 жыл бұрын

Welcome 😊

Hi Elizabeth. This video was very helpful! I have a quick question: After filing the articles of incorporation online in CA, do I need to wait for them to be approved before filing for a EIN? I ask because I am planning to have my filing date be January 1st and I would like to get the ball rolling now, in December, as much as I can to hit the ground running starting in January (I'm converting my solo prop to an S Corp). I assume I would need to wait until my articles of incorporation have been approved before applying for the EIN, but I wanted to double check. Thank you!

@ElizabethPW

Жыл бұрын

In the past I have got the EIN on something listed as "Pending Future File Date" in December, knowing that if something gets messed up with the corp/llc (typically is just the name needs to be changed a bit) then I'll just fix it with the IRS also.

@ryanmoyher640

Жыл бұрын

@@ElizabethPW Thank you!

I Have a question; i am wanting to do both, elect my LLC to be a s corporation, as well as change the name. Can this be done at the same time? if so, how exactly? Thank you so much, and your videos are incredibly helpful!

@ElizabethPW

Жыл бұрын

If you want to elect for your LLC to be taxed as an S Corp, you do that with the IRS kzread.info/dash/bejne/X3eMqauFhKytnaw.html . To change the name of the LLC, you do that with the state (you "amend" the LLC) kzread.info/dash/bejne/aI6TupOdhLfKhZc.html .

Hi Elizabeth, thank you for making the steps so clear! I am a real estate agent in San Francisco and have heard other agents setting up S-Corps directly, instead of a corporation first, and then filing the form 2553 to create an S-Corp. Is it possible to form an S-Corp directly? Or are the other agents misinformed about what their accountants did? Also, is there a benefit to forming a corporation vs an LLC prior to electing an S-Corp? Many thanks in advance!

@ElizabethPW

Жыл бұрын

They don't understand what was done. You set up a corporation or an LLC, and then elect to have it taxed as an S Corp.

@silviadamen8847

Жыл бұрын

@@ElizabethPW That's what I figured. Is there a benefit to forming a Corporation vs an LLC if I'm the only owner? One of your videos mentioned that an LLC may be easiest for an individual as a corporation needs to hold an Annual Directors and shareholder meeting and have minutes, etc... My out-of-state accountant said real estate agents need to be set up as a corporation, but I'm not sure that's true in California since I'm only a salesperson, not a brokerage. Also, one of your videos mentioned the name on my corporation should be used on my business cards, but I work for eXp brokerage, and don't have my corporation name on my business cards as I haven't set myself up as a DBA. Should I have just used my name to set up my corporation? This is a bit complicated - which is why I just was a Sole Proprietor for 18 years. My head is spinning with this whole process... Thanks in advance!

@ElizabethPW

Жыл бұрын

Right sounds like if a real estate business is a brokerage, they have to be a corporation because they can be a "corporate brokerage." www.dre.ca.gov/files/pdf/forms/re218.pdf Generally the reason people form corporations instead of LLCs is because they are required to or because they are just more familiar with it. Not sure if when you have clients, if they are doing business with the brokerage or with you (as a subcontractor of the brokerage) so that would effect what goes on business cards.

Hello Elizabeth, thank you for your guidance, I did file an INC S Corp. Do I still need to file form 2553?

@ElizabethPW

Жыл бұрын

If you have only created the corporation with the state, yes you need to file form 2553 to get the S Corp tax designation

This is so helpful and easy to follow! Thank you!! This seems fairly simple to do myself. My tax guy charged $1,000 to set this up for us. Is there another thing I am missing? Are there more steps after this that he would complete for us that makes sense to pay that steep fee? Also another side question. other than the $100 registration and $800/year, what other fees are associated with an S-corp? Set up or annually. Thank you so much!!!!

@ElizabethPW

Жыл бұрын

Well no idea what they are including in their $1K package, but they may be including other documents like bylaws, corporate minutes, stockholder agreements, etc. and they may also do other filings like SOI, tax election, business license, etc. What fees are required does depend on the business, the main other ones that apply in most situations are business licenses / permits, and paying someone to do the tax returns.

@ClaireBrevidoro

Жыл бұрын

@@ElizabethPW Thank you so much for your reply!!!!

Thank you for your great video. Can a Day Trader file for S Corp? or Just LLC?

@ElizabethPW

Жыл бұрын

I don't know of a reason a day trader could not have a corporation or have their LLC taxed as an S Corp, as long as the owners are eligible to be owners of an S Corp (must be citizens or permanent residents).

@peterquach2956

Жыл бұрын

@@ElizabethPW thank you so much.

you are awesome!!!!

@ElizabethPW

Жыл бұрын

thanks!!

Hi Elizabeth, Thank you so much for making these videos. I have two questions for you? 1. I am a one person business looking to start an S-Corp. Are there other drawbacks to listing yourself as the registered agent other than privacy? Do you get tons of solicitation mail? anything else? 2. I was researching Northwest Registered Agent and it seems they can help you form an S-Corp. Do they act as an attorney? What is the difference between using them versus an attorney to help from an S-Corp? Thank you.

@ElizabethPW

Жыл бұрын

1 - really the only issue is privacy. 2 - they are not acting as your attorney - they are filing the forms and typically you'd also have them as your registered agent. An attorney can give you advice about your choices (like which corporate documents you need like a shareholder agreement) and an attorney can draft custom forms for you.

@level10basketball

Жыл бұрын

@@ElizabethPW Thank you.

Thanks for this video. Just filed with the state but realized I may have acted too quickly. I have a psychotherapy practice. Should I have filled with the state differently, ie. professional? I didn't see this designation. Thanks.

@ElizabethPW

2 жыл бұрын

Licensed professionals can't operate under an LLC for their practice in CA -- typically they form a "professional corporation" instead Probably the easiest way to fix is to cancel the current LLC or Corp asap ("short form cancellation certificate" for LLCs) and form a professional corp.

@michellecilia

2 жыл бұрын

@@ElizabethPW Thanks. I didn't form an LLC. Just a regular CORP the way you showed in the video. Was there a special place on the sos.ca.gov that designated "professional" corp? I didn't see it. Should I still cancel the corp I filled?

@esbeide7

2 жыл бұрын

@@michellecilia Following... I have the same question. Is this the same process for professional corporation in CA? Thx

What about the extra pages. Do we only need to fax the 1st 2 pages if the others don't apply or does it all need to be faxed regardless?

@ElizabethPW

2 жыл бұрын

I recommend faxing the last 2 pages, even though they are blank. Otherwise, the IRS doesn't know they are blank and they will think they are just missing

ELIZABETH!!! Thank you! But do you have another video for a professional corporation? THANK YOU!!!

@ElizabethPW

13 күн бұрын

Yep!

Great video. If you already have an EIN as a sole proprietor, can you use it or do you have to get a new one?

@ElizabethPW

Жыл бұрын

You'd get a new EIN for the corporation

@HeltonFred

5 ай бұрын

Can I ask you a question

Thank you for this video. We filed a Partnership last year with Northwest RA. So, now just finding out we need an SCorp for even better tax benefits. We also use 1800Accountant. I was just searching out how to file it ourselves to save a little money. This is helpful.

@ElizabethPW

Жыл бұрын

Welcome!

Thanks for the video! How do I form a professional corporation?

@ElizabethPW

7 ай бұрын

here you go kzread.info/dash/bejne/amd7rrV-YM3Fnso.html

Hi Elizabeth, thanks for the detail walkthrough of forming a corporation. I am looking to register a bookkeeping business. I have a CPA but since the business services do not need me to be licensed, I only want the business as a simple LLC to avoid register it as a SCorp with all tax implications, it it possible?

@ElizabethPW

Жыл бұрын

Right my understanding is that if you open up a business where those services are not licensed, then no you wouldn't need to be a professional corporation -- it is only if you provide CPA services, things where you need the license.

@ThaoLe-ow9zj

Жыл бұрын

@@ElizabethPW thank you for the reply❤️

can you make a video for issuing shares, bylaws, and other things following the formation of the scorp?

@ElizabethPW

9 күн бұрын

Thanks for the idea!!

Thanks so much for this video! It helped a lot. I just registered an LLC (unfortunately they said it would be ready on Jan 9th but it came though in December). I really just want an S-Corp so that I can employ myself and issue myself W-2's. I'm wondering if I should cancel that LLC and start over as a corporation. Would there be any issue getting the same business name if I refiled as a corporation now that I have an LLC with the correct name?

@ElizabethPW

Жыл бұрын

Hm you could just have your llc be taxed as an S Corp, then you don’t have to start over

@Grant_Guthrie

Жыл бұрын

@@ElizabethPW yeah I could do that. I don't get the free year though. They registered the LLC on the 22nd of December 😂 - maybe it's not worth the risk of trying to save the extra $800 and registering a corp now in January instead.

@ElizabethPW

Жыл бұрын

Right it does mess up the free year. If you dissolve it ASAP (before Jan 15th) then the LLC wouldn't owe $800 for this year either (because tax year is less than 15 days and it didn't engage in business). Then you can start over with the new corporation.

@Grant_Guthrie

Жыл бұрын

@@ElizabethPW Thanks so much! Will do. I was using ZenBusiness to do everything. They used to be great but they have really been messing me around so much recently. I think I'll try do this directly with the Secretary of State this time. Thanks again for the video!

I initially formed an LLC and need to change it to a corporation. I haven't done anything with the LLC yet (no bank account/no payroll) and was wondering if I should just dissolve my LLC and form a corporation with the same name or if I should pay for the $150 fee to file form CONV LLC-GS to change the entity. If I went the dissolve route, would that have any adverse side effects? Thank you so much and sorry this is so much to ask of you.

@ElizabethPW

2 жыл бұрын

If you filed the LLC recently (this calendar year), then I'd just dissolve it and form a new corporation -- much more simple and fast. The problems are if you used it in any way, and it sounds like you did not.

@godslayer5102

2 жыл бұрын

@@ElizabethPW Thank you so much for the information. I really appreciate you getting back to me. Your videos are so helpful.

Hi Elizabeth, I am currently looking into obtaining my c-10 (electrical) contractors license. My application is asking for me to identify my business entity. I am leaning more towards filing for an s-corp in the future. If i were to identify as a sole ownership now, could that complicate things for me down the road when reassigning my entity? Thank you for your help 🙏

@ElizabethPW

Жыл бұрын

My understanding is that it can be a hassle to switch over the contractor licensing to a new business entity, but people do it

Thanks for this informational video! Is there a date that you have to file to become an S-corp by to be taxed as one for a certain year?

@ElizabethPW

Жыл бұрын

So if you want for the biz to be treated as an S Corp for *this* tax year, you have to elect within two months and 15 days of the start of this tax year. If you want the biz to be treated as an S Corp for *last* tax year, then you are filing a late election, which is possible (and many file it with their S Corp tax return) but you must meet the rules for the late election www.irs.gov/businesses/small-businesses-self-employed/late-election-relief

@dross0123

Жыл бұрын

@@ElizabethPW Got it. Thank you!!

@dross0123

Жыл бұрын

@@ElizabethPW Is it true that you can not do the late S-corp election for 2022 taxes if you were a Sole Proprietorship in 2022?

Hi! Should i register for a EIN first before submitting "Form corporation" form?

@ElizabethPW

2 жыл бұрын

Create the corporation before you get the EIN, just in case it does not go through and you need to change the name or something

Hi Elizabeth, Awesome video. I currently have a Sole Proprietorship and am looking to form an S-Corp. I already have an EIN number for the business license that I have so that I can open a business bank account. When I do an S-Corp, will I need a new EIN#? Would I need to setup a new bank account or can I use my current one?

@level10basketball

Жыл бұрын

Nevermind. I found the answer in one of your other videos.

@ElizabethPW

Жыл бұрын

Glad you found it!

In regards to filing form 2553 in a community property state (California), does the other spouse have to be listed as a consenting spouse regardless if he/she actually has any % ownership/shares...aka solely owned by one spouse with no one else on any of the incorporating paperwork.

@ElizabethPW

11 ай бұрын

Hm my understanding is that for the IRS form 2553 it is just the spouse(s) that have ownership shares - the IRS doesn't care much about it. It is more of a state law thing where the spouse can challenge shares being sold or altered without consent (typically when sold for less than fair market value or given as a gift). Spousal consent tends to be overdone but it would be good to have "spousal consent" in writing just in case, since not really hard.

Hi Elizabeth, for applying the EIN online; does the IRS mandate E-signature?

@ElizabethPW

9 ай бұрын

Well if you apply online then the e-signature that you do is part of that online system, that's what they accept

For starting off as a e-commerce website, do you recommend starting off as a LLC or FBN? Also can I start as a FBN then once revenue hits 8k start the process of an LLC?

@ElizabethPW

2 жыл бұрын

Yes you can start as FBN and then switch to an LLC when it starts making more money. That can be a great solution for a brand new ecommerce business.

Thank you for the informative video! I have a couple questions: 1. What is the difference between bizfile and incfile and which one saves more money and time? 2. To create an S corp, which one would you recommend using?

@ElizabethPW

4 ай бұрын

Bizfile is a government website where you file your own LLC/corp. Incfile is a third party company you hire to do it for you. Depends if you want to do it yourself or hire out! If you want to hire, I’d recommend Northwest or Doola.

@highendboy

3 ай бұрын

@@ElizabethPW Thank you!

By chance you have any information or tutorial on filing form 25102 (f)? The instruction packet they give is just hard to understand.

@ElizabethPW

4 ай бұрын

I haven't done a video on that, but I'll add it to the list

Question: Do you have to have a LLC, before filling for an S Corp? Thank you

@ElizabethPW

3 ай бұрын

Nope you can create a Corporation with the state and then file for the S Corp designation with the IRS

Hello! If I register my business as an LLC in California, can I still elect for S-corp status with the IRS?

@ElizabethPW

2 жыл бұрын

Yep!!

Hi! I am a sole proprietor if i file for the S-Corp say everything goes through, do I need to get separate general business licenses and speciality business license that i currently use for my sole proprietor?

@ElizabethPW

4 ай бұрын

Typically yes but check with the city/county to see if you need to transfer or if you need an entire new application. Usually you can email them (check their website) to ask

Hi I'm opening a dental office with 4 partners and wanted to see who pays more for taxes S Corp or llc ,what is better to pa no taxes or little as possible except for the shareholders...I was told with scorp you do t pay taxes ?

@ElizabethPW

2 жыл бұрын

My understanding is that a dental practice would need to be a "professional corporation" (we don't have professional LLCs in California). Yes, S Corps pay taxes - it will pay a $800 franchise fee in CA and also the profits will get passed to the owners on a K-1 for them to pay taxes. Also any owner who does work for the business will need to be paid a reasonable salary. But generally an S Corp gives you some tax planning advantages.

I registered my s corp to the irs first so I need to do something different to register in California?

@ElizabethPW

5 ай бұрын

First you need to form the Corporation in California at bizfileonline.sos.ca.gov/

Can you please share exactly what forms to file when filing tax? 568, 1065, 565, 540, and 1040? Thanks!

@ElizabethPW

13 күн бұрын

You'd file a personal state and federal tax return, and a business state and tax return. If you want details about taxes, I recommend speaking to a tax person (I'm an attorney, not a tax preparer)

I have an LLC and want to convert it to an s Corp , do i need to apply with SOS or just need to form it through IRS 2553?

@ElizabethPW

6 ай бұрын

If you want an LLC that elects to be taxed as an S Corp, you just file 2553. If you want to convert the LLC to an S Corp, yes you file with the SOS

Hello There...I am a self-employed sole-proprietor business as an Acupuncturist and already have an EIN. Do I need to apply for a separate EIN as a S Corp?

@ElizabethPW

2 жыл бұрын

Yes the S Corporation will have its own EIN

So I'm confused. Right now my Amazon business has 5 LLC's for 5 stores. What happens if I want S corp tax status, do I register all 5 LLC's ? Do I have to make one LLC that owns all 5, and make that one an S corp? How's this done for multiple LLC's?

@ElizabethPW

2 жыл бұрын

You could do it either way. Each LLC could make the S Corp election, or you could create a holding/umbrella S Corp that you own, that would then own all 5 LLCs. You may want to talk to your tax person or accountant about which is the best fit for you, from a financial/tax perspective.

Just got approved by the Secretary of State of CA as a professional corporation (one-person business). Filed my Articles of Incorporation and Statement of Information with California and it was approved. Just finished my Bylaws, Minutes, and Issued myself Stock Certificate. After I Get EIN from the IRS with S-Corp Election and File Form 2533 with the IRS, is there anything else I need to do?

@ElizabethPW

Жыл бұрын

Depends on your profession, you may need to file something with your regulatory board to tell them about your prof corp and/or get their approval

Hi! If I just filed for my business now am I still exempt from tax year? I did the form for general stock and it’s still pending review bc I literally just did a few minutes ago. And I know that after they confirm it’s all good I have to follow your next steps to actually make it an S corp. my question is, once I do that am I exempt from the $800 or would I still have to pay for my first year. Also my filing fee was only $5 but you keep saying $105, has something changed? Because I saw the website is different now as well. Thank you!!

@ElizabethPW

Жыл бұрын

The exempt first year thing is still in place as of now (feb 2023). Yep they have current waived the filing fee so it is lower right now (it will go back to the regular fee later this year I think)

@torijj1500

Жыл бұрын

@@ElizabethPW thank you!

Hi Elizabeth! if we put lets say 10000 shares on the corporation filing form, doesn’t that conflict with the IRS form 2553 where it says “have no more than 100 shareholders”?

@ElizabethPW

8 ай бұрын

It's number of shareholder (humans) not number of shares, so that's ok

@saif6009

8 ай бұрын

Didn’t notice thar. Thank you 🙏🏼

Is there another video where you talk about the next steps after your S corp is formed? Ie how to create bylaws, minutes, get a business license, etc.?

@ElizabethPW

4 ай бұрын

I don't have one about bylaws and such, you might try this book amzn.to/43xDhRv for some good forms/templates

Do I also need to apply for a CA SEIN to run payroll? I have a single person Professional Corp elected to be taxed as an SCorp. I'm going to only pay myself (through a mix of W2 salary and distributions)

@ElizabethPW

Жыл бұрын

Yes you'll need to register as an employer in CA - here's a link with info: edd.ca.gov/en/payroll_taxes/Am_I_Required_to_Register_as_an_Employer/

@aquabrar

Жыл бұрын

@@ElizabethPW Thank you!

@harsha3216

Жыл бұрын

@@ElizabethPW By any chance you have a video on this ?

I am and newbe, planning to get into an offer from a dentist house that has S Corp formed. They are asking me to form a S corp as well and get paid and then pay them percentage to be part of their set up. Question 1. Should I ask how many shares their S Corp has? Should I just have an S Corp and do Corp to Corp payment?

@ElizabethPW

5 ай бұрын

Hm that's not really something that can be handled in a youtube comment, sorry!

I have already have a business as a sole proprietor, how can I convert it to a S-corp, and EIN number can be used in multiple business.Right

@ElizabethPW

Жыл бұрын

In this video I share about converting a sole prop to an LLC (kzread.info/dash/bejne/m31r2duQcqWeqbw.html) and converting to a corporation is fairly similar. Yes you could have a corporation where you run multiple businesses under it

Can my new Corporation function as an open(up and running) business before I receive the Form 2553 approval from the IRS? My business has been registered by Ca in October and I plan to open my doors on 1/1/2022. (I sent in my 2553 in October and IRS informed me it would take another 4 months before approval, so sometime in March2022)

@ElizabethPW

2 жыл бұрын

It will be back-dated to this year, if it is accepted. I've only seen rejections when the form is filled out incorrectly / is missing something, or if the biz not eligible to be an S Corp (like if owned by a non-citizen/resident). If it is something fixable, you can ask for relief for a late election (check out www.irs.gov/instructions/i2553) to fix it.

@rmchiu87

2 жыл бұрын

@@ElizabethPW Thank you so much for your video and for your helpful reply! Knowledge is power so thank you again!

For the parts that don't apply to our business, do we still fax those pages or no? Thank you

@ElizabethPW

Жыл бұрын

Yes fax even the blank pages, because otherwise the IRS thinks they are just missing - they need to know they are blank

@barbaroacosta5335

Жыл бұрын

@ElizabethPW thank you. Your videos are a blessing.

Hi where do I get my s corporation’s stocks certificates? Thank you in advance!

@ElizabethPW

Жыл бұрын

You can make it up. If you get a book like this www.amazon.com/Corporate-Records-Handbook-Meetings-Resolutions/dp/1413329594 they have forms and templates

Hi. I have created an S-Corp last year in September. Since then my business is inactive I haven’t even got my EIN number yet. My question is do I still need to pay any fee to FTB? Or file any tax return ?

@ElizabethPW

Жыл бұрын

If you created a corporation, even if you don't use it, California still wants a tax return filed even if it is with all zeros. But under the law as of right now, they are waiving the $800 minimum franchise fee tax for the first calendar year -- you'd want to file to take advantage of that for tax year 2022. Also -- if you don't have an EIN then you also may have a C Corp, not an S Corp -- to have an S Corp you have to file an election with the IRS (and I'd think you would have got the EIN if you did the S Corp election, so I wonder if you have not done that yet).

hi Elizabeth, this is Rimsky, I don't know witch cooperation use, witch corporation you recommend me, C or S, I have a shop where we make office furniture 3 employees, las year we move around 250k?

@ElizabethPW

Ай бұрын

This is a tax question, so I suggest you ask a business tax preparer or a CPA

Can I file for an EIN and S Corp status while waiting for my corporation filing to be processed by the CA SOS?

@ElizabethPW

2 ай бұрын

I'd recommend waiting until approval, just in case it is denied and you have to chance something in the filing like the name

@frankro1

2 ай бұрын

Thanks for the response. Thankfully all got approved quickly and I have EIN now too.

Once you have your s-corp, do you file for a DBA also or run your business off of the s-corp name? Also, have you worked with insurance agents in setting up s-corp? Business entity?

@ElizabethPW

7 ай бұрын

You can use the S Corp name or get a DBA -- it is up to you! I haven't worked with insurance agents, no

@shawnaolsen6151

7 ай бұрын

@@ElizabethPW I found with California Department of insurance that if you decide to have a corporation, you must file a business entity license with your corporation, and then have the California Department of insurance request you to submit five fictitious names, and they will approve one of them. After that, you must attest that you will use the approved DBA on all marketing materials dealing with insurance within the state of California. It has been a lot of work.

Hi! My husband is wanting to form his own insurance brokerage firm. How can he determine if he qualifies for a S-Corp? He is leaning towards an LLC)l. Your opinion/thoughts?

@ElizabethPW

5 ай бұрын

Here's the list of qualifications www.irs.gov/businesses/small-businesses-self-employed/s-corporations

How do i fill out Part II of Form 2553 if i'm forming a new S Corp?

@ElizabethPW

2 жыл бұрын

For most companies, your tax year is the calendar year, so you don't worry about part II. That's only for companies that have a fiscal year that's different.

Is filing 45 days late to form an s corp, common and is there penalty for being 45 days late?

@ElizabethPW

Жыл бұрын

I bet that it is common - if you fill out the part of the form asking for "late election relief" and meet the requirements of that correctly, then you shouldn't have to pay a penalty.

Links I talked about in the video: - CA Online Filing: www.sos.ca.gov/business-programs/bizfile/file-online - IRS S Corporation forms/info: www.irs.gov/businesses/small-businesses-self-employed/s-corporations - IRS File EIN Online: www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online