Official Resolution Form For S Corporation In North Carolina
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FAQ
North Carolina treats businesses that file as an S corp for federal income tax purposes the same way when it comes to income tax from the state. That is, the same pass-through taxation that applies to federal income taxes applies to state income taxes.
All California S corporations and LLCs companies treated as S corporations for federal, should file Form 100S (California S Corporation Franchise or Income Tax Return).
Forming an S corporation is straightforward. First, you start a business as a corporation by filing articles of incorporation with the Corporations Division of the North Carolina Secretary of State's Office. Next, to elect S corporation status, all shareholders in your company must sign and file Form 2553 with the IRS.
Can I set up an S corp myself? While it's possible to file articles of incorporation and go through the S corporation election process on your own, S corp requirements are strict and complex. It's recommended you consult an attorney or tax professional.
C corps and S corps differ in their corporate ownership. C corps can have an unlimited number of shareholders, including foreign investors, while S corps are limited to 100 shareholders, all of whom must be U.S. citizens or residents.
For an S corporation you must: File Form 1120-S, U.S. Income Tax Return for an S Corporation for the year you close the business. Report capital gains and losses on Schedule D (Form 1120-S). Check the "final K-1" box on Schedule K-1.
Is there a minimum salary for S Corp shareholder-employees? No — the IRS can't require a minimum salary for self-employed workers.
