S Corporation With Llc Subsidiary In Fulton
Description
Form popularity
FAQ
To convert an LLC to an S Corporation in Georgia, you'll need to follow these steps: Step 1: File Articles of Amendment. Step 2: Obtain a New Federal Tax ID Number. Step 3: File Form 2553. Step 4: Update Your Business Licenses and Permits. Step 5: File Annual Reports.
As a Georgia LLC, LLP, partnership or sole proprietorship, you are subject to the 15.3% Self Employment/FICA tax on all of your net earnings. The S corporation, on the other hand, pays you a deductible salary (which is subject to FICA), and then the profits flow through your personal return via a Schedule K-1.
How to Create an S Corp in Georgia Choose a unique name for your Georgia limited liability company. Appoint a registered agent. File your Georgia LLC Articles of Organization. Create an operating agreemen. Register for your EIN Number. Apply for S Corp status with IRS Form 2553.
Because of the one-class-of-stock restriction, an S corporation cannot allocate losses or income to specific shareholders. Allocation of income and loss is governed by stock ownership, unlike partnerships or LLCs taxed as partnerships where the allocation can be set in the partnership agreement or operating agreement.
Once your LLC or C corporation formation is approved by the commonwealth, you need to file Form 2553, Election by a Small Business Corporation, to get S corp status.
How to Create an S Corp in Georgia Choose a unique name for your Georgia limited liability company. Appoint a registered agent. File your Georgia LLC Articles of Organization. Create an operating agreement. Register for your EIN Number. Apply for S Corp status with IRS Form 2553.
LLC cons: Unlike a corporation, an LLC cannot issue shares of stock. Any new investor would need to become a member of the LLC, which is more complicated. Furthermore, many outside investors consider LLCs risky, and prefer to invest in corporations.
A Limited Liability Company (LLC) is a business entity that offers certain limited personal liability on the part of the owner, like a corporation. It also offers the possibility of certain “pass-through” tax benefits, like a partnership. Therefore, an LLC is essentially a cross between a partnership and a corporation.
