Form with which a corporation may resolve to alter its corporate status top that of a subchapter (S) corporation.
S Corporation With One Shareholder In Fulton
State:
Multi-State
County:
Fulton
Control #:
US-0046-CR
Format:
Word;
Rich Text
Instant download
Description
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FAQ
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.
Stock represents a share of ownership in a corporation. A bond is a security that represents a debt owed by the corporation to the bondholder, but does not include the ownership privileges of a stockholder.
You don't often think of corporations as a one-person show, but guess what? It's totally possible. Your business can be comprised of only you—provided you get along well with yourself. You can be the CEO, Treasurer, Secretary, and the only shareholder of the company.
With certain exceptions, a corporation is treated as having only one class of stock if all outstanding shares of stock of the corporation confer identical rights to distribution and liquidation proceeds. The regulations then elaborate on how to analyze if there are identical distribution and liquidation rights.
A company is considered a single shareholder if it has only one founder. This is usually the case for freelancers, consultants, digital nomads and other forms of digital solopreneurs. If, however, a company has several co-founders, it is a multi-shareholder company.
If you have a 'one person company' it means that you (a human being) are the company's sole (100%) shareholder (aka sole owner or sole 'member') and the company's sole director (the sole person whose responsibility it is to run the company).
Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income.
Shareholder base refers to the total number of shareholders in a company. In other words, it is a base of owners (investors) of a company that holds a certain number of stock (shares) in the business distributed proportionally, depending on the amount of investment made.
Tax Exempt Interest increases shareholder basis. Basis is increased by this amount to preserve the nature of the Tax Exempt income. If the shareholder fails to include Tax Exempt Interest in the calculation, then the Tax Exempt Interest will be taxed when the stock is sold (even though it shouldn't be taxed).
Both S corp and C corp businesses have a shareholder basis, also sometimes called a stock and debt basis. Per the IRS, this shareholder basis is your capital investment in a property for tax purposes. In this case, your business is the property.
