S Corporation With Llc Subsidiary In Hillsborough
Description
Form popularity
FAQ
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.
The Fictitious Name Act (s.865.09, F.S.) requires any person (which, by definition, includes an individual, as well as a business entity) to register their “fictitious name” or “dba” name with the Florida Department of State prior to conducting business in Florida.
Now that you know what an S corp is and its requirements, follow these five steps to form your business as an S corp in Florida. Step 1: Choose a Business Name. Step 2: Articles of Incorporation. Step 3: Apply for a Business License. Step 4: Obtain EIN. Step 5: Complete and Submit IRS Form 2553.
To register a Florida DBA, you'll need to submit a fictitious name application with the Florida Secretary of State. Before you apply, you'll also need to publish notice of your intent to register a fictitious name in a local paper where your business is located.
A DBA on its own doesn't offer liability protection. It's the business entity that does. Essentially, if your business takes on debt or gets into legal trouble, your own personal assets (like your home or personal bank accounts) could be put at risk. The LLC structure provides limited liability protection.
Now that you know what an S corp is and its requirements, follow these five steps to form your business as an S corp in Florida. Step 1: Choose a Business Name. Step 2: Articles of Incorporation. Step 3: Apply for a Business License. Step 4: Obtain EIN. Step 5: Complete and Submit IRS Form 2553.
To apply for an S-Corp election, you must file a Form 2553 Election by a Small Business Corporation. The same form can be used by Florida corporations and Florida LLCs. The Form 2553 requires you to enter an EIN for your company. If you have not applied for an EIN, you must do so.
While both the Florida LLC and Florida S-Corporation protect the owners' individual assets from business liabilities, only the LLC shields business ownership from creditors of the shareholders. An S-Corp offers similar liability protection but requires specific ownership and tax structure considerations.
Corp Election teps for LLCs tep 1 Choose a business name. tep 2 Choose a registered agent. tep 3 File Florida Articles of Organization. tep 4 Create an operating agreement. tep 5 Apply for an EIN. tep 6 Apply for Corp status with IR Form 2553.
