S Corporation With One Shareholder In Maricopa
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How to Start an S Corp in Arizona Name your LLC. Appoint an Arizona Statutory Agent. File Articles of Organization. Create an operating agreement. Apply for an EIN. Meet the publication requirement in Arizona. Apply for S Corp status with IRS Form 2553.
To qualify for S corporation status, the corporation must meet the following requirements: Be a domestic corporation. Have only allowable shareholders. Have no more than 100 shareholders. Have only one class of stock.
LLCs can have an unlimited number of members; S corps can have no more than 100 shareholders (owners).
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.
Advantages: There is no limit on the number of owners a corporation may have, thus allowing the corporation to raise substantial amounts of capital, the life of the business can continue beyond the death of any of the owners, the liability of the owners is limited to the amount of their investment in the firm.
However, one of the limitations of an S corporation is that it can have a maximum of 100 shareholders (stockholders). If the number of shareholders exceeds this limit, the corporation may lose its S corporation status and be subject to different tax regulations.
How to File as an S Corp in Arizona in 7 Steps Step 1: Choose a Business Name. Step 2: Appoint Directors and a Registered Agent. Step 3: File Articles of Organization. Step 4: Create an S Corp Operating Agreement. Step 5: Publish Articles of Organization. Step 6: File Form 2553 for S Corporation Election.
An S corporation can have only one class of stock, although it can have both voting and non-voting shares. Therefore, there can't be different classes of investors who are entitled to different dividends or distribution rights. Also, there cannot be more than 100 shareholders.
S Corporations and the Pass-Through Entity Election The Arizona Pass Through Entity (PTE) income tax is assessed at a rate of 2.5% of the income attributable to the S Corporation's resident shareholders and the income derived from sources within Arizona attributable to the nonresident shareholders.
