Form with which a corporation may resolve to alter its corporate status top that of a subchapter (S) corporation.
S Corporation Form In Maryland
State:
Multi-State
Control #:
US-0046-CR
Format:
Word;
Rich Text
Instant download
Description
Free preview
Form popularity
FAQ
You must file California S Corporation Franchise or Income Tax Return (Form 100S) if the corporation is: Incorporated in California. Doing business in California. Registered to do business in California with the Secretary of State (SOS)
Maryland recognizes the federal S corporation election and does not require a state-level S corporation election.
How to Form an S Corp in Maryland Name your Maryland LLC. Appoint a resident agent in Maryland. File Maryland Articles of Organization. Create an operating agreement. Apply for an EIN. Apply for S Corp status with IRS Form 2553.
Choose a business name for your S corp. File articles of incorporation. Issue stock for your S corp. Elect a board of directors and appoint officers. Meet other S corp eligibility requirements. Obtain an employer identification number. Elect S corp status. Apply for state and local S corp business licenses.
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.
You may or may not have heard of the S Corp Salary 60/40 rule. The guideline encourages setting reasonable compensation between 60% and 40% of the business's net profits. The IRS does not set this guideline. It should not be relied on as the only factor for deciding S corporation reasonable compensation.
The IRS doesn't limit S corporation income. S corporations are incorporated companies that have made an election to be taxed as a pass-through entity rather than have double taxation.
Maryland recognizes the federal S corporation election and does not require a state-level S corporation election.
Comptroller of Maryland Payment Processing PO Box 8888 Annapolis, MD 21401-8888 To make an online payment, scan the QR code below and follow instructions.
Comptroller of Maryland Revenue Administration Division 110 Carroll Street Annapolis, MD 21411-0001 (Write Your FEIN On Check Using Blue Or Black Ink.)