There are seven steps you'll complete to start an S corp in Texas. Step 1: Check Name Availability. Step 2: Choose a Business Name. Step 3: Registered Agent. Step 4: Complete Form 201. Step 5: Bylaws and Regulations. Step 6: Obtain EIN. Step 7: File Form 2553.
As an employee of your S Corp, you can reduce self-employment tax liability by taking a salary from the business and other distributions. Setting up your Business-of-One as an LLC taxed as an S Corp – especially if it's a newbie – will appear more credible to potential customers and vendors.
There's no need to convert your LLC to a corporation at the state level. If you'd like to convert your LLC to an S corporation, then you must elect S corporation tax status. To convert to an S corporation, file an IRS Form 2553 at the federal level.