How To Register Small Business Corporation

The irs taxes company profits at corporate tax rates and dividends paid to shareholders at individual tax rates.

How to register small business corporation. If the answer if yes you will receive numerous tax advantages when registering a pty. See the instructions for form 2553 pdf for all required information and to determine where to file the form. 6977 magna carta for small enterprises amended by ra 8289 in 1997 and ra 9501 in 2008. In order to become an s corporation the corporation must submit form 2553 election by a small business corporation signed by all the shareholders. Advertising and selling are part of the process but there is much more involved.

The government will tax partners in the business depending on the share of ownership. 8 obtain licenses and permits needed to legally operate the corporation. Market your business. Small business corporation is a government financial institution created in january 1991 under r a. For this reason you may hear tax professionals refer to double taxation of a c corp.

After starting your business operations you are required by law to register for an income tax reference number from the exchequer within 60 days. You can further choose to be taxed as an s corporation but that is a tax election separate from business registration. Corporations may register the business with the state department of revenue website or in person. There are two options for forming a corporation. You can hire a professional formation service to set up your corporation for a small fee.

It has the primary responsibility of implementing comprehensive policies and program to assist msmes in all areas including but not limited to finance and information services. Many small businesses come up with a great business idea and then fail to market it successfully. It is a personal service entity that employs at least 3 full time employees which are at the centre of the company s operations. C corporations c corps file irs form 1120 to report corporate income to the internal revenue service. If your business is an llc corporation partnership or nonprofit corporation you ll need a registered agent in your state before you file.

A registered agent receives official papers and legal documents on behalf of your company. The registered agent must be located in the state where you register. How to start a corporation you can start a corporation by filing formation documents with your state and setting up a board of directors. Small business corporation sbc does your company qualify to be a small business corporation sbc.