Hire Us to File Your Delaware S Corp Today!
Your Delaware corporation or LLC could be saving money on taxes every year by electing an S-corporation tax status. Traditional C-corporations are notorious for “double taxation.” The double taxation refers to the fact that both the business and the shareholders have to pay taxes on their profits. Electing to designate your company’s tax status as an S-corp could save you money on your taxes.
When you hire Delaware Corporate Headquarters to form your business, we can take care of setting up your Delaware S-corporation tax status with the IRS, ensuring it is done quickly and correctly.
Delaware S-Corp Advantages
The greatest benefit you’ll see from electing a Delaware S-corporation will be on your tax bill. In many cases, business owners who elect an S-corp tax status save a substantial amount of money on taxes. The savings is especially noticeable when it comes to self-employment taxes, which can claim more than 15% of your profits.
How does it work? With an S-corp designation for an LLC, you can divvy your profits between payroll and dividends. After paying a reasonable wage to those who worked for the business, the remaining dividends are no longer subject to self-employment tax. With a corporation, the S-corp designation eliminates double-taxation. A corporation with an S-corp designation acts as a pass-through tax entity, which means the business does not pay taxes before distributing profits to the shareholders.
Setting up an S-corp designation with the IRS is a complicated and time-consuming process. At Delaware Corporate Headquarters, we help people set up their LLCs, corporations, and designate their companies as S-corps every day. Trust us to do it right the first time.
What are the Delaware S-corp filing requirements?
In order to designate a Delaware corporation or LLC as an S-corp, a business:
- must be a domestic entity
- must have 100 or fewer shares
- can only have one class of stock
- must not be an exempt institution like a bank or insurance company
Can a Delaware LLC file as an S-corp?
Yes! The name S-corporation can be confusing. But it is important to know that an S-corp is a tax designation, not a business entity type. LLCs and corporations can both file for S-corp designation.
How can I get my business designated as an S-corp?
The easiest, fastest way to elect the S-corp designation and know it is done correctly, is to hire us to form your company. Otherwise the place to start is filing a 2553 form with the IRS.
Still Have Questions Regarding Our S-corp service?
Contact our local Delaware business experts. They can answer all of your questions about our LLC formation package and included S-corp filing service.
Please note that we are a registered agent and business formation service. We cannot provide you with legal or tax advice. Questions concerning your business taxes are best directed to a lawyer and/or CPA.
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