Tuesday, June 13, 2006

Save or pay when you incorporate online

Today I heard from two clients who utilized the services of one of many of the companies that help people incorporate online. The individual who was disappointed had made a false assumption that because he paid an extra fee he was automatically an S Corp. He was unaware that the pretty form filled out with his corporate papers had to be signed and mailed to the IRS in order to have an s corporation. So now a year later he is looking at the prospect of paying double taxes, in his corporation and then personally.

This is why I advise my second client to pass on the additional services such as getting an ID number and the s election. you can do the same thing by filing the links that I will supply. To get an employer identification number from the IRS follow this link. In order to do an s election you can click on the following link for the form 2553.

I hope you found this helpful so that you can feel comfortable when you incorporate online, saving significant attorney's fees, and getting the right services.

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