At Genesis Law Firm, we assist with the full life cycle of S corporations, from formation to regular operation to disposition (and to dissolution if necessary). Our rates are substantially less than most competitors, and our attorneys generally graduated higher in our classes and/or received degrees from more prestigious schools than most other attorneys in our geographic area.
Frequently Asked Questions:
What is an S corporation? Corporations are taxed under one of two different sub-chapters of the tax code, either sub-chapter S (an S corporation) or sub-chapter C (a C corporation). Large, publicly traded companies like Microsoft have no choice which type of corporation they are–they must be C corporations. But most smaller companies with fewer shareholders can choose between a sub-chapter S election and sub-chapter C. A sub-chapter S election typically results in less tax paid, hence the popularity of S corporations.
Why does a sub-chapter S election result in less tax than a sub-chapter C election? A C corporation’s owners effectively pay tax twice on their business’s profits, once at the corporate level and again at the individual level. A sub-chapter S election eliminates most of the corporate-level taxes, meaning the profits are only taxed once. This is called “pass-through taxation”.
Can I change tax elections as my business grows? Yes, you can change your tax election from sub-chapter S to sub-chapter C if and when the time is right for your business, such as if you decide to go public (sell your shares to the public).
What is an S corporation tax election for a limited liability company (LLC)? LLCs can choose between four types of tax treatment, including sub-chapter S. These days, most S corporations are not technically corporations at all; they are LLCs with sub-chapter S elections. LLCs are extremely flexible entity types.
Can you assist with LLCs that take an S corporation tax election? Yes, most of the S corporations we represent are actually LLCs that have elected sub-chapter S tax treatment. In fact, our law firm is an LLC with a sub-chapter S election.
Is there any reason to be a true S corporation rather than an LLC with a sub-chapter S election? Yes, you might choose to be a true S corporation if you intend to eventually become a C corporation and go public. As a true S corporation, you would have already structured your business hierarchy and records as those of a corporation, simplifying the transition to a publicly traded C corporation. You can achieve this same goal even if you start out as an LLC, but it would generally entail more of a change at the time the business goes public. That change would include some relatively negligible legal work, but would also probably entail a greater change in how you run your business.
I already have an S corporation or LLC–can you help me get my records straight? Usually, yes.
I’m being sued–can you represent me in court? Yes, our firm employes litigators.
Can you provide me with general advice for a startup business? Absolutely. For more information, click here.
Can you help me conduct my annual meetings? Yes.
Can you act as my registered agent? Yes.
Do you accept alternative fee arrangements, like flat fees and monthly retainers? We make that decision on a case by case basis. Feel free to call us to discuss your situation and legal needs.