Opening of Corporations (LLC, SCorp and Corp) 30 min (Initial advice)

Opening a corporation, whether it is an LLC (Limited Liability Company), an S-Corporation or a C-Corporation, involves following certain legal and tax steps. Here is a summary of the typical opening processes for each type of corporation:

1. **LLC (Limited Liability Company):**
- **Choose a name and check availability:** Choose a unique name for your LLC and check its availability with the appropriate state office.
- **File Formation Documents:** File LLC formation documents, such as articles of organization, with the state office and pay applicable fees.
- **Create an operating agreement:** Although not required in all states, it is advisable to create an operating agreement that establishes the structure and operation of the LLC.
- **Obtain necessary permits and licenses:** Depending on the nature of your business and location, you may need to obtain specific permits and licenses before you begin operating.
- **Get an EIN:** Apply for an employer identification number (EIN) from the IRS, which is necessary to hire employees and file taxes.
- **Open a business bank account:** Open a business bank account in the name of the LLC to manage the company's finances.

2. **S-Corporation (S-Corp):**
- **Form a corporation:** First, you must form a traditional corporation (C-Corporation) by following the proper steps for forming a corporation.
- **File Form 2553:** File Form 2553 with the IRS to elect S-Corporation tax treatment within 75 days of forming the corporation.
- **Meet Eligibility Requirements:** Make sure you meet the S-Corporation eligibility requirements, which include having fewer than 100 shareholders, being a domestic corporation, among others.
- **Maintain adequate records:** Maintain adequate records of company actions, board of directors meetings, and other required corporate documents.
- **Meets Tax Obligations:** Complies with tax obligations specific to an S-Corporation, including filing annual tax returns and distributing K-1s to shareholders.

3. **C-Corporation (C-Corp):**
- **Choose a name and file formation documents:** The initial steps are similar to the LLC, where you choose a unique name, file formation documents with the state office, and obtain the necessary permits.
- **Establishes the corporate structure:** Defines the structure of the corporation, including the issuance of shares, the election of the board of directors, and the drafting of the corporate bylaws.
- **Get an EIN:** As with the LLC, you will need to obtain an employer identification number (EIN) from the IRS.
- **Open a business bank account:** Open a business bank account in the name of the corporation to manage the company's finances.
- **Complies with tax and regulatory obligations:** Complies with all tax and regulatory obligations applicable to C corporations, including filing annual corporate tax returns and complying with corporate governance regulations.