LegalZoom S Corp Review
Many people seek out information about LegalZoom services and whether LegalZoom can incorporate an S corporation for a business.
When you go to the site, it is not obvious where the S corporation is handled. Many potential customers end up leaving because of this. But, LegalZoom does indeed handle the creation of S corporations and have formed thousands of them.
S CORPORATION BACKGROUND
It is important to understand that legal entities such as a corporation are formed at the state level. Also, the S corporation is really the same legal entity as the C corporation at the state level. Both are the same legal entity- the corporation.
The distinguishing category of C or S is a federal income tax concept. So, first understand that both start off as a corporation. A corporation once formed under state law is taxed as a C corporation by default.
But, the owners of the business can elect to have a C corporation elect to be an S corporation under the Internal Revenue Code.
This election is done by first ensuring that the corporation and its shareholders meet the S corporation rules and then by filling out and timely filing an S election form with the IRS after the corporation is formed.
LEGAL ZOOM S CORP REVIEW AND SERVICE OPTIONS
LegalZoom offers two levels of S Corp services. First, it has a prepare only option in which they prepare the S election form for your corporation and then provide you with instructions for how to file it. Currently, this service is a $45 add on to the LegalZoom Economy and Standard Packages and is included in the Gold Incorporation Package.
The secon S corp service that LegalZoom offers is a full service S Corporation election obtainment service where they handle everything including the filing with the Internal Revenue Service. As of the date of this review, this service costs $80 (0r is a $35 add on to the Gold package).
If you are wondering about the reliability of the service, there is no need to worry. Believe it or not, the obtaining of an S election is very common among small business corporations. And small business owners are LegalZoom’s largest customer base.
So, you can rest assured that LegalZoom has perfected the process for efficiently and properly obtaining an S corp status for its corporations. It is very important that you entrust this requirement to a reliable and proven incorporation services provider.
After all, the failure to properly or timely obtain the S status in accordance with IRS rules can later result in significant penalties and taxes.
Remember, the S election once properly obtained allows a corporation and its shareholders to avoid the double taxation of C corporations. This major savings goes into your pocket and overtime will be significant- do not risk losing this right or later finding out that the tax benefit was not able due to an improper S corp election.
Let LegalZoom S Corp election services provide you with peace of mind.
CLICK HERE NOW to review the LegalZoom Incorporation Packages and you will see the S Corporation options as add-ons to the Economy or Standard packages or it is included in the Legal Zoom Gold package which is the most popular package for small business owners.
Leave a Reply