My AccountStart Your S-Corp
How it works
Answer a few simple questions
Tell us a little bit about your business.
We do the paperwork for you
We reserve your business name and take care of your S-Corp filing.
You're done!
We store your documents in your account and send you hard copies.
Why Choose Rocket Lawyer?
We Make It Simple
We check your name, file your paperwork, and follow up with your state. All you need to do is tell us a little bit about your business.
Specialists to Answer Your Questions
Our specialists have incorporated thousands of businesses just like yours. They can walk you through the entire S-Corp process by phone and answer any questions you have.
Legal Help After You Incorporate
Whether you need to offer stocks, attract investors, contact an attorney, record Corporate Meeting Minutes, or just need help staying compliant, we're here to help your business grow.
Our Promise
If you're not completely satisfied with your incorporation, we'll give you a full refund.
Reasons to Incorporate as an S-Corp
Grow Your Business Quickly
Unlike LLCs and non-incorporated businesses, your new S-Corp will be able to issue stocks to bring in new investors and capital. That means you'll be able to leverage your great ideas to grow your business. Fast.
Enjoy Tax Benefits
While C-Corporations are sometimes subject to "double taxation,"; your S-Corporation is a pass-through entity. S-Corporations are powerful for solo and small businesses as they can help avoid some serious self-employment tax burdens.
Protect Your Personal Assets
When you incorporate as an S-Corp, you'll enjoy personal liability protection. That means your personal assets (and all your shareholders' personal assets) are insulated from any lawsuits and penalties your business might incur.
Choose the Right Business Type
Compare the advantages and disadvantages of each entity type to find the one that's best for your business.
| LLC | S-Corp | C-Corp | Non-Profit | Sole Proprietorship | |
| Managing your business | |||||
Limited liability protection
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| LLC members are not personally responsible for business debts or liabilities. | C-Corp shareholders are not personally responsible for business debts or liabilities. | S-Corp shareholders are not personally responsible for business debts or liabilities. | Non-Profit directors are not personally responsible for NPO debts or liabilities. | Sole Proprietors are personally responsible for business debts and liabilities. | |
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Perpetual existence
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varies | ||||
| With the proper planning, LLCs can exist for generations. | S-Corps continue to exist even if the owners or majority shareholders leave or pass away. | C-Corps continue to exist even if the owners or majority shareholders leave or pass away. | Non-Profit organizations and institutions survive after their directors leave. | Sole Proprietorships do not exist when the owner quits or passes away. | |
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Favorable for raising capital
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varies | ||||
| LLCs can raise money via banks and investors but cannot sell stocks. | S-Corps can get loans from banks, as well as distribute stock to up to 100 people. | C-Corps have the easiest time raising capital as there is no cap on how many people can own stock. | Non-Profits can both get loans and receive tax-deductible donations. | Sole Proprietorships can occasionally receive bank loans but cannot sell stocks. | |
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Management flexibility
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| LLCs allow for a large variety of management structures based on your specific needs. | Management structures for S-Corps are largely dictated by state and federal law. | Management schemas for C-Corps are largely dictated by state and federal law. | NPOs need to follow strict management laws to guard their non-profit status. | Since Sole Proprietorships have only one member, there is no management structure. | |
| Tax Considerations | |||||
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Pass-through taxes
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| LLC members are taxed on their personal tax returns. The LLC itself is not taxed. | S-Corp shareholders are taxed on their personal tax returns. The company itself is not taxed. | C-Corps are taxed both at the corporate level and again on shareholders' individual returns. | Non-Profits are taxed on a corporate level but may also enjoy a host of tax-exempt benefits. | Sole Proprietorships are taxed only on their owner's tax return. | |
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Double taxation
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| Since LLCs can be a pass-through entity, owners are taxed on their personal income. | S-Corp shareholders are taxed personally. The S-Corp, however, is not. | C-Corp income is taxed at the corporate level first, then again at the personal level. This is called "double taxation." | Non-Profits are only taxed once and can write off most of their expenses. | Sole Proprietors are taxed only on their personal tax return. | |
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Tax exemptions
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| LLCs can claim deductions but not tax-exempt status. | S-Corps can claim deductions but not tax-exempt status. | C-Corporations are not tax-exempt entities | Not only are donations to Non-Profits tax-exempt, but NPOs can themselves apply for tax-exempt status. | Sole Proprietorships are the least official business entity and cannot claim tax exemption. | |
| State government fees | |||||
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Formation fees
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| LLCs must pay state fees during the incorporation process. These fees are tax deductible. | S-Corps must pay state fees to legally incorporate. These fees are tax deductible. | C-Corps must pay state fees to become legally recognized. These fees are tax deductible. | Non-Profits pay state fees when they incorporate. These fees are tax deductible. | Since Sole Proprietorships aren't incorporated entities, they don't pay formation or compliance fees. | |
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Compliance fees
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| While LLCs have less compliance requirements than other entity types, there are reports and licenses that need to be filed and maintained. | S-Corps usually will need to file reports and pay compliance fees on an annual or semi-annual basis. | C-Corps generally must file reports with their state, as well as a host of other regulatory and compliance fees. | Non-Profits have more compliance responsibilities than other entities as they must continually preserve their tax-exempt status. | Sole Proprietors do not have ongoing compliance fees. | |
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Need help?
Talk to an incorporation specialist: (888) 627-1186 |
Create your LLC Start Now Start Now |
Create your S-Corp Start Now Start Now |
Create your C-Corp Start Now Start Now |
Create your Non-Profit Start Now Start Now |
Start Your S-Corp Today
If you're planning on incorporating as an S-Corporation, we can help. We'll reserve your business name and take care of your S-Corp filing, no matter what state you're incorporating in. And if you need help down the line, we're here for you, whether you need Meeting Minutes, stock documents, or just help finding a discounted lawyer near you.