Form an S Corporation in Nevada
The state of Nevada is a favorable location to incorporate a business due to the privacy and tax treatment granted businesses that operate in Nevada. Subchapter S Corporations in the state of Nevada appear as a separate legal entity from the owners (shareholders) of the business. In order to form an S Corporation in the state of Nevada, the company must have 100 shareholders or fewer. Furthermore, only resident aliens, certain estates and trusts are allowed to form an S Corporation in the state of Nevada. The appropriate documents must be filed with the IRS and the Nevada Secretary of State's office, as a condition of forming a Nevada S Corporation.
Instructions
1. Conduct a name availability search on the Nevada Secretary of State website. Nevada S Corporations must select a business name that appears unused by another registered business entity in the state of Nevada. Furthermore, Nevada S Corporations must select a business name that isn't currently held on reserve by another business entity in the state of Nevada. In addition, Nevada S Corporations must include words such as "incorporated," "corporation" or the appropriate abbreviation in the corporate name of the business.
2. File articles of incorporation with the state of Nevada. The Nevada Secretary of State's website provides S corporations with fill-in-the-blank articles of incorporation that appear the same as C Corporation articles of incorporation. Nevada articles of incorporation must include the name and address of the business, as well as the name and address of the S Corporation's registered agent. The Nevada S Corporation's registered agent must be an individual, 18 or over, or a business that agrees to accept legal process on behalf of the S Corporation. Nevada S Corporations must maintain a physical address in the state of Nevada. S Corporations in the state of Nevada may submit articles of incorporation in person to the Nevada Secretary of State's office.
3. Create written bylaws for the Nevada S Corporation. The state of Nevada doesn't require S Corporations to file corporate bylaws with the state, but Nevada S Corporations should keep corporate bylaws at the company's place of business. Nevada state law offers no guidelines in terms of creating bylaws for an S Corporation. Written bylaws will help determine the rules and regulations that will govern the Nevada S Corporation, and may include provisions such as the manner in which directors are elected, as well as the duties of corporate officers.
4. File a list of officers, directors and resident agent with the Nevada Secretary of State's office. Nevada state law mandates that every corporation in the state must file this listing before the last day of the month after the S corporation files the articles of incorporation, as stated on the Sun Document Filings website. A $125 filing fee must accompany the Nevada S Corporation's listing of officers, directors and resident agent.
5. Request a federal tax ID number from the IRS. Nevada S Corporations may obtain a federal tax ID via phone, fax, mail or online. Phone and online inquiries allow a Nevada S Corporation to receive a federal tax ID number for immediate business use. Nevada S Corporations that elect to mail Form SS-4 may wait up to four weeks to receive a federal tax ID number. Faxing Form SS-4 will delay a Nevada S Corporation's receipt of a federal tax ID number by up to four business days.
6. Register the Nevada S Corporation for state business taxes. Nevada S Corporations that sell goods may need to obtain a seller's permit, as well as a sales and use tax permit. The state taxes the Nevada S Corporation must register for will depend on the nature of the business. For example, Nevada S Corporations that offer alcoholic beverages or sell Tobacco products must register with the Nevada Department of Taxation. Nevada S Corporations can register the business online on the Nevada Department of Taxation's website. Nevada S Corporations must provide their federal tax ID number in order to complete the registration process.
7. Apply for licenses and permits needed to operate the S Corporation in the state of Nevada. The permits and licenses needed to legally operate an S Corporation in the state of Nevada will depend on the nature of the business. All Nevada S Corporations must obtain a business license to operate in the state of Nevada. Nevada S Corporations can obtain a business license from the Nevada Secretary of State's website. Nevada S Corporations that operate in certain locations may be required to obtain a zoning permit. In addition, Nevada S Corporations that provide professional services, such as barbers or architects, must obtain the appropriate state occupational license. Contact the city or county clerk's office where the Nevada S Corporation operates to ensure the company has all local licenses and permits required to legally operate the business.
8. File Form 2553 with the IRS. According to the Toolkit website, Nevada corporations must submit Form 2553 to the IRS in order to gain S Corporation status. Nevada S Corporations have two months and 15 days after filing articles of incorporation with the state of Nevada to File Form 2553 with the IRS. Form 2553 must be signed by all shareholders of the Nevada S Corporation.
