How to File for an S Corporation in Georgia

billion dollar corporation image by Augustus Saxton from Fotolia.com

S Corporations are small, closely held companies that are tax exempt. Rather, the business's porfits are reported only on the shareholders' income tax returns. Georgia requires three things to be an "S" corporation: that there be no more than 75 shareholders, that each shareholder pay Georgia income taxes and that the business cannot create different classes of stock (such as stocks with voting rights and stocks with distribution rights; each share of stock must be uniform in an S Corporation). If a business meets the requirements, it is tax-exempt.

Visit sos.Georgia.gov. Follow the links to the Corporations Division and select "Forming a New Organization" from the tabs at the left side of the page.

Click on "File Corporation Online." Provide a name for your corporation, your name and address, a valid email address, the business' principal office address, the name and address of the registered agent, each name an address of the business' incorporators, and the number of authorized shares.

In the "optional provisions" section, state that you are electing to become an "S" corporation.

Pay the filing fee with a major credit card. As of March 2010, it cost $100 to create a corporation.

Gather no more than 75 shareholders, and ensure each pays Georgia income taxes, and only has one class of stock.

Apply for "S" Corporation status from the IRS by completing and filing IRS Form 2553 at www.IRS.gov.

Tips

  • While an S Corporation is tax-exempt, this does not mean that the business pays no taxes. C corporations (the standard corporation) must pay taxes on the income it earns. Shareholders must also report any distributions from the C Corporation on their personal income tax returns.

References

Resources

About the Author

Based in Traverse City, Mich., George Lawrence has been writing professionally since 2009. His work primarily appears on various websites. An avid outdoorsman, Lawrence holds Bachelor of Arts degrees in both criminal justice and English from Michigan State University, as well as a Juris Doctor from the Thomas M. Cooley Law School, where he graduated with honors.

Photo Credits

  • billion dollar corporation image by Augustus Saxton from Fotolia.com