California S Corporation Attorneys

At Purdy & Bailey, LLP, our experienced California S corporation attorneys understand that forming a business can be both exciting and overwhelming. One important decision that new business owners must make is choosing the appropriate corporate entity. For many entrepreneurs in California, an S corporation may be the ideal choice.

An S corporation is a type of corporation that is taxed similarly to a partnership. This means that the corporation itself does not pay income taxes, but rather, the profits and losses of the corporation are passed through to the shareholders who report them on their individual tax returns. Additionally, S corporations are limited to 100 shareholders, and all shareholders must be individuals or certain types of trusts or estates.

Choosing to form an S corporation can offer several benefits to business owners. One major advantage is that shareholders are not personally liable for the corporation's debts or obligations. This can provide a layer of protection for personal assets. S corporations also offer potential tax savings for shareholders since they can avoid double taxation on profits.

At Purdy & Bailey, LLP, our team of California S corporation attorneys has extensive experience helping business owners form S corporations. We can assist with every step of the process, from drafting and filing the necessary documents to obtaining the necessary licenses. Our attorneys can also advise on the best strategies for managing and operating your S corporation to ensure compliance with California law and maximize tax benefits.

We can also assist with the dissolution of S corporations when necessary. If a business owner decides to close their S corporation, they will need to follow specific legal procedures to dissolve the entity properly. Our California S corporation attorneys can guide business owners through the dissolution process and ensure that all legal requirements are met to avoid potential legal or tax consequences.

What Are The Eligibility Requirements For Forming An S Corporation In California?

To form an S Corporation in California, specific eligibility requirements must be met. Key eligibility requirements are below:

• Entity Type: Your business must first be a domestic corporation, achieved by filing Articles of Incorporation with the California Secretary of State and paying the necessary fees.
• Shareholder Limit: S Corporations are limited to 100 shareholders. All shareholders must be U.S. citizens or resident aliens.
• Eligible Shareholders: Only individuals, certain trusts, and estates can be shareholders.
• Stock Classes: The corporation can issue only one class of stock
• Tax Election: To elect S Corporation status, all shareholders must consent by signing and submitting IRS Form 2553 within the required timeframe.
• California Franchise Tax: An annual minimum franchise tax of $800 is imposed on S Corporations in California.

Our S corporation attorneys in California are here to guide you through this process and ensure your compliance with all necessary regulations. Contact us for expert assistance.

Protect Your Business with Experienced Legal Counsel

When it comes to running a successful business, having the right legal support is crucial. At Purdy & Bailey, LLP, our team of experienced attorneys specializes in providing comprehensive legal services for California S Corporations. From formation and compliance to tax planning and business transactions, we are here to help you navigate the complex legal landscape.

Why choose Purdy & Bailey, LLP for your legal needs?

• Extensive expertise in California S Corporation law
• \Individualized attention and customized legal approaches
• Work with a committed team dedicated to protecting your business interests
• We have demonstrated success in supporting businesses similar to yours
• Strategic legal guidance to help your business thrive and grow

Don't wait until legal issues arise to seek professional counsel. Contact Purdy & Bailey, LLP to schedule a consultation and learn how we can help protect your California S Corporation.

At Purdy & Bailey, LLP, our team of experienced California S corporation attorneys can provide the guidance and support needed to navigate the complex process of forming and operating an S corporation. Contact us today at 858-360-7080 to learn more about our services and how we can help you achieve your business goals.