Articles of incorporation refer to the legal documents that a business entity must file with the state authorities to establish and register as a corporation. These founding documents outline the company’s purpose, structure, procedures, and identify its owners or shareholders. In California, if you’re planning to establish a limited liability company (LLC) that is taxed as an S corporation, there are specific forms that you need to file with the state authorities.
To register an LLC as an S corporation in California, you will need to file a complete Articles of Organization (Form LLC-1). This document contains important information about your LLC, including its name, purpose, management structure, and the names and addresses of its members. Additionally, to elect taxation as an S corporation, you must file a completed Form 8832 with the Internal Revenue Service (IRS) and Form 2553 with the California Franchise Tax Board.
It’s essential to ensure that you provide accurate and complete information when filling out these forms as any discrepancies can lead to delays, additional costs, or even legal problems. If you’re unsure about the process or have any questions, it’s advisable to seek the guidance of a qualified business attorney, tax professional, or certified public accountant. With the correct forms, accurate information, and professional assistance, you can establish your LLC as an S corporation and start your business journey in California.
Form Llc-1
Form LLC-1 is the official document used to create a Limited Liability Company (LLC) in California. If you want to form an LLC in California with a S Corporation, you need to file Form LLC-1 and other related documents with the California Secretary of State’s office.
Form LLC-1 requires you to provide information such as the name of the LLC, the address of the LLC, the name and address of the registered agent, and the name and addresses of the LLC’s members or managers. You will also need to specify the type of management structure for your LLC, whether it will be member-managed or manager-managed.
Other forms you need to file with the California Secretary of State’s office include:
Form 2553: This is the form used to elect S Corporation status for your LLC. You need to file it with the IRS within 75 days of forming the LLC.
Statement of Information: This is a form that provides additional information about your LLC, such as the names and addresses of the officers, managers, and other authorized persons. You need to file it within 90 days of forming your LLC, and then every two years after that.
Once you have submitted these forms to the California Secretary of State’s office and paid the required fees, your LLC will be officially formed and registered in the state of California.
Statement Of Information
In California, you are required to file a Statement of Information for your LLC. You can file this form online or by mail. The form will require basic information about your LLC, including the name and address of the LLC, the name and address of the registered agent, the names and addresses of the LLC’s managers and members, and the LLC’s business purpose.
Additionally, if your LLC is classified as an S corporation for tax purposes, you will also need to file Form 2553 with the IRS in order to elect S corporation status. This form must be filed within 75 days of the date of formation or within 75 days of a new tax year.
When filing taxes for your LLC, it is important to know which TurboTax version to use, as some may not support all deductions for LLCs. You may also need to file additional tax forms, such as Form 1065 if the LLC has more than one owner or Form 1120S if the LLC has elected S corporation status. It is recommended to consult with a tax professional to ensure that all necessary forms are filed accurately and on time.
Form Llc-12
Form LLC-12, otherwise known as a Statement of Information, is one of the forms required by the state of California for LLCs with S corporations. The form is used to update the state on changes to the LLC such as the name of the LLC, address, and contact information of members or managers.
In California, LLCs with S corporations are required to file Form LLC-12 with the Secretary of State every two years. Failure to file the form on time can result in penalties or even the suspension of the LLC’s status.
When filling out Form LLC-12, LLC members or managers must provide information such as the LLC’s name, its California Secretary of State file number, its principal business address, the name and address of the LLC’s owner, and the name and address of the registered agent if one is being used.
In addition to Form LLC-12, LLCs with S corporations may also need to file other documents with the California Secretary of State such as the Articles of Organization, the Statement of Information for LLCs, and the election of S corporation status. It is important to review the California Secretary of State’s website or consult with an attorney to ensure that all necessary forms are filed and that the LLC remains in compliance with state requirements.
Form 540
Form 540 is not a form required for an LLC with an S Corp in California.
However, there are several forms that an LLC with an S Corp in California must file. Some of the critical forms include:
1. Form 100S: This is the California S Corporation Franchise or Income Tax Return. It is used to report the S corporation’s income, deductions, and credits.
2. Form 568: This is the Limited Liability Company Return of Income. It is used to file California LLC’s return of income and is required for all LLCs, including those taxed as an S corporation.
3. Schedule K-1: This is issued to each member of the LLC as a record of their share of the profits, losses, deductions, and credits for the year.
4. Form 3522: This is the Limited Liability Company Tax Voucher. It is used to pay the annual $800 LLC tax that is due every year.
5. Form 2553: This is the Election by a Small Business Corporation. It is used to elect S corporation status for your LLC with the IRS.
It’s important to note that LLCs taxed as an S corporation are still relatively new in California, and it’s advisable to consult a tax professional or attorney to ensure that all applicable forms are filed properly.
Form 1099-Misc
Form 1099-MISC is a tax form that reports income received by an individual who is not an employee. LLCs with S corporation status usually issue Form 1099-MISC to report payments made to independent contractors or vendors during the tax year.
In addition to Form 1099-MISC, LLCs with S corporation status in California may need to file Form 568, the Limited Liability Company Return of Income, which reports the LLC’s income or loss for the year. The LLC may also need to file Schedule K-1, which shows each individual shareholder’s share of the LLC’s income, losses, deductions, and credits.
If the LLC pays any employee wages, it must file Form W-2, Wage and Tax Statement, and Form 940, Employer’s Annual Federal Unemployment Tax Return. The LLC may also need to file Form 941, Employer’s Quarterly Federal Tax Return, to report employee income, Social Security, and Medicare taxes withheld during the year.
It is important for LLCs with S corporation status in California to keep accurate records of all income and expenses throughout the year to prepare and file all necessary tax forms promptly. Failure to file these forms accurately and on time may result in penalties and interest charges.
Form 3522
Form 3522 is required when forming an LLC in California with an S-Corp election. This form is also known as the Limited Liability Company Tax Voucher and is used to pay the annual minimum franchise tax of $800 for LLCs in California. The tax voucher must be filed each taxable year along with the LLC’s tax return.
When submitting Form 3522, LLCs must provide their entity name, tax ID number, and the taxable year for which the payment is being made. The form must also have the signature of an authorized person from the LLC and payment must be remitted with the voucher.
LLCs with S-Corp election are required to pay the annual minimum franchise tax regardless of their income or activities in California. Failure to pay the tax in a timely manner may result in penalties and interest charges.
In addition to Form 3522, LLCs with S-Corp election must also file Form 100S, the California S Corporation Franchise or Income Tax Return, to report their income, deductions, and credits for the taxable year. Form 100S must be filed with the California Franchise Tax Board by the 15th day of the third month following the close of the taxable year.
Form 8869.
Form 8869, also known as the Qualified Subchapter S Subsidiary Election, is not directly related to forming an LLC in California. As an LLC is considered a disregarded entity for federal tax purposes by default, the entity would need to file Form 2553 to elect for S Corporation taxation. An S Corporation, in turn, is a type of corporation that provides beneficial tax treatment to its shareholders, as their share of the corporation’s income is only taxed at the individual level, rather than at both the individual and corporate levels.
If the LLC has elected to be taxed as an S Corporation, it may need to file Form 8869 if it acquires another subsidiary entity and wants to elect for the subsidiary to be taxed as a Qualified Subchapter S Subsidiary (QSub). A QSub is a domestic corporation that is partly or wholly owned by an S Corporation and elects to be treated as a disregarded entity for tax purposes. This election allows the S Corporation to consolidate its tax reporting for the QSub, simplifying the tax process.
Overall, the necessary forms for an LLC in California with S Corporation taxation will be Form 2553 for electing S Corporation status and any applicable tax forms for reporting income and expenses. Form 8869 may only be necessary if the entity acquires a subsidiary that it wishes to treat as a QSub.
Final scene
To form a Limited Liability Company (LLC) in California with an S Corporation (S Corp) tax classification, there are several forms that you need to file. The process can be overwhelming, especially if you are not familiar with California’s Business Entity laws. This blog post aims to provide you with a clear understanding of what forms you need to file to form an LLC in California with an S Corp.
Firstly, you need to file Form LLC-1 to establish your LLC in California. This is the Articles of Organization form, which lays out the basic details of your LLC such as the name, mailing address, and registered agent. After that, you must file Form 2553 with the IRS to elect S Corporation tax treatment for your LLC. This will enable you to pass-through profits and losses of the business to individual shareholders for tax purposes.
Once you have completed both of these forms, you must file Form 568, which is the Limited Liability Company Return of Income, with the California Franchise Tax Board. This is the tax return for LLCs in California that need to disclose all income, deductions, and credits of the business. Also, you need to file Schedule K-1 with Form 568 to allocate profits and losses to individual shareholders for tax purposes.
In conclusion, forming an LLC in California with an S Corp requires several steps and forms. To start, you need to file Form LLC-1 to establish your LLC in California. After that, you must file Form 2553 with the IRS to elect S Corporation tax treatment for your LLC. Finally, you need to file Form 568 with the California Franchise Tax Board along with Schedule K-1 to allocate profits and losses to individual shareholders. Adhering to the procedures and understanding the requirements and forms needed will save you time and money in the long run.