In these uncertain times many folks are dealing with layoffs. Others are only able to find temporary work. Instead of complaining and worrying about their financial future, many motivated folks use unemployment and/or uncertainty in the job market to start a small business. Ultimately these folks decide that a bad economy is just the opportunity to be their own boss.
Let’s be honest no one really likes having a boss, even if you have a good boss you still would rather work for yourself. Being your own boss allows you to make your own profit and not deal with working hard while someone else profits from all your hard work. Americans love to believe in the general proposition that the effort you put into a job equals the reward you take out. However, when you are working for a large corporation, or for someone else, that is not always the case. When you start your own business the effort you put in directly corresponds with the reward you take out!
Now starting a business can be complicated and you want to ensure you do everything correct. Our law firm can assist in these matters. Making the decision on whether it is best to incorporate as a ‘C’ corporation or an ‘S’ corporation, or to begin a Limited Liability Company, or establish a sole proprietorship, is something that should not be done without thought and planning and counsel. It is best to hire someone to help you do it right.
My firm provides legal counsel to many small businesses; we know what works and what doesn’t. We value our relationships with small businesses and want to ensure they succeed.
Below are a few guidelines for starting an S corporation in Alabama. For legal advice on your particular situation you should contact an attorney.
- Reserve the corporate name with the Secretary of State. Filing fee is $10.
- File the Articles of Incorporation with the county probate office and the secretary of state. (Filing fees vary by county, Secretary of State filing fee is $40)
- Apply for an Employer Identification Number with the IRS.
- Obtain a corporate seal and stock certificates.
- Draft by-laws for the corporation. By laws are like an official roadmap to how the corporation will operate.
- Hold the first meeting for the board of directors to elect officers of the corporation.
- Be sure to file the IRS form 2553 to be treated as an S corporation for tax purposes. This will ensure you aren’t double taxed on profits.
Our firm is happy to help you start your new small business or advise you on other business matters. If you need assistance in this area of the law or have any other legal questions, you can always contact our law office by e-mail at info@mitchellhowie.com or by phone at 256-533-8074. For more information please see our website at www.mitchellhowie.com.
