Mark J. Kohler, a CPA-attorney, walks through four essentials for keeping an S-corp in good standing: filing quarterly payroll reports even if they're zero, maintaining corporate records and meeting minutes, paying state registration fees, and filing your annual tax return by March 15.
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Hi, Mark Kohler here with another tax and legal tip. Let's talk about how to maintain an S corporation. Now, if you're using an S corporation, you know they can be a powerful tool to save taxes and give you asset protection. But if you don't maintain them, you're going to get into problems with the IRS and not get that protection in a lawsuit that you expected. So let's go over four ways to maintain your S Corp. Number one, make sure you're doing your quarterly payroll reports. Now, even if you didn't make money in the last quarter, you've got to send in zero reports. Remember, the IRS is like a girlfriend or boyfriend. If you don't call them, they're going to assume the worst. So stay in touch. File those reports quarterly and make sure you're claiming the right amount of payroll. Number two, make sure you're doing your annual reports. If you're going to have a corporation, maintain it so you get the protection you expect. You should have a corporate book and stock certificates and bylaws in minutes. And every year do your shareholder meeting and your board of directors meeting. We have a company maintenance program at our office for clients all over the country in all 50 states. 150 bucks a year and we'll do the minutes for you and can clean up your entity if it's a mess. Make sure that you're paying your annual registration fee to the state and filing any forms you're supposed to to keep your corporation in good steady. If you don't file these forms, the state's going to involuntarily dissolve your corporation and you don't have one anymore. Not a good thing. And number four, it almost goes without saying, file your annual tax return. It's due by March 15th. You got to file an extension. If you're not ready to file, that's cool, but you've got to file the tax return. And remember, it's better to file and take a good guess at the numbers if you have to and amend it later. There's penalties for not filing and that's even if it's a zero return. So make sure that you're filing that form every year by March 15th and staying out of harm's way with the IRS. In summary, the power of the S Corporation is phenomenal, but you've got to again, maintain it in order to get the benefits from it. Now, if you don't know if you should even have an S corporation, you're still trying to remember why, go watch my other video on when to use an S corporation, check out this link below. Keep living your American dream. Thanks for listening and I hope that information was helpful. And let me speak from the heart here. I've been talking about topics like this for 1015 years. I'm a CPA attorney, best selling author, radio show host, and I am passionate about helping small business owners save taxes, build wealth, and protect it. Please check out the link right here. Download my free ebook on 10 Common Mistakes Small business owners make in the tax and legal arena. Also check out my social media links here. I've got Daily Tips, a weekly blog radio show every week. This information is free and I'd love to help you. Click below. Find out more about me and thanks for listening.
