S-Corp Roadmap
Step 1:
Create an LLC or Corporation.
Resources:
- Rossini and Associates can provide you with legal services for set up
- Legalzoom.com
- Other attorneys
Further information: 7 Benefits of Starting an LLC – LLC Benefits | TRUiC (howtostartanllc.com)
Step 2:
Elect S-Corp status with the IRS
Resources:
- Form 2553
Further Information: S Corporations | Internal Revenue Service (irs.gov)
Step 3:
Open a business bank account
Resources:
- Any local or national bank will offer this service
Step 4:
Optional – Sign up for a business credit card
Resources:
- Suggestion is to open a card with the bank you have a business account from Step 3. There are many, many options on credit cards, so discuss with your bank on which would be best for you!
Step 5:
Only use your bank account and business credit card for business expenses. This will ensure capture of all business expenses.
Step 6:
Change all direct deposits and regular deposits to your business bank account.
Step 7:
Create an auto lease for your personal vehicle to your newly formed S-Corp
Resources:
- Rossini and Associates has a template for this legal document
Step 8:
Set up and schedule your Other Related Business Expenses (OBREs)
These will include auto lease, home office reimbursement, and meetings.
Resources:
- Rossini and Associates offers a scheduler for expenses
Further information: Start or review an accountable plan – Journal of Accountancy
Note: This tax law can be dense. Rossini and Associates will walk you through the law and translate into English.
Step 9:
Set up a system of accounting
Resources:
- Suggestion is to use Quickbooks for more complex clients, and Excel or Numbers for smaller businesses
Rossini and Associates offers Excel templates for bookkeeping
Rossini and Associates partners with local bookkeepers that will maintain your Quickbooks file, for a fee.
Further information: QuickBooks®: Official Site | Smart Tools. Better Business. (intuit.com)
