Roadmap

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)