Need Advise With S-Corp
When you set up an S-Corporation, do you need to have your attorney setup an operating agreement to run your business in your state? If so, can you download these forms?
Hope to hear back from someone soon.
Thanks.
Carol
At least in Arizona, a corporation's board of directors is supposed to adopt initial by-laws (ARS 10-206). You should check your own state's laws. However, I strongly recommend preparing By-laws no matter what. An attorney should help you talk through some issues that you would not have thought of.
Thank you.
You'd think you'd need an attorney, and you may, esp. if you have more than one member. Some states, like mine, have the forms online and it's no more difficult to start a domestic corp. than it is to start an LLC; it takes about ten minutes to fill out a form and you write a check for $135 and send it in. The operating agreement is right there on the website, and is just a generic one intended for use by all applicants. The "S" designation comes from the IRS and your state revenue dept., and you apply for it separately, after you est. the corp, or at least that's how it works here. It may not hurt to have a lawyer involved, but it's not rocket science either.
Dear Carol ,
I have an S corp and an LLC . .Aside from the legal issues it's agood idea to talk with your accountant before you set it up to be sure it will do what you want it for because it can affect your taxes and there can be other costs that go with it as well.
George
Certainly you can establish entities on your own. I'm all for that when no tax or legal advice is needed. There is a do-it-yourself option for pretty much everything. But an expert can help with many things - big picture and details. In my career, I've seen countless mistakes made by do-it-yourselfers in the areas of tax, business entity selection and asset protection. We all need a little help along the way.
Back to Carol's question ... if you're the only owner, a very simple by-laws document will suffice. If you're expecting partners, or have your corp going to multiple children in your estate plan, go see an attorney and get a professional by-laws document done.
Hello Everyone,
Thank you for taking to time and responding back. I appreciate everyone's advise. I will contact my attorney.
Thank you and Merry xmas everyone.
Carol