S-Corporation

A corporation is a person or group of people who establish a legal entity by failing articles of incorporation with the state’s secretary of state granting it certain legal powers, rights, privileges, and liabilities. An S corporation is an eligible domestic corporation that wants to avoid double taxation (once to the shareholders and again to the corporation) by electing this status using Form 2553 (Election by a Small Business Corporation). The income of an S corporation generally is taxed to the shareholders of the corporation rather than to the corporation itself.

Start S-Corporation Tax ID Application


An S-Corporation, also known as a Small Business Corporation, is a person or a group of people who establish a legal entity by filing articles of incorporation with the state’s secretary of state granting it certain legal powers, rights, privileges and liabilities. An S-Corporation (sometimes referred to as an S Corp) is a special type of corporation created through an IRS tax election. An S-Corporation is an eligible domestic corporation that aims to avoid double taxation (once to the shareholders and again to the corporation) by electing this status using Form 2553 (Election by a Small Business Corporation). The income of an S-Corp generally is taxes to the shareholders of the corporation rather than to the corporation itself. 

Quickly Obtain an EIN for your S-Corporation

It is advised that you obtain an EIN when doing business and filing taxes through a Small Business Corporation. An EIN is used as an identifier throughout the corporate world, so having a Tax ID number would be highly recommended. Before you form an S-Corporation, determine if your business will qualify under the IRS stipulations. Gov Doc Filing makes the process of obtaining an EIN for your S-Corp easier than ever before. Our onlineTax ID services also expedite the process of the forming of an S-Corporation, putting the time and manpower back in your hands. We handle the lengthy paperwork and filing, ensuring 100% accuracy and efficiency, while you are left to concentrate on building your small business.

Benefits of forming and filing under an S-Corporation

Tax Savings – One of the highlights of forming a Small Business Corporation are the tax savings. While members of an LLC are subject to employment tax on the entire net income of the business, only the wages of the S Corp shareholder who is an employee are subject to employment tax. The remaining income is paid to the owner as a “distribution,” which is taxed at a lower rate, if at all.

Business Expense Tax Credits – Some expenses that shareholder/employees incur can be written off as business expenses. Nevertheless, if such an employee owns 2% or more shares, then benefits like health and life insurance are deemed taxable income.

Independent Life – An S corp designation also allows a business to have an independent life, separate from its shareholders. If a shareholder leaves the company, or sells his or her shares, the S corp can continue doing business relatively undisturbed. Maintaining the business as a distinct corporate entity defines clear lines between the shareholders and the business that improve the protection of the shareholders.

Disadvantages of an S Corporation

Stricter Operational Processes – As a separate structure, S corps require scheduled director and shareholder meetings, minutes from those meetings, adoption and updates to by-laws, stock transfers and records maintenance.

Shareholder Compensation Requirements – A shareholder must receive reasonable compensation. The IRS takes notice of shareholder red flags like low salary/high distribution combinations, and may reclassify your distributions as wages. You could pay a higher employment tax because of an audit with these results.

Reasons to apply for an EIN

You need to get an EIN/Tax ID Number if you:

  • Started a new business.
  • Hired or will hire employees, including household employees.
  • Opened a bank account that require an EIN for banking purposes.
  • Formed or created a trust, pension plan, corporation, partnership, LLC.
  • Need to open a business bank account or want to start a business line of credit.
  • Changed the legal character or ownership of your organization (for example, you incorporate a sole properitorship or form a partnership)
  • Represent an estate that operates a business after the owner’s death.

Online application available 24/7/365

Our service will process your application for an EIN/Tax ID number (SS-4 Form) with the IRS to obtain your tax ID Number and deliver it to you quickly and securely via email.

  • Or EIN form is simplified for your ease of use, accuracy, and understanding, saving you time!
  • We guarantee applications are processed and EINs are delivered to you same day, and usually within hours. If submitted past 9pm EST, the EIN will be delivered to you on the next business day. We do not charge extra for a rush delivery, while some will charge $300+ for this.
  • The IRS site is hard to navigate, times out, and is prone to errors. It also is closed nightly and on weekends, whereas our applications and our support line is available any time 24/7/365!
  • Our tax savvy customer service team are readily availble by phone or e-mail for your convenience and support if needed.
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