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Rabu, 19 Oktober 2011

Maine Corporations, LLCs And S Corporations

You know what? You don't need to go to an attorney or law firm to incorporate in Maine. And you also don't need to get a tax accountant's help to set up an S corporation. The reason? Both the state of Maine and the Internal Revenue Service provide helpful, free resources to small business people wanting to do this stuff.

Free Resource #1: Free forms from State of Maine

To incorporate in Maine, you file articles of incorporation or articles of formation with the Maine Secretary of State. But while you can retain an attorney to do these articles for you, you can also work from free forms the state provides at its website.

The website addresses of the free downloadable forms change pretty frequently. But if you know the exact name of the free Maine form you need, you can search (using something like Google or Bing) on the form name and quickly locate what you're looking for.

For example, to locate the free downloadable form for incorporating in Maine, search on "MBCA-6: Articles of Incorporation." And to locate the free downloadable form for setting up a limited liability company in Maine, search on "MLLC-6: "Certificate of Formation."

Two quick points about these forms: First, even if you don't end up taking a do-it-yourself approach to incorporating in Maine, download and examine the forms so you better understand the process. Two, note that both Maine corporations and Maine LLCs can make an election to be treated as a S corporation.

Free Resource #2: Free EIN set up

The step you take after forming a corporation or limited liability company is getting a taxpayer identification number for the new entity. You can get this number, called an employer identification number, from the Internal Revenue Service. And, the good news is, the application process is both free and fast.

The standard (and slightly old school) way to get an employer identification number, also called an EIN, is to download an SS-4 form from the IRS dot gov website, fill out the form, and then either mail or fax the completed the form to the Internal Revenue Service.

The faster way to get an EIN is to visit the IRS website's home page and click on the link that lets you apply online for your new corporation's or limited liability company's ID number. Look for the link labeled "Apply for an Employer Identification Number (EIN) Online." Note that the online EIN application walks you through the steps for applying, supplies helpful onscreen help to answer your questions, and gives you a EIN at the end of the process.

Free Resource #3: Free sub S election help and forms

Commonly, as hinted at in the opening paragraph, a small business owner goes to a tax accountant for making a Subchapter S election for a new Maine LLC or corporation. But you can do the election yourself, as long as you know which form to use and where to get instructions for filling out the form.

If you're ready to try (or least think about trying) this yourself, know that the form you use is the "Internal Revenue Service 2553 form." And know that to find this form, all you need to do is visit the IRS dot gov website and enter this phrase into the home page's search box.

You'll probably also want the free instructions that explain the form. To get that instruction for the 2553 form from the IRS website, search on the phrase "2553 Instructions."

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