“S” Corporations - An “S” Corporation is an entity formed under the laws of the State of Colorado. It is a standard corporation that provides liability protection to it’s shareholders. The shareholders are the persons that actually own the corporation. The Corporation will also have Directors and Officers. These persons will manage the corporation and run it’s day to day operations. To qualify as an “S” corporation one must make a valid election with the IRS within 75 days of incorporation by the State. A valid election allows the corporation to be taxed as a pass through entity. This means that the corporation will file a tax return but all of the profits and losses of the corporation will flow out to the shareholders in accordance with their ownership in the corporation. In order to have an “S” Corporation one must have less than seventy five (75) shareholders, all shareholders must be U.S. Citizens and the corporation can only possess one class of stock. (General Voting Stock). “S” Corporations are required to file an 1120S tax return form due on March 15 of each year. You will also be required to file an annual report with the Secretary of State. The cost of that report is currently twenty five dollars ($25.00). You will also be required to open a bank account in the name of the corporation. All corporate income should be deposited into that account and corporate expenses should be paid from that account as well. You are also required to hold yourself out as a corporation. Your letterhead, business cards, invoices and other documentation should all be coming from the corporation itself and not you as individuals.
 
Your corporate package includes the following items:
  1. Articles of Incorporation
  2. By Laws.
  3. Organizational Minutes
  4. Stock Certificates
  5. Tax identification number
  6. Sub Chapter “S” Election
  7. Colorado Business Registration Form
  8. Corporate booklet.
  9. Do’s and Don’t list
The legal fees required to set up this entity are $200.00 plus filing fee ($50.00). Your total out of pocket expense is two hundred fifty dollars ($250.00) to have a fully functional ready to go “S” Corporation in Colorado.