S-Corp Formation
S-Corporation Formation | Global S-Corp Setup with MTN Services
An S Corporation (S-Corp) is a special type of business entity that begins as a Limited Liability Company (LLC) or C Corporation, but then elects to be taxed under Subchapter S of the Internal Revenue Code. This election allows profits and losses to pass through directly to the shareholders’ personal tax returns, helping the business avoid double taxation.
At MTN Services, we provide complete S Corporation formation services worldwide, ensuring compliance with IRS regulations in the United States while supporting international clients who wish to form or restructure U.S.-based businesses.
What Are the Requirements for S Corporation Formation?
Forming an S Corporation involves meeting specific legal and tax criteria. Our expert team at MTN Services handles all the steps, including
Whether an LLC structure aligns with your business model
Note: S Corporation status is only available to U.S.-based companies and must meet IRS ownership and structure limitations.
Benefits of Forming an S Corporation
Protected Personal Assets
An S Corporation legally separates personal and business finances, shielding owners from personal liability for business debts and legal obligations.
Limited Liability
Owners are not personally responsible for corporate debts beyond their investment, providing legal protection in financial or legal disputes.
No Self-Employment Tax on Salary
S-Corp owners who pay themselves a reasonable salary avoid self-employment tax on corporate profits, resulting in significant tax savings.
Easy Ownership Transfer
Ownership shares in an S Corporation can be easily transferred without disrupting business operations — ideal for succession planning and investment opportunities.
External Investors & Credibility
Though S-Corps have restrictions on the number and type of shareholders, they still offer a level of investor appeal and business credibility globally.
Strict IRS & State Tax Obligations
To maintain S-Corp status, your business must meet specific compliance and filing rules. Missing IRS deadlines or misreporting taxes can revoke your status.
Not Recognized in Every Jurisdiction
While the S-Corp election is a U.S. federal tax classification, some states and local governments do not recognize it — potentially resulting in dual taxation. MTN Services will guide you based on your business’s location.
Shareholder Restrictions
S Corporations can only have 100 shareholders, and all must be U.S. citizens or residents. Additionally, S-Corps cannot be owned by other corporations or partnerships.
Why Choose MTN Services for Global S Corporation Formation?
Ready to Form Your S Corporation?
Whether you’re a U.S. citizen, resident, or a foreign entrepreneur looking to incorporate in the United States, MTN Services simplifies the S Corporation formation process from start to finish.