How To Start an S Corp (Step-By-Step for Beginners)

(ad) Start your LLC with Bizee: https://startupwise.com/bizee/ ^Start for $0 + state fees In this video, I go over the six steps to properly set up an S Corp, when S Corp status actually makes sense based on your income level, and how this structure can reduce your self-employment taxes once your business crosses a certain threshold. This is one of the most misunderstood structures for small business owners, and this video breaks it down from step one to ongoing compliance. Our favorite business must-haves: 💳 Best business credit cards: https://startupwise.com/creditcards 🏦 Novo (best business bank): https://startupwise.com/novo/ 🖥️ Best AI website builder (/month using code STARTUPWISE): https://startupwise.com/hostinger/ ⚙️ Northwest (best LLC formation service): https://startupwise.com/northwestLLC/ 💰 Payroll with Gusto (get 2 months free!): https://startupwise.com/gusto/ 👨‍💼 Best overseas staffing agency (save 80% on payroll): https://paired.so/startupwise Be sure to watch this video until the end because I'll explain exactly how write-offs work differently inside an S Corp, walk you through setting up payroll and taking distributions the right way, and cover every compliance step you need to maintain your S Corp status going forward. I also break down the honest pros and cons so you know exactly what you're signing up for before you make any decisions. Starting an S Corp sounds complicated, but the process is straightforward once you know each step. This video covers everything from forming your LLC and electing S Corp status to setting up payroll and staying compliant so you can legally reduce your tax bill. If you're earning enough to consider an S Corp in 2026, this is the clearest place to start. If you found this video helpful, be sure to check out our other videos on: LLC Write-Offs That Increase Your Tax Refund: https://youtu.be/NSjUJ7MOD0s Texas LLC: How to Start a Texas LLC in 7 Steps: https://youtu.be/sd5HgdzRBII Request New Videos Here: https://forms.gle/k9TtfauggkEpAWNQA More tutorials on our website: https://www.startupwise.com Thanks for watching! I hope you have a wonderful day! – Ashley #Business #Entrepreneurship #Finance Timeline: 0:00 - Introduction 0:36 - How Write-offs Actually Reduce Taxes 0:54 - What The Product or Service Is 3:06 - When an S Corp Actually Makes Sense 3:40 - Step 1: Form Your LLC 5:59 - Step 2: Separate Your Finances 6:21 - Step 3: Elect S Corp Status 6:52 - Step 4: Set Up Payroll 7:17 - Step 5: Understanding Distributions 7:39 - Step 6: Maintain Compliance 8:00 - Pros and Cons 8:50 - Bonus Tips to Make This Work Better 9:32 - Final Thoughts 9:47 - Conclusion Disclaimer: Some of the links above may be affiliate links, meaning I may receive a small commission if you click on them. The commission is paid by the retailers at no cost to you, and this helps to support our channel and keep our videos free. Thank you! All info from our videos is compiled from online sources and our own experience, and we encourage you to do your due diligence. We appreciate your viewership! In addition, we are not financial advisors. StartupWise does not provide tax, legal, or accounting advice. The ideas presented in this video are for entertainment purposes only. Please do your due diligence before making any financial decisions.