You've been in business for a while, and you've decided it's time to make the move from being a sole proprietorship to an S-corporation. You've got some questions. How do I know if this is the right time? What should I expect? What should I do next? All good questions that we're here to answer!
In this day and age, it is more important than ever to have a professional help you with your insurance agency. Unfortunately, many people believe that they can handle everything on their own, which often leads to frustration, delays, and unnecessary headaches. In order to avoid this, we recommend hiring a professional who can help guide you through the process while making sure everything is done correctly and legally.
Here are our top 4 reasons why hiring a professional to help with your conversion is the best decision.
Transitioning from a sole proprietor to an S-corp is all about the details, which can be difficult, even for a professional. If you want to ensure that everything is done correctly and on time, then use a professional who has handled this many times before.
The most important part of forming an S-corporation is to file all of the right paperwork with the IRS (and your state). This includes filing form 2553 (S-Corporation Election) to be recognized as an S-corporation with the IRS.
If you are a sole proprietorship and want to transition into an S-Corp, it is very important that you get a DUNS number for the corporation. Establishing a DUNS number for your S-corporation will be the first step in establishing credit for your business.
The Data Universal Numbering System, or DUNS number, is a unique identifier that is used to help businesses establish credibility. Credibility is necessary if you are going to be able to get lines of credit at banks and other financial institutions. It’s also important if you want other businesses to take notice of your company as well as potential customers or clients.
Most business owners fail to do this when transitioning to an S-corp and have to take out loans in their personal name perpetually.
You'll need to make sure that your employees get paid as you transition from being a sole proprietor to an S-corporation. This is usually a headache for most business owners, but at Club Capital, we'll do all of the hard work for you! We'll migrate the data and make sure everything goes smoothly when it's time for your employees to start getting paid through the new payroll profile.
When you make the switch from a sole proprietor to an S-corp, you have to migrate your benefits. It's a tedious, paperwork-intensive, and time-consuming process that can cause delays.
At Club Capital, we help you avoid those problems by migrating the data for you. We'll get it done quickly and seamlessly so you can focus on what matters, running your business.
We've been helping insurance agency owners with this transition for years, and we're here to help you make it as smooth as possible. We'll provide you with all the information and experience you need to navigate the process of becoming an S-corporation.
We offer a variety of services, including but not limited to:
The bottom line: if there's one thing we've learned over the years, it's this: people who start out by trying to do everything themselves often end up spending far more money than they would have had they hired someone else in the first place.
For the past 5 years, Club Capital has helped insurance agents better manage their agency's finances through best-in-class monthly accounting, CFO, and tax services. Schedule a demo today!