I need to know all that is involved with becoming an S Corporation in
Colorado, USA

What taxes must be paid, social security, etc. and how to apply for
all necessary tax ids, social security ids, etc.

Hello.

" S Corporation
An S Corporation is not a separate form of legal structure, but rather
a special tax status granted by federal tax law to a corporation to
tax the business' income like a partnership or a sole proprietorship.
A corporation elects S Corporation status by filing with the IRS on
Form 2553, "Election by a Small Business Corporation." Generally, the
election must be filed within 75 days of incorporating. Otherwise, a
corporation may not change its status until the beginning of each new
calendar year. Form 2553 must to be filed by March 15th to be
effective for the new tax year. Once elected, S Corporation status
will continue until the shareholders revoke the choice or a
corporation no longer meets the qualifications."
http://www.state.co.us/oed/guide/4-3.html

Thus, the first step is to form a corporation by filing articles of
incorporation and paying the $50 fee.
Colorado Articles of Incorporation Form 200
http://www.sos.state.co.us/pubs/business/pdf/200_Art_of_Incorp.pdf
[ Note that this document is in PDF format, so the Adobe Acrobat    
Reader is required. If you don't have that, please visit Adobe's web
site:
http://www.adobe.com/products/acrobat/readstep2.html  ]  

After you've incorporated, the next step is to obtain a tax ID number
(also known as an "Employer Identification Number" or "EIN") for the
corporation by filing a Form SS-4 with the IRS:
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
Online application at:
https://sa2.www4.irs.gov/sa_vign/newFormSS4.do

The next step is to elect S Corporation status by filing Form 2553
with the IRS. Generally, the election must be filed within 75 days of
incorporating.
http://www.irs.gov/faqs/page/0,,id%3D15793,00.html
IRS Form 2553
http://www.irs.gov/pub/irs-pdf/f2553.pdf
Form 2553 instructions:
http://www.irs.gov/pub/irs-pdf/i2553.pdf
[ This document is also in PDF format. Again, the Adobe Acrobat    
Reader is required. If you don't have that, visit Adobe's web site:
http://www.adobe.com/products/acrobat/readstep2.html  ]   

The question of "what taxes must be paid" is dependent on the income
the S-corporation.  Once your S-Corporation is established, you'll
have to file regular income tax returns using IRS Form 1120S and
Colorado Form 106.
Form 1120S
http://www.irs.gov/pub/irs-pdf/f1120s.pdf
1120S Instructions:
http://www.irs.gov/pub/irs-pdf/i1120s.pdf
Colorado Form 106: 2002 Colorado Partnership, or S Corporation Return
of Income - Forms and Instructions
http://www.revenue.state.co.us/PDF/02106.pdf


search strategy:
"s corporation", site:co.us
"ss-4", ein, site:irs.gov
"form 2553", site:irs.gov
"s corporation, site:revenue.state.co.us

I hope this helps.

---

Clarification of Answer by juggler-ga on 05 Aug 2003 15:20 PDT

Of course, if this S-Corporation has employees, it will have to
withhold Social Security, tax, etc.. See IRS- "Employer's Tax Guide"
http://www.irs.gov/pub/irs-pdf/p15.pdf

---

Request for Answer Clarification by flintelnetwork-ga on 05 Aug 2003 16:14 PDT

What I really need is, now that I am an S-corporation, how do I apply
to pay for social security, self employment tax, unemployment
insurance, for my employees. In other words... what other insurances
and taxes am I required to pay? (social security, etc.)

---

Request for Answer Clarification by flintelnetwork-ga on 05 Aug 2003 16:27 PDT

To be more clear about my above post:
What forms are required in order to submit the following:
1. Social Security Tax
2. Medicare Tax
3. Federal Unemployment Tax
4. State Unemployment Tax

And are there any other taxes (besides income tax) involved with being
an employer? Will I have to withhold income taxes for my employees as
an S Corporation?

---

Clarification of Answer by juggler-ga on 05 Aug 2003 16:52 PDT

With all due respect, your statement "I need to know all that is
involved with becoming an S Corporation in Colorado, USA" seemed to
imply that you were asking  how to BECOME an S Corporation.

Nonetheless...

Yes, S-Corporations, just like all other employers (e.g, sole
propietorship, partnership, regular corporation), DO have to withhold
various taxes from your employees' wages.

See IRS- "Employer's Tax Guide"
http://www.irs.gov/pub/irs-pdf/p15.pdf

Federal Form 941 covers withholding of income taxes, social security,
and Medicare taxes.
Form 941 Employer's Quarterly Federal Tax Return, 
http://www.irs.gov/pub/irs-pdf/f941_a.pdf
Instructions for Form 941, Employer's Quarterly Federal Tax Return
http://www.irs.gov/pub/irs-pdf/i941_a.pdf

Federal Form 940 covers Federal Unemployment (FUTA) Tax.
Employer's Annual Federal Unemployment Tax Return
http://www.irs.gov/pub/irs-pdf/f940.pdf

More information at:
http://www.irs.gov/faqs/page/0,,id%3D15921,00.html

"COLORADO WAGE WITHHOLDING
If you plan to have employees in your business, you are required to
establish a Colorado wage withholding account by filing the "Colorado
Business Registration" (CR 0100). There is no fee to set up the
withholding account.
Filing the CR 0100 will also establish your unemployment insurance
account. Unemployment insurance forms and additional information on
unemployment insurance can be obtained by calling the Colorado
Department of Labor and Employment at (303) 603-8231.
You can obtain information about withholding tax, including
information about simplified withholding filing by telephone, by
obtaining DOR Packet 1672 (wage withholding tax) through our Web site
at www.taxcolorado.com"
http://www.revenue.state.co.us/fyi/html/generl14.html
"Colorado Business Registration" (CR 0100)
http://www.revenue.state.co.us/PDF/cr0100.pdf
Also: Colorado Withholding Tax Requirements
http://www.revenue.state.co.us/fyi/html/withld05.html
DR 1094: Income Tax Withholding Return
http://www.revenue.state.co.us/PDF/dr1094.pdf

Great researcher. Very helpful. Successfully answered my needs.

Thanks for the tip.
-juggler