Running a business in Colorado can offer numerous opportunities for success. However, operating within Colorado's S corporation law requires knowledgeable legal counsel to foster your business's prosperity. Whether you need help with forming an S corporation, ongoing compliance, or resolving unique operational challenges, our experienced business attorneys can provide comprehensive legal guidance throughout your journey.

At Howard O. Bernstein, P.C., we have years of experience in providing dedicated, dependable, and client-focused legal services for S corporations throughout the state. Whether your business is just starting or has been in operation for years, our experienced attorneys, Howard Bernstein, Mark Hamilton, and Vianes Rodriguez, offer comprehensive legal services to support your business needs.

Located in Boulder, Colorado, we serve clients throughout Nederland, Longmont, Broomfield, North Glen, and the Denver metro area. Contact us today to schedule an initial consultation.

The Legal Parameters of S Corporations

An S Corporation represents a distinct tax election available to qualifying domestic corporations, primarily designed to circumvent the double taxation inherent in traditional C Corporations. Under this designation, corporate profits and losses are passed through to shareholders' personal income, resulting in taxation at the individual level only.

This structure meticulously preserves the corporate legal identity, furnishing shareholders with limited liability protection while extending the tax efficiencies commonly associated with partnerships or sole proprietorships. To attain and maintain S Corporation status, you must meet and continuously uphold specific and stringent criteria mandated by the Internal Revenue Service (IRS):

Domestic corporation status: The entity must be formally organized as a domestic corporation within the United States.

Permitted shareholder types: Shareholders are restricted to U.S. citizens or resident aliens, individuals, certain qualified trusts, and estates. Partnerships and corporations are generally precluded from being shareholders.

Shareholder limit: The corporation is restricted to a maximum of 100 shareholders.

Single class of stock: The corporation must exclusively possess one class of stock, though variations in voting rights among common stock are permissible.

Eligible entities: Certain financial institutions, insurance companies, and Domestic International Sales Corporations (DISCs) are explicitly ineligible for S Corporation election.

Consistent adherence to these regulations is paramount, as any deviation can result in automatic termination of S Corporation status and a return to C Corporation status for tax purposes. While offering considerable tax advantages, the S Corporation structure requires diligent ongoing compliance and meticulous administrative oversight to maintain its favorable tax status.

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Our S Corporation Legal Services

S corporation attorneys play a crucial role in helping businesses establish and maintain their legal structure while ensuring compliance with state and federal laws. Colorado has specific statutes governing corporations that can be challenging and nuanced, making it essential to have an experienced attorney by your side. Our business law attorneys can assist with:

Ensuring compliance with the Colorado Revised Statutes.

Drafting and filing key documents, including articles of incorporation and bylaws.

Advising on tax-related issues and assisting with IRS applications for tax-exempt status.

Helping businesses understand their rights and responsibilities under corporate law.

Whether you are launching a new venture, restructuring your existing business, or facing legal disputes, our team provides the guidance needed to protect your corporation's interests.

Corporate Counseling in Colorado

A corporation is a legal entity separate and distinct from its owners, called shareholders. Shareholders typically benefit from limited liability, meaning their personal assets are protected from business debts and lawsuits. However, corporations are subject to "double taxation," in which corporate profits are taxed, and dividends distributed to shareholders are taxed again. Establishing and maintaining a corporation is often more challenging, requiring strict adherence to corporate formalities.

At Howard O. Bernstein, P.C., our corporate counseling includes offering legal advice and strategic direction to businesses. Our attorneys can help you better understand corporate governance, regulatory compliance, contract negotiation, risk management, and how to protect your business assets.

Corporate Financing in Colorado

Corporate financing involves securing the funds a business needs to operate, grow, or achieve specific objectives. This can include raising capital through debt, equity, or a combination of both. Whether you’re a startup seeking venture capital or an established company looking to restructure, corporate financing requires careful planning and compliance with legal regulations. Our attorneys at Howard O. Bernstein, P.C. can help by:

Coordinating compliance with laws and regulations governing financing agreements.

Structuring deals that align with your business goals while minimizing risks.

Negotiating favorable terms with lenders, investors, or venture capital firms.

Protecting your business interests in equity agreements or financing contracts.

At Howard O. Bernstein, P.C., we can provide tailored counsel to businesses of all sizes, helping you manage the opportunities and risks of corporate financing. Our goal is to help you develop the optimal capital structure to support your unique objectives, so your business is well-positioned for success.

Effective S Corporation Legal Assistance in Boulder, Colorado

Don’t leave your corporation’s legal needs to chance. Whether you are launching a business or managing an established S corporation, our attorneys, Howard Bernstein and Mark Hamilton, can provide the guidance you need.

Contact us today at Howard O. Bernstein, P.C. to schedule a consultation. Together, we can build a solid legal foundation for your corporation’s success. Located in Boulder, Colorado, we serve clients throughout Nederland, Longmont, Broomfield, North Glen, and the Denver metro area.