What it takes to DIY an S-Corp
- Evin Wick
- Apr 17
- 3 min read
Updated: Jul 2
Filing an S‑Corp election for your one‑person consulting or services practice can save real money—but you will need to you keep the IRS, you state tax board, and your municipality perfectly happy for years on end.
If you’ want to DIY an S-Corp, here’s the full, soup‑to‑nuts checklist (with some candid warnings) based on the requirements for an LA based designer so you know exactly what you’re volunteering for. Your actual, requirements will vary by city, state, and profession
TL;DR
You’ll touch three levels of government, at least six different filings, two recurring taxes, and an ongoing “reasonable‑salary” payroll requirement. Make coffee.
1 – Verify your business name
Brainstorm a name – Must end in “LLC”, “L.L.C.” or “Limited Liability Company.”
Search CA SOS database – Make sure it is available
(Optional) File a DBA – Requires a second county‑level filing in L.A and not a good idea unless you really need it.
2 – File Articles of Organization
Articles of Organization (Form LLC‑1) – submit online.
What it entails – Enter your name and address a bunch of times of times and pay $70
Wait for approval – the SOS is faster than it used to be, but still not Amazon‑Prime fast.
Double check - Any typo here cascades into every future form—and amendments cost extra
3 – Write an Operating Agreement (Yes, even if solo)
4 – File the Initial Statement of Information
Submit online (Form LLC‑12), this website is pretty rough at time of writing
What it entails – Enter your name and address a bunch of times of times and pay $70
Re‑file – Every two years or whenever something changes (address, members, etc.).
Miss it? The state slaps on a $250 penalty and can suspend your LLC.
5 – Get an EIN
Apply online with the IRS – free, immediate.
What it entails – Mostly entering the same information you entered elsewhere.
Remember: use this not your SSN.
6 – Elect S‑Corp Status
Check eligibility: one owner, U.S. resident, only one class of stock.
Complete and file Form 2553
Due within 2 months + 15 days of formation. If you don't file you will have to pay Social Security and Medicare 2x on 100% of income
Late election? You can request relief, but the IRS forgiveness letter isn’t fun reading.
7-Register Locally
Business Tax Registration Certificate - City of L.A. Office of Finance
County DBA (if needed) - L.A. County Registrar‑Recorder
8 – Open a Bank Account
Mercury has a really nice UI that makes things easy.
Remember- use the LLC name + EIN.
9 – Setup Bookkeeping
10 – Establish a reasonable salary and payroll
Research California designer pay ranges.
Document rationale (hours, responsibilities, profitability).
Use a payroll tool like Gusto — starts at $49/month + $6/employee.
Withhold, remit, and file federal & CA payroll returns on schedule (Payroll provider should do much of this for you).
11 – Pay Quarterly and Annual Tax
Use bookkeeping data to project profit, payroll tax credits, and distribution tax.
Federal Form 1040‑ES due Apr 15, Jun 15, Sep 15, Jan 15.
California: Form 540‑ES on the same dates.
Pay online via IRS Direct Pay and FTB Web Pay.
12 – Stay compliant forever
You will have to maintain the following as long as you're in business:
CA Statement of information (every 2 years)
CA Form 100‑S (annually on March 15)
Federal 1120 (annually on March 15)
LA BTRC Renewal (annually)
You can create recurring calendar events a few weeks before the deadlines to block time for so you don't forget
You Can DIY an S Corp!
None of these things are hard (though many are tedious) and no one said twelve step programs are supposed to be fun. Getting this setup is possible in a day (albeit not a fun one). Running payroll and basic bookkeeping typically takes about an hour per month plus some extra time each quarter to calculate and pay estimated taxes. Finally plan to spend a half day or more each winter to do an annual review and tax filing.
The question is not whether you can do this it is whether it is a good use of your time. If that sounds worthwhile, you’ve got the roadmap. If not, this is exactly why turnkey S‑Corp services (yes, ours included) exist.
Evin Wick JD, LLM is a Georgetown-trained tax lawyer and co-founder of Scorpu, where he channels two decades of small-business tax expertise into streamlined S-Corp, bookkeeping, and payroll solutions for solo consultants.
Comments