C vs. S Corporations
All corporations formed by default are "C" corporations. To become an "S" corporation, simply file form 2553 ("Election by a Small Business Corporation"). Please note this should be filed only after Hubco has provided proof of filing to you. There is no additional fee to file this form, which is available on our home page under the link "IRS Forms." More detailed information can be found below:

What is a C Corporation?
A "C" corporation is a standard business corporation. There is a corporate income tax on the profits of a "C" corporation. In addition, if a dividend is paid to the stockholders from the corporation's retained earnings, the dividend must be included on the stockholders' personal tax return. Therefore, the profits of a "C" corporation are subject to possible double taxation. The corporation you form will be taxed as a "C" corporation this year unless you file IRS form 2553 to elect tax status as a "S" corporation.

What is an S Corporation?
An S corporation is a standard business corporation that has elected a special tax status with the IRS. There is no corporate income tax on profits; instead the annual profit of an "S" corporation is included on the personal return of each stockholder. IRS form 2553 (also called a "Sub Chapter S Election" or "Election by a Small Business Corporation") must be filed within 75 days of incorporation to be treated as a "S" corporation for tax purposes. This form is provided in your corporate outfit which is supplied with every HUBCO corporation order. Thee are no fees for filing form 2553.

If you have an additional questions, as always, you can reach us at 1-800-443-8177.