We’re sorry to see you go! If you are bringing your accounting in-house or if Hyke just wasn’t the best fit for you, this article will help you transition out of the Hyke system and maintain your S-Corporation.
If you are no longer going to be operating your S-Corp, please see our article
Moving forward without Hyke, all compliance requirements will be your responsibility. That means you’ll need to be mindful of all Federal and State deadlines, and make sure you don’t miss filing any returns, reports, or paying any taxes and fees. We recommend that you still rely on the advice of a tax professional!
The following are the steps to leave Hyke with your S-Corporation:
Download your Business Documents
These are all of the essential documents created during the formation of your LLC. You will need to download them from your Hyke dashboard and retain them with your business records. These are the documents you’ll need:
Articles of Organization
Form SS4 (EIN Application)
Form 2553 (Subchapter S-Election)
Transfer your Registered Agent Service
Your Registered Agent is the representative, required by the State, that has been retained to receive relevant documents and notices relating to your LLC. At the time of filing your annual report, you can designate a new Registered Agent or replace the Registered Agent with yourself.
If you would like to retain your current Registered Agent, please let us know so that we can help transfer the service to you.
Annual / Biennial Filing Requirements
Most states require an annual or biennial (every two years) statement; there is a fee associated with this filing! California requires both; a Franchise Tax of 1.5% with a minimum of $800 annually (Please do not forget this requirement; it is due April 15th!), and a Statement of Information with a $20 filing fee biennially before the LLC’s anniversary.
If you change Registered Agents or make any other changes to your business information, you must file a Statement of Information with the State of California at that time; otherwise, the Statement of Information must be filed every two years; this can be completed here. The filing fee for the initial and required biennial Statement of Information is $20 and must be paid by Visa or Mastercard when submitting online. There is NO FEE for filing a Statement of Information to update the entity record in between filing periods.
Transfer Quickbooks Online and Gusto
:) We’ll take care of this one for you.
We will transfer control of your Quickbooks Online and Gusto accounts to you. You will need to update the payment method on file with each service after taking full control of the accounts.
Hand in Tax Returns
We will forward you a digital packet of all of the tax returns we prepared for you and your business through your Taxjoy channel; this will include Form 1120(S)s, K1s, the 1040s, and all schedules and attachments. Keep these for your records, they’re essential!
Last but not least, we will finish up closing out the following for you. After the tax packet has been sent and you have no more questions for us, we will close your private Slack and Taxjoy channels, and we will stop your monthly payments.
S-Corporations are a great way to save money on your taxes, but they do have additional requirements. Here are the critical elements for being an S-Corp.
S-Corporations must file a Form 1120(S) reporting all business income by March 15th. (I repeat, March 15th is your Tax Filing Deadline!)
S-Corporations issue a Form K1 to all shareholders based on the revenue from the Form 1120(S)
S-Corporation owners are required a reasonable wage
S-Corporations are limited to 100 shares, and 100 shareholders (exceptions for married couples and family, seek professional guidance)
S-Corporation shareholders must be citizens of the United States.
Well, that is all. You are entirely off boarded from our system. We wish you all the best; please let us know if you need assistance in the future.