Welcome to Collective!
We're so excited to have you join us! This guide is for S Corp members and walks you through our onboarding process, addresses questions that may have come up during your initial meeting with our team, and points you to the resources you need to make the most of your membership. Onboarding centers on three crucial aspects of the Collective experience:
Onboarding Timeline
For those forming their LLC S Corp with us, here's the full process, from LLC formation to bookkeeping and payroll setup. Key steps include:
- LLC Registration
- Finalize LLC Operating Agreement
- Obtain EIN from the IRS
- Obtain Business License, if applicable
- Open Business bank account and make initial contribution
- S Corp tax election with the IRS (Form 2553)
- Employer Registration
- Bookkeeping categorization with accounting advisor
- Payroll setup and salary selection
For new members who already have an active LLC (and those with an active S election), the process is quicker. We'll focus on setting up Collective Bookkeeping and Payroll. Our Entity Services team will review and confirm all your company documents as part of onboarding.
Reasonable Compensation
One of the first big steps in forming an S Corp is figuring out "reasonable compensation" for you as both the owner and employee of your business. This can seem tricky, but don't worry—we're here to help guide you through it and find the best solution for your business needs.
You'll learn how to set a salary that aligns with the IRS's guidelines for "reasonable compensation" for the services you provide in your S Corp. You'll then have a chance to select a compensation amount in your setup, which you can update before completing your onboarding. We're here to support you every step of the way!
Click Here to read more on Reasonable Compensation.
Membership Services: Included & Not Included
Our membership at Collective includes a wide range of services that cater to your specific business needs.
Included Services:
Tax Services:
- Year-round tax support for your business
- Annual business entity tax preparation (Form 1120-S)
Bookkeeping Services:
- Categorization of your business transactions
- Reconciliation of bank and credit card accounts
- Invoice reconciliation and support
- Review of financial reports
- Monthly financial statements
- Year-end book closing for tax preparation
- Invoice issuance training
Services Not Included:
Tax Services:
- Preparation of tax returns for other years
- Tax audit representation
- Local county and foreign tax services
- State tax nexus analysis
- Filing requirements with the US Secretary of State
Bookkeeping Services:
- Financial advisory
- Sales tax calculations
- Invoice alterations
- Time tracking for billing
- Inventory tracking
Click here for our full list of services included and not included in your Collective membership.
If you have questions about tax filings, bookkeeping, payroll, or communications, your team is here to help—just reach out anytime through the Message Center.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.