
7 Tax Mistakes U.S. Business Owners Make (And How to Avoid Them)
The 1099-NEC threshold moved to $2,000, plenty of published guidance still says $600, and that is only the fourth item on this list.
500+ businesses formed since 2021, all 50 states.

An S Corporation is a corporation with no more than 100 shareholders, all U.S. residents, and one class of stock. Profits pass to the owners once, with no company level tax. Owners who work in the business take part as salary and the rest as distributions, which often lowers self employment tax.
Choose from our 3 packages. You pick the one that works best for your business formation period.
Ideal for owner operators
Included
Ideal for growing small businesses
Included
Everything in Basic
Ideal for established businesses
Included
Everything in Plus
Not Required
Not Required
Anonymous
Visible
1 business day
5 business days
Blugency streamlines the entire formation process. You provide the basics about your business, and we take care of the filings, documentation, and compliance
Start Your S CorporationHere's what we recommend for you ✨
Company type
S CorporationIdeal for profitable owner operators who want to be taxed once.
Recommended stateWyoming
Or choose your home state if most of your business will operate locally.
The Blugency Promise, three commitments in every package.
If the state rejects your filing, we correct it and refile right away, at no cost to you, including any new state fee.
Within 5, 3 or 1 business days, depending on your package.
Ask as many questions as you need, from your first filing onward.
Basic is $0 plus your state's filing fee, which we pass through at cost. Plus is $199 and Pro is $499, each paid once plus the state fee. The election is included in Plus and Pro. The comparator above shows the exact fee for any state.
We file within 5 business days on Basic, 3 on Plus and 1 on Pro. State approval then follows the state's own timeline, from the same day to about 15 business days, shown for your state in the comparator above.
We correct it and refile right away at no cost to you, including any new state fee. The state then processes the refile at its normal speed.
Every shareholder must be an individual who is a U.S. citizen or resident, an estate, an eligible trust or a qualifying exempt organization, there can be no more than 100 shareholders, and the corporation may have only one class of stock. We check this before anything is filed.
With Blugency it is a corporation that files the IRS election, so you get directors, officers, bylaws and stock, taxed once. A company that already exists can make the same election through our S Corporation Election service.
As soon as your EIN is issued. Plus and Pro include the EIN. On Basic we file the election the day you send us yours.
If the business is profitable and pays you from its earnings, the S Corporation's salary and distributions structure is usually the reason to choose it. If you are just starting, an LLC is simpler and can make the election later.
No. Plus and Pro include a physical U.S. address with mail scanning and a registered agent, free for the first year. On Basic you name your own registered agent in the state.
Annual reports and state fees, corporate records, a yearly S Corporation tax return, and a reasonable salary for the owners who work in the business. Your dashboard sends lifetime alerts before every deadline.
Bylaws set how the corporation is run, and banks and investors ask to see them. Plus includes Bylaws, Organizational Minutes and Stock Certificates & Ledger, and Pro includes Customized Bylaws and a Shareholder Agreement.
The three things nearly every new S Corporation needs next.
When you are ready to open the account
The documents, the preparation and the guidance, so your application is complete when you apply.
EIN
Filed for you. Payroll providers and marketplaces ask for it too.
When salary and distributions need clean books
Monthly books kept by our team, so payroll, distributions and the yearly return line up.
Guides written from real filings, for founders forming an S Corporation.
Formation, taxes, legal, and brand, running on one platform, so you can focus on what you're building.
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