knowing how to form an s corporation helps you decide how you will organize your business. you can elect to operate as an s corporation through the irs. but, you are protected by the limited liability of a corporation. before becoming an s corp, you have to first form a c corp. once the business is a corporation (c corp), all the owners must sign and file form 2553 to elect s corp status. when you make an s corp election, you must name your business. you can add “inc” or “incorporated” to the end of your business’s name once the s corp is registered. after you are registered as an s corp, you need the correct business licenses and permits. though there are many benefits to operating as an s corp, you have more responsibilities than an owner of a sole proprietorship or partnership.