Questions

How do I know when my S-Corp has to pay taxes, and what do I need to fill out?

We just started, so there is almost no income and many expenses currently on the books.

7answers

The return is due March 15 for the previous year. Your S-corp doesn't pay taxes, it files a form 1120S informational return. The 1120S produces a form k-1 that states your share of the companies income and other items. You report that k-1 on Schedule E of your Form 1040 in April. You have to file the 1120S every year whether you made money or not. Definitely find a professional, the 1120S is not easy to do.


Answered 6 years ago

You need to speak with an accountant. Or at least hire a bookkeeper Unfortunately, it's another expense, but a needed one.


Answered 6 years ago

I am not an accountant and this is not "professional advice."

I do have an S-Corp, though.

You need a corporate accountant. A public accountant cannot do corporate taxes.

You pay by the March 15 deadline like everyone else. UNLESS you are earning more than a certain amount a year, which your account can advise you of--then you will likely pay quarterly remittance which is an estimate based on revenue and then adjusted at fiscal year-end. If you're earning under say $200K, don't worry about it: you're still on the standard tax plan.


Answered 6 years ago

Hello, my name is Humberto Valle, I'm an international strategist with over 10 years experience. My skillset has revolved around marketing and product market reach but I have vast experience with your topic, I believe I have also answered a similar questions to this one before.
In short - you must file as often as required per your state plus the federal. If you have to claim $0 revenue, net losses - do so. If anything it benefits you, as investor. Go talk to a cpa for further advice, also with s corps make sure to record minutes for any changes or efforts made on the companies behalf. Sometimes they are needed, sometimes not.
Good luck, and talk to a cpa directly.


Answered 6 years ago

I have an S-Corp and several other corps, but I'm not an accountant.

Definitely hire a qualified accountant, as the various state and federal dates and taxes can be confusing. You can also use a Registered Agent service that offer notifications and managed reports so that you don't miss dates. Companies like MyLLC.com (I am not endorsing this - just an example)


Answered 5 years ago

S corporations are flow through entities for U.S. federal and state income tax purposes. So, the entity itself is not subject to income taxes. The net earnings will flow through to your Form 1040 and you pay federal and state taxes at the shareholder level. S corporations are required to file Form 1120-S on an annual basis. Each shareholder in the S corporation is provided a Schedule K-1 which shows their allocable share of income and cash distributions during the year. The S corporation returns are due by March 15th, but you may file for an extension if you need to more time to gather information and complete the return.


Answered 4 years ago

The big benefit of S-corp taxation is that S-corporation shareholders do not have to pay self-employment tax on their share of the business’s profits. Her revenues from the business are $60,000 per year, and her annual expenses total $10,000. Therefore, her S-corp’s profit for the year is $50,000. This exact question is frequently the topic of debate in court cases between the IRS and business owners who are, allegedly, paying themselves an unreasonably small salary to save on self-employment taxes. A shareholder’s cost basis in an S-corporation is increased by his allocated share of the business’s income and by contributions he makes to the business. His basis will be decreased by his share of the business’s losses and by distributions he receives from the business. In the calendar year in which the business is formed, the business pays Austin a salary of $30,000, after which it has remaining ordinary business income of $20,000. The $30,000 salary will be taxable to Austin as ordinary income, and it will be subject to normal payroll taxes as well. The $20,000 ordinary business income will be taxable to Austin as ordinary income, but it will not be subject to payroll taxes or self-employment tax. Of note, any compensation that the S-corporation pays to you is not considered to be pass-through income. It is only allocations of profit from the S-corporation that are pass-through income.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath


Answered 2 years ago

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