Form 1120-S is the tax return for S corporations. As such, it is used by S corporations to report their income, profits, losses, tax credits, deductions, and other information to the IRS.

Although the S corporation does not pay taxes for its operations, it is still required to file a tax return reporting its profits, losses, credits and other tax information to the IRS on Form ...

Instead, an S-corp is a tax election. For a thorough analysis, you will need to consult with your business lawyer and/or accountant. But for the basics, read on: ...

Elect S corporation status: Once you’ve registered as a corporation in your state, you must elect to become an S-corp with the IRS (it’s not automatic). The next step is to file Form 2553.

Notably, an LLC can opt for S-corp classification for tax purposes. Therefore, it’s essential to compare LLC vs. S-corp options when forming your business or reaching a certain profitability level.

To form an S corp, members must sign Form 2553, Election by a Small Business Corporation, and submit it to the IRS. Tax Treatment. An S corp designation allows for pass-through taxes, ...

The corporation files Form 1120-S, the U.S. Income Tax Return for an S Corporation, with the IRS. If you're a beneficiary of a trust or estate, use the information on Schedule K-1 (Form 1041) to ...

This tax can be avoided by making sure the S corporation has no earning and profits, which can be accomplished by paying the 15% tax now on any so-called trapped earnings.

Businesses structured as S corporations can deduct payroll tax expenses on line 12 of Form 1120S. Only the employer portion of payroll taxes, not the employee portion, are deductible for the business.

It’s the same reason we’re allowed to swap property for property tax-free in a like-kind exchange under Section 1031 or sell the stock or assets of a corporation in exchange for stock of the ...

Several factors distinguish S Corp vs C Corp tax advantages. Choosing to become a C Corp or S Corp can have a sizable effect on a business’s future, growth, and investor base. There’s no easy ...