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S-CORPORATION ESSENTIAL FORMS

Knowing the right form for an S-Corporation is essential and when to file it can be confusing. Here’s a brief rundown of some of the more important forms for an S-Corporation.

  • To qualify as an S corporation, the company must:

  • Be a domestic corporation

  • Have only allowable shareholders

  • Have no more than 100 shareholders

  • Have only one class of stock

  • Not be an ineligible corporation

Submit Form 2553

  • Timing is critical with IRS Form 2553. It must generally be filed within 75 days of your corporation formation or LLCs anniversary of formation, or within 75 days of a new year.

To The IRS

  • Form 1120S Includes information on the corporation profits, losses, deductions, and credits. Due on the 15th day of the third month.

  • Form 7004 Need more time? File this form for a six-month extension.

  • Form 1120W An S-Corp must also file an 1120-W if the totals of the taxes on built-in gains, the excess met passive income tax, and the investment credit recapture tax are more than $500.

To Shareholders

  • Schedule K1 Tells each shareholder what their portion of the tax payment is. As well as any deductions and credits.

Important Note: Not all states tax S Corporations the same. Most will recognize them similarly to the federal government and tax the shareholders accordingly. Some do not, and tax above the specified limit or do not recognize S-Corps at all, and tax them as C-Corps.

By UNIKO Media Group