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.
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