Corporate Tax
Business Taxes and More offers complete corporate tax return preparation, filing, and tax planning for both S Corporations and C Corporations. We can prepare your S Corporation tax return if you have elected to be taxed as an S corporation by filing form 2553, called Election by a Small Business Corporation.
Get In Touch
S Corporation Tax Services
Even if we prepare your S Corporation income tax return, the S Corporation generally does not pay taxes as profits flow through to the shareholders. Pass-through items from S Corporation tax return keep their same character to the shareholder as they did to the corporation. Shareholders who perform services are paid as employees and income is reported on a W2.
- When filing S Corporation income tax return it is critical to keep in mind the concept of reasonable compensation which is a recent common IRS tax audit issue. S Corporation tax return also has an opportunity for the shareholder to qualify for a 20% qualified business income deduction as other pass through business entities may have.
- As in all business entity formation for an S Corporation, it is also important to consider all variables prior to forming an S-Corporation. Consider the fact that an S Corporation is in fact requiring a separate S Corporation tax return. An S Corporation may be complex and expensive to create and maintain, therefore the benefits must be greater than the cost. We can analyze all of this for your business and prepare an S corporation income tax return with highest tax benefits for various situations.
- In addition to S Corporation tax return we can help businesses with regular board of directors meetings and minutes. When we prepare your S Corporation income tax return, we ensure that we accurately keep track of basis for all shareholders. We structure an S Corporation tax return legally to provide the flexibility and increase the deductibility of fringe benefits for owner-employees.
C Corporation Tax Services:
Corporate tax returns for C Corporations are separate tax return on form 1120 U.S. Corporation Income Tax Return. While preparing a federal corporate income tax return we are always mindful of reasonable wages that must be paid and not inflated to reduce corporate tax liability.
- From corporate tax return shareholders who perform services get paid as W2 employees and are subject to payroll tax as well as reporting rules. Unlike S Corporation income tax return the corporate tax return on form 1120 subjects to tax on net profits, this creates the double taxation of a C Corporation because profits that get distributed to shareholders as dividends are taxed again to the shareholder.
- At Business Taxes and More we take a complete look at your business if it makes financial sense for your business the profits to shareholders may be deferred as retained earnings for business purposes such as investment and expansion of your business. We might recommend C Corporation and the opportunity for federal corporate tax return if your corporate tax return benefits are greater than the complexity and expensive cost to maintain a C Corporation.
- Many businesses still benefit from the status of a C Corporation because while filing a corporate tax return might be complicated, we can take the complexity out of your hands as experts for corporate tax return preparation. Your business may greatly take advantage of being a C Corporation if it will be in businesses with ownership in multiple other entities.
- The federal corporate tax return and this entity type is beneficial to businesses with significant exposure to liability. Corporate tax returns are for businesses that are intended to exist eternally.
Work with us
- Business Set-up and Structure
- Accounting & Bookkeeping
- Tax Planning
- Business Consulting and Advice
- Payroll Services
- Financial Reporting
- Audit Support
- Business Succession Planning
- Risk Management