S Corporation Articles provided by Tax Moms & Mr. Tax Moms

Main Menu

Recorvery Rebate Credit
Mileage Deductions
Car Donation Deductions
Bad Debt Right Off
Hybrid Cars Deductions
Tax Cash Today at Western Union
CPA Moms - Services Offered
Tax Preparation
Electronic Filing
Enrolled Agents
Tax Moms
Recovery Rebate Credit
CPA Moms
Representation before IRS
Non Profit Tax Services
CPA Loan Letter
$7500 Downpayment for your Home
Home of S Corporations
S Corporation News
S Corporation Articles
Additional Resources
Want to Join the Moms?
S Corporation Blog

Death & Taxes

We have Information to Help You with Either

Got a Question?

Ask a CPA Mom, the service is FREE

Need Some Help?

List of Tax & Accounting Services we Offer

IRS wants you to retire Financially Free! We will answer your questions and give you options about how to become Financially Free when you retire

Tax answers/options when you sell your Home. We will answer your questions about the tax free home sales and give you options on tax free exchanges

So, You got a letter from IRS? We can help. Letters from IRS are scary. We will answer your questions at no charge.

S-Corp, LLC, C-Corp, Partnership - Your Choice? Selecting the correct Business Entity is confusing. We will give you the tax options of each Business Entity.

How not to pay taxes when you sell income property. We will explain how to do a tax free exchange & not pay taxes when you sell your income property.

To donate or pay for Services - Please click on Paypal Logo below

Donate with any of the Credit Cards Listed Below
If you have a Tax Refund - Donations can be withheld from the Refund

Official PayPal Seal

IRS Electronic Filing Indentification Information. Zip code is 80110. Last on list


If you are an S corporation use the information in the charts below to help you determine some of the forms that you may be required to file.

If you are an S corporation then you may be liable for... Use Form...
Income Tax

1120S (S corporation)

Estimated tax 1120-W (corporation only) and 8109

Employment taxes:

  • Social security and Medicare taxes and income tax withholding
  • Federal unemployment (FUTA) tax
  • Depositing employment taxes

941 ( 943 for farm employees)

940 or 940-EZ

Excise Taxes  Refer to the Excise Tax web page

How Taxes Apply To Corporations
David Gass

A corporation is a designated entity where the company and the individuals related to it, have different legal identities. The reason most companies prefer to incorporate is asset protection. Incorporation protects your personal assets from seizure during a lawsuit.
If you decide to incorporate your small business, you can choose the S corporation, C corporation or LLC model. Before choosing any kind of corporate model, you should look at the tax rules and regulations related to a corporation.
Tax Laws for Various Corporations
Tax laws vary from country to country and state to state. You need to go through them before and after incorporating. In general, all countries have mandatory tax requirements for companies. Your corporation needs to pay taxes on the profits it earns. Even if your corporation is registered abroad, you may need to pay taxes if you reside in your home country.
1. C Corporations have to go by standard corporate tax laws. They need to pay taxes on their profits, and are subject to certain deductions depending on their shareholding structure.
2. S Corporations are the best option if you have a startup company or a small business. S corporations do not have to pay income tax, and still get to enjoy the advantages of being a standard corporation. The eligibility condition is that your small business should have less than 75 shareholders who are all citizens of the US. To get the benefits associated with the Subchapter S Corporation, you need to file an application with the tax authorities. If you want to submit taxes under an LLC structure, you need to submit another application before the current financial year ends.
3. Limited Liability Partnerships, or LLC, are preferred by businesses that need streamlined allocation of profits and losses. This facility is not available to S Corporations. LLCs need to file form 100 ES and form 100.
S Corporation Taxes
Since this article is primarily concerned with entrepreneurs and small businesses, it would be relevant to go into the details regarding the S-corporation. If you decide to register yourself as an S corporation to avail tax breaks, you need to keep in mind the eligibility conditions. Apart from the conditions already discussed, you need to remember that you must use the calendar year as the financial year of the company. In addition, any shares your company sells must be of a single kind.
Advantages of Being an S Corporation
1) The best thing about the S Corporation status is that the shareholders shoulder the responsibility for paying the taxes as their personal income tax. Therefore, the corporation need not pay income tax twice, first as a company and secondly as individual shareholders. In fact, most S corporations do not pay any taxes.
2) It reduces the need for extensive paperwork when filing tax returns or declaring income.
Additional Help
If you wish to incorporate your small business and need more information about tax structures of various corporations, you can consult a small business advisor or tax consultant. Choose the type of incorporation carefully, as taxes will apply to your business based on that. Get yourself educated on the advantages and disadvantages of each type of incorporation according to the tax laws. This will help you reap the benefits of a corporation without having to pay huge taxes.

David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com.

How To Incorporate
Hard work, a good business acumen to spot opportunities and a little bit of luck are the key ingredients for success in business. Equally, there are many factors for failure that are out of one's control....
What Are Professional Corporations?
Many professionals are barred from forming limited liability companies or basic corporations for their practices. Instead, there only option is often to form a professional corporation.When it comes to...
How To Avoid Double Taxation Of Your Small Business Profits
Have you been thinking about incorporating your small business or self-employment activity? The advantages are many!For starters, you'll be protecting yourself and your family from the possibility of a...
Setting Up a Corporation - Learn the Basics
A corporation is a legal entity that separates the persons owning or operating a business from the actual business itself. They are set up to protect individuals from a range of possible damages and obligations...
Running a Corporation - Shareholders and Directors
If you form a corporation for a business, it can become very confusing when the issue of running the actual business arises. For instance, what is the difference between shareholders and directors?The...
How To Form A Nonprofit Corporation
The inception of a nonprofit corporation is similar to the inception of any other corporation. The main difference is that nonprofit corporations are exempt from government taxes. Apart from filing the...
Business Entities - A Quick Guide
Business entities comes in so many types that business owners can easily get confused. Here's a quick guide that will hopefully shed a little light on business entities for you.
Business Entities
Advantages Of Aged And Shelf Corporations In Nevada
Aged and Shelf corporations are corporations, which have been completely formed and are ready to proceed. The business world calls them shelf corporations because nothing has been done with them yet. They've...
California Limited Liability Company - An Overview
Many people are surprised to learn that the LLC business entity is a fairly recent phenomenon. Wyoming was the first state to legislate the creation of LLCs in 1977. Most states didn't jump on the LLC...
The Benefits Of Incorporating Your Business S Corporation
What do General Motors, Microsoft, AT&T and many other major businesses in America have in common? They're corporations. A corporation is a separate legal entity that functions separate and apart from...