Form 1120-S
S Corporation Tax Returns
Overview
S corporations are the most common structure David sees among Austin small businesses: consultants, agents, contractors, medical and professional practices, and owner-operated companies with a few employees. The structure works when the details are right, which means a defensible owner salary, clean books, payroll that reconciles to the return, and basis tracked year after year.
David prepares the 1120-S, the K-1s for each shareholder, the Texas franchise tax report, and typically the shareholders' individual returns as well. If the business is also a bookkeeping or payroll client, the year-end close and the return are handled together.
Where the facts support it, David will tell you if the S election is still the right choice, or if a different structure would serve you better as the business grows.
Who this is for
- Owner-operated businesses with one to a few shareholders
- Professional practices and consultancies
- Real estate agents and brokers who elected S status
- Contractors and trades
- Companies that also need bookkeeping or payroll
What to bring
Documents David will ask for.
- Year-end balance sheet and profit and loss (QuickBooks access works)
- Payroll reports and W-2s for shareholders and employees
- 1099s issued and received
- Articles, bylaws and the IRS acceptance letter for new clients
- Fixed asset purchases and loan statements
- The S corporation tax organizer, completed
Worksheets
Fillable organizers for this service.
Questions
S corporations: common questions.
There is no fixed number. The IRS expects compensation in line with what the owner would be paid for the same work elsewhere. David reviews it each year against the facts of the business.
Most do have a filing obligation even if no tax is due. The report is included with the return.
Yes, and it is usually the better way to do it. The K-1 flows to your 1040, and the two returns are prepared together.
Free initial consultation
Talk to David about s corporations.
Tell David what you need, by phone, email or Zoom, and get a fixed-fee quote before any work begins. In person in Austin, remote anywhere.