Form 1120S – S-Corp
What you Should Know About Form 1120S – S-Corp
- An S-Corp is a U.S. transparent corporation for tax purposes.
The corporation is initially incorporated as an ordinary U.S corporation (C-Corp) and elects within 75 days of incorporation to be converted into an S-Corp.
- The corporation’s taxes are filed using Form 1120S, that must be filed by March 15th.
- One can file for an extension by the above date, and extend the due date to September 15th.
- If this date falls on a Federal U.S holiday or the weekend, this date is postponed to the following day.Although the corporation is not subject to withholding tax obligations at a corporate level, its shareholders must make quarterly estimated tax payments throughout the year since this type of corporation is a flow-through entity for tax purposes.
The quarterly estimated tax payments are made on a quarterly basis, but it is important to make such payments before December 15th of that tax year, if no tax payments were made throughout that tax year.
What’s the next step?
- If you are required to file Form 1120S, we recommend that you contact our firm towards December 15th, before the tax year ends, to enable us to prepare ourselves well both for the quarterly estimated tax payments and for the current tax year, and avoid fines and interest on arrears.
- Our firm works according to the order it receives materials, and so we recommend contacting us earlier rather than later.
- Contact us today to receive a letter of engagement and a list of the materials we require to file your taxes.
Example – 1120S
If you have any further questions, please feel free to contact us