All companies are required to file income tax returns annually, even if your company doesn't have net income or is not actively operating. We are here to help you for all your tax returns:
- C corps: form 1120
- S corps: form 1120S
- LLC with 2 or more partners: Form 1165
- Partnerships: Form 1165
What Business forms shall I choose when I incorporate a company?
When you’re deciding to start a business, it’s critical to choose the right business structure or “legal entity.” As company formation specialists, one of the questions we get asked most often is “What is the right type of structure for my new business, LLC, Corporation or Partnership?” The answer isn’t always easy, because it depends on the unique considerations relating to your new venture. That is the reason we are here to help you.
There are two types of corporations for federal income tax purposes: C corporations and S corporations. A C corporation must file a federal tax return and pay federal taxes on income it has earned. A C corp. is subject to double taxation as not only is the income received by the corporation taxed at the corporate level, but also any profit that is distributed to the shareholders in the form of dividends is taxed again as personal income.
An S corporation does not have to pay corporate income taxes. Instead, its income and expenses are divided among and passed through to its shareholders, who must then report the income and expenses on their own tax returns.
An LLC with two or more partners and a partnership needs to file annual tax return. However, the tax return is for information purposes only and all the income and expenses will be passed to the shareholders on the form of K1s for the partners to file their own tax returns.
What Information Is Included on Corporate Tax Returns?
The information necessary to file corporate tax returns includes the name, address, employer ID number, date of incorporation, and the total assets. The corporate financial officer will need to supply details about corporate income including:
- Gross receipts
- Cost of goods sold
- Capital gains
What Expenses Can I Deduct on Corporate Tax Returns?
Corporations are able to claim many tax-deductible expenses against income. The financial officers of the corporation should track these expenses throughout the year and be able to supply full documentation in case of an audit. These deductible expenses include:
- Officer compensation
- Other salaries
- Repairs and maintenance
- Taxes and licenses
- Interest expenses
- Charitable contributions
- Pensions and profit sharing plans
- Employee benefit programs
- Domestic production activities
- Other miscellaneous deductions
Are your books a mess? No Problem!
If you own a small business and don’t have formal bookkeeping, don't worry. We can help you. We'll prepare your bookkeeping for the year, appropriate business tax schedules, as well as your personal income tax return.
Need an account to review your books? No problem!
If you already prepare your own accounting but aren't sure whether it complies with the IRS guidelines, we can help! We will review your books and make the necessary adjustments and reclassification to conform with the IRS guidelines before tax filing.