Corporate

Our tax preparation services include:
• Preparation of individual and business tax returns for federal, state and local taxing authorities.
• Electronic filing of tax returns
• Representation with tax authorities, as needed
• Prepare communications in response to taxing authority's notice
• Calculate estimated payments, as needed
• Tax planning

 

S Corporations

S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.

To qualify for S corporation status, the corporation must meet the following requirements:

  • Be a domestic corporation
  • Have only allowable shareholders
    • including individuals, certain trust, and estates and
    • may not include partnerships, corporations or non-resident alien shareholders
  • Have no more than 100 shareholders
  • Have one class of stock
  • Not be an ineligible corporation i.e. certain financial institutions, insurance companies, and domestic international sales corporations.

In order to become an S corporation, the corporation must submit Form 2553 Election by a Small Business Corporation (PDF) signed by all the shareholders.

Filing Requirements:

Chart 1 - S Corporation
If you are an S corporation then you may be liable for...Use Form...Separate Instructions...
Income Tax

1120S (PDF)
1120S Sch. K-1 (PDF)

Instructions for Form 1120S (PDF)
Instructions for Form 1120S Sch. K-1 (PDF)

Estimated tax 1120-W (PDF) (corporation only) and 8109 Instructions for Form 1120-W (PDF)

Employment taxes:

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

 

941 (PDF) ( 943 (PDF) for farm employees)

940 (PDF)
8109

Instructions for Form 941 Employers QUARTERLY Federal Tax Return (PDF)

Instructions for Form 943 Employers Annual Federal Tax Return for Agricultural Employees (PDF)

Instructions for Form 940 Employers Annual Federal Unemployment (FUTA) Tax Return (PDF)

Excise Taxes Refer to the Excise Tax web page

 

 

Chart 2 - S Corporation Shareholders

If you are an S corporation
shareholder then you may be liable for...

Use Form...Separate Instructions...
Income Tax 1040 and Schedule E (PDF) Instructions for Schedule E (Form 1040)Supplemental Income and Loss (PDF)
Estimated tax 1040-ES (PDF)

 

 

2011 FICA Tax Rates

Tax                               Tax Rate            Minimum Wage Base     Maximum Tax
Social Security

   Employee's share          4.20%                          $106,800                     $4,486

   Employer's share           6.20%                          $106,800                    $6,622

Medicare                          1.45%                          No Limit                      No Limit

FICA tax is a combination of a social security tax and a Medicare tax. The social security tax is assessed on wages up to $106,800; the Medicare tax is assessed on all wages.

Self-employed individuals pay a self-employmnet tax which is the equivalent of FICA tax. For 2011, they will pay a 10.4% OASDI (Old Age, Survivors and Disability Insurance tax) on the first $106,800 of self-emnployment income. A 2.9% Medicare tax is imposed on all net self-employment income. 

2011 Corporate Tax Rates

Tax Rate      Taxable Income                     Tax Rate            Taxable Income

15%             $1-50,000                               34%                   $335,001-10,000,000

25%             50,001 - 75,000                      35%                   $10,000,001- 15,000,000

34%             75,001 - 100,000                    38%                   $15,000,001 - 18,333,333

39%            100,001 - 335,000                   35%                   over 18,333,333