S-corporation returns that protect your tax savings.

How an S-corporation saves tax

An S-corporation doesn't usually pay federal income tax itself. Profits pass through to the shareholders' personal returns. Owners who work in the business are paid a salary, which is subject to payroll taxes, and can take the remaining profit as distributions, which are not. Done correctly, that split lowers the owner's total tax bill.

The IRS watches this closely. Owner-employees must be paid reasonable compensation for their work before taking distributions. We help you set a salary you can support if the IRS asks.

What's included

• S-corporation return (Form 1120-S) with a Schedule K-1 for each shareholder
• State S-corporation and franchise tax returns
• Reasonable compensation review for owner-employees
• Shareholder basis tracking, so distributions and losses are handled correctly
• Coordination with payroll so officer wages and W-2s match the return
• S-election (Form 2553) for new or converting businesses, including late-election relief
• Extensions (Form 7004) and quarterly estimated tax planning for shareholders

Key deadlines

For calendar-year S-corporations, Form 1120-S is due by March 15, with an optional six-month extension. To be treated as an S-corp for a tax year, the Form 2553 election generally must be filed within two months and 15 days of the start of that year.

How it works

1. Share your books and payroll reports. We reconcile officer wages, distributions and loans.
2. Year-end review. We check compensation, fringe benefits and deductions before the return is prepared.
3. Return and K-1s. We prepare Form 1120-S and deliver K-1s to shareholders.
4. Personal returns. We carry the K-1 into each shareholder's personal return if you'd like.

Frequently asked questions