John Folson CPA, LLC has several years of experience preparing S corporation (form 1120S) tax returns. Most small businesses are structured as S corporations in order to maxmimize tax benefits under the Internal Revenue tax code.
S corporations are not taxed three times like a C corporation, which very often is subject to federal tax, state tax, and dividend tax. An S corporation does not pay income tax, the income is passed to the owner/owners who will then pay tax on the income when he/she files her individual income tax return. For this reason an S corporation is commonly reffered to as a pass through entity because the income of the entity is passed on to the owner/owners by a K-1.
A corporation can be taxed as an S corporation. An LLC can be taxed as an S corporation. An S corporation describes how an entity is taxed by the Internal Revenue Service. Typically an entity that wants to be taxed as an S corporation must file an election for this classification by the 15th of the third month after it is established. The IRS has several exceptions that allow an entity to still be classified as an S corporation by filing for classification as an s corporation if the deadline is missed.
The deadline for filing the tax return for and s corporation tax return (form 1120S) March 15th of each year nad if an extension is filed the deadline is extended until September 15th. For more information about an S corporation please call our office at (954) 519-2528 or send a message by clicking the "REQUEST A QUOTE" button.