Questions tagged [s-corporation]
S-Corporation (S-Corp) is a type of Corporation in the United States that has a preferential tax treatment under the Sub-chapter S of the Internal Revenue Code. Corporations (and limited liability companies that elect to be taxed as corporations) can elect that treatment if they qualify. Under this treatment the taxes are paid by the owners directly and double taxation problem is avoided.
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Understanding S-Corp election timeline
I started a business on February 2nd of 2023, and my Tax Year will be 1st January, 2023 to 31st December, 2023, and the business tax filing deadline will be 15th April, 2024. Will I be in compliance ...
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Augusta Rule, 280a - Can I rent my primary residence to my business if I am a Renter on that property myself?
Heading says it all -
I rent my primary residence(I am a renter), and am wanting to rent it to my business (Scorp) for business meetings 14 days of the year. Does this still qualify for both the ...
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Does amending taxes affect future QBI loss carryforward?
When an S-Corp shareholder deducts losses, those losses reduce subsequent years' QBI Deduction (Form 8995, line 3 Qualified business net (loss) carryforward from the prior year). But what happens if a ...
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Can my S Corp pay my personal tax liability and can my S Corp be able to deduct the taxes?
I understand S Corps are flow through entities so if I am paying the net income on my personal taxes then can the S Corp pay for the taxes due? Also can the S Corp be able to deduct the taxes paid as ...
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Setting up S-Corp for Independent Software Developer
I have been working on a w2 most of my career and recently got the opportunity to work as an independent software developer for a firm on a 1099. I was thinking of setting up an S-corp as I think ...
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Required to fill out Form 7203 per TurboTax for S-Corp K-1?
I am using TurboTax Premier to do my taxes for 2022. I have a K-1 from my S-Corp, and TurboTax is telling me I need to fill out form 7023 for this K-1, a form I have never had to fill out before. I ...
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How to switch to Schedule C of 1040 from 1120-S [duplicate]
On Side I have a LLC that I use to file Taxes on Schedule C of 1040. One CPA suggested me t switch to S Corp by filling for 2553. After couple of years i realize that I am paying more to run the ...
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S Corp Stock basis
My wife is self employed as an S Corp. The stock and debt basis forms are asking about stock basis for the year. If she owned 100% of the S-Corp at the beginning and end of the year and did not ...
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What business tax forms are impacted by adding an employer non-elective 401(k) contribution?
Bob is the owner and only employee of an S-corporation. For tax year 2023, he pays himself a salary of $150,000 and elects to defer $22,500 to a one-participant 401(k) plan. Bob also wants to add ...
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Setting up an SEP-IRA for my single member LLC (taxed as an S-Corp)
I've set up a single member LLC (taxed as an S-Corp) for my self-employment work. I'm hoping to have the S-corp contribute some of my salary to an SEP-IRA which, as I understand it, means the S-corp ...
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May an S Corp defer paying any distribution or salary its first year?
May an S Corp (with revenue) defer any kind of salary or distribution in its first year, if the S-corp had only recently been formed in the last quarter? If for example, it would be more beneficial to ...
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Must an LLC electing federal s-corp status also elect state (NJ) s-corp status?
NJ does not automatically treat an LLC as an S-corp just because that status is granted at the federal level. Is it an option then to file as an S-corp federally, but file as a simple disregarded ...
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QBI Deduction Eligibility on Income Limits and W-2 Wages
According to the IRS, on the 20% QBI deduction:
If you're a non-service provider and your taxable income is $100,000 or more above the income threshold if married filing jointly, or $50,000 if single,...
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Understanding the Timing of Revoking S-Corp Election for an LLC
It was suggested to me that an S-corp election would be beneficial for my single-member LLC, so I did so, but after running the numbers, it does not seem that it will save me much in taxes, and the ...
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How to Pay Yourself a Salary in a Single Member S-Corp with Inconsistent Income
It seems a requirement of a single-member S-Corp is to pay one's self a "salary" - suggesting a weekly or bi-weekly payment that amounts to a pre-determined figure at year's end - but in a ...
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How to "Withold" Taxes for Single-Member LLC taxed as an S-Corp?
ZenBusiness suggested that I elect for my LLC to be taxed as an S-corp, but I see online that it requires me to "withhold" taxes on the salary I pay myself. This is a little confusing since ...
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I filed form 2553, but no confirmation from IRS. What to do?
I filed form 2553 and faxed it to the IRS twice, and received confirmations of the fax receipt twice, but I have received no confirming correspondence from the IRS. It seems nearly impossible to get ...
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S-corp accountable reimbursement timeline
This is my first year as LLC (taxed as S-corp)
This is work from home, so I am planning to file for reimbursement for my LLC for the "part" of house EMI and other expenses etc., reading over ...
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Single Proprieter software consult/product company - S-Corp options?
Scenario: In the United States. Software Developer who performs consulting for other businesses. Paid an hourly rate of $150 per hour for full time work (1860 hours). Additionally, the software ...
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Can I 'reverse' an S Corporation distribution?
I am the sole proprietor and employee of an S Corporation.
I know I'm required to pay myself a reasonable salary.
Say in January the S corporation received $30,000 of revenue from completing a project....
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S-corp accounting and tax and accounting - buffer amount for early next year
I have single owner LLC taxed as S-Corp. I got an interesting question, let us say we have to keep some buffer amount to keep January expenses in the bank, how do we classify this for both accounting ...
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I have an LLC taxed as an S-Corp. Can my LLC receive income on a 1099?
I have a single-member LLC taxed as an S-Corp. I'm a contractor and a lot of my clients pay on a 1099. Can I have those clients pay my LLC with that 1099, so I can consolidate my income as going to ...
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Solo 401k establishments costs - is it employer or employee?
I am on owner/employee for S-Corp. Took help from an administrator in establishing Solo 401k and paid some fees.
Can we write this fee as "business expense" (or) "is it EMPLOYEE expense&...
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Virginia labor law regarding payroll
We (myself & spouse - no other employees) are owners of S-Corp and planning to run quarterly payroll. It seems some states have mandatory labor laws to have the payroll run every week or bi-weekly ...
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S-Corp owner salary change between pay periods
I searched a lot, but couldn't find any concrete answer for this question:
When LLC S-Corp (Myself & Spouse), owners need to get paid "reasonable salary". I am planning to to run the ...
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When we calculate "net income" of the S-Corp, do we take out "Profit sharing contribution 25%" as deduction?
I am trying to understand the "net income" for S-Corp (in case of opting for Solo 401(k).
When we calculate "net income" of the S-Corp, do we take out "Profit sharing ...
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Starting a second business as a Sole Proprietorship, S-Corp, or LLC with a DBA?
I'm planning on launching a business to provide voiceover professional services. In professional voiceover, your name is your calling card, so my first inclination would be to simply do everything as ...
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When filing form 2553 to elect S Corp taxation for an LLC that I own, how do I pay myself while waiting for form 2553 to be approved by the IRS?
For example, let’s say I file form 2553 in February to elect S Corp status for my LLC with a retroactive start date of January 1 of the same year. The IRS may take two months to review form 2553, and ...
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Single Member S-Corp Main Asset Sale
We have a single member S-Corp with a single main asset which is a website that has been operated for 12 years. We are currently looking to sell this website and I'm wondering how this will be taxed ...
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End of year Tax for S-Corp holding January payroll
To my understanding of S-Corps in the US, at the end of the year all money left in the corporate account is "profit." This money is distributed to the owners who pay income taxes on it.
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Educational Assistance Programs For Loan Repayment
I own an S corp and I am the only employee. I think I would like to create an educational assistance program for the company to pay for my student loans with pre-tax dollars. IRS publication 15-b says ...
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Can a company with a non-citizen/not green card holder board member taxed as an S-Corp?
If a company has 2 or 3 shareholders, and one of them is neither a US citizen nor green card holder, is it possible for this company to be considered as a S-Corp in the tax season?
Or at least citizen/...
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Can a LLC company with citizen(s)/resident(s) of the US and non-citizen/non-resident board members be filed for tax as a S-Corp?
If there is a startup consists of citizen/resident and international(non-citizen/non-resident) students in the US who they want to create a company and get funding from investors, can they using S-...
user109157
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What are the advantages of LLC over S-Corp?
I saw a video that mentioned that if you don't want to withdraw all your company's net profit and want to invest it again on the company, it's better to have a LLC over the S-corp. Is that true?
May ...
user109157
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What options are available if the IRS denies appeals for waiving missing form fee?
This question is a follow-up to
What happens if IRS does not receive 1120-S for an S-Corp?
In June 2019, IRS sends Mr. X a letter with a fine of $7,200 for the missing 3 forms (each form cost maximum $...
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I have a legal document describing the purchase of shares, but how do I notify the IRS or State?
I have a very long document that explains a great deal of details that the purchaser and founder had regarding the share of sales. It explains the rights of shareholders, distributions, and many more ...
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How to pay taxes on single owner LLC
I have a LLC with one employee on Corp 2 Corp. The job pays 100k and the employee makes 70k. I am the only member of the LLC and I read somewhere that the IRS treats one-member LLCs as sole ...
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If corporations can claim loss of $600 million and a person can claim loss of only $3000 per year, then what if we operate as Corp2Corp or 1099?
It was said that Amazon was able to have $627 million claim of past loss against any gain. So if a person in US can only claim maximum of $3000 per year, then what if we all operate as a 1099 or ...
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No more income. What are my options to keep my S-Corp from dissolving?
I classified my single member LLC as an S-Corporation to take advantage of the tax advantages for qualifying small businesses as an independent software contractor. This worked well while generating ...
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How do I categorize myself if I'm an owner of a corporation, and didn't make anything above my initial investment? [closed]
I started an LLC which will be filing as an S-Corp. Thus, my personal taxes are separate. Am I self-employed, or employed by the LLC? I also only received reimbursements for my investment. Do I ...
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LLC vs S-CORP for Side Business along with regular job
Situation:
A person has a good-paying job where the Social Security tax limit is reached or almost reached every year, and the person also has a side business (LLC) that brings in more than 100k every ...
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Adult Entertainment Taxes; Independent Contractor, SMLLC, LLC, S-corp, etc?
I've been dancing for a few years. I've been filing taxes as an independent contractor. I do not receive any 1099s. All my earnings are cash, received that day. I pay a house fee (rent for being ...
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Does paying down debt in an S Corp decrease profitability?
Long story short - I'm a participating shareholder of a small S Corp that has debt.
At the end of the year, since it's an S Corp, the profits/losses are passed down to the shareholders to be reported ...
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Is an S-Corp required to pay the sole owner/employee a wage if the S-Corp only has passive income?
S-Corp has passive income; does the single person owner need to be paid a wage on payroll?
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Can an S-Corp pay the sole owner/employee with a 1099?
Suppose a person has a one-person S Corporation, and the corporation is paying the owner/sole employee with a 1099. The owner then pays Self-Employment tax on a Schedule C when filing. Is this ...
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In which EU countries can companies elect pass-through taxation or at least there exists a company form with pass-through taxation?
I am looking within EU for a tax solution similar to S Corporations in the US:
An S corporation, for United States federal income tax, is a closely held corporation (or, in some cases, a limited ...
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Making equity investment of personal money to LLC
NY state here. I have a very small single member, member managed (I'm the member) LLC that has elected to be taxed as an S-corporation (this might be important).
The LLC is running a little light on ...
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Line 12 of 1020-S Sub-S Corp return
My accountant has fallen seriously ill, I'm sole owner and employee of a Sub-S Corp.
I'm looking at my 2018 Corp Tax return at line 12, trying to figure out what I should enter there for the 2019 ...
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Reducing tax obligation for LLC electing S-corp taxation
United States here, specifically NY state (if it makes a difference). Say we have a super small, 1-man member-managed LLC that has elected to be taxed as an S-corporation. This way, the 1-man member ...
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How does the Spanish Tax Agency view US S-Corporation income?
Given the following hypothetical situation:
I have an S-Corp in the US which generates 300K USD annually
I am a US citizen
I am an EU citizen and reside in Spain
I invoice the US S-Corp for 50K EUR ...
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