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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50 views

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 board members that one of them isn't 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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Is it possible to refund the previously paid taxes by changing the LLC to S-Corp?

If someone starts an LLC in the US with F-2 visa, then he do apply for EB2-NIW green card and get EAD/AP combo card: 1- Can he change the LLc to S-Corp using this EAD/AP combo card? 2- After he ...
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Is it possible to establish an S-Corp using EAD/AP combo card?

If someone is pending for EB2-NIW green card, and have EAD/AP combo card, can he/she establish an S-Corp inside the US?
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48 views

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-...
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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 ...
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188 views

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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121 views

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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236 views

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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S-Corp distribution & AAA Accumulated Adjustments Account

AAA is an S-Corps retained earnings not yet distributed. income increases AAA distributions lowers AAA (but not below zero) capital contributions does not increase AAA Scenario: I invest $100k in ...
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Are S-Corp distributions required to be come from AAA first before a shareholders paid in capital?

This appears so, as the 1120-S M-2 AAA calculation is not increased by paid in capital, only by ordinary income, but is also decreased by all distributions (return of capital).
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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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217 views

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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1answer
1k views

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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32 views

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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1answer
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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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1answer
132 views

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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1answer
62 views

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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59 views

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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1answer
86 views

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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107 views

Coronavirus CARES Act - How Do I Apply For A Small Business Loan As A One Person S-Corporation?

The US Chamber of Commerce recently published a quick guide on how businesses can file for a loan backed by the government under the CARES stimulus act. The guide splits up businesses as either an ...
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Is this corporation electing to be an S corporation beginning with this tax year?

I had a question about what to put for this answer in section G of Form 1120S. I already filed Form 2553 the prior year to be accepted as having S-corp tax status for my LLC. Do I put "No" here ...
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1answer
73 views

Receiving stock through an LLC

I have an LLC with S-Corp tax status. I am working for a startup and part of my compensation is stock. I am receiving 25% of this stock after 6 months and the rest is being awarded monthly after 6 ...
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1answer
52 views

Trying to understand S corp

Say an S Corp has one owner and earns 300k in a year. It pays wages of 100k. Can the 200k be invested by the S Corp so that the the 200k does not have to be distributed?
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Taking back your capital from your S-corporation

If I put 100k of my own money into my business, and now my business made 150k, can I take out my 100k without it being taxable? If so, how would that be inputted onto the k-1?
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200 views

1099 and W2 income in same year. Does it make sense to open LLC/S-corp?

Next year (starting from January 1st) I am planing to work for company "A" as self-employer (software developer/consulting) for 3 month. After that I am planing to work as full time employee (W2) for ...
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254 views

Do I have to pay income tax and capital gains tax on S-corp distributions when my stock basis is $0?

Consider the following hypothetical: I start an S-corporation as sole owner and employee but contribute no initial capital or assets. My starting basis is $0. (My initial investment is my expertise, ...
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40 views

S-Corp - Small Business Health Options Program (SHOP) vs Individual Policy Through Marketplace For One Person

I have a one person S-Corp. I am currently purchasing an individual health insurance plan through the federal marketplace, but would like more plan options. I know that SHOP (Small Business Health ...
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S Corp Options Exercise Tax Benefits

I have options to purchase stock in a S Corp. Is there any tax advantage to exercising those options at least one year prior to a sale of the company for capital gains tax purposes or does concept not ...
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S-Corp Take Home Estimation

Looking for an estimation of what the take home (i.e. after taxes) would be from an S-Corp. Lets assume the following: The S-Corp has a single stock holder All other income is out of scope for this ...
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59 views

Does S-Corp owned 100% by single-member LLC re-create SE tax?

LLCs with an S-Corp's election eliminate SE Tax. If that S-Corp is owned by a single-member LLC which should be seen as a disregarded entity, would that flow through money have SE tax again? The ...
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48 views

Question regarding Opportunity Zone investing

With Opportunity Zones, you have 180 days to reinvest capital gains. I have capital gains from the sale of land through an S Corporation. I have received a K-1 outlining those gains from the S ...
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61 views

S Corp wages and FICA Form 1120s

Should preface this with this is my first time filing Form 1120s (s corp). Really wish I had not taken someones advice and created an LLC taxed as an S-Corp, but it's too late for that now.. Say that ...
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1answer
564 views

Clarification on line 12 of US tax form 1120S for S Corporations

Background For the 2018 tax year I paid a total of $765 in Quarterly Estimated Payments; US tax form 941. This is the first year I've done taxes as an S Corp with myself being the sole shareholder ...
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filing inactive (no business activity) s-corp return 1120s

In 2017 my s-corp had activity and I used an accountant to file the return. In 2018 I did all the business under my own SSN, and the s-corp had no business activity. I understand that I still have ...
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383 views

How to account for purchase on behalf of client when expecting to get paid the following fiscal year?

If a company buys an equipment for a client and bills the client at exactly the same cost, no more, no less, and the client pays the company back in the exact amount in the subsequent fiscal year, ...
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135 views

What happens if IRS does not receive 1120-S for an S-Corp?

In a phone conversation, the IRS informed someone that their 1120-S is missing for three of the past 6 years. The person had assumed the 1120-S was filed for all those years, especially since the same ...
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Must I file a tax return for my S-corp LLC?

I created an LLC with S-corp election in 2018 in anticipation of doing some freelance work. In the end, I did not do the work and my LLC had no income. Am I still required to file a tax return for my ...
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State Tax on Sale of Michigan S-Corp for Non-Resident

I have a family member that will be a resident of Florida for 2019. He is contemplating selling his business based in Michigan (S-Corp). He can run the business remotely (but anticipates spending ...
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1answer
69 views

Deductible automobile expenses for ridesharing business

Most people here will disagree with the premise of the question, so try to disregard that (and that I know this is likely a very bad idea). I'm considering buying a (new) car that I can't afford (...
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Can You Receive Both a Simple IRA and SEP IRA?

I am the employee of two companies. At one company, I receive a SEP IRA. I know that SEP IRAs are not included in the standard annual elective deferral limit. At the second company, I have the ...
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I own a corporation taxed as an S corp which hires me to do web development/consulting. Does the company income qualify as QBI under the TCJA?

In defining a "qualified trade or business", the Tax Cuts and Jobs Act (TCJA) excludes a "specified service trade or business" and lists "consulting" in its list of disqualified business types. But ...
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Status of employee warrants awarded after an LLC becomes an S-corp

I was hoping to get some advice on how to approach this issue before I seek answers within my organization and perhaps legal consultation: Our company was originally owned by our initial investor's ...
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35 views

When having an LLC taxed as an S Corp, what difference does it make to retain a profit since it is a pass-through entity? [duplicate]

Suppose I have an LLC and for simplicity's sake I'm the only member and I choose to be taxed as an S Corp. I fill out a W2, becoming an employee-owner of the LLC and I pay myself 50% of the LLC's ...
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1answer
50 views

W2 employment paying into personal S corp

I work lower paying side jobs and as such have been looking into setting up an S Corp for this work and having the S Corp collect the payment. Additionally, I have a high paying W2 employment that is ...
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33 views

S-Corp 1040 deduction?

If I own an s Corp and the s corps pay my health insurance do I take a deduction on form 1040? And if I take a deduction on 1040 do I get that exact same amount back in a refund?