Stack Exchange Network

Stack Exchange network consists of 175 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.

Visit Stack Exchange

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.

1
vote
0answers
42 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 ...
2
votes
0answers
40 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 ...
1
vote
0answers
44 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 ...
1
vote
1answer
23 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 ...
1
vote
0answers
18 views

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 ...
0
votes
1answer
48 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, ...
0
votes
0answers
29 views

Italian Taxes on U.S. Citizen Resident of Italy with Dividends from Permanently Established U.S. Company

NOTE: the goal of asking this question is not to avoid paying legitimate taxes, but to simply determine which state has precedent for payment of taxes due. Based on the U.S. Italy Tax Treaty income ...
0
votes
1answer
41 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 ...
2
votes
0answers
27 views

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 ...
1
vote
0answers
25 views

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 ...
0
votes
1answer
61 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 (...
3
votes
0answers
48 views

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 ...
1
vote
0answers
35 views

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 ...
2
votes
0answers
57 views

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 ...
1
vote
0answers
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 ...
0
votes
1answer
36 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 ...
0
votes
1answer
25 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?
1
vote
0answers
96 views

S-Corp - How to Split Up Quarterly Estimated Tax Payments

I have a S Corp where I am the only shareholder and employee. I usually do payroll once per year - at the end of the year - during which I pay myself a salary for the whole year (pay period of Jan. ...
4
votes
1answer
103 views

All of salary in one month?

I run a business which is very unpredictable. A few months it may do no income and in 1-2 month it may make a 6 figure income. I like the FICA savings advantage of s-corps. But I don't want to pay ...
2
votes
3answers
308 views

LLC-SCorp to self - actually, does the corp pay payroll taxes?

In the USA. Here are the two common scenarios for the self-employed: A. Joe makes 100,000 over the year. It's paid to him as 1099 payments from his various clients. Joe pays the many taxes on that. ...
1
vote
1answer
60 views

S-Corps and owner draws: Are draws tied to equity shares?

A friend of mine is involved with an organization as an employee but also owns a 5% equity stake in the organization. The organization is a S-corp. They want to pay 5 members an equal owner draw ...
1
vote
2answers
57 views

Can you “expenses-in-a-corp V. standard deduction” in the USA?

This seems like a "too good to be true" tax dodge in the USA milieu. Is it correct? Sally is a graphic designer married with a typical family. She gets $100,000 in 2017 as 1099 income. She buys a ...
79
votes
4answers
13k views

The USA “self-employment tax dodge” mystery

For non-US readers: In the US, for those who are self-employed, there are many specific taxes. One particular tax is the confusingly named "The Self-Employment Tax". Thus, if you are self-employed, ...
2
votes
1answer
67 views

Missing S Corp Tax Return - Who Is Liable for Penalty (Company vs Shareholders)?

I have a company that was incorporated in November 2015 as a S Corp. There was no activity at the company for November / December 2015 and a tax return was not filed for 2015. I found that even with ...
1
vote
0answers
61 views

Under what circumstances should I file form 1040 Schedule SE if I have an S Corporation?

I'm reading conflicting information across the web regarding self-employment taxes on S Corps - some saying that S Corp shareholders (owners) are not considered self-employed, while others say S Corp ...
2
votes
1answer
61 views

What's the difference between S-corp vs LLC file as S-corp?

I want to set up a company and I will be the sole owner. After doing some research, I think S-Corp would be a good fit. But I also found that I can start a company as LLC and file tax as S-Corp? ...
3
votes
0answers
80 views

Capital gains treatment of selling all the assets of an S corporation?

I sold the assets—not the stock—in an S corporation that is owned by my spouse and myself. The sale was a cash sale of all income-producing assets of the S corp. Since the sale, the S ...
2
votes
0answers
91 views

Under new federal tax bill, can I save taxes by not doing payroll anymore for my single employee (me) S-CORP?

Will paying myself only shareholder distributions instead of payroll, and using the new 20% QBI deduction on my QBI of $300k save me more taxes under the new federal tax plan, and allow me to ...
3
votes
1answer
253 views

LLC or S Corp under new tax law

I and my wife have a small business that is registered in MA as an S-Corp, we have also a rental property. I am told that to protect ourselves it is better to register the rental property as LLC. I ...
1
vote
1answer
79 views

Does the New Tax Bill Affect 2017 Taxes For Flow Through Entities / S Corp?

Will the new tax bill affect flow through entities' / S Corps' 2017 tax rates? Specifically, will you be able to take advantage of the new 20% deduction for 2017?
1
vote
0answers
172 views

Which form to use, 1040 ES or 941, for one member S corp quarterly tax?

I am a contractor, and want to form an LLC and select being treated as S corp (by 2553 form). I read online about federal quarterly payroll tax using form 1040 ES, but this article suggested to use ...
3
votes
0answers
33 views

Health Insurance Deduction - Better to Buy Through S-Corp or Buy Individually?

I have a S-Corp that I can buy myself insurance through. If my monthly coverage costs $380, is it more advantageous for me to purchase this insurance through my S-Corp and then use it as an employee ...
5
votes
1answer
209 views

What's required to claim “pass-through entity” tax rates, for a sole proprietorship under 2018 IRS tax rules?

Under the 2018 USA tax plan, I understand that "passthrough" entities are offered the same tax rate as corporations. What qualifies for this rate? An LLC? An S-Corp? Anyone who files Schedule-C? ...
8
votes
1answer
488 views

Can I turn myself into a pass-through corporation in order to save money on income tax?

Given the pending changes in the tax code, I'm wondering if I could legally structure myself as a pass-through corporation in order to decrease my income tax bill. How would I go about doing this? How ...
2
votes
0answers
266 views

new tax bill pass-through limit deduction threshold

Here is a clip from the Washington Post on pass-throughs. “Pass through” companies get a 20 percent reduction: Most American businesses are organized as “pass through” companies in which the income ...
3
votes
0answers
142 views

How will the new tax bill benefit an S-corp individual?

While driving, I heard on some news program that flow-through people can deduct more from direct income from their business than indirectly through payroll (such as ADP). Will the new tax bill let me ...
1
vote
0answers
69 views

File as an S-Corp to retain deductions after new US tax bill

According to https://www.forbes.com/sites/groupthink/2017/11/28/small-businesses-cast-jaundiced-eye-at-tax-reform-proposals/, should the current tax reform bill pass into law: "corporations would ...
4
votes
0answers
70 views

Should I create a simultaneous Part-time Sole Proprietorship and Part-time single-member S-Corporation?

I am self-employed and my business has two distinct parts: Engineering and Design - which makes $50k income / year Manufacturing and Sales - which makes $150k income / year I am currently running ...
1
vote
1answer
150 views

ACA - Excess Premium Tax Credit Repayment - S Corp

I started an S corp this year. I'm the only owner and only employee. I bought insurance via the marketplace under my name and the company reimbursed me. I underestimated my income when I signed up on ...
1
vote
1answer
74 views

Do I need to pay myself a salary if I switch from S-Corp employee to shareholder mid-year?

The company in question is an S-Corp. From 1/1 through 7/31, I worked as a W-2 employee for the company. During that time, the company was owned by a single person, who held 100% of the shares. I ...
0
votes
0answers
64 views

pass through tax liability

In this scenario, a single member LLC has income of $100,000 and is passed straight through to the owner, subject to income tax and self employment taxes. Single member LLC has borrowed $105,000 at ...
-1
votes
1answer
36 views

S-Corp and distributions

At the end of 2016, I had a positive income and balance in my S-Corp account. If this money is considered as personal income for tax purposes, should I just transfer that amount over to my personal ...
0
votes
0answers
69 views

Should I report my S-corp dividends on my 1040 as sched-C self-employment or 1099-div?

I'm using TurboTax and am confused how to report my profits from my S-corp. On my S-corp K-1, I set line 17c "Div distributions paid from accum earnings" equal to my S-corp's ordinary business income....
3
votes
0answers
67 views

What tax forms should I file for my new, 2016 LLC?

I'm the only member (owner). 2016 is the first year (year of incorporation). There were expenses (~$16k) but no income. My plan is to file the 568 by March 15th but not file any federal corporate ...
0
votes
1answer
28 views

Filing 1120S for business that was shut down in 2015 and had no activity in 2016

My business shut down in 2015 and had zero income or activity in 2016. It was an S-corp. The 1120S taxes for 2015 were filed in March of 2016. My assumption was I could simply file the tax return ...
2
votes
1answer
430 views

What taxes are involved for LLC in Georgia?

My life partner* and I just started an LLC in Georgia this month (Mar 2017), and we're trying to figure out what kind of taxes we need to pay and when (and how that changes if we ask the IRS to tax it ...
4
votes
2answers
180 views

SIMPLE-IRA - Can multiple S-Corporations contribute to the same account?

I recently set up a SIMPLE-IRA account at an online brokerage. I have two S-Corps that pay out SIMPLE-IRAs to its employees. Can I distribute money from both S-Corps to the same SIMPLE-IRA account ...
3
votes
1answer
424 views

Buying car as S-corp

I have an S-corporation and I will be buying a car under it today. There are somethings I am unsure about it which I would like to confirm. Do I pay for all the costs of the car out of my business ...
3
votes
1answer
138 views

Recording of personal property contribution to S-Corp in QuickBooks

I began an S-Corp, and I contributed a truck, computers, and furniture. How do I record these items in QuickBooks? What accounts do I use?
3
votes
1answer
148 views

Dec 31 accounting for S Corp - what to do with loss?

This is my first year (2016) in business as an S Corp. As the sole shareholder and 100% owner of the company, I contributed approximately $2000 to the company throughout the year. However, my company ...