Skip to main content

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.

Filter by
Sorted by
Tagged with
0 votes
1 answer
35 views

Single Member S-corp LLC with multiple business , inter business loan , asset purchase using revenue

A single member S-corp has consulting business and also a Registered investment advisor (RIA) firm (owner has series-65 & series-7 license and got the firm registered using CA/SEC to be a ...
cyborgt8's user avatar
0 votes
2 answers
43 views

1120s line Taxes and licenses

2024 will be my second tax return for my s-corporation. On March 2024 I paid income tax of $389 for 2023. Do I need to include $389 in 1120s line Taxes and license when i will fill 2024 tax return?
Natalia Boiko's user avatar
1 vote
1 answer
490 views

What is a stock block, and when are multiple 7203 forms required

The IRS form 7203 instructions state that: When a shareholder has a different basis in different blocks of stock, pass-through items are generally allocated pro rata to all shares, regardless of ...
Sudo Bash's user avatar
  • 305
1 vote
1 answer
58 views

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 ...
hsbatra's user avatar
  • 21
0 votes
2 answers
1k views

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 ...
rob's user avatar
  • 69
1 vote
1 answer
90 views

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 ...
Sudo Bash's user avatar
  • 305
-1 votes
1 answer
1k views

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 ...
Dallat's user avatar
  • 1
0 votes
1 answer
236 views

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 ...
money.frictionlesspulley's user avatar
2 votes
2 answers
588 views

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 ...
Phil Sandler's user avatar
  • 3,571
2 votes
0 answers
35 views

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 ...
Eric's user avatar
  • 245
0 votes
1 answer
134 views

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 ...
jstricker's user avatar
4 votes
3 answers
4k views

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 ...
Charlie's user avatar
  • 141
1 vote
2 answers
278 views

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 ...
number41's user avatar
  • 153
2 votes
1 answer
91 views

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 ...
Nate Fischer's user avatar
0 votes
2 answers
156 views

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,...
number41's user avatar
  • 153
0 votes
2 answers
630 views

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 ...
number41's user avatar
  • 153
0 votes
1 answer
158 views

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 ...
number41's user avatar
  • 153
0 votes
1 answer
99 views

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 ...
number41's user avatar
  • 153
1 vote
1 answer
382 views

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 ...
number41's user avatar
  • 153
-1 votes
1 answer
101 views

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 ...
kosa's user avatar
  • 133
0 votes
1 answer
82 views

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 ...
Derek's user avatar
  • 865
3 votes
1 answer
316 views

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....
Claudiu's user avatar
  • 131
1 vote
1 answer
56 views

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 ...
kosa's user avatar
  • 133
0 votes
1 answer
232 views

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 ...
number41's user avatar
  • 153
0 votes
1 answer
62 views

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&...
kosa's user avatar
  • 133
0 votes
1 answer
143 views

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 ...
kosa's user avatar
  • 133
0 votes
1 answer
269 views

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 ...
kosa's user avatar
  • 133
0 votes
1 answer
122 views

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 ...
kosa's user avatar
  • 133
1 vote
0 answers
48 views

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 ...
Joel Graff's user avatar
0 votes
1 answer
141 views

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 ...
Leo Galleguillos's user avatar
1 vote
1 answer
58 views

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 ...
Shawn's user avatar
  • 11
1 vote
2 answers
101 views

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. ...
foreverska's user avatar
1 vote
1 answer
106 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 ...
Matt's user avatar
  • 11
0 votes
2 answers
115 views

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/...
user avatar
0 votes
2 answers
69 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-...
user avatar
2 votes
1 answer
149 views

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 ...
user avatar
-2 votes
2 answers
202 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 $...
2q.'s user avatar
  • 105
0 votes
2 answers
214 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 ...
Louis Waweru's user avatar
1 vote
1 answer
80 views

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 ...
cricket88's user avatar
0 votes
3 answers
172 views

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 ...
deeper-understanding's user avatar
2 votes
2 answers
319 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 ...
Nicholas's user avatar
1 vote
0 answers
45 views

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 ...
ADAM's user avatar
  • 11
1 vote
2 answers
164 views

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 ...
DonO's user avatar
  • 111
7 votes
2 answers
794 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 ...
Wonderingway's user avatar
7 votes
1 answer
2k 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 ...
rinogo's user avatar
  • 295
0 votes
0 answers
46 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?
user104071's user avatar
2 votes
1 answer
434 views

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 ...
user104071's user avatar
2 votes
1 answer
446 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 ...
Pawel Debski's user avatar
2 votes
1 answer
140 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 ...
hotmeatballsoup's user avatar
1 vote
0 answers
64 views

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 ...
NealWalters's user avatar