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
1 vote
1 answer
40 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 ...
0 votes
1 answer
99 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 ...
0 votes
1 answer
41 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 ...
0 votes
1 answer
162 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 ...
0 votes
1 answer
49 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 ...
1 vote
0 answers
43 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 ...
1 vote
1 answer
76 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 ...
0 votes
0 answers
18 views

Form 1120s and PPP Loans

I have some questions on entering PPP Loan information on Form 1120s. When would this be anything other than the full loan amount? Is payroll included as a business expense? PPP Amounts (Box 2) Enter ...
0 votes
1 answer
26 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 ...
1 vote
2 answers
66 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. ...
0 votes
1 answer
52 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 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/...
1 vote
0 answers
38 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 ...
2 votes
2 answers
243 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 ...
2 votes
1 answer
111 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 ...
0 votes
1 answer
50 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-...
-2 votes
2 answers
196 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 $...
1 vote
1 answer
42 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 ...
0 votes
3 answers
171 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 ...
1 vote
0 answers
44 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 ...
1 vote
2 answers
95 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 ...
7 votes
2 answers
324 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 ...
0 votes
2 answers
84 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 ...
7 votes
1 answer
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 ...
0 votes
0 answers
36 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?
2 votes
1 answer
61 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 ...
2 votes
1 answer
208 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 ...
2 votes
1 answer
114 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 ...
2 votes
1 answer
69 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 ...
0 votes
1 answer
76 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 ...
1 vote
0 answers
356 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 ...
2 votes
0 answers
111 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 ...
1 vote
0 answers
27 views

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 ...
1 vote
2 answers
261 views

1099 versus corporation to corporation for payments?

I have an S corp and am starting a new relationship with a business partner, who is going to contract my services. They said 1099 or corporate to corporate, in terms of how I get paid. If they pay me ...
0 votes
1 answer
92 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 ...
1 vote
1 answer
77 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 ...
1 vote
1 answer
54 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?
0 votes
0 answers
58 views

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?
1 vote
1 answer
211 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 ...
2 votes
1 answer
273 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, ...
1 vote
1 answer
46 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 ...
2 votes
0 answers
44 views

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 ...
3 votes
0 answers
123 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 ...
1 vote
0 answers
41 views

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 ...
5 votes
1 answer
65 views

Health insurance deduction - better to buy through S-Corp or 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 ...
1 vote
0 answers
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 ...
3 votes
0 answers
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 ...
2 votes
0 answers
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 ...
2 votes
1 answer
650 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
0 answers
124 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
1 answer
428 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, ...