FORM 1120-S

Form 1120-S reports an entity’s income, deductions, gains, losses and credits for a year covered by an effective S corporation election. Shareholders generally receive Schedule K-1 reporting their shares. It is separate from each shareholder’s individual return.

No. An LLC is a state-law entity. Its federal tax classification and any effective S election determine the return. Review the election and IRS records rather than relying on the business name.

An S corporation must pay reasonable compensation to a shareholder-employee for services before making non-wage distributions for those services. The work performed and circumstances matter; there is no universal salary percentage that fits every owner.

No. Allocated income and distributions are different items. A shareholder can have income without receiving that amount in cash. Reconcile payroll, distributions, basis and the personal return.

No. Stock and debt basis, at-risk rules, passive activity rules and other limitations can restrict deductions. Keep the shareholder’s basis and suspended-loss history with the tax records.

Merely guaranteeing a corporate loan does not itself establish shareholder debt basis. The actual borrowing, payments and applicable rules need review. A label in the books does not replace that analysis.

No. Form 1120 generally reports a C corporation’s income tax. An effective S election generally leads to Form 1120-S and shareholder pass-through reporting, though certain entity-level taxes can still apply.

No. Corporate and individual filings, payment obligations and authorizations are separate. The K-1 connects information between them; it does not combine the returns into one engagement or filing.

Bring prior corporate and individual returns, the S election, current financial statements, payroll, distributions, asset records and shareholder loans and basis history. Tell us about ownership or business changes. Use secure intake for private documents.

Identify each entity, year and actual filing status first. Original returns, amendments, notices, payroll and personal returns may require different procedures. The consultation helps establish the scope; it does not automatically accept every deadline.

No. It is the free prerecorded initial tax intake, where you explain the business, concerns and life changes. Paid live time and any preparation, written research or resolution work are separately engaged.

No. Book ownership is optional for tax preparation and required for Tax Advisory conversations and written answers. You can start the free consultation without purchasing the Guide or booking a paid hour.