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What tax return does an S Corp file?

Use Form 1120-S to report the income, gains, losses, deductions, credits, etc., of a domestic corporation or other entity for any tax year covered by an election to be an S corporation.

What is difference between C Corp and S Corp?

The C corporation is the standard (or default) corporation under IRS rules. The S corporation is a corporation that has elected a special tax status with the IRS and therefore has some tax advantages. Both business structures get their names from the parts of the Internal Revenue Code that they are taxed under.

How do taxes work for S Corp?

Because of pass-through taxation, the S corporation doesnt pay federal income tax on its business income the way a C corporation does. Instead, business income, deductions, losses, and other tax items flow through (or pass through) to the business owners (e.g., the shareholders).

What is a 1120 Corp?

Form 1120 is the tax form C corporations (and LLCs filing as corporations) use to file their income taxes. Once youve completed Form 1120, you should have an idea of how much your corporation needs to pay in taxes.

Should I file my business as an S Corp?

S corp tax status is an attractive choice because it offers liability protection and tax savings while making it easier to transfer business interests. This federal status allows S corporation shareholders to avoid double taxation on any corporate income.

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