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When it comes to actual ownership, C corps have minimal restrictions and virtually anyone can be an owner of the corporation, and there is no cap on the number of owners permitted. S corps, on the other hand, do have a limit on ownership. They are limited to 100 shareholders.
A 1120 tax form is an Internal Revenue Service (IRS) form that corporations use to find out their tax liability, or how much business tax they owe. It is also called the U.S. Corporation Income Tax Return. American corporations use this form to report to the IRS their income, gains, losses deductions and credits.
Purpose of Form Use Form 1120, U.S. Corporation Income Tax Return, to report the income, gains, losses, deductions, credits, and to figure the income tax liability of a corporation.
Form 1120-S is the annual tax return for businesses that are registered as S corporations. The form is used to report income, gains, losses, credits, deductions, and other information for S corporations.
A domestic corporation must file Form 1120, U.S. Corporation Income Tax Return, whether it has taxable income or not, unless its exempt from filing under section 501.
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The 1120/1120S forms are received by parents whom have ownership in a corporation. The 1065 form is received by parents whom have ownership in a partnership. The supporting Schedule K-1s will indicate the percentage that parent(s) own in the business.
The difference is that Form 1120 is used by C corporations (C corps), which are liable for corporate federal taxes, and Form 1120-S is used exclusively by S corps.
C corporations file taxes on Form 1120. S corporations file taxes like a sole proprietorship or a partnership does. The profits (or losses) of the business pass through an S corp to the shareholders, who pay taxes and report them on their personal tax returns. S corporations file on Form 1120-S.

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