Home/Tax Services/Business Returns — S-Corp (Form 1120-S)
Get The S-Corp Return Right The First Time
Form 1120-S prepared from closed books, with K-1s that agree with the shareholders' personal returns.
What The 1120-S Engagement Covers
An S-Corporation files its own return and passes income through to shareholders on Schedule K-1. Because those K-1s drive personal returns, the corporate return has to be finished and correct before anyone can file individually.
- Federal Form 1120-S and the Alabama business return
- Schedule K-1 for every shareholder
- Balance sheet, Schedules L, M-1 and M-2 where required
- Shareholder basis tracking
- Officer compensation reported against payroll filings
- Depreciation schedules carried forward correctly
Where S-Corp Returns Go Wrong
- No reasonable salary was run through payroll for a working owner
- Distributions were taken without tracking basis
- Personal expenses ran through the company and were never reclassified
- The books were never closed, so the balance sheet does not tie
- A shareholder loan was booked as income or vice versa
Most of these are bookkeeping problems that only become tax problems in March. Catching them during the year is the cheaper path.
Reasonable Compensation And Payroll
An owner working in an S-Corporation is expected to take a reasonable salary through payroll before taking distributions. Getting that balance wrong in either direction has a cost, and it is examined regularly. Where payroll is handled here too, the officer compensation on the return and the payroll tax deposits and filings already agree, because they came from the same close.
S-Corporation Filings In Huntsville, AL
S-Corporations across Huntsville, AL, Decatur, AL, Athens, AL, and the wider North Alabama market file here, many of them businesses that elected the status after outgrowing a Schedule C. The election itself and the formation work are handled in the same practice.
Business Returns — S-Corp (Form 1120-S), Answered
When is the S-Corp return due?
The federal return is due in mid-March for calendar-year filers, a month ahead of personal returns, because the K-1s have to exist before shareholders can file. An extension is available and does not extend the time to pay.
What happens if the K-1 changes after I file personally?
The personal return has to be amended to match. That is the main reason the corporate return is finished first rather than in parallel.
Do you handle the payroll the S-Corp needs?
Yes. Payroll processing, the 941 and 940 filings, and W-2s can all be handled alongside the return, which is what keeps officer compensation consistent across all of them.
Often Handled Alongside This
Business Returns — Partnership / LLC (Form 1065)
Form 1065 with a Schedule K-1 for every partner, capital accounts maintained, guaranteed payments separated from distributions, and allocations checked against the operating agreement rather than assumed from ownership percentages.
Read moreS-Corporation Formation
Entity setup, the Form 2553 election filed inside its window, a reasonable salary established through real payroll, and basis and distributions tracked from the start.
Read morePayroll Processing
Weekly, bi-weekly, semi-monthly, and monthly payroll, run through QuickBooks Payroll or Patriot with direct deposit, stubs, deductions, and the journal entries posted into the same period as the books.
Read moreTake The First Step
Book a time that suits you. A written confirmation follows with the meeting details and a short list of what to have on hand.