When Tax Day comes, small businesses and large corporations alike must be prepared to prepare and file accurate tax reports to avoid penalties and unwanted IRS scrutiny. It pays to be prepared, to have a system in place to organize and tabulate company finances in an orderly manner, so that when Tax Day approaches the process of preparing income tax forms will go smoothly with no mistakes.
Let the Honolulu, OAHU tax and accounting experts at Diamond Head Tax Group help your business process S Corporation Income Tax Forms properly to avoid costly errors and issues with the IRS. Our meticulous tax consulting services professionals are experts in accurate and successful corporate tax return filing for OAHU, HAWAII businesses.
S Corporation Income Tax Return Filing for OAHU, HAWAII BUSINESSES Call: 808-468-8041
Corporate tax return filing requirements come with their own intricacies due to frequent changes in tax laws as well as the differences between filing corporate tax returns across state and local jurisdictions, or dealing with federal or even international tax authorities. This is where Diamond Head Tax Group's OAHU Tax Services come in, with experts well-versed in the time-consuming and complicated task of accurately filing corporate taxes.
Every company that generates net income during a tax year is required by U.S. law to file corporate tax returns. The two primary types of corporations that must file federal tax returns are C Corporations and S Corporations.
C Corporations are a legal structure for a corporation where owners or shareholders are taxed separately from the entity, this is the most prevalent type of corporation.
S Corporations are a type of corporation that may pass income directly to shareholders along with other credits, deductions and losses. S Corporations do not pay federal corporate taxes. This setup is associated with small businesses with 100 or fewer shareholders.
Preparing Corporate Tax Returns and Filings for S Corporations
Step 1
When a company is set up, after establishing a company as a C Corporation, there is an option to have it taxed as an S Corporation - meaning that tax obligations pass through the owners' personal tax reporting.
Step 2
Determining tax deductions that can be written off. The IRS allows business owners to deduct all current expenses necessary for the operation of their businesses as well as certain investment and real estate purchases, employee salaries and benefits, some taxes, insurance payments, and more.
Step 3
Paying estimated taxes to the IRS, after estimating how much tax you’ll need to pay on the net amount. C Corporations must submit estimated tax payments four times a year to state and federal authorities.
S Corporations on the other hand don’t pay income taxes, since they pass tax obligations through to their shareholders, which means that they usually don’t pay estimated taxes.
S corporations do need to pay estimated tax when their tax on built-in gains, the excess net passive-income tax, and the investment credit recapture tax total $500 or more.
Step 4
Filing tax returns on their due dates. S Corporations use Form 1120-S. For S Corporation shareholders they must report their share of income from the corporation on a Schedule K-1 attached to their personal tax returns.
S Corporations must file on the 15th day of the third month, which usually means that these companies’ tax returns are due on March 15. However extensions are available. Reach out to Diamond Head Tax Group OAHU for extensions.
Contact us and let our skilled OAHU Tax Experts offer their well-rounded tax advice and tailored tax solutions to help you file accurate tax reports. Diamond Head Tax Group is Honolulu's trusted source of tax filing services serving Waianae, Honolulu, Kapolei, Oahu and surrounding areas.
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