Emil Estafanous, CPA » business stucture http://www.zcpa.net An Accountancy Corporation Wed, 23 Nov 2011 22:17:23 +0000 en hourly 1 http://wordpress.org/?v=3.3 Business Structures http://www.zcpa.net/business-structures.html http://www.zcpa.net/business-structures.html#comments Wed, 28 Oct 2009 07:10:36 +0000 Emil Estafanous, CPA http://businessstructures.wordpress.com/?p=25 When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute.  Legal and tax considerations enter into selecting a business structure.

For additional information, refer to Small Business Administration’s Choose A Structure webpage.

]]> http://www.zcpa.net/business-structures.html/feed 26 S Corporations http://www.zcpa.net/s-corporations.html http://www.zcpa.net/s-corporations.html#comments Wed, 28 Oct 2009 06:11:24 +0000 Emil Estafanous, CPA http://businessstructures.wordpress.com/?p=9 S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.

To qualify for S corporation status, the corporation must meet the following requirements:

  • Be a domestic corporation
  • Have only allowable shareholders
    • including individuals, certain trust, and estates and
    • may not include partnerships, corporations or non-resident alien shareholders
  • Have no more than 100 shareholders
  • Have one class of stock
  • Not be an ineligible corporation i.e. certain financial institutions, insurance companies, and domestic international sales corporations.

In order to become an S corporation, the corporation must submit Form 2553 Election by a Small Business Corporation (PDF) signed by all the shareholders.

Filing Requirements:

Chart 1 – S Corporation

If you are an S corporation then you may be liable for… Use Form…
Income Tax 1120S (PDF) (Instructions for Form 1120S (PDF))
1120S Sch. K-1 (PDF) ( Instructions for Form 1120S Sch. K-1 (PDF))
Estimated tax 1120-W (PDF) (corporation only) and 8109
Employment taxes:

  • Social security and Medicare taxes and income tax withholding
  • Federal unemployment (FUTA) tax
  • Depositing employment taxes
 941 (PDF) ( 943 (PDF) for farm employees)940 (PDF)
8109
Excise Taxes Refer to the Excise Tax web page

Chart 2 – S Corporation Shareholders

If you are an S corporation
shareholder then you may be liable for…		 Use Form…
Income Tax 1040 and Schedule E (PDF)
Estimated tax 1040-ES (PDF)

References/Related Topics

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