Corporate & Partnership Taxation

Partnerships

If your business has more than one member and isn’t incorporated as an S-Corp or C-Corp, you will need to file a partnership return. Report income, deductions, and credits on Federal Form 1065 and, if needed, on specific state schedules. Here’s what you need to know about partnership taxation:

• •Federal Filing: Use Form 1065 to report the income, deductions, and credits of a partnership. Each partner receives a Schedule K-1, detailing their share of the partnership's income, deductions, and credits.
• •State Filing: Depending on the state where your partnership operates, additional state schedules may be required. We support filings in all 50 states.
• •Default Classification: The IRS automatically classifies a business entity with more than one owner as a partnership unless you elect to be treated as a corporation.
• •LLC Partnerships: Multi-member LLCs are treated as partnerships for tax purposes unless you choose a different classification. This includes multi-member LLCs, equity partners, and members.

We ensure you complete and submit all necessary forms on time, minimizing penalties and maximizing deductions.

S-Corporations (S-Corps)

An S-Corp is a popular small business corporation structure recognized by the IRS. It offers the benefit of decreased self-employment taxes on individual returns. Key aspects of S-Corp taxation include:

• •Federal Filing: S-Corps file their taxes using Federal Form 1120-S, which reports the income, deductions, and credits of the corporation. Each shareholder receives a Schedule K-1, detailing their share of the corporation's income, deductions, and credits.
• •State Filing: Depending on the state, additional state schedules may be required. We provide support for all 50 states.
• •Election Process: You must apply for S-Corp status and receive approval from the IRS, as S-Corps are not a default classification.
• •Tax Savings: One of the primary benefits of an S-Corp is the potential for significant tax savings by reducing self-employment taxes. This can be particularly advantageous for businesses with substantial annual net income.

We assist with the application process for S-Corp status and ensure your annual returns are filed accurately and promptly.

C-Corporations (C-Corps)

A C-Corp is a separate taxable entity that pays taxes on its income. Larger businesses and startups, especially those incorporated in Delaware, commonly use this structure. Here’s an overview of C-Corp taxation:

• •Federal Filing: C-Corps report their income, deductions, and credits on Federal Form 1120. The corporation pays taxes at the corporate tax rate.
• •State Filing: Depending on the state, you may need to file additional state schedules. Our services cover all 50 states.
• •Default Classification: If you incorporate your business with the state or register your EIN as a corporation, it is automatically classified as a C-Corp unless you elect a different status.
• •Shareholders: C-Corps can have an unlimited number of shareholders, making them ideal for businesses seeking to raise capital through the sale of stock.

We guide you through the complexities of C-Corp taxation, ensuring compliance and identifying tax-saving opportunities.

Limited Liability Companies (LLCs)

LLCs are flexible business structures with state-specific filing requirements. For federal tax purposes, LLCs can be classified in various ways:

• •Single-Member LLCs: As the sole owner, you report your LLC as a disregarded entity on Federal Form 1040 Schedule C, including the income and expenses on your personal tax return.
• •Multi-Member LLCs: With multiple owners, your LLC operates as a partnership and files Federal Form 1065, unless you choose to be classified as an S-Corp or C-Corp.
• •State Filing: Each state sets its own filing requirements for LLCs. We handle LLC filings across all 50 states.