Empowering Your Business with Expert Tax Services

• U.S. Corporation Income Tax Return (Form 1120)
• U.S. Income Tax Return for an S Corporation (Form 1120S)
• U.S. Return of Partnership Income (Form 1065)
• U.S. Income Tax Return for Estates and Trusts (Form 1041)

C Corporations are considered separate legal entities from their owners, meaning they are responsible for their own debts and liabilities. Owners of the corporation who invest capital and hold shares of stock have the right to vote on major corporate decisions and elect the board of directors. Unlike other business structures, C Corporations are subject to corporate income tax on their profits, and shareholders are also taxed on any dividends they receive.

Tax Filing Importance

Filing tax returns is essential for maintaining compliance with federal and state tax laws, ensuring accurate reporting of the corporation's income, expenses, and tax liabilities. This process helps avoid penalties, interest charges, and potential legal issues. C Corporations file Form 1120 (U.S. Corporation Income Tax Return) to report their income, gains, losses, deductions, and credits to the IRS. Accurate and timely filing ensures compliance with IRS regulations, helps maintain accurate financial records, and supports overall business operations.

An S Corporation (S Corp) is a special type of corporation under U.S. tax law that allows a corporation to avoid double taxation. Unlike a regular C Corporation, an S Corp can pass corporate income, losses, deductions, and credits directly to shareholders, who report this information on their personal tax returns. This structure provides the benefits of limited liability while allowing income to be taxed only once at the shareholder level. To elect S Corporation status, Form 2553 (Election by a Small Business Corporation) must be filed with the IRS, signed by all shareholders.

Tax Filing Importance

Filing tax returns for S Corporations ensures compliance with federal and state tax laws, preventing penalties, interest charges, and legal issues. Pass-through taxation is a significant benefit of S Corporations — income, losses, and deductions pass directly to shareholders via Schedule K-1. This avoids double taxation, as income is taxed only at the individual level.

A Partnership is a business arrangement where two or more individuals share ownership and management responsibilities. In a general partnership, all partners share equal responsibility for managing the business and are personally liable for business debts. In a limited partnership, there are general partners who manage the business and limited partners who invest capital but have limited liability. Partnerships must also obtain an Employer Identification Number (EIN) from the IRS for tax purposes.

Tax Filing Importance

Partnerships are pass-through entities for tax purposes, meaning they do not pay income tax at the partnership level. Instead, income, deductions, and credits flow through to the partners who report this information on their personal tax returns. Partnerships must file Form 1065 (U.S. Return of Partnership Income) annually. Each partner receives a Schedule K-1 detailing their share of income, deductions, and credits.

In the United States, estates and trusts are legal entities created to manage and distribute assets. An Estate is formed when an individual passes away, comprising all assets owned by the deceased at time of death — managed by an executor responsible for settling debts and distributing assets. A Trust is a legal entity created to hold and manage assets for beneficiaries, with a trustee responsible for managing trust assets according to the trust agreement.

Tax Filing Importance

For tax purposes, trusts are considered separate legal entities and must report their income, deductions, and distributions to beneficiaries using Form 1041. The trustee is responsible for filing this return and ensuring compliance with tax laws. Beneficiaries receive a Schedule K-1 detailing their share of the trust's income, deductions, and credits, which they use to report on their personal tax returns. Filing ensures compliance, helps avoid penalties and legal issues, and provides financial transparency.