As the time for filing taxation appears, companies are found to be extremely stressed, which is quite obvious as any mistake might get heavy on the budget. Moreover, when a business forms a corporation, it is mandatory to follow the rules for taxation as an S-Corporation. However, filing taxes is not an easy job, and the best way to avoid any mistakes is to consult an accountant from Pembroke Pines, Florida accounting firm.
How to File Tax Returns for S-Corp?
Once it is determined that one needs to file taxes as an S-corp, one receives a time period of 2 months and 15 days from the start of the tax year to fill out the Internal Revenue Service form. This form must also be signed by all the shareholders. For newly formed corporations, the tax year will be counted from the day of their formation.
Tax Deductions for S-Corp:
One of the main parts of tax filing is tax deductions. One must gain knowledge about all the essential deductions while engaged in the procedure. One will get the best help regarding this from an accountant. For instance, S-Corps can deduct employee bonuses, salaries, costs concerning retirement plans, and health insurance.
Timely Payment of Taxes:
It is obligatory for an S-Corp to pay estimated taxes, if any, as there will be several taxes concerning S-corp where one needs to make an estimated payment. Missing these estimated payments on a quarterly basis within the stipulated time will pose the risk of penalties and interest.
Filing the Federal and Shareholder Forms:
One must be conscious of all the appropriate S-corp federal form that views the losses, expenses, and income of the business organization or the company. Additionally, there are also forms bound for shareholders that would show their particular share of the corporation’s credits, income, and deductions. Also, a copy of their personal income tax returns should be provided by them.
Filing S-Corp and State Tax Returns:
Last but not least, along with filing S-Corp tax returns, one must remain conscious of the state tax returns. Additionally, depending on the place of the formation, one needs to pay corporate tax as well, which is generally a nominal amount. State tax returns are mandatory for both the corporation and the shareholders.
Final Thoughts:
While all these might seem complicated, hiring a professional accountant would be the best idea to ensure that all taxes are filed according to federal law and that the corporation is safe from the grueling eyes of the IRS.
