Gaizer.com Tips for Business Start-ups

An S-Corporation’s earnings will pass through to your income taxes (no double taxation). However, you will have to maintain all the business records and comply with state regulations.

Owners of an S-Corporation pay FICA on shareholders’ salaries, but do not pay for distribution of profits and earnings. The S-Corporation shareholder does not pay self-employment taxes on profits or earnings.

What follows is a partial list of the forms you may need for your S-Corporation. Confer with your tax professional for details:

• Form 1120S U.S. Income Tax Return for an S-Corporation
• Form 1120S K-1 Shareholder’s Share of Income, Deductions, Credits, etc.
• Form 4625 Depreciation and Amortization
• Employment tax forms, for more information go to: www.irs.gov/businesses/small/article/0,,id=99194,00.html
• Form 1040: U.S. Individual Income Tax Return
• Schedule E: Supplemental Income and Loss
• Form 1040 ES: Estimated Tax for Individuals
• Other forms might be needed for capital gains, consult with your accountant.