Subchapter S Corporation

A Subchapter S Corporation is a special type of corporation offering avoidance of double taxation. If a business qualifies as a Subchapter S Corporation by the IRS (Internal Revenue service), the corporation is not taxed directly but taxed as in a partnership, the shareholders of the corporation are liable to pay tax on business profits on their individual tax returns. Qualifying as a Subchapter S Corporation allows pass-through income taxation, profits from the corporation pass through straight to the personal tax return of the shareholders.

 

Tax Forms needed by a Subchapter S Corporation

Form 1120S: Income Tax Return for S Corporation
1120S K-1: Shareholder's Share of Income, Credit, Deductions
Form 1040: Individual Income Tax Return
Form 1040-ES: Estimated Tax for Individuals
Schedule SE: Self-Employment Tax
Employment Tax Forms
Form 4625 Depreciation
Schedule E: Supplemental Income and Loss
Other forms as needed for capital gains, sale of assets, alternative minimum tax, etc


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