S-Corp Tax Filing (Form 1120-S)
Prepare Form 1120-S and shareholder K-1s, with a review of payroll, distributions, and supporting records.
Online service across all 50 states
What this service is
An S corporation doesn't usually pay federal income tax itself, its profit passes through to the owners, but it must still file Form 1120-S every year and issue each shareholder a Schedule K-1. We prepare that return from your books, reconcile the balance sheet and distributions, allocate income to shareholders by ownership, track each owner's stock and debt basis, and check that owner salaries are reasonable for the work performed, which is the issue the IRS most often questions on S corporations.
Forms & documents involved
What we actually do
Review and adjust the books for tax
Reconcile the year-end trial balance and make the book-to-tax adjustments the return requires.
Prepare Form 1120-S and state returns
Complete the federal return, schedules, and the state S corporation or franchise tax filings.
Prepare shareholder K-1s
Allocate income, deductions, and credits to each shareholder based on ownership and days held.
Track shareholder basis
Maintain each owner's stock and debt basis so losses and distributions are reported correctly on the personal return.
Review reasonable compensation
Compare owner W-2 wages with the duties performed and market data, and document the conclusion.
Evaluate the state PTET election
Model whether an elective pass-through entity tax lowers owners' combined tax, where the state offers it.
Estimate what an S-corp election could save
As an LLC or sole proprietor, all of your profit is subject to self-employment tax. As an S corporation, only the salary you pay yourself is. See what that difference is worth after the extra costs.
- Self-employment tax as LLC / sole proprietor
- $21,194
- Payroll tax on S-corp salary (both halves)
- $10,710
- Added S-corp costs
- $2,500
- Salary as share of profit
- 47%
- Net savings
- $7,984
Estimate only. A CPA will confirm what applies to you.
Review an S-corp election with a CPAAn S-corp election is usually worth reviewing when
- Profit is well above what a reasonable salary for your role would be
- You actively work in the business and can support a reasonable salary
- Profit is stable enough to run payroll every month
- You are willing to keep separate books and file Form 1120-S
- You don't plan to have non-U.S.-resident or entity owners
- Your state doesn't add a tax that offsets the savings
Prices by scope
Compare the work included at each price. Your final scope and fee are confirmed in writing before work begins.
Per entity, per year.
- SmallUnder $250K revenue, books in good order, one state$780
- Established$250K–$1M revenue, up to 2 states, fixed assets$1,180
- Complex$1M–$5M revenue, inventory, 3+ states or payroll in several states$1,780
- LargeOver $5M revenue or multiple activitiesFrom $2,680
First two shareholders included in the base return price.
- Standard K-1Pro-rata items, no basis complications$70 per K-1
- With basis trackingLoans, distributions in excess of basis or mid-year changes$120 per K-1
One-time setup; maintained annually with the return.
- Recent entityUp to 3 years of history, 1–2 shareholders$320
- Longer history4–10 years or shareholder loans$620
- Reconstruction10+ years, ownership changes or missing returns$980
One-time analysis; revisited if profit or role changes materially.
- Single roleOne owner-employee, one primary role$420
- Blended roleSeveral roles or 2–3 owner-employees$720
- Defense fileWritten report suitable for an IRS examination$1,180
What You Get
Form 1120-S Preparation
Complete S-Corp return preparation, including the balance sheet, officer compensation reporting, and distribution reconciliation.
K-1 Preparation & Allocation
K-1s prepared for each shareholder with correct income, deduction, and distribution allocation based on ownership.
Shareholder Basis Tracking
Stock and debt basis tracked year over year, which determines how much of a loss a shareholder can actually deduct.
Reasonable Compensation Review
An analysis of officer salary against comparable market data to support a defensible number if ever examined.
- Complete e-filed Form 1120-S with signed copy
- K-1s for each shareholder
- Updated shareholder basis schedule
- Reasonable compensation analysis memo where applicable
When this service may fit
- You elected S-Corp status and need your first return filed correctly
- Your business has more than one shareholder requiring K-1 allocation
- Your officer compensation has not been reviewed in several years
- Your current preparer does not track shareholder basis year over year
Need help getting your books ready for tax season?
A return is only as good as the books behind it. Add bookkeeping and we prepare the return from reconciled numbers.
How It Works
Document intake and prior-year basis review
Review the prior return, election history, shareholder changes, and the completeness of current-year accounting records.
Preparation and technical review by a second preparer
Reconcile payroll, distributions, contributions, and shareholder loans with year-end books and supporting schedules.
Shareholder review and sign-off
Prepare the business return and shareholder reporting, resolving missing information before requesting filing authorization.
E-filing and K-1 distribution to each shareholder
Confirm filing status and deliver the return package with owner-level items and future payment dates clearly identified.
Your Role
Supply complete payroll and ownership records, identify shareholder transactions, and review the completed return before authorizing filing.
Service Scope
An extension of filing time does not automatically extend payment time. Bookkeeping reconstruction, amended returns, payroll corrections, and tax planning are separate unless included.
Start S-Corp Tax Filing (Form 1120-S) online
Choose the closest scope and send your request online. We’ll confirm the final work and fee in writing before anything begins.
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