The three major types of corporations are a General Corporation, a C Corporation and a S Corporation. A S Corporation is different from the other two corporations in that it must have less than 100 shareholders and it is taxed differently. In a S Corporation, the corporations profit and losses are passed onto its shareholders, also called pass-through taxation. This eliminates the double taxation where the corporation and the shareholders would be taxed. To file taxes, a S corporation must file an informational tax return, and distribute K-1 statements to each shareholder for use on their personal returns.
Items you will need
IRS tax return form 1120S
IRS Schedule K-1
IRS tax return form 1040
IRS Schedule E
Complete and file an 1120S informational tax return. This is the corporation's official tax return that will state all the income and expenses for the corporation. The fill-in PDF file is located on the Internal Revenue Service website.
Complete and distribute IRS Schedule K-1 to each shareholder. These schedules will include the shareholders name, address, Social Security number, percentage of ownership of the corporation, and share of the corporation's income, losses and deductions. This form is also located on the IRS website.
Complete and file individual tax returns. Each shareholder will use the K-1 schedule to complete the individual tax return. Use IRS form 1040 along with Schedule E (Supplemental Income and Loss form) to complete your individual return.
Corporate tax returns can be complicated, so seek the advice of a tax accountant before completing any returns.