Form 1120S: S Corporation Tax Return: How to Fill It Out

What is the form 1120S and what do you need to fill it out?

S corporations must submit Form 1120S with their federal income tax return (not to be confused with Form 1120 for C corporations). Every S corp, including LLCs that are subject to S corp taxes, is required to submit one.

Direct Form 1120S downloads are available from the IRS website. You can also locate it there if you utilize tax preparation software.

Needed Information to File Form 1120S

You’ll need to have the following items on hand before beginning the form:

  • Your Incorporation Date
  • A list of the goods and services you offer
  • Your enterprise activity code
  • Your employer’s unique identifier (EIN)
  • The date you elected S corp status

If your company uses a calendar year, this will be January 1. If you operate on a fiscal-year basis, it will be on the first day of your fiscal year.

Your Approach to Accounting

You will specify on the form whether you utilize accrual accounting or cash accounting.

Payment for separate contracts: The form must be filled out for any payments made to independent contractors with a total of at least $600 for the entire year. Additionally, you must deliver 1099 forms to contractors.

Completing Form 1120S

Forming the 1120S is challenging. Depending on your circumstances, you may need to complete a variety of Schedules.

Our advice is to gather all the aforementioned paperwork and contact a CPA to assist you in filing Form 1120S.

Although those source documents contain all the information you require, a tax expert will transform them into the kind of data the IRS needs for Form 1120S.

How We Can Help

You will receive a committed bookkeeper from Your Part Time Accountant, who is assisted by a group of knowledgeable small company specialists. We’re here to eliminate uncertainty from running your own business permanently. Every month, your bookkeeping team categorizes transactions, imports bank statements, and creates financial statements. Startup with a month of free bookkeeping.