Lesson 8 of 11
Tax filings after the election
The company files its own return even though it usually pays no federal income tax itself.
Annual cycle
- Form 1120-S for the company, generally due in the third month after year end
- Schedule K-1 issued to each shareholder
- Shareholders report their K-1 income on their personal returns
- Owners typically make quarterly estimated tax payments
- Payroll returns continue on their own schedule
Basis matters
Losses are deductible only to the extent of your basis in the company, and distributions above basis can be taxable. Track basis year by year rather than reconstructing it later.
Missing the 1120-S deadline triggers penalties calculated per shareholder per month, so even a small company accumulates a meaningful bill quickly.
Not sure whether the election fits?
The numbers depend on your profit, your role in the business and your state. Gullia Filing's tax team reviews your position, prepares Form 2553 where it makes sense, and sets up payroll so the election holds up.