The IRS requires all corporations to submit taxes annually, regardless of whether they made a profit during a fiscal year. Businesses that have established these entities must file corporate tax returns: LLCs, C-corporations, or S-corporations. Most company owners prefer these corporate entities because of their numerous benefits, such as the possibility for the corporation to pay taxes on profits rather than the owner.
C-corporations must pay tax on all profits minus any deductions. On the other hand, S-corporations can be taxed as a business or as a secondary partnership in which all earned earnings are passed on to the owner and taxes are received through personal income tax returns.
What Documents Are Included in Corporate Tax Preparation?
Corporate tax preparation explains a corporation’s income and expenses and calculates the tax owed to the US government. The report has many schedules covering data such as the price of the sold goods, profits, and expenses, officer remuneration, accounting methods used, business characteristics, NAICS categorization, balance sheets, plus income-loss statements.
What Data Do I Need to Submit a Corporate Tax Preparation?
A corporate tax return requires the following documentation: the business name, address, employee ID number, incorporation date, and total assets. Therefore, The corporation’s CFO must offer information about the corporation’s earnings, such as:
- Profit and loss statement
- Cost of goods sold
- Gross receipts
- Capital gains
Do you have a Corporate Tax Question?
We can assist! Barron Income Tax Services delivers individualized tax relief plus corporate tax preparation services. We provide the personalized service you expect from tax specialists, and we operate remotely, so you never have to leave your house or office. Speak with one of our tax experts today. All take advantage of our 25% discount on your tax returns when you file your corporate tax return with us!