S-Corporation Tax Preparation & Planning
Form 1120-S preparation, K-1 generation, reasonable compensation analysis, S-election filings, late-election relief, and year-round S-corporation tax planning for U.S. operating businesses.
What problem this service addresses
S-corporation taxation rewards discipline and punishes shortcuts. Reasonable compensation must be defensible. Distributions must be proportional. Basis must be tracked annually. State-level pass-through-entity tax elections (PTET) can save substantial money but only when filed correctly and on time. The S-election itself must be filed within strict windows. Get any of this wrong and you trigger penalties, lose the election, or owe back payroll tax with interest.
How we approach s-corporation tax
- Form 1120-S preparation with shareholder K-1 generation
- Reasonable compensation analysis using RC Reports, BLS, and industry data
- S-election filing via Form 2553 including late-election relief (Rev. Proc. 2013-30)
- Shareholder basis tracking and annual basis schedules
- State PTET (pass-through entity tax) election analysis and filings
- S-corp termination, revocation, and inadvertent termination relief
- Section 1361 trust ownership and qualified subchapter S subsidiary planning
Our approach is documented in our client success methodology and our editorial standards. We are not a CPA firm; for engagements requiring CPA attestation we coordinate with our licensed CPA partner network. We do not exaggerate credentials or results.
The process from inquiry to ongoing work
Discovery & Scope
We confirm the S-corp status, prior-year filings, current ownership, and the work in scope (preparation only, planning, or both).
Foundation Review
We review prior-year basis schedules, reasonable compensation analysis, and any open items (late elections, missed filings, shareholder changes).
Year-Round Planning
Throughout the year we monitor compensation discipline, track distributions for proportionality, and run year-end projections that drive Q4 decisions.
Annual Filing
Form 1120-S, state returns, and K-1 generation delivered for client review at least ten business days before the filing deadline.
FAQ
I forgot to file the S-election, can you fix it?
Probably. Rev. Proc. 2013-30 provides late S-election relief for entities that intended to be S-corps and met other requirements. We file the late-election request with the required statements.
How is reasonable compensation calculated?
Reasonable compensation is what an unrelated party would earn for the role. We use industry benchmarks (RC Reports, BLS occupational data, salary surveys) and document the analysis in a written memo retained with the engagement file.
What is PTET and should I elect it?
PTET (pass-through entity tax) is a workaround to the $10K SALT cap. The S-corp pays state tax at the entity level and the owners get a federal deduction. Whether to elect depends on your state and tax position; we run the analysis annually.
Can you handle multi-state S-corp returns?
Yes. Multi-state S-corp preparation including composite returns, withholding for nonresident shareholders, and state-level K-1 reconciliation is part of our practice.
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