Running an S Corporation comes with plenty of tax perks, but when tax season rolls around, there’s one crucial task you can’t skip:

Filing Form 1120S

This form is key to reporting your S Corporation’s:

• Income

• Profits and losses

• Deductions

• Credits to the IRS

Whether you’re a first-time filer or looking for a quick refresher, this step-by-step guide will walk you through the process, helping you dodge common mistakes and stay compliant with Internal Revenue Service (IRS) rules.

At doola, we simplify the tax filing process for S Corporations just like yours.

Our all-in-one services ensure your financials are managed smoothly, so you can shift your focus back to growing your business.

Ready to file your Form 1120S?

Let’s get started and see how doola can make this process quick, simple, and hassle-free for you.

And not to forget, there’s a lot happening in the world of S Corps, from regulatory updates to bookkeeping—team doola is happy to help you navigate these too.

Book a consultation and let’s get you started.

What is Form 1120s-S?

Form 1120S is an annual tax return used by S Corporations to report their financial activities.

Unlike C Corporations, S Corporations are pass-through entities, which means that the corporation’s profits (or losses) are passed directly to the shareholders.

As a result, the S Corporation itself doesn’t pay federal income tax, but it still needs to file Form 1120S to report its earnings.

Note:

Even LLCs taxed as S Corps need to file Form 1120s-S.

Here are a few things you need to know about Form 1120s-S:

✅ Don’t forget to include Schedule K-1 with Form 1120-S, which breaks down the profits and losses for each shareholder.

✅ You’ll need to provide detailed company information on Form 1120-S, including income, deductions, taxes, and payments.

✅ Form 1120-S can be submitted either electronically or by mailing it in—whichever works best for you!

Download Form 1120S: It’s available on the IRS website and most tax software programs.

Why S Corps Must File Form 1120S

Filing Form 1120s-S is non-negotiable for S Corporations, and here’s why:

📌 Compliance With IRS Requirements:

Every S Corporation, whether it earned income or not, is required to file Form 1120S to comply with IRS regulations.

📌 Facilitate Pass-Through Taxation:

Since S Corporations are pass-through entities, shareholders are taxed on their share of the company’s income.

Form 1120s-S provides the crucial details they need to file their personal returns.

📌 Keeps Your Business in Good Standing:

Proper tax filing ensures your business stays compliant with federal law, steering clear of penalties that could harm your business’s reputation and finances.

At doola, we make it easy to stay on top of your tax obligations.

Our expert tax advisory services take the stress out of S Corporation tax filings, ensuring your business runs smoothly and remains in good standing with the IRS.

Speak to a tax expert today.

File Form 1120S: What Information do You Need?

Before filling out Form 1120s-S for S Corporations, make sure you have these key details ready:

• Incorporation Date: The date your business was officially formed.

• Products or Services List: A clear rundown of what your business offers.

• Employer Identification Number (EIN): Your business’s unique tax ID.

• Business Activity Code: This code classifies your business activities for the IRS.

• S Corporation Election Date: If your business follows the calendar year, it’s January 1. Otherwise, it’s the first day of your fiscal year.

• Accounting Method: Indicate whether you use cash or accrual accounting on the form.

• Profit and Loss Statement & Balance Sheet: You can create these manually or using doola’s bookkeeping platform.

• Independent Contractor Payments: Any contractor you’ve paid $600 or more throughout the year must be reported, and you need to provide them with 1099 forms.

Having these documents at your disposal will make filling out Form 1120S faster and easier.

7-Step Guide to Filing Form 1120S

Filing Form 1120S may feel overwhelming, but when you break it down step by step, it’s a lot more manageable.

Follow this simple guide crafted by doola’s experts to navigate your S Corporation tax return with ease.

➡️ Step 1: Fill in Your Business Details (Top of the Form)

Start by entering your basic business information at the top of Form 1120S. You’ll need to provide:

• Business name

• Incorporation Date

• Employer Identification Number (EIN)

• Business Address

• Total assets as of year-end

Make sure all information is accurate and up to date.

If you haven’t secured an EIN or need assistance with forming your business, doola can simplify the process, ensuring you have everything lined up to get started effortlessly.

➡️ Step 2: Complete Schedule B (Other Information)

Schedule B asks for additional information about your S Corporation. This section includes questions about:

• Corporate elections made within the year

• Foreign ownership of the corporation

• Accounting methods used by your business

• Changes in stock ownership

Accuracy here is key. If any of the details seem unclear, doola’s expert tax advisory and bookkeeping services can provide clarity and guidance.

➡️ Step 3: Fill Out the Income Section (Page 1)

On Page 1 of Form 1120S, you’ll report your S corporation’s income, including:

• Gross receipts or sales: Total revenue from all sales.

• Cost of goods sold (COGS): Direct costs of producing the goods sold.

• Gross profit: Calculated by subtracting COGS from gross receipts.

• Net gain or loss from sales of business property.

If managing your financial records feels overwhelming, doola’s efficient bookkeeping services can help keep your sales and COGS organized, making this section easier to fill out.

➡️ Step 4: Report Your Deductions (Page 1)

Next, you’ll report all eligible deductions, including:

• Salaries and wages: Payments made to your employees.

• Rent: Any rent paid for business properties

• Repairs and maintenance: Costs of maintaining equipment and property.

• Interest: Interest paid on business loans.

• Depreciation: Depreciation on equipment and assets

• Other deductions: Advertising, office supplies, and other business expenses

Keeping track of business expenses is critical to maximizing your deductions and reducing taxable income.

With doola’s financial management tools, you’ll have a clear view of all deductible expenses throughout the year.

➡️ Step 5: Calculate Total Income and Deductions (Page 1)

Once you’ve entered your income and deductions, the next step is to calculate the total taxable income (or loss).

Subtract your total deductions from your gross profit to determine your corporation’s net income.

This calculation is vital, as it determines the amount of income that will pass through to the shareholders.

If you need assistance with complex financial calculations, doola’s team of tax experts is here to do the heavy lifting for you, ensuring both accuracy and compliance.

Consult a tax expert.

➡️ Step 6: Complete Schedule K-1

Schedule K-1 outlines the portion of income, deductions, and credits that pass through to each shareholder.

You’ll need to report:

• Ordinary business income (or loss)

• Capital gains and losses

• Tax credits

• Interest, dividends, and royalties

Each shareholder receives a Schedule K-1, which they’ll use to report their share of the corporation’s income on their personal tax return.

With doola, distributing accurate Schedule K-1s to your shareholders is a quick and simple process, ensuring everyone’s on the same page during tax season.

➡️ Step 7: File Your Return and Keep Up with Deadlines

Form 1120S is due by March 15, following the close of tax year.

You have the option to file either electronically or by mail. If you’re running short on time, be sure to file for an extension to avoid penalties.

With doola, you’ll never miss a deadline. We send timely filing reminders and ensure your returns are submitted on time, helping you dodge any late fees or last-minute scrambles.

Key Takeaways: Tips for Filing Form 1120S Successfully

Ready to file your form 1120s-S like a pro? Keep these essential tips in mind to breeze through the process.

✅ Stay Organized:

Maintain detailed records of income, expenses, and shareholder distributions.

✅ Consult with professionals:

Filing taxes, especially for pass-through entities, can get complicated.

With doola’s bookkeeping and tax advisory services for S Corporations, you’ll have expert guidance at every step.

Book a demo.

✅ Meet those deadlines:

Avoid penalties by filing on time and requesting extensions when necessary.

✅ Maximize your deductions:

Don’t leave money on the table—claim all eligible deductions to minimize your tax liability.

When you partner with doola, you don’t just get tax filing support—you get a comprehensive suite of services that simplify your S Corporation’s financial management.

From accurate bookkeeping to filing assistance, doola provides strategic guidance every step of the way.

doola Simplifies S Corp Tax Filing

Filing Form 1120s-S and navigating tax processes for your S Corporation can be time-consuming and complex, but you don’t have to do it alone.

With doola, you get access to:

1. Expert Tax Advisory:

Our team of seasoned tax professionals guides you through every step of the S Corporation tax filing process, ensuring your filing is accurate and IRS-compliant.

2. Efficient Bookkeeping:

We keep your financials organized and up-to-date, so when tax season hits, you’ve got everything you need right at your fingertips.

Check out our services to get started.

3. Compliance Dashboard:

Stay on top of deadlines, filings, and compliance tasks with doola’s intuitive dashboard, ensuring your business remains in good standing year-round.

4. Filing Assistance:

We take the hassle out of tax season by preparing and filing your Form 1120S, helping you save time and avoid costly errors.

No matter where you are in your entrepreneurial journey, doola equips you with the tools, expertise, and resources to keep your S Corporation running smoothly and compliant with IRS regulations.

Enjoy a Stress-Free Tax Season

Filing Form 1120S is a critical responsibility for S Corporation owners, but it doesn’t have to be tedious and backbreaking.

With doola’s comprehensive suite of services—from seamless bookkeeping to expert tax filing support—you can focus on growing your business while we handle the IRS complexities.

And remember:

You deserve a stress-free tax season!