When it comes to starting a business, there are a lot of decisions to make. One of your biggest is which entity is right for your business. Once you’ve chosen an incorporation structure and established your entity, you’ll need to focus on one important topic: taxes.
Each entity has its own tax filing requirements. Partnerships use Form 1065
file their taxes on their personal income tax return, S Corps use Form 1120-S
and sole proprietors
have their own requirements. Although C Corps and S Corps are both corporations, they have different tax forms.
Like anything tax-related, C Corp taxes are complicated and require attention to detail. The most important thing you’ll need to know about C Corp taxes is the 1120 tax form. We’ll cover everything you need to know about Form 1120 and how to properly fill it out.