Being a small business owner, get ready to prepare your tax filing and returns for 2022. Check the list before filing S - corporations taxes.

1. 2022 Essential Checklist for Filing S-Corp Taxes
We are rapidly approaching that time of year. The time of year when every corporation has to
make important decisions about their taxes. As your company gets ready to prepare your tax return
in 2022, it is important to make an informed choice in S-Corp tax preparation and planning.
Smaller corporations, in particular, have some options when it comes to their federal and state tax
returns. In this article, we will provide a checklist for filing S-Corp taxes.
1. Can your company file as an S-Corp?
To begin with, here are the basics about and taxes. When a business forms a corporation it
will always be taxed as a C-Corp. C-Corps have their corporate income taxed and the shareholders
have their salary and dividends taxed. This is known as “double taxation”. S-Corps aren’t subject
to double taxation, the shareholders of an S-Corp are taxed for the profits on their individual federal
and state tax returns but the S-Corp pays no taxes.
It is an obvious advantage for a small corporation to file as an S-Corp but how do you know
if your company qualifies to file S-Corporation tax returns? There must be no more than a hundred
shareholders. The corporation can only offer one class of stock. The shareholders cannot be non-
resident aliens, partnerships, or other corporations; must be U.S. companies.
2. How to file S-Corporation tax returns
If you determine that you can file as an S-Corp, then Internal Revenue Service Form 2553
must be filed 2 months and 15 days after the start of the tax year. All the shareholders must sign
the form. The tax year starts for new corporations on the date they are formed. Once the IRS
approves your S-Corp status, it is permanent unless revoked or terminated.
3. Know about your S-Corp’s Tax Deductions
There are some important deductions that you should know about when you prepare your
return in 2022. Small businesses can deduct regular business expenses. On top of that, corporations
are entitled to deduct the salaries and bonuses of employees, as well as health insurance and
retirement plans costs.
4. Never forget to pay your taxes
It is important to pay any estimated taxes. There are taxes on S corporations that you must
make estimated payments on. If you do not make your quarterly estimated payments on time,
penalties and interest will start to accrue for the underpayment.
5. Filing your Federal and State Tax Returns
As you prepare your return in 2022, you should know that Form the 1120S is the proper
federal form for an S-Corp. It shows the income, expenses, and losses of your company.
Additionally, form K-1 must be filed for every shareholder, declaring their individual share of the
corporation’s deductions, income, and credits. They must be provided with a copy of their
individual income tax returns.

2. Get Ready to File Your Small Business Taxes With The IRS – Talk to an Expert Today!
Finally, when filing S corporation tax returns, you can’t forget about your state tax returns.
Depending on the state where the corporation was formed, you may have to pay a corporate tax,
usually a flat rate. The corporation and the shareholders must file state returns. Because of the
complexity of corporate taxes, you should do a Googled search for one of the best bookkeepers
for hire near me in Florida. Find an accountant who can explain the implications of filing S
corporation tax returns today.