Can an S Corp File a 1065?

Can an S corp file a 1065?
Rather, the individual partners are responsible for paying taxes on the income they receive from partnerships. However, the partnership is responsible for filing the Form 1065, which is the information-only tax return. S corporations, on the other hand, file the 1120S corporate return.
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The quick response is no. Due to the fact that Form 1065 is only for partnerships, a S company cannot use it. Businesses held by two or more people in a partnership split the company’s profits and losses. For federal tax purposes, S companies are enterprises that choose to pass through corporate profits, losses, deductions, and credits to their shareholders.

What tax documents do S businesses submit then? Form 1120S, the S corporation’s income tax return, is the primary document that S corporations submit. The amount of income that will be passed through to the shareholders is calculated using the income, deductions, and credits reported on this form for the corporation.

Depending on their unique circumstances, S corporations may additionally need to file other forms in addition to Form 1120S. For instance, the corporation might be required to submit Schedule D to record any capital gains or losses from asset transactions made throughout the course of the year. The corporation must file Schedule K-1 to reflect the amount of any distributions made to shareholders as well as the shareholder’s share of the corporation’s profits.

Schedule SE, which is used to compute the self-employment tax for shareholders who are also workers of the corporation, is another form that S corporations may be required to submit. Self-employed people are responsible for paying this tax, which supports Social Security and Medicare.

Last but not least, S corporations might also be required to submit Schedule S if they have received specific sorts of income, such rental real estate revenue or income from a trust. Reporting income that is exempt from self-employment tax is done using this form.

In conclusion, S corporations do have a specific tax form that they must file, Form 1120S, even though they cannot file a Form 1065. Depending on their unique circumstances, S corporations may further need to submit documents such Schedule D, Schedule K-1, Schedule SE, and Schedule S. To prevent any IRS penalties or fines, it is crucial for S corporation owners to be current on their tax payments.

FAQ
Is an S corp a LLC?

An S corp is not an LLC, thus no. An LLC (Limited Liability Company) is a distinct legal organization that is not taxed as a corporation by default and can opt to be taxed as a partnership or a corporation. An S corp is a form of corporation that has elected to be taxed under Subchapter S of the Internal Revenue Code.