Help Center

Instant answers. What can we help you with?

View All Topics
S Corporation Information

How is an S Corporation Taxed?

For purposes of federal taxation, an S Corporation is taxed differently than a C Corporation. Typically, the S Corporation files its annual return using the Form 1120S, as opposed to the 1120 for a C Corporation. The 1120S is an informational return; it simply informs the federal tax authorities the amount of net profit/loss made by the S Corporation, the shareholders amongst which the profit/loss will be distributed, and the proportion in which the profit/loss is distributed to the shareholders. There is no tax payment/refund associated with the 1120S tax return, as the S Corporation does not have the independent tax status that a C Corporation has. Instead, the profits/losses of the S Corporation are considered distributed to the shareholders in proportion to the ownership interest of the shareholder.

More answers to your questions

How our service works

Take a moment to view our instructional video and see how easy it can be to get your business incorporated.

Helpful tools for decision making

Select your business type to see how Incfile can work for you.

Launch
your business with Incfile

No Contracts. No Surprises.

Only $0 + State Fee to Launch Your Business.

Launch your business