Partnerships & S Corporations
When you own a business with partners or run it as an S corporation, the business return and your personal return are tied together. I prepare both sides and help you plan during the year, so what happens in the business doesn't surprise you at home.
Who I work with
I prepare returns for partnerships, multi-member LLCs, and S corporations across the Midwest, and I help owners who are deciding which of those fits them.
What I help with
- Business returns. Form 1065 for partnerships and Form 1120-S for S corporations, prepared carefully and filed on time.
- K-1s. A Schedule K-1 for each partner or shareholder, with an explanation of what the numbers mean for their own return.
- Entity choice. Whether a partnership, an S corporation, or staying as you are makes sense, based on your numbers.
- Owner pay. What a reasonable salary looks like for an S corporation owner, and how salary and distributions are taxed differently.
- Changes in ownership. What happens to the tax picture when a partner joins, leaves, or is bought out.
- Your personal return. How the business income flows through to you, and what to set aside for tax during the year.
How planning works
Business returns are due a month before personal returns, and the decisions that matter most happen well before that. We meet during the year to look at profit so far, owner pay, and any changes coming. You get the tax effect of each option before you choose.
Common questions
Should my LLC be taxed as an S corporation?
It depends on how much the business earns, what you would pay yourself, and the added cost of running payroll. I run the comparison with your numbers so you can see whether the change is worth it.
What is a reasonable salary?
An S corporation owner who works in the business is expected to be paid a fair wage for that work before taking distributions. What counts as fair depends on your role, your industry, and what the business can support.
When is the business return due?
For a business that uses the calendar year, partnership and S corporation returns are due March 15. An extension gives more time to file, and K-1s go to owners once the return is done.
Why does my K-1 show income I never took out of the business?
Partners and S corporation shareholders are taxed on their share of the profit, whether or not the cash was distributed. Planning for that during the year avoids a shortfall at tax time.
If you'd like to talk through your business, book a free intro meeting. There's no cost and no obligation.
Book a Free Intro Meeting