My 2006 S Corporation taxes are finally done!
This is a bit of a tedious process, but I offload the heavy lifting onto my trusty CPA. Here's a rundown what I have to complete by March 15th every year:
- Complete Form 1120S, U.S. Income Tax Return for an S Corporation.
- Complete Form 1120S, Schedule K-1: This contains my share of the corporation's items of income/loss (100% as the sole shareholder), credits and deductions, and other information for tax year 2006.
- Complete state tax return and pay annual excise tax.
- Fund final 2006 pension/profit sharing contribution.
- File 2006 corporate annual report with the state of residence: This documents things like the name and address of the corporation, its officers, stock issued, and a description of the business for the state I live in.
My personal tax returns are next on the to-do list. My S corporation turned a profit this year, so I will need to include the income from my K-1 statement on my personal returns. While I will probably have to write a check to the tax man this year, I should be fine since I will be able to take a distribution from my 2006 S corporation profits once the dust settles.