S-Corps
Explore whether S-Corp treatment fits your business—and get help coordinating the setup, books, payroll, and filings.
What is an S Corporation?
S-Corp status is a federal tax election available to qualifying corporations and eligible LLCs. It is not a separate type of state registration. Eligibility rules include limits on shareholders and stock classes.
Get your business set up.
First establish the underlying legal entity, then review eligibility and timing for Form 2553. An existing LLC may be able to elect S-Corp treatment without forming another legal entity. Confirm the scope of election support with our team before proceeding.
Every Clean Accounting plan includes one business registration and an IRS EIN application. Included services depend on your plan and business needs; government filing fees are paid by the client.
How taxes and documents work.
Federal income tax
An S corporation generally files Form 1120-S. Income, deductions, and credits usually pass through to shareholders, who report their shares on their personal returns. Certain taxes may still apply at the entity level.
Documents issued to owners
Each shareholder receives Schedule K-1 (Form 1120-S). A shareholder who also works as an employee may receive a W-2 for wages. A K-1 and a W-2 report different things; one does not replace the other.
Payroll matters
Working shareholder-employees must receive reasonable compensation for their services before nonwage distributions. Payroll adds withholding, deposits, and employment tax filings. Potential tax savings depend on your circumstances and costs.
These are common U.S. federal treatments. State taxes, elections, and your business activities can change the requirements. Records, financial statements, and tax forms each serve a different purpose.