Whether you are registered as an S-Corp or a C-Corp, Dunn and Apell Accounting can help file your corporate taxes.
We review your financial information, prepare and submit the necessary paperwork and forms to the government, and make sure that your corporation is taking advantage of all deductions and credits that it is eligible for. We can also provide guidance on tax-efficient ways of structuring the business, help to ensure compliance with tax laws and regulations, and give insights on any potential tax savings.
There are several key benefits to having our team file your corporate taxes:
- Save Time and Effort:
By having an accountant handle your corporation’s tax filings, your corporation’s management and employees can save time and effort and focus on other important tasks.
- Accuracy and Compliance:
Our trained professionals have the knowledge and expertise to ensure that your corporation’s taxes are filed accurately and in compliance with all tax laws and regulations, which can help you avoid costly penalties or fines for non-compliance.
- Potential Tax Savings: We can help identify potential deductions and credits that your corporation may be eligible for, and provide guidance on tax-efficient ways of structuring the business, resulting in potential tax savings.
- Tax planning and forecasting: We can also assist you in creating a tax projection for the current year and the next year, plan for any potential tax liabilities and advise on how to legally reduce its tax burden by creating a tax planning strategy that aligns with the overall financial goals of the corporation.
When Dunn and Apell Accounting files your corporate taxes, you can save time, ensure compliance and accuracy, and identify any deductions and credits you’re eligible for, for the maximum tax savings.
S-Corporation vs. C-Corporation Taxes
S-Corporations (S-Corp) and C-Corporations (C-Corp) are both types of corporations, but there are some important differences to be aware of when it comes to filing taxes for each type.
- S-Corps are considered “pass-through” entities for tax purposes, which means that the business’s income and losses are passed through to the individual shareholders, who report them on their personal tax returns.
- Shareholders of an S-Corp are also considered employees and are required to pay themselves a reasonable salary and pay taxes on their income.
- S-Corps are required to file a corporate tax return (Form 1120S), but do not pay federal income tax on the corporate income.
- They are however, subject to taxes on certain built-in gains and passive income, which are too complex to explain here.
- C-Corps are taxed separately from their shareholders, so the corporation files its own tax return (Form 1120) and pays federal income tax on its profits.
- Shareholders of a C-Corp are not considered employees and do not pay taxes on their share of the corporation’s profits until they receive a distribution (dividend).
- The corporate tax rate for C-Corp is typically higher than the individual rate.
It’s important to note that the choice of an S or C corp have implications on the business operations as well, such as the limit of stockholders, the flexibility in terms of distributions and also the rules related to corporate formalities. Our experienced staff at Dunn and Apell Accounting can help you understand the pros and cons of each type of corporation and determine which type best suits your business goals and needs.