Tax Preparation Services for Businesses

Corporate tax is a tax paid directly to the government based on businesses net positive earnings. The funds collected from taxes serve as the country’s source of income in order to finance various projects for the benefit of all citizens. It is therefore, mandatory for all corporations to file taxes annually regardless of the corporation’s profit or loss during the financial year. Corporate tax returns are required for companies incorporated as C-corporations or S-corporations. Many businesses choose to elect these corporate structures due to the added bonuses enabling the ability of businesses to pay taxes on profits instead of the owner.

An S corporation is a pass-through tax entity, while a C corporation is a completely separate entity from its owner(s). C corporations are required to pay taxes on all profits after deducting allowable expenses. S corporations on the other hand have the option of choosing to be taxed as a corporation or as a secondary partnership in which the company is classified as a “pass-through entity” and all earned profits are passed onto the owner(s) specified on Form K1. The taxes are then paid through the owner(s) personal income tax returns.

Corporate tax returns are generally due by March 15th of each tax year, but in some cases, businesses may seek an extension of six months. Businesses filing taxes as a corporation with assets in excess of $10 million must file their tax returns online. Our tax accountants at Ultimate Tax Relief can e-file returns online on behalf of your company. Corporations can make estimated installment payments in the months of March, June, September, and December.

Details Included on Corporate Tax Returns:

Corporate tax returns outline the corporation’s income and expenses in a tax year in order to determine the tax liability that the corporation will owe to the IRS. Generally, corporate tax returns consist of multiple schedules that include information such as the cost of goods sold, direct service costs, operational and nonoperational expenses, officer compensation, dividends; as well as accounting methods used, business description, NAICS classification, and balance sheets.

Some Required Information to File a Corporate Tax Return:

The documentation required to file a corporate tax return includes the business name, address, employee ID number, incorporation date, and total assets. The corporate financial officer(s) will need to provide details about the corporate income including:

• Gross receipts
• Cost of goods sold
• Interest
• Dividend
• Rents
• Royalties
• Capital gains

Deductible Expenses for Corporate Tax Return:

Corporations may report business expenses against income received. The corporation’s accounting officers should track and monitor these expense reports all year round and be prepared to provide full details in the event of an audit by the IRS. The deductible expenses may include:

• Compensation
• Salaries
• Rent
• Repairs and maintenance
• Taxes and licenses
• Interest expenses
• Charitable contributions
• Depreciation • Advertising
• Pensions and profit sharing plans
• Employee benefit programs
• Domestic production activities
• Other miscellaneous expenses

Foreign Investors and Corporate Taxes

Contrary to some misconceptions, corporations owned by non-US residents are not exempt from filing corporate tax returns. Therefore, consulting with a tax professional is highly recommended for non-US residents before starting a company in the U.S. and when filing corporate taxes.

Our team of experts at Ultimate Tax Relief will provide advice, support, and guidance that will be needed for your peace of mind.

In addition to filing requirements, non-US residents owning shares in a C-corporation receive double taxation on income at the corporate and personal level for dividends earned by shareholders. As an alternative, LLCs can pass all income to the owner(s), who must also file personal income tax returns with the IRS.

Do you Need Some Clarity about your Corporate Taxes?

Our qualified professionals have all the answers you need at Ultimate Tax Relief. We provide customizes tax debt relief and corporate tax preparation services. We offer tailored solutions that you can expect from our tax professionals. We operate remotely so you never need to leave your home or office. Speak with one of our tax professionals today: 301-577-3000.