Tax Preparation for C Corporation Owners

TAX PREPARATION FOR C CORPORATION OWNERS

Your corporate return and your personal return, prepared together — so salary, dividends, and planning decisions line up.

A C corporation pays its own income tax, separate from its owners. That can be an advantage for businesses that reinvest profits, raise outside capital, or plan to sell stock — but it also means two layers of tax planning: what the company pays, and what you pay when money comes out. At Victoria Bogdanovich CPA, we prepare Form 1120 together with our clients’ personal returns, so both sides are considered at the same time.

Who this is for

• Owners of closely held C corporations, including family businesses and professional practices
• Startup founders and early employees with company stock
• Businesses that converted from an S corporation or LLC, or are considering it
• Owners thinking about selling the company or bringing in investors

What we handle

• Form 1120 — the federal corporate income tax return
• Your Form 1040 — wages from your company, dividends, and estimated payments
• Corporate estimated taxes — quarterly payments so the company avoids underpayment penalties
• Texas franchise tax report and returns in other states where the company does business
• Salary vs. dividends — balancing what you pay yourself as wages and what you take as dividends
• Retained earnings — keeping profits in the company without triggering penalty taxes on excess accumulations
• Owner benefits — health insurance, retirement plans, and other fringe benefits, which are often treated more favorably for C corporation owners than for S corporation owners
• Shareholder loans and related-party transactions — documented and reported correctly

Common mistakes we see

Treating company money as personal money. Personal expenses paid by the corporation can be reclassified as dividends — taxed once at the company level and again to you.

Undocumented shareholder loans. Money moving between you and the company needs loan documents and interest, or the IRS may treat it as salary or dividends.

Ignoring retained earnings. Keeping large profits in the company without a business reason can expose it to an additional accumulated earnings tax.

Missing small business stock (QSBS) rules. If you hold original-issue stock in a qualifying C corporation, part or all of the gain when you sell may be excluded from tax. The rules are strict, and recent law changes affect stock issued after mid-2025 — records from the start matter.

Converting without planning. Switching between C corporation and S corporation status has timing rules and lasting tax consequences.

How it works

1. Check your fit — about 1 minute. Answer a few questions and see your starting fee.
2. Create your client portal account and complete our Client Application.
3. Meet with us — free Tax Discovery Zoom meeting. Upload your last two years of returns at least 24 hours before the meeting so we can discuss an estimated fee range on the call.
4. Receive your engagement package with your estimated fee and scope of work. Work begins once you sign.

Starting price

Business Owner Package — your C corporation return plus your personal return: starting at $2,750.

The business return alone starts at $1,500. Additional entities, multi-state filings, foreign operations, payroll, and bookkeeping clean-up are quoted separately after we review your last two years of returns. Your engagement package sets out your estimated fee and what it covers. Work outside that scope is billed separately.

See your starting fee

Frequently asked questions

Should my business be a C corporation or an S corporation?
It depends on how much profit you keep in the business, how you plan to take money out, whether you’ll raise outside investment, and your exit plans. See Entity Structure & Tax Elections, or book an Initial Consultation to review your numbers.

When is the C corporation return due?
For a calendar-year corporation, April 15, with an extension available. Estimated tax payments are due during the year.

How should I pay myself?
Wages are deductible to the company but subject to payroll taxes; dividends aren’t deductible but are taxed at lower rates to you. The right mix depends on your situation, and we review it each year.

Can you help if I’m planning to sell the company?
Yes. Whether the sale is of stock or assets, and whether QSBS rules apply, can change the tax result significantly. Planning before you sign a letter of intent is quoted separately.

Do you prepare returns for foreign-owned U.S. corporations?
Yes. Corporations with foreign owners may need Form 5472 and have other reporting requirements. See Inbound International Tax.

Do you offer bookkeeping?
Yes, for business owners whose tax returns we prepare, together with year-round support. See Bookkeeping & Accounting for Our Tax Clients.

Ready to see where you fit? Take the 1-minute fit check or see our pricing and how it works.