Tax Preparation for S Corporation Owners

TAX PREPARATION FOR S CORPORATION OWNERS

Your S corporation return and your personal return, prepared together — one price, one team, nothing lost between them.

An S corporation can save a business owner real money, but only when the business return, payroll, and the owner’s personal return all work together. The K-1 from your company flows onto your Form 1040, your salary and distributions have to be reported correctly, and your basis in the company determines whether losses and distributions are tax-free. At Victoria Bogdanovich CPA, S corporation owners are at the center of our practice. We prepare both returns side by side so they match.

Who this is for

• Owners of an S corporation or an LLC taxed as an S corporation
• Business owners thinking about electing S corporation status
• Owners whose current returns are prepared by two different preparers
• Multi-owner companies that need K-1s prepared accurately for every shareholder

What we handle

• Form 1120-S — the federal S corporation return, with K-1s for every shareholder
• Your Form 1040 — including the K-1, wages from your company, and estimated payments
• Texas franchise tax report — the annual report most Texas entities must file
• Reasonable compensation — reviewing whether the salary you pay yourself fits IRS expectations
• Shareholder basis — tracking basis every year so losses and distributions are reported correctly
• Qualified business income (QBI) deduction — making sure you receive the deduction you’re eligible for
• Owner expenses — health insurance, home office, and vehicle reimbursements handled the right way for an S corporation
• Other states — returns for companies with customers or operations outside Texas

Common mistakes we see

No salary, or too little. Taking only distributions to avoid payroll tax is one of the IRS’s most common S corporation audit issues.

Basis never tracked. Without a basis schedule, distributions and losses can’t be reported correctly — and the problem surfaces years later, usually when you sell or close the company.

Personal expenses paid by the company. These must be treated as distributions or reimbursed under a proper plan, not deducted as business expenses.

Owner health insurance reported incorrectly. For more-than-2% shareholders, health insurance has to appear on your W-2 to be deductible on your personal return.

Two preparers who never talk. When the business and personal returns are prepared separately, numbers often don’t match and planning opportunities are missed.

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 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 S corporation return plus your personal return: starting at $2,750.

The business return alone starts at $1,500. Additional entities, rentals, multi-state filings, foreign items, payroll setup, 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 LLC elect to be taxed as an S corporation?
It depends on your profit, the salary you’d need to pay yourself, and the added cost of payroll and a separate return. An S election usually makes sense only once profits are high enough to outweigh those costs. We can review the numbers with you in a paid Initial Consultation.

How much salary should I pay myself?
The IRS expects a “reasonable” salary for the work you do, based on factors such as your role, hours, and what similar businesses pay. We’ll discuss whether your current salary is in a defensible range.

When is the S corporation return due?
March 15 for calendar-year companies, a month before your personal return. Your company’s return must be finished first so your K-1 is ready for your 1040.

Do you set up payroll?
We can help you set it up and review it each year. Payroll processing and bookkeeping are quoted separately.

Can you take over from my previous preparer mid-year?
Yes. We’ll review your prior returns, basis records, and books, and tell you if anything needs to be corrected before we prepare this year’s returns.

What if I have more than one company?
Each additional entity is quoted separately. Many of our clients own an operating company plus a real estate LLC; we prepare all of the returns together.

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