Tax Preparation & Forms

1040 Used by individual taxpayers, this is the most common tax form filed. This form calculates your taxable income, AGI (Adjusted Gross Income), credits, deductions and refunds or amount due.

✔️ Adjusted Gross Income (AGI) – Total income after allowable adjustments, impacting tax brackets, deductions, and credits.
✔️ Taxable Income Calculation – Determines how much of your income is subject to federal taxes.
✔️ Credits & Deductions – Reduces overall tax liability (e.g., Standard Deduction, Itemized Deductions, Child Tax Credit, Education Credits).
✔️ Refund or Balance Due – Final calculation determining if you receive a refund or owe the IRS additional taxes.

📌 Most individuals with taxable income are required to file Form 1040, including:

✅ W-2 Employees & Salaried Workers
✅ Self-Employed Individuals & Independent Contractors
✅ Retirees Receiving Social Security, Pensions, or IRA Distributions
✅ Investors with Capital Gains, Dividends, or Rental Income

Filing an accurate Form 1040 ensures compliance with IRS regulations while maximizing tax savings and deductions.

A Single-Member LLC (Limited Liability Company) is a business structure owned by one individual that provides liability protection while maintaining simple tax reporting. 

✔️ Form 1040 + Schedule C – By default, the IRS treats Single-Member LLCs as disregarded entities, meaning the owner reports business income and expenses on Schedule C (Profit or Loss From Business), filed with their Form 1040 personal tax return.
✔️ Self-Employment Taxes – The LLC owner must pay Social Security and Medicare taxes on net business earnings through Schedule SE.
✔️ Pass-Through Taxation – Business income is not taxed at the corporate level, avoiding double taxation.

📌 Liability Protection: Unlike a Sole Proprietorship, an LLC legally separates personal and business assets, shielding the owner from personal liability.
📌 Flexible Taxation: While taxed as a Sole Proprietorship by default, a Single-Member LLC can elect S-Corp or C-Corp taxation for potential tax savings.
📌 Business Credibility: Operating as an LLC can enhance professionalism and trust with customers and partners.

✅ Freelancers & Consultants looking for liability protection.
✅ Small business owners who want personal asset protection without complex corporate formalities.
✅ Entrepreneurs seeking flexible tax options, such as electing S-Corp status.

Filing correctly ensures compliance and maximized deductions.

A Sole Proprietorship is a business owned and operated by one individual without a formal Limited Liability Company (LLC) structure. It is the simplest business type, offering ease of operation and minimal legal requirements. 

✔️ Form 1040 + Schedule C – Sole proprietors report business income and expenses using Schedule C (Profit or Loss From Business), which is filed alongside their Form 1040 individual tax return.
✔️ Self-Employment Taxes – Business owners pay Medicare and Social Security taxes on their net earnings through Schedule SE.
✔️ Tax Deductions – Eligible business expenses, such as supplies, home office, vehicle use, and advertising, help reduce taxable income.

📌 Best for:
✅ Freelancers & Independent Contractors
✅ Small business owners without employees
✅ Side businesses & startups testing the market

📌 Key Benefits:
✔️ Simple setup – No formal business registration required.
✔️ Easy tax filing – Income is reported directly on your personal tax return.
✔️ Full control – Business decisions remain with the owner.

A Multi-Member LLC (Limited Liability Company) is a business structure with two or more owners, taxed as a Partnership by default. Unlike a Single-Member LLC, a Multi-Member LLC must file a separate business tax return and distribute income to its members. 

✔️ Form 1065 – U.S. Return of Partnership Income
Multi-Member LLCs must file Form 1065, which reports total business income, deductions, and expenses to the IRS.

✔️ Schedule K-1 for Each Member
Each owner (member) receives a Schedule K-1, which details their share of the business’s income, deductions, and credits. This information is then reported on the member’s individual tax return (Form 1040).

✔️ Pass-Through Taxation
Multi-Member LLCs are not taxed at the entity level—instead, profits and losses "pass through" to the members, who pay taxes at their individual tax rates.

✔️ Self-Employment Taxes
Each member is responsible for self-employment taxes on their share of business profits unless the LLC elects to be taxed as an S-Corp or C-Corp.

📌 Liability Protection – Shields personal assets from business debts and lawsuits.
📌 Tax Flexibility – Can elect S-Corp or C-Corp taxation for potential tax advantages.
📌 Simplified Structure – Fewer corporate formalities than a traditional corporation.
📌 Pass-Through Profits – Members pay taxes individually, avoiding double taxation.

✅ Business partners who want liability protection while maintaining a flexible business structure.
✅ Companies with multiple owners who prefer pass-through taxation rather than corporate tax rates.
✅ Growing businesses that may later choose to elect S-Corp or C-Corp taxation.

Proper tax filing ensures compliance, tax efficiency, and maximum deductions.

An S Corporation (S-Corp) is a corporate business structure that allows profits and losses to pass through to shareholders, avoiding double taxation while providing liability protection. 

✔️ Form 1120-S – U.S. Income Tax Return for an S Corporation
An S-Corp must file Form 1120-S, reporting the company’s income, deductions, credits, and expenses to the IRS.

✔️ Schedule K-1 for Shareholders
Each shareholder (owner) receives a Schedule K-1, which details their portion of business income, deductions, and credits. This is then reported on the owner’s personal tax return (Form 1040).

✔️ Pass-Through Taxation
S-Corps are not subject to corporate income tax—instead, profits pass through to shareholders, who pay taxes at their individual tax rates.

✔️ Reasonable Salary Requirement
S-Corp owners who work for the business must pay themselves a reasonable salary and withhold payroll taxes, while additional profits can be distributed without self-employment tax.

📌 Avoids Double Taxation – Business income is taxed only at the shareholder level, not at the corporate level.
📌 Liability Protection – Shields shareholders' personal assets from business debts and liabilities.
📌 Potential Tax Savings – Profits beyond reasonable salary are not subject to self-employment tax.
📌 Business Credibility – Establishes a formal corporate structure, which may improve business reputation and financing opportunities.

✅ Business owners looking for tax-efficient profit distribution while maintaining corporate protections.
✅ Small to medium-sized businesses with multiple shareholders.
✅ LLCs or C-Corps wanting to minimize self-employment taxes through an S-Corp election.

Proper S-Corp tax filing ensures IRS compliance, tax efficiency, and potential savings.

A C Corporation (C-Corp) is a separate legal entity from its owners, meaning the corporation itself is responsible for paying income taxes. Unlike an S-Corp or LLC, a C-Corp is not a pass-through entity, and shareholders do not receive a K-1 for income distribution. 

✔️ Form 1120 – U.S. Corporation Income Tax Return
A C-Corp files Form 1120, reporting all business income, deductions, credits, and expenses directly to the IRS.

✔️ Corporate Tax Responsibility
The corporation itself pays federal income tax on its net earnings at the applicable corporate tax rate.

✔️ No K-1s for Officers or Shareholders
Unlike an S-Corp or partnership, C-Corp owners and officers do not receive a K-1. Instead, they may receive:
📌 Salaries & Wages – Subject to payroll taxes, reported on W-2s.
📌 Dividends – If the corporation distributes profits, they are taxed at the individual level as dividend income (potential for double taxation).

✔️ Double Taxation Consideration
Since the C-Corp pays taxes on profits, and shareholders also pay taxes on dividends received, this can result in double taxation—one at the corporate level and another at the individual level.

📌 Unlimited Growth Potential – A C-Corp can issue unlimited stock, making it an ideal structure for large businesses and investors.
📌 Separate Legal & Tax Entity – Owners' personal assets are protected from corporate liabilities.
📌 Flexible Ownership – No restrictions on shareholders or ownership structure (unlike an S-Corp).
📌 Lower Self-Employment Taxes – Owners who receive dividends instead of salary avoid self-employment tax on distributions.

✅ Businesses looking to reinvest profits into the company for growth.
✅ Companies planning to raise capital through investors or stock issuance.
✅ Businesses that need liability protection and a structured corporate framework.
✅ Corporations that intend to provide employee benefits (such as stock options and retirement plans).

Filing a C-Corp tax return correctly ensures compliance, tax efficiency, and legal protection. 

Need help with filing, with structuring and/or with a tax strategy? 

📞Contact us today at 720-988-0688 for expert tax planning and preparation!