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.
A Sole Proprietorship business is owned by only 1 member. They file a Schedule C tax form (Profit or Loss From Business) with their 1040 income tax return. (Pass-through entity)
A Single-Member LLC business has only 1 member. The LLC files a Schedule C with there 1040 income tax return like a Sole Proprietorship. An LLC provides added protection for its member. (Pass-through entity)
A Multi-Member LLC files a separate business tax return. Using form 1065, members are distributed a K-1 with their Partnership's income, deductions, credits. (Pass-through entity)
A S Corporation files an 1120-S Income Tax Return. Using form 1120-S officers are distributed a K-1 with their Corporation income, deductions and credits. (Pass-through entity)
A Corporation files an 1120 Corporation Income Tax Return. The Corporation pays the income taxes and officers are not distributed K-1's. (Corporations are not pass-through entities)