Service
Business Tax Preparation
Entity and owner returns prepared together, because for most small businesses they are one decision, not two.
Who this is for
- Single-member and multi-member LLCs
- S corporations, including owner-operators taking a salary
- Partnerships needing K-1s prepared for their partners
- Owners who want the business and personal returns handled by one practitioner
What this actually involves
The entity return and your personal return are one problem
For a pass-through entity, the business return produces the K-1 that drives the owner return. Preparing them separately, or with different practitioners who do not talk, is how inconsistencies appear.
We prepare both, which also means the reasonable-compensation question, the distribution question, and the qualified business income question get answered once rather than twice.
Reasonable compensation for S corporation owners
An owner who works in an S corporation must take reasonable compensation as W-2 wages before taking distributions. Paying too little salary to reduce payroll tax is a well-known examination issue, and the adjustment carries penalties and interest.
What counts as reasonable depends on the role, the industry, and what the business actually earns. It is a judgement supported by evidence, not a percentage rule.
Books that are ready to file from
Most of the cost and delay in a business return comes from bookkeeping that is not closed. Uncategorised transactions, an unreconciled bank feed, and owner draws mixed with business expenses all have to be resolved before a return can be prepared.
If the books need work first, we will say so and quote it separately rather than absorbing it silently into a preparation fee.
S corporation owner taking distributions and no salary
Ajay runs a consulting S corporation with about $150,000 of net profit. He takes it all as distributions and no W-2 salary, on advice from a friend who told him it saves payroll tax.
He works in the business full time. Taking no compensation at all is not a defensible position, and it is one of the more visible examination triggers for an S corporation.
What gets filed: Reasonable compensation established and supported, payroll set up to run it, and the balance taken as distributions. The position is documented so it can be explained if it is ever questioned.
Illustration only — not a real client. Figures are chosen to show how the rule applies.
What’s included
- Form 1120-S or Form 1065 prepared, with K-1s for every owner
- Owner personal return prepared alongside the entity return
- Reasonable compensation reviewed and documented for S corporations
- Qualified business income deduction evaluated
- Depreciation and fixed asset schedules maintained
- 1099 filing for contractors
How it runs
Books reviewed
We check the books are closed and reconciled before quoting the return.
Entity return prepared
Return and K-1s drafted for your review.
Owner returns aligned
Personal returns prepared from the K-1s so the two agree.
Filed together
Entity and owner returns e-filed, with deadlines tracked.
What it costs
Fees depend on what your situation actually requires — the number of accounts, the number of years, and whether prior filings need correcting. A return with one W-2 is not the same job as six years of catch-up reporting, and quoting both the same way would be dishonest.
You get a fixed quote in writing before any work starts. No hourly billing, and no invoice that arrives larger than the number you agreed to.
Common questions
When is my business return due?
S corporation and partnership returns are generally due March 15, a month before individual returns, with a six-month extension available. Missing that deadline carries a per-partner or per-shareholder late-filing penalty for every month it is late, which adds up quickly even when no tax is owed.
Should my LLC elect S corporation treatment?
Sometimes. The election can reduce self-employment tax, but it brings payroll obligations, a separate return, and the reasonable-compensation requirement. Below a certain level of profit the administrative cost outweighs the saving. It is worth modelling on your actual numbers rather than following a rule of thumb.
My bookkeeping is a mess. Can you still help?
Yes, but it has to be sorted before the return can be prepared. We will tell you what needs doing and quote the cleanup separately, so you can see what is bookkeeping and what is tax preparation rather than getting one opaque number.
Do you handle the 1099s for my contractors?
Yes. Getting W-9s from contractors before you pay them is the part that makes January straightforward — chasing tax identification numbers after year end is where the difficulty usually comes from.
Related services
Bookkeeping
Books kept current and reconciled monthly, by the same practice that prepares the return they feed.
Payroll
Payroll run on time, deposits made on schedule, and quarterly returns filed. The deadlines are the whole job.
New Business Formation
Entity choice, registration, EIN, and elections. The structure decisions made at formation are the ones that are expensive to undo.
Talk to us about your situation
A short conversation is usually enough to tell you what your situation actually requires — and what it does not.