Corporate Tax Filing

A Corporation (or C-Corp) is a legal structure in which the shareholders are taxed separately from the entity. Corporations pay corporate tax on earnings and the remaining income is distributed to shareholders as a dividend. As a result, the profits are taxed both at a Corporate and Personal level which creates a double taxation situation.

Corporate tax filings can be complex and needs to consider Federal, State, and local tax authorities. A business that has nexus in a State is required to file a tax return in that State and often pay additional taxes. A business that has nexus in multiple states is required to file a tax return for each of those states.

Filing Requirements

Corporate income tax to the IRS is reported on IRS Form 1120, the U.S. Corporation Income Tax Return.

A U.S. entity that is engaged in foreign business must often disclose intercompany activity on Form 5471 and Form 5472.

A foreign corporation that is engaged in business in the U.S. must file Form 1120-F.

Corporate Tax Rates 

The 2017 Tax Cuts and Jobs Act reduced the Corporate tax rate from 35% to 21% effective 2018. All Corporations are taxed at 21% regardless of their level of income.

How We Can Help

We help our Corporate clients with the entire process. This starts with the determination of the optimal tax structure for the client and best State in which the Corporation should be formed. We then proceed with the creation of the LLC, tax elections as necessary, request for an EIN and finally we file the annual tax returns.