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I have a single owner/shareholder S-Corp, I do consulting and don't have regular income so I can't pay myself a set salary. How do I do the taxes for my company?

Forum|Forum|6 years ago
June 1, 2019
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I have a C-Corporation that elected for S-Corp status. I am the sole owner/shareholder. I have a regular full time job that has given me a W-2 that I am filing in my personal taxes. The income to the company has been irregular (odd consulting jobs, etc) therefore I cannot set a regular salary for myself as there may be times I go 1-2 months without any money coming in. The company made a profit and usually any time I had extra money in the business I wrote myself a check to my personal account. How do I declare that money that was paid to myself from the business since it is not a regular wage? Is this what a K-1 is for? Should I just consider all the money the company made minus expenses paid to myself since I am the only owner or only that money which I actually wrote myself checks for?

TurboTax Business Windows

Best answer by RichardG

The S Corporation files Form 1120S to report its tax items to the IRS. The corporation does not pay income taxes, and issues a K-1 to its shareholder(s). The K-1 information is then used by the shareholder in preparing his or her personal tax return. Basically, you will personally pay the taxes on the company's profits, whether you distributed all the profit to yourself or not. Please follow this link for more information. https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/Do-Chapter-Sub-S-Corps-File-Personal-Tax-Returns-/INF14840.html

To prepare the corporate tax return, please purchase TurboTax Business. See https://turbotax.intuit.com/small-business-taxes/

After you prepare the K-1, report that information in TurboTax under the Business Items for your personal return.

R

RichardGAnswer

The S Corporation files Form 1120S to report its tax items to the IRS. The corporation does not pay income taxes, and issues a K-1 to its shareholder(s). The K-1 information is then used by the shareholder in preparing his or her personal tax return. Basically, you will personally pay the taxes on the company's profits, whether you distributed all the profit to yourself or not. Please follow this link for more information. https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/Do-Chapter-Sub-S-Corps-File-Personal-Tax-Returns-/INF14840.html

To prepare the corporate tax return, please purchase TurboTax Business. See https://turbotax.intuit.com/small-business-taxes/

After you prepare the K-1, report that information in TurboTax under the Business Items for your personal return.

A

alux35Author

Thank you for the response! I was thinking that this is what I needed to do but I wanted to make sure. I have already purchased TurboTax Business to file my business taxes and wanted to make sure I was doing it right before I completed them! Thanks again!