Accounting for S-Corp owners
An S-Corp saves tax only if the whole year runs right. A salary through payroll, clean distributions, reimbursements under an accountable plan, then an 1120-S and a personal return that match. We run all of it with one accountant.
What does an S-Corp year look like with us?
Everything below comes with the Complete plan.
Set the salary
A reasonable salary, documented and reviewed yearly.
Run payroll
Your pay on a schedule, every filing behind it.
Plan each quarter
Distributions and estimates sized to real profit.
File together
1120-S, K-1 and your 1040, side by side.
Which S-Corp mistakes do we fix most?
Each one can cost more than the election saved.
No salary, or a token one
The IRS expects a reasonable salary before distributions.
Health insurance off the W-2
Premiums for over-2% owners run through payroll to be deducted.
No accountable plan
Reimbursing your home office or phone can turn into taxable pay.
Uneven distributions
With two owners, they follow ownership percentages.
K-1 and 1040 that don't match
Different preparers is how basis and losses get lost.
Forgetting the state
Some states tax S-Corps anyway or need their own election.
S-Corp owners ask us.
Ask anything else on a free 30-minute call.
Book a callFree tools: S-Corp calculator, Reasonable salary guide, Form 1120-S guide, Solo 401(k) calculator
How do I know my salary is reasonable?
It should be close to what you'd pay someone else to do your job, based on your duties, hours and industry. We document how we arrived at the number so you can support it.
Can I take distributions whenever I want?
Generally yes, once your salary is running, as long as there's profit and basis to support them and multiple owners take them in proportion.
I elected S-Corp and haven't run payroll. Is that a problem?
It can be. Talk to us soon. We'll set up payroll going forward and work out the cleanest way to handle the past.
When is the S-Corp tax return due?
Form 1120-S is due March 15 for a calendar-year S-Corp, with a six-month extension to September 15 on Form 7004. Your K-1 comes from that return, so a late 1120-S holds up your personal return too.
What did the 2025 tax law change for S-Corp owners?
The 20% QBI deduction on your share of profit is now permanent, 100% bonus depreciation is back for equipment, and the higher SALT cap may change whether your state's pass-through entity tax election still pays off. Our 2025 tax law guide has the details.
Tell us what's messy. We'll tell you what it takes.
Tell us what you need and get a fixed price before any work starts. No pressure and no contract.