{"id":7397,"date":"2025-05-15T14:38:27","date_gmt":"2025-05-15T20:38:27","guid":{"rendered":"https:\/\/resource-center.blockadvisors.com\/?p=7397"},"modified":"2025-05-15T14:38:28","modified_gmt":"2025-05-15T20:38:28","slug":"s-corp-taxes","status":"publish","type":"post","link":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/","title":{"rendered":"Guide to S Corp taxes for small businesses"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-what-is-an-s-corporation\">What is an S Corporation?<\/h2>\n\n\n\n<p>An S Corporation is an IRS tax classification that allows an eligible entity to be a pass-through entity for tax purposes. This means that the business owners will report the business profits and losses on their individual returns and pay any income tax.<\/p>\n\n\n\n<p>Eligible entities are generally <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/manage-your-business\/limited-liability-company-llc-protection\/\">limited liability companies<\/a> (LLCs) and <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/build-your-business\/what-is-a-corporation\/\">corporations<\/a> formed under state law.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-1024x536.jpg\" alt=\"A realtor who knows about S Corp Taxes showing a property top prospective clients\" class=\"wp-image-7399\" style=\"width:300px\" srcset=\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-1024x536.jpg 1024w, https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-300x157.jpg 300w, https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-768x402.jpg 768w, https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p>To elect S Corporation status, the business must also meet the following <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/s-corporations#:~:text=To%20qualify%20for%20S%20corporation%20status%2C%20the%20corporation%20must%20meet%20the%20following%20requirements%3A\" target=\"_blank\" rel=\"noreferrer noopener\">eligibility criteria<\/a>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Be a domestic (US-based) entity,<\/li>\n\n\n\n<li>Have only allowable shareholders,<ul><li>These are individuals, certain trusts, and estates<\/li><\/ul>\n<ul class=\"wp-block-list\">\n<li>They cannot be <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/form-1065\/\">partnerships<\/a>, <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-owners\/llc-vs-sole-proprietorship\/\">sole proprietorships<\/a>, <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/incorporated-tax\/\">corporations<\/a>, or non-residents<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Have no more than 100 shareholders,<\/li>\n\n\n\n<li>Have only one class of stock<\/li>\n\n\n\n<li>Not be an ineligible corporation (i.e., certain financial institutions, insurance companies, and domestic international sales corporations)<\/li>\n<\/ul>\n\n\n\n<p>If these requirements are met, you can make an <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/manage-your-business\/s-corp-filing-guide\/\">S Corp election<\/a>. If you\u2019ve been in business a while, it\u2019s also important to know that you can make a <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-services\/form-2553-late-filing\/\">late S Corp election<\/a> in some cases.&nbsp;<\/p>\n\n\n\n<p>Now that we\u2019ve established what businesses can elect S Corporation status let\u2019s learn about S Corp taxes at the federal level.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-federal-s-corp-taxes-requirements\">Federal S Corp taxes &#8211; requirements<\/h2>\n\n\n\n<p>As mentioned above, an S Corporation\u2019s profits and losses are passed through to its owners. This pass-through treatment means that the business generally won\u2019t pay income tax on its profits at the federal level. That doesn\u2019t mean that the business can ignore tax time, though, as there are still things that will need to be done.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Filing Taxes as an S Corporation | Block Advisors\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/F09skcsFLsQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-corporate-level-taxes\">Corporate-level taxes<\/h3>\n\n\n\n<p>Although S Corporations generally won\u2019t have to pay income taxes, they are still required to file a tax return. The S Corporation does this by filing <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/form-1120s\/\">Form 1120-S<\/a>, <em>U.S. Income Tax Return for an S Corporation<\/em>, by the deadline. The deadline for calendar-year S Corporations is March 15<sup>th<\/sup>. If your S Corporation has a <a href=\"https:\/\/www.irs.gov\/publications\/p538#:~:text=A%20fiscal%20year%20is%2012%20consecutive%20months%20ending%20on%20the%20last%20day%20of%20any%20month%20except%20December%2031st\" target=\"_blank\" rel=\"noreferrer noopener\">fiscal tax year<\/a> the deadline will be the 15<sup>th<\/sup> day of the third month following the last day of the business\u2019 tax year. If the business cannot complete and file Form 1120-S by the deadline it can request a 6-month extension by filing <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/form-7004\/\">Form 7004<\/a>, <em>Application for Automatic Extension of Time To File Certain Business Income Tax<\/em>.<\/p>\n\n\n\n<p>Part of the process of completing Form 1120-S is to complete a Schedule K-1, <em>Shareholder\u2019s Share of Income, Deductions, Credits, etc.<\/em>, for each shareholder. The Schedule K-1 will tell the shareholders\/members the items that they will report on their individual returns. The schedules must be issued to the shareholders by March 15<sup>th<\/sup> for calendar year S Corporations unless an extension is filed.<\/p>\n\n\n\n<p>One thing to note is that if an S Corporation has certain built-in gains or passive income at the corporate level, it may be required to pay income taxes. There is a section of Form 1120-S where these items are reported.<\/p>\n\n\n\n<p>Form 1120-S is generally referred to as an information document since it reports information to the IRS and shareholders\/members. Let\u2019s shift gears and discuss what shareholders do with this information.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-shareholder-level-taxes\">Shareholder-level taxes<\/h3>\n\n\n\n<p>We have mentioned a few times that shareholders will pay income tax on the profits of the S Corporation, but we haven\u2019t talked about how that is done. The first thing a shareholder needs to do is ensure that they receive a <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f1065sk1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Schedule K-1<\/a> from the business. It is important to follow up with the business if the shareholder did not receive a Schedule K-1 since they will need it to complete their individual tax return. If the business filed for an extension, the shareholders may also need to request a <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/tax-extension\/\">filing extension<\/a>.<\/p>\n\n\n\n<p>Once shareholders receive their Schedule K-1 they will report that information on <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/schedule-e-tax-form\/\">Schedule E<\/a>, <em>Supplemental Income and Loss<\/em>, of their individual return. The income each shareholder reports on their individual return is taxed at their <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-brackets-and-rates\/what-are-the-tax-brackets\/\" target=\"_blank\" rel=\"noreferrer noopener\">individual tax rate<\/a>. This is in contrast to a <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/c-corp-tax-guide\/\">C Corporation<\/a>, which pays a <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/small-business-tax-rate\/#:~:text=The%20small%20business%20corporation%20tax%20rate%20for%202022%20is%20a%20flat%2021%25\">flat tax rate of 21%<\/a>.<\/p>\n\n\n\n<p>Cash distributions to an S Corporation shareholder are generally tax-free since shareholders pay tax on their share of the business\u2019 income. C corporation shareholders don\u2019t enjoy this benefit \u2013 they pay taxes on any dividends they receive.<\/p>\n\n\n\n<p>Shareholders should keep track of their basis in stock and debt on a continual basis. Cash distributions to shareholders are only tax-free to the extent of stock basis. Shareholders should use <a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-7203\" target=\"_blank\" rel=\"noreferrer noopener\">Form 7203<\/a>, <em>S Corporation Shareholder Stock and Debt Basis Limitations<\/em>, to keep track of the basis. This form doesn\u2019t always need to be filed with the IRS, but it is good practice to fill it out and keep it with your records.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-estimated-payments\">Estimated payments<\/h3>\n\n\n\n<p>Since the business generally doesn\u2019t have to pay income taxes, estimated payments usually aren\u2019t required. Shareholders, on the other hand, may be required to make <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/quarterly-tax-payments\/\">estimated payments<\/a> based on the tax they expect to owe. Each shareholder should communicate with the business throughout the year to estimate their share of income each quarter to determine if estimated payments are needed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-federal-employment-taxes\">Federal employment taxes<\/h3>\n\n\n\n<p>S Corporations that have <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-owners\/things-consider-when-setting-employee-compensation-levels\/\">employees <\/a>will need to withhold, deposit, and pay <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-services\/payroll-tax\/\">employment taxes<\/a>. These S Corp taxes include income tax withholding, the employer and employee share of Social Security and Medicare tax (<a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/what-is-the-fica-tax-rate\/\">FICA<\/a>), and unemployment tax (<a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/what-is-futa\/\">FUTA<\/a>). These taxes must be deposited throughout the year, and the due dates depend on the tax liability from the prior years and the type of employment tax return the corporation files.<\/p>\n\n\n\n<p>Most S Corporations will be required to file <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/form-941\/\">Form 941<\/a>, <em>Employer\u2019s Quarterly Federal Tax Return<\/em>, on a quarterly basis. The business will also need to file <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/form-940\/\">Form 940<\/a>, <em>Employer\u2019s Annual Federal Unemployment Tax Return<\/em> annually.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-paying-owners\">Paying owners<\/h3>\n\n\n\n<p>Shareholders who provide services to the business will also need to be paid a <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/manage-your-business\/s-corp-reasonable-compensation\/\">reasonable salary<\/a> for their work. There is no test for what constitutes a reasonable salary, but some factors to consider are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What would an employee performing the services be paid?<\/li>\n\n\n\n<li>What is the financial condition of the business?<\/li>\n\n\n\n<li>What credentials does the shareholder have?<\/li>\n\n\n\n<li>How many hours does the shareholder work?<\/li>\n<\/ul>\n\n\n\n<p>This is not an exhaustive list, and you should <a href=\"https:\/\/www.blockadvisors.com\/small-business-tax-preparation\/s-corp-taxes\/\">consult a tax professional<\/a> when determining a salary for the shareholder. The business will need to account for employment taxes for the shareholder as if they were any other employee.<\/p>\n\n\n\n<p>There are few S Corp tax benefits that come with paying shareholders that provide services, the first being that the compensation will be deductible on the business\u2019 Form 1120-S. Also, if the company pays insurance premiums on behalf of the shareholder providing services, the company may be able to <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/small-business-tax-deductions\/\">deduct premiums<\/a>. Additionally, the shareholder may be able to claim the <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/healthcare-tax-for-employers\/\">self-employed health insurance deduction<\/a> (SEHID) for those premiums if certain requirements are met.<\/p>\n\n\n\n<p>Another perk for the shareholder is that they will get credit for social security taxes paid on their wages. While the shareholder\u2019s wages are subject to employment taxes, the remaining share of the shareholder\u2019s income will not be subject to self-employment tax. These perks for the shareholder and business as mentioned above, can be attractive to shareholders considering working in the business. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-state-s-corp-taxes-requirements\">State S Corp taxes &#8211; requirements<\/h2>\n\n\n\n<p>As we mentioned above, the S Corporation designation is a <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-owners\/business-entity-101\/\">federal income tax classification<\/a>. Most states recognize a business\u2019 federal S Corp election \u2013 in these states, business is a pass-through entity for state tax purposes as well. This is not the case for all states though, and some states still impose a corporate income tax on S Corporations. Since every state is different, it is important that you consult the rules for the state or states that you are organized in and the ones you do business in, as they may treat the S Corporation differently.<\/p>\n\n\n\n<p>In addition to income taxes, states may impose other taxes such as employment, gross receipts, or franchise taxes. These taxes will typically have a corresponding form and due date that can be different from the federal due dates discussed above.<\/p>\n\n\n\n<p>While we have covered a lot of ground concerning S Corp taxes, you may still have questions. A <a href=\"https:\/\/www.blockadvisors.com\/small-business-tax-preparation\/s-corp-taxes\/\">Block Advisors Small Business Certified tax pro<\/a> can help you understand the nuances of your state\u2019s tax requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-does-an-s-corp-really-save-on-taxes\">Does an S Corp really save on taxes?<\/h2>\n\n\n\n<p>Depending on your circumstances, yes, it is possible to save money as an S Corporation. Business owners who are currently reporting income as an <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/how-an-llc-is-taxed\/\">LLC <\/a>or <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/sole-proprietorship-tax\/\">Sole Proprietor<\/a> may be able to reduce their tax burden by filing taxes as an <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-owners\/llc-vs-scorp\/\">LLC with an S Corp election<\/a>. The savings come from profits no longer being subject to <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/self-employed-taxes\/\">self-employment tax<\/a>. Additionally, shareholders who pay themselves a reasonable salary only pay employment taxes on the salary portion of their income. They are then able to take the remaining profits of the business as a cash distribution, which again is not subject to self-employment taxes.<\/p>\n\n\n\n<p>Getting this right can be complicated. Each business owner\u2019s situation impacts potential savings. Talk with a <a href=\"https:\/\/www.blockadvisors.com\/small-business-tax-preparation\/s-corp-taxes\/\">Block Advisors Small Business Certified tax pro<\/a> before making an S Corp election to ensure you understand how your choices will impact your tax situation.<\/p>\n\n\n\n<div class=\"wp-block-create-block-hrb-large-article-cta\" class=\"wp-block-create-block-hrb-large-article-cta\" style=\"background-color:#005d1f\"><div class=\"hrb-large-article-cta--image\" style=\"background-image:url(&quot;https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/01\/ba-sb-certified-tax-pro-brenda-w-1200x1200-1.webp&quot;);background-size:contain;background-position:center;background-repeat:no-repeat\"><\/div><div class=\"hrb-large-article-cta--copy #ffffff\"><h3 class=\"main-heading\">Get expert tax prep at an affordable price<\/h3><p class=\"main-copy\">Don&#8217;t wait to file your S Corp taxes.<\/p><div class=\"quick-links-list\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.blockadvisors.com\/small-business-tax-preparation\/s-corp-taxes\/\">File with a tax pro<\/a><\/div>\n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-s-corp-taxes-faqs\">S Corp Taxes FAQs<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><em>What rate is an S Corp taxed at?<\/em><\/h3>\n\n\n\n<p>An S Corp benefits from pass-through taxation, so the S Corp generally does not pay income tax directly.&nbsp; Income tax is reported by each shareholder on their individual return and is taxed at their <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-brackets-and-rates\/what-are-the-tax-brackets\/\" target=\"_blank\" rel=\"noreferrer noopener\">individual tax rate<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><em>Is an S Corp taxed at 21%?<\/em><\/h3>\n\n\n\n<p>No, an S Corp typically does not pay income tax directly.&nbsp; Rather, income is passed through to shareholders who pay income tax on their individual tax returns.&nbsp; C Corporations (different from S Corps) have a <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/small-business-tax-rate\/#:~:text=The%20small%20business%20corporation%20tax%20rate%20for%202022%20is%20a%20flat%2021%25\">flat tax rate of 21%<\/a> paid by the corporation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><em>What are the tax advantages of an S Corp?<\/em><\/h3>\n\n\n\n<p>Pass-through taxation is the primary tax benefit of an S Corp. This means that business owners will report the business profits and losses on their individual returns and pay any income tax. The S Corp itself usually does not pay taxes. Typically, the S Corp will need to pay owners\/shareholders that provide services a reasonable salary to maximize savings potential. Additionally, a secondary benefit is that each owner\u2019s share of the S corporation\u2019s income isn\u2019t subject to self-employment tax. Depending on each individual\u2019s tax situation, these benefits can result in substantial tax savings.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><em>This article is for informational purposes only and should not be construed as legal advice. You may want to seek the advice of an attorney to evaluate all relevant considerations.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-media-text is-stacked-on-mobile\" style=\"grid-template-columns:20% auto\"><figure class=\"wp-block-media-text__media\"><img loading=\"lazy\" decoding=\"async\" width=\"274\" height=\"279\" src=\"https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/07\/carl-breedlove.jpg\" alt=\"Carl Breedlove - The Tax Institute H&amp;R Block\" class=\"wp-image-7062 size-full\" srcset=\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2023\/07\/carl-breedlove.jpg 274w, https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2023\/07\/carl-breedlove-60x60.jpg 60w\" sizes=\"auto, (max-width: 274px) 100vw, 274px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n<p><strong>About the Author<\/strong><\/p>\n\n\n\n<p>Carl Breedlove is a Lead Tax Research Analyst at The Tax Institute, H&amp;R Block and Block Advisors\u2019 center of tax expertise. He specializes in small business, rental property, and state taxation. Carl is a graduate of the University of Missouri-Kansas City School of Law with Master of Laws (LLM) and Juris Doctor (JD) degrees.<\/p>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.blockadvisors.com\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"436\" src=\"https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/10\/block-advisors-endorsement-logo-1-4-1024x436.jpg\" alt=\"Block Advisors by H&amp;R Block Logo\" class=\"wp-image-7233\" style=\"width:300px\" srcset=\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2023\/10\/block-advisors-endorsement-logo-1-4-1024x436.jpg 1024w, https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2023\/10\/block-advisors-endorsement-logo-1-4-300x128.jpg 300w, https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2023\/10\/block-advisors-endorsement-logo-1-4-768x327.jpg 768w, https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2023\/10\/block-advisors-endorsement-logo-1-4-1536x655.jpg 1536w, https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2023\/10\/block-advisors-endorsement-logo-1-4-1200x511.jpg 1200w, https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2023\/10\/block-advisors-endorsement-logo-1-4-1600x682.jpg 1600w, https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2023\/10\/block-advisors-endorsement-logo-1-4.jpg 1800w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>What is an S Corporation? An S Corporation is an IRS tax classification that allows an eligible entity to be\u2026<\/p>\n","protected":false},"author":1,"featured_media":7398,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1237,1171],"tags":[],"class_list":["post-7397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manage-your-business","category-small-business-tax-prep"],"acf":[],"yoast_head":"<title>Guide to S Corp Taxes | Block Advisors<\/title>\n<meta name=\"description\" content=\"Learn all about S Corp taxes in this guide from Block Advisors. See how you may save money at tax time when you become an S Corporation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Guide to S Corp taxes for small businesses\" \/>\n<meta property=\"og:description\" content=\"Learn all about S Corp taxes in this guide from Block Advisors. See how you may save money at tax time when you become an S Corporation.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/\" \/>\n<meta property=\"og:site_name\" content=\"Block Advisors\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-15T20:38:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-15T20:38:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-Feature.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Block Advisors\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Block Advisors\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/\"},\"author\":{\"name\":\"Block Advisors\",\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#\/schema\/person\/9e395583ef85baefd555557c6bd94ed9\"},\"headline\":\"Guide to S Corp taxes for small businesses\",\"datePublished\":\"2025-05-15T20:38:27+00:00\",\"dateModified\":\"2025-05-15T20:38:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/\"},\"wordCount\":1848,\"publisher\":{\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#organization\"},\"image\":{\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-Feature.jpg\",\"articleSection\":[\"Manage Your Business\",\"Small Business Tax Prep\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/\",\"url\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/\",\"name\":\"Guide to S Corp Taxes | Block Advisors\",\"isPartOf\":{\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-Feature.jpg\",\"datePublished\":\"2025-05-15T20:38:27+00:00\",\"dateModified\":\"2025-05-15T20:38:28+00:00\",\"description\":\"Learn all about S Corp taxes in this guide from Block Advisors. See how you may save money at tax time when you become an S Corporation.\",\"breadcrumb\":{\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#primaryimage\",\"url\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-Feature.jpg\",\"contentUrl\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-Feature.jpg\",\"width\":1200,\"height\":628,\"caption\":\"A realtor who knows about S Corp Taxes showing a property top prospective clients\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Guide to S Corp taxes for small businesses\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#website\",\"url\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/\",\"name\":\"Block Advisors\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#organization\",\"name\":\"Block Advisors Tax Preparation and Planning Advice\",\"url\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#\/schema\/logo\/image\/\",\"url\":\"\/wp-content\/uploads\/2020\/12\/schema-logo.png\",\"contentUrl\":\"\/wp-content\/uploads\/2020\/12\/schema-logo.png\",\"width\":281,\"height\":79,\"caption\":\"Block Advisors Tax Preparation and Planning Advice\"},\"image\":{\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#\/schema\/person\/9e395583ef85baefd555557c6bd94ed9\",\"name\":\"Block Advisors\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/43dec3f271c4637a2b74ecb2043bc88bb208fa84468cac05239b7530aeaea351?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/43dec3f271c4637a2b74ecb2043bc88bb208fa84468cac05239b7530aeaea351?s=96&d=mm&r=g\",\"caption\":\"Block Advisors\"}}]}<\/script>","yoast_head_json":{"title":"Guide to S Corp Taxes | Block Advisors","description":"Learn all about S Corp taxes in this guide from Block Advisors. See how you may save money at tax time when you become an S Corporation.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/","og_locale":"en_US","og_type":"article","og_title":"Guide to S Corp taxes for small businesses","og_description":"Learn all about S Corp taxes in this guide from Block Advisors. See how you may save money at tax time when you become an S Corporation.","og_url":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/","og_site_name":"Block Advisors","article_published_time":"2025-05-15T20:38:27+00:00","article_modified_time":"2025-05-15T20:38:28+00:00","og_image":[{"width":1200,"height":628,"url":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-Feature.jpg","type":"image\/jpeg"}],"author":"Block Advisors","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Block Advisors","Est. reading time":"9 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#article","isPartOf":{"@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/"},"author":{"name":"Block Advisors","@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#\/schema\/person\/9e395583ef85baefd555557c6bd94ed9"},"headline":"Guide to S Corp taxes for small businesses","datePublished":"2025-05-15T20:38:27+00:00","dateModified":"2025-05-15T20:38:28+00:00","mainEntityOfPage":{"@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/"},"wordCount":1848,"publisher":{"@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#organization"},"image":{"@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#primaryimage"},"thumbnailUrl":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-Feature.jpg","articleSection":["Manage Your Business","Small Business Tax Prep"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/","url":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/","name":"Guide to S Corp Taxes | Block Advisors","isPartOf":{"@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#website"},"primaryImageOfPage":{"@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#primaryimage"},"image":{"@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#primaryimage"},"thumbnailUrl":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-Feature.jpg","datePublished":"2025-05-15T20:38:27+00:00","dateModified":"2025-05-15T20:38:28+00:00","description":"Learn all about S Corp taxes in this guide from Block Advisors. See how you may save money at tax time when you become an S Corporation.","breadcrumb":{"@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#primaryimage","url":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-Feature.jpg","contentUrl":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-content\/uploads\/2024\/01\/S-Corp-Taxes-Feature.jpg","width":1200,"height":628,"caption":"A realtor who knows about S Corp Taxes showing a property top prospective clients"},{"@type":"BreadcrumbList","@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/small-business-tax-prep\/s-corp-taxes\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/"},{"@type":"ListItem","position":2,"name":"Guide to S Corp taxes for small businesses"}]},{"@type":"WebSite","@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#website","url":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/","name":"Block Advisors","description":"","publisher":{"@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#organization","name":"Block Advisors Tax Preparation and Planning Advice","url":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#\/schema\/logo\/image\/","url":"\/wp-content\/uploads\/2020\/12\/schema-logo.png","contentUrl":"\/wp-content\/uploads\/2020\/12\/schema-logo.png","width":281,"height":79,"caption":"Block Advisors Tax Preparation and Planning Advice"},"image":{"@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#\/schema\/person\/9e395583ef85baefd555557c6bd94ed9","name":"Block Advisors","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/43dec3f271c4637a2b74ecb2043bc88bb208fa84468cac05239b7530aeaea351?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/43dec3f271c4637a2b74ecb2043bc88bb208fa84468cac05239b7530aeaea351?s=96&d=mm&r=g","caption":"Block Advisors"}}]}},"_links":{"self":[{"href":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-json\/wp\/v2\/posts\/7397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-json\/wp\/v2\/comments?post=7397"}],"version-history":[{"count":0,"href":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-json\/wp\/v2\/posts\/7397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-json\/wp\/v2\/media\/7398"}],"wp:attachment":[{"href":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-json\/wp\/v2\/media?parent=7397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-json\/wp\/v2\/categories?post=7397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hrbscaletest.hrblock.com\/resource-center\/wp-json\/wp\/v2\/tags?post=7397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}