Expert Tax Preparation & Strategy for S Corporations

What We Do

We provide end-to-end tax solutions for S Corporations, focusing on the unique intersection of corporate compliance and shareholder tax savings. As an S Corp, your business is a pass-through entity, meaning your strategic 1120-S filing is the foundation for your personal financial success

Price starting at $950

Key Services

  • Reasonable Compensation Analysis: We calculate a defensible "reasonable salary" to ensure you comply with IRS guidelines while maximizing your tax-free distributions.

  • Form 1120-S & Schedule K-1 Preparation: We manage the complex corporate return and provide accurate K-1s to all shareholders for their individual filings.

  • QBI Deduction Maximization: We help you navigate the Section 199A rules to secure the 20% Qualified Business Income deduction for eligible shareholders.

  • Payroll Tax & Compliance Management: From quarterly Form 941s to annual Form 940s, we ensure your payroll taxes are filed accurately and on time.

Key IRS Changes for 2025 Filing Season

1. Permanent Business Incentives

  • 100% Bonus Depreciation: The OBBBA permanently restores the ability to immediately deduct the full cost of qualifying business equipment (e.g., machinery, software, and certain vehicles) placed in service after January 19, 2025.

  • Permanent Section 199A (QBI) Deduction: The 20% Qualified Business Income deduction for S-Corp shareholders is now a permanent part of the tax code, allowing you to exclude one-fifth of your business profit from personal income tax indefinitely.

  • Section 179 Expensing: For 2025, the immediate expensing limit has doubled to $2.5 million, with the phase-out threshold for total equipment purchases raised to $4 million.

  • R&D Expensing: Domestic Research and Development costs can now be fully and immediately deducted in the year they are incurred, reversing the previous requirement to amortize them over five years.

2. Shareholder-Level Benefits

  • Increased SALT Deduction Cap: The state and local tax (SALT) deduction limit has increased from $10,000 to $40,000 for taxpayers with a modified adjusted gross income (MAGI) under $500,000.

  • Senior "Bonus" Deduction: Shareholders who are 65 or older can claim an additional $6,000 deduction ($12,000 for qualifying couples) on their personal returns for 2025.

  • No Tax on Tips & Overtime: If you are a shareholder-employee in a qualifying occupation, you may now deduct up to $25,000 in tips and $12,500 in overtime pay from your taxable income.

  • Car Loan Interest: You can now deduct up to $10,000 in interest paid on loans for new, U.S.-assembled personal vehicles purchased after 2024.

3. Compliance & Reporting Updates

  • 1099-K Reporting Threshold: For 2025, the reporting threshold for third-party payment apps (like Venmo or PayPal) has returned to $20,000 and 200 transactions.

  • Mandatory Electronic Filing: S-Corps filing 10 or more returns of any type (including W-2s and 1099s) must now electronically file their Form 1120-S.

  • Reasonable Compensation Focus: The IRS has increased its scrutiny of S-Corp salaries to ensure shareholders are paying themselves a market-rate wage before taking distributions.

The RelyCFO 5-Step Accuracy Process

  • Shareholder Basis Review: We track your "basis" to ensure your distributions remain tax-free and your losses are fully deductible.

  • Salary-to-Distribution Optimization: We analyze your profits to find the "sweet spot" that minimizes self-employment taxes.

  • Passive Income & Built-in Gains Check: We audit for specific corporate-level taxes like the "Built-in Gains" tax to avoid surprise liabilities.

  • State-Level Nexus & SALT Analysis: We manage your state-specific filing requirements and any available SALT (State and Local Tax) workarounds.

  • Year-Round Strategy & Deadline Tracking: We keep you ahead of the March 15th deadline and ensure your 2026 tax strategy is always current.

Critical 2025 Tax Deadlines (Filing in 2026)

Staying compliant with estimated payments is essential to avoid costly IRS penalties.

  • January 31, 2026: Deadline to issue W-2s to shareholder-employees and 1099s to contractors.

  • March 16, 2026: Final deadline to file Form 1120-S (or request an extension).

  • September 15, 2026: Extended deadline for calendar-year S Corporation returns.

S Corp Election

To elect S-Corp status for the 2025 tax year (filing in 2026), you must strictly follow the IRS "2-month and 15-day" rule. Missing these deadlines can delay your tax benefits by an entire year unless you qualify for late relief.

1. Deadline for Existing Businesses

If your business (LLC or C-Corp) was already in operation before 2025 and follows a calendar year, your election window is:

  • Standard Deadline: March 17, 2026 (since March 15 falls on a Sunday).

  • Early Filing: You could have also filed at any time during the 2024 tax year to make the election effective for January 1, 2025.

2. Deadline for New Businesses (Formed in 2025)

For businesses launched in 2025, the "clock" starts on the earliest of three dates: when the entity first has shareholders, assets, or begins doing business.

  • 75-Day Window: You must file Form 2553 within two months and 15 days of that start date.

  • Example: If you form your LLC on January 7, 2025, your deadline to elect S-Corp status for your first tax year is March 21, 2025.

3. Late Election Relief ("The Oops Rule")

If you missed the 2025 deadline, the IRS provides a generous "back-door" option under Revenue Procedure 2013-30:

  • Retroactive Approval: You can request late election relief for up to 3 years and 75 days after the intended effective date.

  • Requirement: To qualify, you must show "reasonable cause" for the delay and demonstrate that all shareholders have consistently reported their income as if the S-Corp election was already in place.