Form 1120

Businesses registered as a C-corporation must file Form 1120, regardless of whether the business has generated income that year. Businesses must fill out income, deductions for ordinary or necessary business expenses, and include any tax credits or refunds. This form can be filed online or by mail.

Form 1120-S 

Businesses registered as S-corporations are required to file either Form 1120-S. This form is used to report income, gains, losses, credits, deductions, and any other relevant business information. The form can be filed electronically or by mail and must be accompanied by Schedule K-1.

Form 1065 

Any entity, including limited liability companies (LLCs), can file Form 1065 at the end of the year. Form 1065 is used to report the income, gains, losses, deductions, credits, and other information from the operation of a partnership. Like with Form 1120-S, Form 1065 should be accompanied by Schedule K-1, and profits and losses are passed through to partners. 

What is the difference between Form 1120 and Form 1120-S?

Form 1120-S is used by S-corporations, which are pass-through entities. The income and losses for S-corporations are passed through to shareholders, which means profits or losses must be included on shareholders' personal tax returns. Form 1120 is for C-corporations, which are taxed separately from their owners.

Filing Individual Tax Returns

Start by gathering required documents, including a W-2, which an employer provides, and 1099 forms from banks, issuing agencies, and other payers. Self-employed or freelancer workers will need to include Form 1099-K or 1099-MISC. 

After gathering all the necessary documents, individuals should determine eligibility for tax credits or deductions. The last step is to file the tax return to the IRS before the deadline or apply for a tax filing extension.