How is a Subchapter S-Corporation Taxed?
The corporation files and information return form 1120-S. Each member receives a form K-1 that details the individual shareholder’s share of tax related income, deductions, and other tax related figures. The K-1 is required to complete the individual’s form 1040. Any taxes due are the responsibility of the shareholders, not the corporation. Pennsylvania and New Jersey each have a minimum state corporate income tax.
