New s-corporation compliance guide

Starting an S-Corp opens the door to powerful tax benefits and growth potential, but it also comes with a maze of deadlines, filings, and rules. Missing just one can cost you time, money, and peace of mind.

I specialize in making compliance seamless — ensuring your S-Corp stays in good standing with the IRS and the State of California, while being fully prepared to withstand an audit. You focus on running your business. I’ll handle the filings, deadlines, and documentation, so you can move forward with confidence

 Think of this as your compliance compass — the key areas the IRS and the State of California expect you to stay on top of each year. While you could track each item yourself, most business owners find it far more efficient (and less stressful) to have an expert handle it for them. 

Reasonable Compensation for Officers
 

• You must pay shareholder-employees a reasonable salary for the work they perform.
   
• Salary is subject to payroll taxes (FICA/Medicare).
   
• Determination is based on role, duties, industry standards, and profitability.

• A reasonable compensation study should be done every few years.
   

Payroll Tax Filings
 

• Quarterly: Form 941 – Employer’s Quarterly Federal Tax Return.
   
• Annually: Form 940 – Federal Unemployment Tax (FUTA) return.
   
• W-2s and W-3 to employees and the SSA by January 31.
   

S-Corp Income Tax Return
 

• Form 1120-S due March 15
   
• Provide Schedule K-1 to each shareholder with their share of income, deductions, and credits.
   

Estimated Taxes for Shareholders
 

• S-Corp itself does not pay federal income tax.
   
• Shareholders may need to make quarterly estimated tax payments on pass-through income.
   

Business Recordkeeping
 

• Maintain proper books, minutes, bylaws, and records to preserve S-Corp status.
   

Annual Franchise Tax
 

• Minimum $800 tax due to California Franchise Tax Board (FTB).
   
• First Payment Due: 15th day of the 4th month of your first taxable year.
   
• Paid in Advance for the year.
   

Income Tax in CA
 

• 1.5% tax on net income (minimum $800).
   
• Annual return: Form 100S due March 15.
   

Statement of Information
 

• Initial Statement: Due within 90 days of registering the corporation (Form SI-200).
   
• Annual Statement: Due every year during the month of incorporation.
   

Payroll Tax Filings
 

• Register with EDD for state payroll accounts.
   
• Quarterly payroll tax returns (DE 9 and DE 9C).
   
• State disability insurance (SDI) and state unemployment insurance (SUI) withholding.
   

Estimated Tax Payments
 

• If your S-Corp owes >$800, estimated tax installments may be required.
   
• Due: April 15, June 15, September 15, December 15.

 When you have the right systems and oversight in place, you’re not just meeting requirements; you’re building an audit-ready, stress-free foundation for your success. Let me take the weight of compliance off your shoulders so you can focus on running and growing your business — knowing everything is handled, on time, and in your best interest.