An S-corp can save a Bergen County owner real money in self-employment tax — but only if the return and the payroll are done correctly. Marion Tax Service prepares your federal Form 1120-S, issues each shareholder a Schedule K-1, files the New Jersey CBT-100S, and makes sure your reasonable-salary split actually holds up.
The single biggest S-corp mistake is taking all profit as distributions and paying yourself little or no W-2 wage. We help you set a defensible salary and coordinate it with payroll so the IRS can’t recharacterize your distributions.
What’s Included
S-corp preparation covers the full federal-and-state filing:
- Federal Form 1120-S and all supporting schedules
- Schedule K-1 for each shareholder, flowed onto their personal 1040
- NJ CBT-100S New Jersey S-corporation business tax return
- Reasonable-salary analysis coordinated with W-2 payroll
- Shareholder basis tracking and distribution review
- Accountable-plan and owner-expense reimbursement guidance
- Officer compensation and health-insurance reporting on the W-2
The reasonable-salary balance
The IRS requires S-corp owner-employees to take a ‘reasonable’ W-2 salary before distributions. Set it too low and you risk recharacterization and penalties; set it too high and you give up the savings that made the S-election worthwhile. We help you land on a defensible number based on your role and industry, then run it through payroll.
Who It’s For
S-corp preparation fits owners who have elected (or should consider) S status:
Established S-Corps
Owner-operators who need 1120-S, K-1s, and CBT-100S filed accurately each year.
New S-Corp Elections
Owners who just elected S status and are filing their first 1120-S.
Profitable Sole Props
Schedule C filers whose profit is high enough that an S-election could cut SE tax.
Multi-Owner S-Corps
Companies with several shareholders who each need a clean, accurate K-1.
Why Marion Tax Service
Reasonable salary, basis, and distributions are exactly where inexperience costs S-corp owners. With more than 50 years in practice, our team sets a defensible structure and keeps the 1120-S, the K-1s, and your payroll consistent.
Because we also run payroll and bookkeeping in house, your salary, distributions, and books all line up — there’s no gap between what your return says and what your payroll did.
Related services: S-Corp Formation Payroll Tax Planning.