What is the Process for Filing Taxes For a C Corporation


If you’re a business owner or manager, you’ll have to file taxes as a C corporation. This is the process that your accountant will go through to ensure all of your company’s information is properly reported, and you’ll likely need to do some paperwork yourself as well.

What is a C Corporation?

A C Corporation is a company that has been created as a separate entity from its owners. The corporation’s income and losses are separate from those of its owners, making it easier for shareholders to transfer assets between the two entities. If a shareholder sells their stock in the corporation, there are no tax implications for them—they will receive only cash that they can use however they please.

C Corps are subject to double taxation: first when profits are made by the corporation, then again when those profits are distributed to shareholders as dividends or other payments.

The same goes for S Corps: they’re also known as Subchapter S Corporations because they operate under Subchapter S of Chapter 1 of Title 26 (the Internal Revenue Code). The primary difference between these two types is how each one handles taxes; specifically, whether or not it pays income taxes on retained earnings within its balance sheet or distributes those earnings as dividends instead.

Filing Steps for C Corps

A C corporation is a business entity that has been incorporated under state law and has elected to be treated as a corporation for federal income tax purposes. You are considered the owner of the corporation, but your name does not appear in its articles of incorporation or other documents filed with the state. Instead, you choose who will be responsible for managing all legal matters surrounding your business: yourself, an attorney or another professional person like an accountant or banker. That person may also be an employee whom you hired because they have experience with such matters.

Form 1120

Form 1120 is a two-part form. Part I, the first section of Form 1120, includes the basic information about your business, like its name and address. It also has a box for you to check if this is an S corporation (Form 1120S) or a life insurance company (Form 1120L). Part II contains all of your accounting figures and calculations that show how much net income was generated by your business during the tax year.

The IRS requires all corporations to file annual returns in order to pay their corporate income tax.

Schedule K-1

If you are a shareholder in a corporation, you will receive a Schedule K-1 from the corporation. This form reports to the IRS how much income you received from the corporation. A Schedule K-1 is sent to each shareholder at the end of each tax year. The shareholder must then report this income on their personal tax return.

The form also shows any deductions or credits that have been claimed by the company on its corporate return and passed through to shareholders as items of income or deduction (such as net operating loss carrybacks).

Schedule M-3

One of the most important tax forms for C Corporations is Schedule M-3. This form is used to report the tax effects of changes in accounting methods, and it’s required when you change your method of accounting from one year to another.

If your corporation has made any changes to its accounting methods or has adopted a new method, then this is the form for you. You will need to file it with Form 1120 and attach it as an exhibit. The instructions explain how to fill out this long but straightforward form so that you can take advantage of all its benefits without making mistakes along the way!

Schedule L

If you are filing a corporate tax return, Schedule L is used to report dividends paid to shareholders. This schedule must be filed along with Form 1120 in order for your corporation to receive the proper amount of taxes and deductions.

In order for Schedule L to be used correctly, it must be attached to Form 1120.


If you’re a C corporation, here are the steps to prepare and file your taxes:

  • Determine if you need to file an income tax return. A C-corporation must file if its total taxable income is $1,000 or more.
  • Get form 1120 (the main corporate tax form) and schedules K-1 (which report income and deductions for each shareholder). These forms can be obtained from the IRS website.
  • Create a reconciliation schedule in order to calculate any excess accumulation credits (if applicable). This will allow you to determine if any of your prior year’s accumulated earnings were not subject to taxation because they were distributed during that year.


We hope that this article has given you a better understanding of how to file taxes for a C Corporation.

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