Incorporating a business definitely comes with a lot of new responsibilities. And taking care of the accounts and the taxation process is one of those responsibilities. If you are someone who is still figuring out how to take care of these things and finding yourself stuck with all these things then you are not the only one. Almost every business owner gets puzzled when it comes to filling out different tax forms. The reason behind this is very simple. Some of these forms are very complex and the person requires in-depth knowledge about the finances and taxation laws.
IRS Form 1120 is one of such complicated tax forms. Now you must be wondering What is Form 1120? Form 1120 is used by all the domestic corporations. They fill out this form to determine their annual tax liability. This form is also used to report the gains, losses, profits, credits and deductions of the corporation.
A corporation needs to fill out this tax form even if it had no income in that financial year. Only C corporations and LLCs that are filing as corporations can use the IRS Form 1120 to determine their tax liability. After filling out the form, the corporation will have an exact idea of how much tax needs to be paid for that financial year. But the corporation does not have to pay the tax amount to the IRS all in one lump sum. They have to pay an estimated tax amount every quarter.
Still not sure about this? When you decide to take care of your finances all on your own then it is obvious to have issues like this. There is no need to worry. Probably, this is the time when you should consider taking some help from a tax professional. To get started, you can give us a call on +1-844-860-1101 We are available 24x7.
