What does a US corporation file with the IRS?
A US corporation does not file annual financial statements with the IRS the way companies do in much of Europe. What it files every year is its corporate tax return, Form 1120, even when it has no taxable profit. The return includes the profit calculation and, once receipts or total assets reach $250,000, the balance sheet per books (Schedule L). It is based on the financial statements from your books, which we prepare for this purpose.
The real groundwork, though, starts with the bookkeeping every corporation is required to keep. The data your company records in its books is the foundation of every set of annual financial statements.
What exactly is the corporate tax return (IRS Form 1120)?
Form 1120 is the US corporation's income tax return. It reports income, expenses, profit or loss and other tax-relevant details to the IRS. If the fiscal year matches the calendar year, it is due by April 15 of the following year; Form 7004 extends the deadline for filing, not for paying. If your corporation is at least 25% foreign-owned and had reportable transactions with related parties, Form 5472 must be included. Special types of company have their own versions, such as Form 1120-L for life insurance companies or Form 1120-C for cooperatives.
How we handle your corporation's tax return
First, simply book the service for your annual financial statements & corporate tax return through the online booking on our website. Next, send us all the information on your US corporation, such as invoices and bank statements. We review everything carefully and, if needed, check in with you on next steps. Then we prepare the documents for you and keep you posted on when to expect completion.
Once everything is prepared, we send you your figures to review and go over any questions that have come up. At this point you can also get a good idea of how much tax your corporation will owe. If you would like any small corrections, we are happy to make them, and then ask you to send the documents back to us electronically.
What does your US corporation's tax return cost?
The $1,500 fee buys two things: a review of your documents and a binding fixed-price quote for preparing and filing your US corporation's annual financial statements and corporate tax return. It is payable up front.
As you can imagine, the work involved depends heavily on how extensive your documents are and how quickly you need them. That means the fee can vary a lot, which is exactly why we only quote a price once we have seen your documents. If you then engage us, we credit the full $1,500 toward the fixed-price quote. If you decide not to, you keep the quote; the fee is not refunded.
We handle your annual financial statements and corporate tax return professionally
With Mount Bonnell Advisors you have an experienced partner who has prepared and filed annual financial statements and corporate tax returns for many companies over the years. You save valuable time and effort and stay fully focused on your business. Simply book our service now and we will get started right away.
