S-Corp Tax Preparation Chicago, IL | 1120-S Filing & Tax Planning
Accurate Form 1120-S and K-1 filing, reasonable salary planning and year-round support for Chicago S corporation owners. File correctly, stay compliant and keep more of what your business earns.
What every S corp client gets
- Form 1120-S and Illinois IL-1120-ST prepared
- A Schedule K-1 for every shareholder
- Reasonable salary review each year
- Your personal return coordinated with the business
- Quarterly estimate and year-end planning
- Help with any IRS or Illinois notice
Certified on the platforms our clients use
S corp taxes done right, with planning that pays off
An S corporation can save its owners real money, but only when it is run correctly. The business files its own return, every shareholder needs a K-1, owners who work in the business must take a reasonable salary through payroll, and Illinois adds its own replacement tax return on top.
Heard & Associates LLC handles all of it. We prepare your federal and Illinois S corp returns, review how you pay yourself and coordinate everything with your personal return, so the numbers match and nothing is missed. Because we also offer S corp bookkeeping and payroll services, your books, salary and returns all come from one set of records.
Not an S corp yet? Our team can help you decide whether the election makes sense and set up your S corporation the right way from day one.
S corporation tax services in Chicago
From the annual return to the salary you pay yourself, we cover every part of S corp compliance and planning.
Form 1120-S Preparation
We prepare and e-file your federal S corporation return, reporting income, deductions, officer pay and distributions correctly so it lines up with your books and payroll.
Business tax preparation →K-1s and Shareholder Returns
Every shareholder gets an accurate Schedule K-1. We can also prepare your personal return so business income flows through without errors or delays.
Individual tax preparation →Reasonable Salary Planning
We review your role, hours and industry pay data to set a defensible salary, then balance it against distributions to keep payroll taxes in check.
Payroll services →S Corp Election and Setup
Thinking about electing S corp status? We run the numbers, file Form 2553 on time and set up payroll and books before your first year closes.
S corp formation →S Corp Bookkeeping
Clean monthly books that track owner draws, shareholder basis and payroll, so your 1120-S is fast to prepare and easy to defend.
S corp bookkeeping →IRS and Illinois Notices
Late filing penalties, mismatched K-1s or salary questions? We respond to notices and represent you before the IRS and the Illinois Department of Revenue.
IRS representation →Key S corp deadlines and Illinois taxes
S corporations generally do not pay federal income tax themselves. Profit passes through to shareholders on their K-1s, and each owner pays tax on their share. Illinois works differently. The state charges S corporations a personal property replacement tax of 1.5% on net income, reported on Form IL-1120-ST, and shareholders still pay Illinois individual income tax on their share.
Illinois also offers an elective pass-through entity tax, which can help owners work around the federal cap on state and local tax deductions. Whether it saves you money depends on your income and other deductions, so we model it before recommending it.
How much should you pay yourself?
If you work in your S corporation, the IRS expects you to take a reasonable salary through payroll before taking distributions. There is no fixed formula. The IRS looks at the facts of each business, including:
- The duties and responsibilities of the owner
- Training, experience and time devoted to the business
- What comparable businesses pay for similar work
- Payments to non-owner employees
- Distributions and past compensation history
Paying yourself only in distributions?
It is one of the most common S corp mistakes. If the IRS decides your distributions were really wages, it can reclassify them and assess back payroll taxes, penalties and interest.
We document a salary you can defend and run it through small business payroll so the savings hold up.
Review my salary →How S corp tax preparation works with us
A clear four-step process that keeps your business and personal returns in sync.
Review your records
We look at your books, payroll reports and prior returns to spot gaps before we prepare anything.
Plan salary and estimates
We confirm your reasonable salary, distributions and quarterly estimates for the year ahead.
Prepare and file
We prepare Form 1120-S, IL-1120-ST and every K-1, review them with you and e-file on time.
Coordinate and support
Your personal return is prepared to match, and we stay available for questions and notices all year.
What to look for in an S corp tax preparer
The right preparer does more than file a return. These are the qualities that protect your savings.
S corp experience
Year-round planning
Accuracy
Communication
Everything in one place
S corp tax help for Chicago business owners
We work with established S corps and owners who recently made the election, across professional services, trades and creative businesses.
Rated 5.0 by 100+ clients on Google
Business owners trust us with their S corp returns, payroll and planning because we explain the numbers clearly and stay responsive all year.
S corp tax questions
Every business is different. If your question is not here, ask us during a consultation.
Book a consultation →When is an S corp tax return due?
For calendar-year S corporations, Form 1120-S and the Illinois IL-1120-ST are both due March 15. Fiscal-year S corps file by the 15th day of the third month after their year ends. A federal extension with Form 7004 gives six more months to file, but shareholders need their K-1s to finish their own returns, so we aim to file early.
What happens if I file Form 1120-S late?
The IRS charges a late filing penalty for each shareholder for every month or part of a month the return is late, up to 12 months. That adds up quickly even when the S corp owes no tax. If you are already behind, we can file the missing returns and request penalty relief where you qualify.
How much should I pay myself as an S corp owner?
Enough to count as reasonable compensation for the work you do. The IRS looks at your duties, experience, hours and what similar businesses pay. Too low a salary invites scrutiny, while too high a salary gives up the payroll tax savings that make an S corp worthwhile. We help you find and document the right number.
Should my LLC elect S corp status?
It can make sense once your business profit is high enough that the payroll tax savings outweigh the extra costs of payroll, a separate return and the Illinois replacement tax. We compare both options using your actual numbers before you file anything. Learn more about S corp formation.
How do I elect S corp status in Illinois?
The election is made federally on IRS Form 2553, and Illinois follows the federal treatment. To apply to the current tax year, the form is generally due within two months and 15 days of the start of that year. Late elections can sometimes be accepted with reasonable cause, which we can help you request.
Do Illinois S corporations pay state tax?
Yes. Illinois S corporations pay a 1.5% personal property replacement tax on net income and file Form IL-1120-ST. Shareholders also pay Illinois individual income tax on their share of profit. Some businesses benefit from the Illinois pass-through entity tax election, which we review with you each year.
What is a Schedule K-1?
A K-1 reports each shareholder’s share of the S corporation’s income, deductions and credits. You use it to complete your personal return. Errors on a K-1 flow straight into your 1040, which is why we prepare both together whenever we can.
Can you prepare my personal tax return too?
Yes. Most of our S corp clients have us prepare their individual return as well. It saves time, keeps the numbers consistent and lets us plan salary, distributions and estimates across both returns.
What do you need from me to prepare my S corp return?
Your year-end financial statements or bookkeeping file, payroll reports, bank and loan statements, prior-year returns, shareholder details and records of any distributions or asset purchases. If your books need work first, our bookkeeping cleanup service can get them ready.
Get your S corp taxes handled right
Book a consultation and we will review your current setup, your salary and what your next return needs.