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How do I file (Turbo Tax) if I have a C-Corp business co-owned by 4 partners? My spouse and I are 2 of the 4 partners and we are filing join?

I could not find a place in Turbo Tax to indicate the co-ownerships. I wonder if I use the correct package?
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Level 15

How do I file (Turbo Tax) if I have a C-Corp business co-owned by 4 partners? My spouse and I are 2 of the 4 partners and we are filing join?

You need professional tax guidance. 

 

First, a C corporation does not have partners, it is owned by shareholders.

 

Second, a C corporation is not some sort of pass-through entity, such as an S corporation or partnership; it is a separate taxable entity for federal income tax purposes. As such, and finally, a C corporation must file its own federal income tax return, typically on Form 1120.

 

Please seek professional guidance for tax and legal issues related to your business.

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5 Replies
Level 15

How do I file (Turbo Tax) if I have a C-Corp business co-owned by 4 partners? My spouse and I are 2 of the 4 partners and we are filing join?

 
Level 15

How do I file (Turbo Tax) if I have a C-Corp business co-owned by 4 partners? My spouse and I are 2 of the 4 partners and we are filing join?

Oh lord ... please seek local professional assistance to file the first business return since you are mixing up terms in your question.   A C-Corp doesn't have partners, it has owners.  And it files it's own tax return and pays it's employees and files payroll tax reports.  Hopefully you have set up the books correctly so the return can be completed easily ... if not that is another reason to seek local education.

 

If you want to try it yourself ....  you will need to use TT Business.  This is only available for as a download and only for windows environments. https://turbotax.intuit.com/small-business-taxes/ 

Level 15

How do I file (Turbo Tax) if I have a C-Corp business co-owned by 4 partners? My spouse and I are 2 of the 4 partners and we are filing join?

You need professional tax guidance. 

 

First, a C corporation does not have partners, it is owned by shareholders.

 

Second, a C corporation is not some sort of pass-through entity, such as an S corporation or partnership; it is a separate taxable entity for federal income tax purposes. As such, and finally, a C corporation must file its own federal income tax return, typically on Form 1120.

 

Please seek professional guidance for tax and legal issues related to your business.

View solution in original post

Level 15

How do I file (Turbo Tax) if I have a C-Corp business co-owned by 4 partners? My spouse and I are 2 of the 4 partners and we are filing join?

A C-Corp is considered to be a separately taxable entity. The C-Corp must complete and file it's own physically separate tax return on IRS Form 1120.  The C-Corp will then issue each individual owner a tax reporting document such as a W-2 (if they are an employee of the corporation), a 1099-DIV if they are a shareholder, and a few other possibilities, which each individual owner will *REQUIRE* in order to complete their own personal 1040 tax return.

You can not use any of the personal versions of TurboTax for this. You must use TurboTax Business which is completely different from Home & Business.

Turbotax Business is not available as an online product or for MACs. TurboTax Business is for the WIndows operating system only.

Since it seems quite apparent that you really don't know how this stuff works (it's not like you learn it through osmosis) I *HIGHLY* advise you to seek professional help yesterday if not sooner.  The late filing fees for a C-Corp *ARE* *EXPENSIVE* at $200 for each month it's late *PER* *OWNER*.

So with four owners if that 1120 isn't filed *AND ACCEPTED* by the IRS by Jun 15, the late filing penalty will be $800. Wait until after July 15th and it's $1600. Makes the cost of professional help a pittance in comparison.

Please seek professional help on this for at least your first year of owning/operating a C-Corp.

 

Level 15

How do I file (Turbo Tax) if I have a C-Corp business co-owned by 4 partners? My spouse and I are 2 of the 4 partners and we are filing join?

@Carl 

 

Sorry Carl ... a C-corp doesn't issue a K-1 ... it is not a pass thru entity.

 

It can issue dividends to the shareholders on a form 1099-div  and if they work for the company they are paid as employees on a W-2. 

 

But you are correct on the penalties ... they will hurt.   

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