How to report side hustle in Corporate Business (S-Corp) tax documents?

[christinemc]

For my business corporation that is S-Corp, am I able to report a side hustle I'm hoping to start soon in the same tax corporation document? Was there a part where I just put the labor code for money earned in that hustle?

[mirthaguer]

I understand you are in the process of forming a corporation. You plan to file an election to be taxed as an S corporation.    You should keep tabs of all the income as well as all the expenses in connection with the Gig business.  Accounting software is helpful. At the end of the year you will have to file a tax return for the S corporation.  Remember make sure you file  immediately after you incorporate  a form 2553 to be taxed as an S corporation.   You are required to file a tax return at the end of the year.  You will report all the income you have received and the expenses in connection with that business in the tax return.  The company will issue a form K-1 to you as a stockholder.  You will report the information in the form 1120 S K-1 in your personal return when you file your personal income tax return.

[christinemc]

Actually I have already been doing business as an S-Corp since 2022.  I wanted to ask, if I start a side hustle that is not the same labor code as the current business, and I still report it under the Business as secondary work under a different labor code, as long as it is below the percentage in income allowed?  Would I bookkeep the extra side hustle, out of the coporate business, in the same account, or separated?

[Lucia-B-EA]

Labor Codes do not matter in reporting the income of your corporation.  Labor codes matter when determinng Workman Compensation Insurance liability thresholds.  Your S-Corporation may have different divisions and different areas of business which would lhave various labor codes throughout its life time.  Keeping those corporation divisions separate is essential to running your corporation efficiently and liability insurance costs low.  It is recommended, but not a tax requirement.

What does matter is that you have the correct Business Code (NAICS - North American Industry Classification System) the IRS asks for in the upper left hand corner of your 1120-S return when filing.  This is for US Census information more than anything else.  The tax return will often error code without this information. 

We recommend you chose a broad code if your corporation is working in an industry area that will utilize several niche markets.