S-Corp and partnership tax preparation handles the complex requirements of pass-through entities including S corporations, limited liability companies taxed as partnerships, and traditional partnerships. This service includes preparing Form 1065 for partnerships, Form 1120S for S corporations, and K-1 schedules for each owner. We manage the allocation of income, losses, and credits among partners or shareholders, ensure reasonable compensation calculations for S corporation officers, and prepare required state filings. The process involves reviewing partnership agreements, calculating depreciation on business assets, tracking distributions and contributions, and ensuring compliance with ownership and operational requirements. We prepare both federal and Massachusetts partnership and S corporation returns, accounting for state-specific composite filings and withholding requirements. The service includes electronic filing and providing each owner with their K-1 statement showing their share of income, deductions, and credits.
What's included
Comprehensive s corp and partnership returns
Form 1065 preparation for partnerships and LLCs taxed as partnerships
Form 1120S preparation for S corporations
K-1 schedule preparation for each partner or shareholder
Reasonable compensation analysis for S corporation officers
Depreciation calculations for business assets
Massachusetts composite filings for nonresident owners
Distribution and contribution tracking
Electronic filing of federal and state returns
Common situations
When you need s corp and partnership returns
S corporations with multiple shareholders and reasonable compensation issues
Real estate partnerships with depreciation and loss allocations
Family businesses organized as S corporations or partnerships
FAQs
S Corp and Partnership Returns questions answered
What is the difference between S corporation and partnership tax preparation in Boston, MA?
S corporation tax preparation in Boston, MA involves preparing Form 1120S and K-1s for shareholders, while partnership tax preparation involves Form 1065 and K-1s for partners. Both pass income through to owners, but S corporations must meet specific ownership and operational requirements to maintain their tax status.
How is reasonable compensation determined for S corporation officers in Boston, MA?
Reasonable compensation for S corporation officers in Boston, MA is determined by comparing salaries to similar positions in the industry and geographic area. We review compensation studies and prepare documentation to support the salary amount, ensuring it reflects actual services performed rather than being artificially low.
What records do partnerships need to maintain for tax preparation in Boston, MA?
Partnerships in Boston, MA should maintain records of all income, expenses, distributions, contributions, depreciation schedules, and partnership agreement details. Keep separate bank accounts for business transactions and maintain accurate capital account records for each partner.
How often do S corporations and partnerships need to file tax returns in Boston, MA?
S corporations and partnerships in Boston, MA must file annual tax returns by the 15th day of the fourth month after year-end (typically April 15 for calendar year entities). Massachusetts requires composite filings for nonresident partners, which may have different deadlines.
Can partners deduct losses from partnerships on their personal returns in Boston, MA?
Partners in Boston, MA can generally deduct losses from partnerships on their personal returns, subject to passive loss rules and the at-risk rules. The losses flow through on Schedule K-1 and are reported on the partner's individual tax return, potentially offsetting other income.
Compliance Note
We provide tax preparation services. We do not provide legal advice. Complex partnership and S corporation tax situations may require additional professional consultation beyond basic preparation.
Example engagement
How we help with s corp and partnership returns
Service Type: S-Corp and Partnership Returns
Location: Boston, MA
Scope: Preparation of partnership and S corporation tax returns with K-1 distributions
Client Situation
A Boston-based professional services firm organized as an S corporation with three shareholders
Our Approach
Review partnership agreement, calculate reasonable compensation, prepare Form 1120S and K-1s, file electronically
Expected Outcome
Complete tax returns filed by April 15 with accurate income allocations to each owner
Example of the type of engagement we can handle
Ready to get started
Get help with s corp and partnership returns
Contact us to discuss your S corporation or partnership tax preparation needs in Boston, MA. We can share references upon request.