Small business and S corp tax in Norman

Small business returns are the core of what Norman Tax Consulting does. Norman has thousands of owner run businesses: contractors, therapists in private practice, food trucks on Main Street, landlords with an LLC, and consultants who left the university or Tinker and went out on their own. Most of them do not need a big firm. They need someone who knows their kind of return and picks up the phone.

Business returns we prepare

• Schedule C for sole proprietors and single member LLCs, filed with your personal return.
• Form 1120S for S corps, with owner K1s and the Oklahoma Form 512S.
• Form 1065 for partnerships and multi member LLCs, with the Oklahoma Form 514.
• Form 1120 for the occasional C corp.
• Year end W2, W3 and 1099 NEC filings.

Price range for a business return

An S corp or partnership return in this area typically runs $625 to $1,125, and that includes the Oklahoma return and K1s. The low end is one owner, clean books and no payroll. Several owners, employees, fixed asset purchases or a year of catch up bookkeeping moves it toward the top. A Schedule C on your personal return adds about $123 to $135. See the cost guide for details.

When an LLC should become an S corp

An LLC that is taxed as a sole proprietor pays self employment tax of 15.3% on the profit. An S corp pays you a reasonable salary, which carries payroll taxes, and passes the rest through without self employment tax. Once the profit is steady and well above what a fair salary would be, the savings usually beat the cost of running payroll and filing a second return.

The IRS explains the rules on its S corporation page. The election is made on Form 2553, and the timing matters. We run your last two years both ways before you file it, so you know the actual dollar difference.

How a business engagement works

1. We look at last year's business and personal returns and your current books.
2. You get a written fee for the business return, the personal return and any bookkeeping cleanup.
3. We reconcile the books if needed, then prepare the returns in order: business first, then personal.
4. We go over the results with you, and set your quarterly estimates for the federal and Oklahoma side.

Planning in the fall saves more than prep in April

Most of the money in small business tax is made before December 31. Buying equipment, paying a bonus, funding a retirement plan, or moving income between years only works while the year is open. We offer a short planning call in the fall for business clients so those choices get made on purpose.

Business owners south of Norman should also see our notes on Goldsby and Purcell, where farm and horse income is common.