As a separate legal entity, a corporation must submit a tax return each year with
the IRS. For corporations with a fiscal year ending December 31, tax returns are
due on March 15. A corporation must file a tax return even if it does not have income
or no tax is due. C corporations file tax returns on Form 1120 or 1120A.
Although S corporations do not pay federal taxes at the corporate level, they still
must prepare a separate tax return (Form 1120S).
For 2011, the federal income tax rate for a C corporation is as follows:
Income
Tax Rate
Up to $50,000
15%
From $50,001 to $75,000
25%
From $75,001 to $100,000
34%
From $100,001 to $335,000
39%
From $335,001 to $10,000,000
34%
From $10,000,001 to $15,000,000
35%
From $15,000,001 to $18,333,333
38%
Over $18,333,333
35%
Some states, including California, also have a state corporate income tax. Corporations
that anticipate a tax liability of $500 or more must estimate their taxes and make
quarterly estimated tax payments. Corporations with employees are required to pay
federal (and sometimes state) payroll and unemployment taxes.
To learn more and to speak with a representative, please call us at (888) 381-8758.
