C-Corp Tax Preparation: A Houston Guide for Businesses

As a business owner, you have a lot of responsibilities. From managing employees to keeping up with customer demand, there’s always something to be done. One thing that’s easy to forget about in the day-to-day grind is tax preparation. However, failing to plan for taxes can come back to bite you—and your business—come April. That’s why it’s important to partner with a professional tax preparer, like Molen & Associates.

When it comes to business taxes, there’s a lot to consider. Are you incorporated? What type of entity are you? What deductions can you take advantage of? These are all questions that our team at Molen & Associates can help you answer. We’re experts in C-Corp tax preparation, and we’re here to help your business succeed.

1120 C-Corp Taxes: What You Need to Know

As a C Corporation, your business is required to file annual income tax returns. This is in addition to any state and local taxes that may be due. The good news is that C Corporations may be eligible for certain deductions, which can help lower your overall tax liability.

One of the most important things to remember when it comes to C-Corp taxes is that you must file your return by the 15th day of the 4th month following the end of your fiscal year. For example, if your fiscal year ends on December 31st, you would need to file your return by April 15th of the following year. Failing to do so could result in penalties and interest charges from the IRS. By this deadline, you also have the opportunity to file an extension to obtain more time to file. This would allow you an additional 6 months to file your C-Corp return.

How are C-Corporations Taxed?

Another thing to keep in mind is that C Corporations are subject to double taxation. This means that corporate profits are taxed at the corporate level when they’re earned (21% as of 2022), and then again at the shareholder level when they’re distributed as dividends. This can make tax planning for C Corporations particularly challenging, which is why working with a professional is so important.

Use Molen & Associates to make your C-Corp tax filing easy!

Step 1: Gather Your Financial Documents

The first step in any tax preparation is gathering your financial documents. This includes items like your formation documents, prior year tax return, profit and loss statement, balance sheet, and any other relevant tax documents. If you don’t have all of these documents on hand, now is the time to get them in order. The sooner you have everything gathered, the sooner we can get started on your taxes. It is helpful to get all of this information before your 1120 tax preparation appointment.

Step 2: Meet with Your Tax Preparer

Once you have all of your documentation in order, it’s time to sit down with your tax preparer. At Molen & Associates, we will go over your documents with you and ask any questions we may have. We’ll also let you know what additional documentation we may need in order to prepare your taxes correctly. We can meet in person, virtually or over the phone – whatever is most convenient for you.

Step 3: Prepare and File Your Taxes

After we have all the information we need, we’ll get to work preparing your corporate tax return. Once it’s complete, we’ll review it with you to make sure everything is accurate before filing it with the IRS. And that’s it! Once your taxes are filed, you can rest assured knowing that everything has been taken care of correctly.

How much does it cost to file a corporate tax return?

In Texas, it can cost anywhere from $1000 to over $1500 for a C Corporation tax return depending on the firm, city, experience of the preparer and complexity of the return. There are many factors that go into the price of preparing a tax return.

C Corporation Tax Preparation Near Me

At Molen & Associates, we understand the challenges that businesses face when it comes to taxes. We’re here to help you navigate the complexities of the tax code and take advantage of every opportunity available to you. Contact us today to learn more about how we can help your business succeed. 

Don’t let taxes take you by surprise this year. Partner with Molen & Associates for all of your C-Corp tax preparation needs. We’ll work with you to ensure you get the most out of your return and avoid penalties and interest charges from the IRS. Contact us today to learn more about how we can help your business succeed!