Need 1040 & s-corp 1 member 1120s. What order filed? Is there 1 program (keep cost down)? LLC made $0 but paying myself. Do I file 1040 w/ TurboTax & long form 1120s?

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February 8, 2025
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I have a day job I need a 1040 filed for and an s-corp single member LLC I need the 1120s/k1 filed. In what order do I file these? Is there one program that can handle them and doesn’t cost an arm and leg? The LLC made no money but I want to pay myself for it, how do I handle this? Should I do a combo of filing my 1040 with the free TurboTax and long form for the 1120s? My LLC expenses are low, hired no subcontractors or contractors so it’s fairly simple. Don’t feel like spending $900 on a professional return when I made nothing.

PatriciaV

Employee

You will need the Schedule K-1 from the 1120S return in order to file your personal Form 1040 return. The S-Corp return can be prepared using TurboTax Business. Or you can download the forms from the IRS and attempt to complete them manually (not recommended).

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schfiftyfive115Author

So in other words, firstly file my 1120s using TurboTax business then fill out my K1, then using the free TurboTax I can file my 1040. How do I deal with the paying part? As I said, I made no income (I’m a sole member and sole worker) from the business but would like to take advantage of the tax break. My 2026 will have made money, so I just need to limp my 2025 forms out this year til 2026.

ThomasM125

Yes, file the S corporation return to generate the K-1 form and use that to complete your personal tax return.

To pay a salary from the corporation to yourself, you would need to file a Form 944 to pay in the associated taxes, and then issue yourself a W-2 form which you can do in TurboTax. You would also need to file a federal unemployment tax return Form 940 as well as apply for a state unemployment tax account and file the required state unemployment tax.

However, since the S Corporation had no net profit, you would not be required to pay yourself a salary and you would save payroll taxes by not doing so. You mention that you want to pay yourself a salary to save taxes, but it is not clear how that would save you taxes, as the loss it would generate for the business would just be picked up as income on your personal tax return.

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