How screwed am I? First Year S Corp Sole owner - Made Money - No Payroll or W2 or K1 - No Idea What I Got Myself Into

Forum|Forum|7 years ago
April 13, 2019
1 reply
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Before I begin, I really want to cry. I knew I shouldn't have waited to start my taxes now, especially when I had no idea what I was doing when I made a S Corp.

Should I just turn in Turbo Tax (pretty much done) and call it a day or is there something I can do? So sorry for the self-loathing and self-pity.

Ok. I need to focus. Please.

I made an S Corp in December which I choose to have taxes filed on that year too (2018). I was a freelancer before.

Initially, I received a 1099 MISC under my personal, but I asked that they change it to my newly formed S Corp (though the work was done before my S corp actually became one and I was paid way before my S Corp finalized).

Now, it is 2 days until taxes are due. I haven't done anything for my S Corp asides from the 5 mandated incorporation papers. No putting myself on the payroll, K1, S Corp taxes (I learned all that after I realized how screwed I was - or am I?)

Essentially, the company I did work for paid my S Corp (I regret asking them to change it) which now is not paying payroll. I don't even know what to do anymore. Am I even screwed? I haven't paid any dividends or done anything with the S corp.... all the work I did for the company was even before the formation... I just want to dissolve it. I want to cry.

How screwed am I? Is there any way out? Too late for everything. Live and learn I guess.

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Note 1:

Wait, I don't need a K1 I think? I just checked my EIN doc and saw an article that said "Sole proprietorship and single-member LLC tax returns on Schedule C (with the owner's personal tax return): April 15, 2019."

I still don't have a salary paid out... should I file for an extension? Can I do anything to save myself? Schedule C? Idk? I have been reading too much.

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Note 2:

Nevermind, I filed a 2553, I am an S corp. My EIN said Sole Prop but I guess I signed a 2553. I hate to beg but idk who to turn to.

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Note 3:

Actually, I submitted my 2553 in January. I am unsure if I ever received a confirmation from the IRS? I should have? Idk is there a way to check?

IsabellaG

Employee

There's no doubt that you need to straighten out your S Corp situation. You can call the IRS at (800) 829-4933 to find out if your Sub-S election was approved. You might consider having a local tax professional work with you on reporting your S Corp correctly.

If you were paid before you formed your corporation, that's your personal income regardless of what the 1099 says, and you should report that on your personal return.

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