Small Business Development Guide
C-Corporation Taxes
In a C-corporation, the corporation pays income tax based on the profits of the business and then the shareholders are taxed on the dividends they receive from the corporation. For the owner/shareholder this double taxation is often a concern.
The taxation details for a C-corporation are as follows:
- Federal Income Tax, file FORM 1120, 1120A, or 1120EZ for Federal Income Tax, due annually. File estimated payments on FORM 8109, worksheet 1120W, due quarterly. Call the IRS at 1-800-829-1040.
- Corporate Franchise Tax (State of Ohio Income Tax) is filed on FORM FT-1120, 1/3 due January 31, 1/3 due March 31, and 1/3 due May 31. Call the State of Ohio at 1-800-282-1780.
- Corporation pays Local/Municipal Income Tax based on net profits of the business. Contact your local tax department for more information.
- Shareholders pay Income Tax on the dividends from the leftover profits in the business on their own individual tax returns.