Filed for an S-Corp & wasn’t sure if it went through…been doing P&L for my business on my personal taxes since then (like I did when I was Sole Proprietor).
Just found a new tax person that states I need to go back from the formation of my S-Corp (would need to 100% make sure it legally formed) and create a K-1 form for EACH YEAR that I did my taxes incorrectly. My business did have a separate EIN. I’m a solopraneur and have always purchased tax software that leads me through everything. I’m nervous about the fees/fines of never filing an S-Corp if that’s the route I need to go. Not as worried about the tax penalties as I’ve always paid myself from a payroll company.
Has anyone encountered this?
My highest grossing year was last year and that was $80,000 from my business. I had a lot of expenses, as I’m a business that runs a high cost to run and I’m clearly not a great business person. On average, I have made between $20-$50k gross and have caught up with personal taxes and paid whatever is leftover from P&L.
Suggestions? Do I just fix this year’s taxes and keep the past years as-is because they’ve already been approved WITH my EIN on the P&L form?
How do I find out if I actually have an S-Corp?
Thank you!