Do S Corps have to pay estimated tax payments or is it just the owners?

You're right that S corporations are pass-through entities where profits and losses flow to shareholders' personal tax returns. The S corporation itself generally doesn't pay federal income tax. However, there's an important distinction here: while the S corp doesn't pay federal income tax, it may still have other tax obligations. If your S corporation has employees (including yourself as an owner-employee), you must make federal tax deposits for employment taxes (Social Security, Medicare, federal income tax withholding). These follow a different schedule than individual estimated tax payments. As an S corp shareholder, you personally would make estimated tax payments on your individual tax return (Form 1040-ES) to cover your share of the business income. Since S corp income flows to your personal return, you're responsible for paying quarterly estimated taxes on that income.

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One thing nobody's mentioned yet - some states DO require S corporations to make estimated tax payments at the entity level, even though the federal government doesn't. For example, California requires estimated tax payments if your S corp will owe more than $500 in tax. New York has similar requirements. Make sure you're checking your specific state's requirements! I learned this the hard way last year and got hit with penalties.

Just a practical tip from someone who's had an S corp for 6 years - I set up a separate savings account where I transfer a percentage of all business income that passes through to me. This way I always have the cash ready for my personal quarterly estimated payments.

Great question! You're absolutely correct that S corporations are pass-through entities, so the business itself typically doesn't make federal income tax estimated payments. Instead, you'll handle those on your personal return (Form 1040-ES) for your share of the business income. However, don't forget about payroll taxes if you're on payroll! As an S corp owner-employee, you need to pay yourself a reasonable salary and make federal tax deposits for employment taxes (Social Security, Medicare, and income tax withholding) - but these follow different schedules than quarterly estimated payments. One quick tip: make sure to check your state requirements too, as some states do require S corps to make estimated payments at the entity level. And consider setting aside a percentage of your pass-through income in a separate account so you're always ready for those quarterly deadlines. Good luck with your first year as an S corp!