Do single member S corps issue themselves a Schedule K-1? Not sure about my filing requirements

I started my own business last year as an LLC and elected S corp status for tax purposes (just me as the only member/owner). Now I'm trying to figure out what forms I need to file for the 2024 tax year, and I'm getting confused about what happens with Schedule K-1. I know I need to file Form 1120-S for the S corporation. And I've been paying myself a salary, so I have a W-2 from my own company showing my wages. But do I also need to issue myself a Schedule K-1 as the owner? Or is that not necessary since I'm the only member? I've been reading conflicting information online. Some sources say all S corps have to issue K-1s to shareholders, but others seem to suggest it's different for single-member S corps. Just trying to make sure I do this right and don't mess up my filing. Thanks in advance for any clarity!

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20 comments

Samantha Johnson

•8M

Yes, as the owner of a single-member S corporation, you still need to issue yourself a Schedule K-1 (Form 1120-S). Even though you're the only shareholder, the S corporation is a separate legal entity from you personally, and the K-1 is required to report your share of the corporation's income, deductions, credits, etc. The W-2 only reports the wages you paid yourself as an employee of the corporation. The K-1 reports your share of the business profits/losses as the owner. So you'll need both the W-2 and the K-1, along with filing the Form 1120-S for the corporation itself.

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Samantha Johnson

•8M

Yes, that's exactly right. If your S corp earned $120,000 in profits and you paid yourself $70,000 in W-2 wages, the K-1 would report the remaining $50,000 as your distributive share of profits. The W-2 wages are subject to income tax, Social Security tax, and Medicare tax. The $50,000 from the K-1 is subject to income tax but not self-employment tax (Social Security and Medicare). This is one of the main tax advantages of an S corporation - only your reasonable salary is subject to those employment taxes, not the remaining profits.

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Hannah White

•8M

I had this exact same question last year with my photography business S corp. After hours of trying to figure it out myself, I finally used https://taxr.ai to analyze my business documents and get clear guidance. They looked at my entity formation docs, previous returns, and income structure, then explained exactly what I needed to file. They confirmed that yes, I definitely needed to issue myself a K-1 even though I'm the only shareholder. The software also helped me understand the proper way to allocate income between salary and distributions to avoid IRS scrutiny. Saved me a ton of stress!

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Hannah White

•8M

Yes, it does handle state-specific requirements! You just upload your state docs or specify your state during setup, and it identifies the relevant forms and requirements. It saved me from missing a specific Schedule that my state requires for single-member S corps. The accuracy has been excellent in my experience. I actually had my CPA review the guidance it provided, and he confirmed everything was correct. The AI is trained on tax code and regulations, so it's working from the same information CPAs use, just faster. I still use my accountant for complex planning, but for filing requirements and document prep, the AI tool has been spot-on.

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Mateo Silva

•8M

I wanted to follow up about my experience with taxr.ai after I posted my skeptical comment. I decided to try it for myself, and I have to admit I was really impressed. It analyzed my S corp structure (also single-member) and laid out exactly what forms I needed, including confirming that yes, I did need to issue myself a K-1. What surprised me was how it caught an error in how I'd been handling my health insurance premiums in previous years. Apparently I was reporting them incorrectly, which could have triggered an audit. The system even showed me the specific IRS guidance on the issue. Definitely worth checking out if you're trying to DIY your S corp taxes.

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Victoria Jones

•8M

If you're having trouble getting answers about your S corp filing requirements, especially about Schedule K-1 questions, you might want to try calling the IRS Business Tax Line. But good luck actually getting through! I spent 3 hours on hold last month. What finally worked for me was using https://claimyr.com to hold my place in the IRS phone queue. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. They called me back when an agent was available so I didn't have to waste my day on hold. The IRS agent confirmed that yes, single-member S corps must issue K-1s to themselves, and she explained exactly how to report it on my personal return.

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Victoria Jones

•8M

The service uses an automated system to wait on hold for you. It's basically like having someone else wait in line while you go do other things. When they reach an agent, they connect the call to your phone. The IRS doesn't specifically endorse it, but it's just a call connection service - nothing improper about it. You'd be surprised how helpful the IRS agents can be for clarifying specific situations. The website covers general rules, but for my specific question about how income splitting works with a single-member S corp, the agent walked me through the exact reporting process step by step, which was much clearer than the general guidance online.

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Jessica Nguyen

•8M

Ok I need to eat my words about Claimyr. After posting that skeptical comment, I decided to try it anyway since I was desperate for help with my S corp K-1 issue. I couldn't believe it actually worked! Got a call back in about 45 minutes (way faster than I expected) and spoke with an extremely helpful IRS business tax specialist. She confirmed everything about needing a K-1 for single-member S corps, but also helped me understand how to properly report business losses from this year on both the 1120-S and K-1. Turns out I was about to file incorrectly. If you need specific answers about S corp requirements, talking directly to the IRS is definitely worth it. And not having to sit on hold for hours was a game-changer.

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Isaiah Thompson

•8M

They mainly want to see that you're treating the corporation as separate from yourself. This includes formal meeting minutes (even if you're just meeting with yourself), documenting major decisions, maintaining separate bank accounts, and having contracts that are with the corporation, not you personally. For single-member S corps specifically, they look closely at your salary to make sure it's "reasonable" compared to your distributions. If your salary is too low compared to profits, that's a red flag. I had to provide industry salary comparisons to justify what I was paying myself. They also checked that I had proper employment paperwork, workers comp insurance, and was following all employer requirements.

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Gemma Andrews

•4M

I went through this exact same situation when I formed my single-member S corp two years ago. Yes, you absolutely need to issue yourself a Schedule K-1 even though you're the only shareholder. The S corporation is a pass-through entity, so all income, deductions, and credits flow through to you as the owner via the K-1. Think of it this way: your W-2 shows the salary you earned as an employee of the corporation, while the K-1 shows your share of the business profits/losses as the owner. These are two different capacities - employee vs. shareholder - so you need both forms. The K-1 will report things like your share of ordinary business income, any rental income if you have it, business deductions that pass through to your personal return, and various credits. Make sure when you prepare the 1120-S that you're consistent between what's reported on the corporate return and what flows to your K-1. The IRS matches these up, so any discrepancies will trigger questions.

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