Single-member LLC taxed as S-Corp - what specific tax forms should I file in 2025?

Thanks for the detailed info! So if I understand correctly, I need Form 1120-S for the business side and then Form 1040 with my Schedule K-1 for my personal taxes. What exactly is a "reasonable salary" in my case since I only made about $13,500 total? And do I still need to do all those payroll forms even though it's just me?

For a business with $13,500 in revenue, a reasonable salary might be 50-75% of your profit after business expenses. The IRS doesn't have a fixed formula, but they look at factors like your qualifications, industry standards, time commitment, and what comparable positions would pay. Yes, you still need to handle payroll forms even though you're the only employee. That includes quarterly 941s for payroll taxes and annual W-2/W-3 forms. Many S-Corp owners use payroll services to handle this complexity. Also, since you mentioned you're not a US citizen, your filing requirements might be affected by your tax residency status and any tax treaties between the US and your home country.

Does taxr.ai handle the international aspects too? I'm in a similar boat (LLC with S-Corp election) but I have income from both US and European clients. Not sure if that complicates things further.

I'm a bit skeptical about these tax tools. How does it work with the whole "reasonable salary" requirement? That seems pretty subjective, and I've heard horror stories about people getting in trouble with the IRS for setting their S-Corp salary too low.

Yes, it definitely handles international aspects! I had income from both US and Asian clients, and it walked me through how to report everything correctly, including any special forms needed for foreign income. It also explained which tax treaties might apply to my situation. For the reasonable salary question, it actually provides guidelines based on your industry, location, and profit margin. It doesn't just give you a single number but explains the factors the IRS considers and helps you document your reasoning, which is super important if you ever get questioned. It helped me find the sweet spot where I wasn't paying too much in payroll taxes but also wasn't risking an audit flag.

How does Claimyr actually work? I'm confused about how a third-party service can get you through to the IRS faster than calling directly. Sounds too good to be true honestly.

Yeah right. I've been trying to get through to the IRS for MONTHS about my S-Corp questions. There's no way some service can magically get you through when their phone systems are completely overwhelmed. And even if you do get through, most agents give different answers to the same question! How is this any different?

It works by using an automated system that navigates the IRS phone tree and waits on hold for you. Once they're about to connect with an agent, you get a call to join the conversation. So instead of you personally waiting on hold for hours, their system does it for you. Regarding the different answers from different agents - that's actually why I found it so valuable. I called three times to verify the information about single-member LLC S-Corp requirements. Each time I got through quickly and was able to take detailed notes. When I did get slightly different answers on one point, I was able to call back the next day and get clarification without wasting another 3 hours on hold. It's not magic - they're just solving the hold time problem, which makes the IRS actually accessible.

Thanks for mentioning Form 2553! I did file that when I set up the business last year, so that part is covered. I do have an ITIN already, so that's taken care of too. Do you know if there are any state-specific forms I should be aware of too? My LLC is registered in Florida if that helps.

Good that you've already filed Form 2553 and have your ITIN! For Florida, you're actually in luck - Florida doesn't have a state income tax, so you won't need to file a state equivalent of the 1120-S. However, you will still need to file an annual report for your LLC with the Florida Department of State to maintain your good standing. That's done through Sunbiz.org and is separate from your tax obligations. Just make sure you're keeping good records of your business expenses versus personal expenses since that separation is even more important with an S-Corp election. The IRS tends to scrutinize single-member LLCs with S-Corp status, particularly around the reasonable salary issue.

TurboTax doesn't handle Form 1120-S in their regular versions. You'd need TurboTax Business, which is their most expensive version, and even then it can be tricky for S-Corps. I've found that for S-Corps, even single-member ones, it's worth using either a dedicated tax pro or something like UltraTax or Lacerte, which are professional-grade software. The complexity with S-Corps comes with making sure you're handling the reasonable compensation requirements correctly and properly allocating between salary and distributions. Software helps, but understanding the concepts is more important.

Thanks for the info! Sounds like TurboTax Business might be overkill for my small S-Corp. I might look into those other options you mentioned or maybe just hire a tax pro for the first year until I understand the process better. It's a lot more complicated than I thought going from a simple 1040 to all these business forms!