Newby here - S Corp Employer Tax Obligation

[SteelerNation]

Okay folks, I just started a brand new Corporation in Illinois and we elected to be taxed under subchapter S.

Can anyone please help me understand the different taxes that the COMPANY has to pay to the IRS and State Dept of Revenue.

I know that we have to pay 7.65% medicare and file our payroll taxes quarterly. But other than that, I am not aware of any other tax obligation that the business has to pay. (Personal taxes are out of scope for this one, Ill save that for another thread...lol)

Thank you very much

[Freelancier]

The corporation may have to pay state taxes, like tangible asset taxes, inventory taxes, sales taxes, etc. For the IRS, all that flows through to the shareholders, so there shouldn't be any tax to pay there unless you have payroll and then you're paying it as you noted.

I really recommend you get a local accountant to help you through the early stages so that you don't screw something up that'll be more expensive to fix later. They really cost a lot less than the penalties you'll end up paying for getting it wrong.