S-Corp and Partnership Tax Returns That Go Beyond the Form

Your business return isn't just a filing obligation — it's a document that shapes how income flows to you, how your equity is tracked, and what options you have next year. We prepare 1120-S and 1065 returns for S-corporations and partnerships with the kind of attention that comes from actually understanding your business structure, not just your prior-year return.

What Makes Pass-Through Entity Returns Different

Pass-through entity returns — the 1120-S for S-corporations and the 1065 for partnerships — are structurally more complex than a standard business income tax return. The numbers don't stop at the entity level. They flow through to each owner's individual return, affecting taxable income, self-employment exposure, basis calculations, and sometimes estate planning downstream. A preparer who treats these as routine filings can leave real money on the table, or worse, create problems that surface years later.

 

S-corp tax return preparation requires tracking shareholder basis year over year, reconciling officer compensation against distributions, and flagging the moments when an election or structural change would change the outcome. Partnership 1065 preparation carries its own layer — partner capital accounts, guaranteed payments, special allocations, and the ongoing question of whether the current structure still fits how the business actually operates.

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The Credential Difference in Business Tax Filing

Business tax returns sit at the intersection of tax law, business structure, and personal financial planning. Our credential stack — JD, LL.M. in Taxation, MBA, and CFP® — means we're reading your 1120-S or 1065 through all three lenses simultaneously. When something on your return raises a question about entity structure, owner compensation strategy, or how this year's income will affect your retirement planning, we can address it directly rather than refer you elsewhere.

 

This isn't a credential recitation for its own sake. It's the practical reason that business owners who need more than a filed return tend to work with us year-round.

What We Prepare and What We're Looking For

We handle the full range of pass-through business filings for small business owners throughout Federal Way and the broader South Puget Sound area.

S-Corporation Returns (Form 1120-S)

We handle the full range of pass-through business filings for small business owners throughout Federal Way and the broader South Puget Sound area.

Partnership Returns (Form 1065)

The 1065 reports partnership income and produces the K-1s that each partner uses to file their individual return. We prepare the entity-level return and the partner-level K-1s together, so nothing gets lost in translation. If your partnership agreement has provisions that affect allocations — or if it hasn't been reviewed in a while — we'll surface that conversation rather than file around it.

Shareholder and Partner K-1 Coordination

K-1s aren't just outputs — they're the connection point between your business return and every owner's individual tax situation. We prepare K-1s with enough detail to make your personal filing straightforward, and we're available to answer questions when owners or their other advisors need to understand what a line item means.

Year-Over-Year Continuity

Business tax filing isn't a clean-slate exercise each year. Basis carries forward. Suspended losses carry forward. Structural decisions made in prior years affect what's available now. We maintain continuity across your filings so that history informs the current return — not just the prior-year PDF you hand us in March.

Who We Work With

Our business tax return clients are typically small business owners who have moved past the startup phase and want a preparer who understands where they are now — not just where they were when they filed their first 1120-S. That includes:

 

  • S-corporation owners managing the balance between salary and distributions
  • Multi-member LLCs taxed as partnerships with active operations and multiple K-1 recipients
  • Professional service businesses — consultants, contractors, healthcare providers, and similar owner-operated practices
  • Business owners who also have complex individual returns and want both handled by the same advisor
  • Owners approaching a transition — sale, succession, or restructuring — who need returns that accurately reflect current structure

 

We serve clients primarily in Federal Way, Tacoma, Kent, Auburn, Puyallup, and Renton, with virtual engagements available throughout Washington State.

Common Questions About Business Tax Returns

  • Do I need to file a 1065 for my partnership even if we didn't make money?
    Yes, in most cases. Partnerships are required to file Form 1065 regardless of whether the entity had net income during the year. The return reports each partner's share of income, deductions, and credits — and the IRS expects it on file. Skipping the filing because the business ran at a loss is a common mistake that can create penalties and compliance gaps.
  • Who prepares S-corp returns near Federal Way, WA?
    Hedlund Tax & Accounting, PLLC prepares 1120-S returns for S-corporations based in Federal Way and throughout the South Puget Sound region, including Tacoma, Kent, Auburn, Puyallup, and Renton. We also work with clients virtually across Washington State.
  • What's the difference between a 1120-S and a 1065?
    Both are pass-through entity returns, meaning the income flows through to the owners' individual returns rather than being taxed at the entity level. The 1120-S is filed by S-corporations — businesses that have made an S-corp election with the IRS. The 1065 is filed by partnerships and multi-member LLCs that haven't elected to be taxed as a corporation. The forms have different structures, different K-1 formats, and different planning considerations for owners.
  • Can you handle both my business return and my personal 1040?
    Yes — and for most of our business clients, that's exactly how we work. Preparing the 1120-S or 1065 alongside the owner's individual return allows us to review the full picture: how business income is flowing through, whether distributions and compensation are structured efficiently, and how the business return affects the personal tax outcome. Filing both separately with different preparers often means neither one is seeing the complete picture.