What Is an 1120 Tax Form? Filing Tips for Startup Founders

Understanding The 1120 Tax Form - Tips for Startups

As a business owner, the tax season is a stressful time. With so many different forms/regulations to follow, it's essential to make sure you are filing everything correctly. One form that you may need to file is the 1120 tax form. But what exactly is this form? Who needs to file it? And when do you need to file it? So whether you're a seasoned pro, read on to learn all about the 1120 tax form and how it relates to your business.

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What Is an 1120 Tax Form?

Filing taxes can be challenging, especially for small businesses that operate as a corporation. The 1120 tax form is specifically designed to report a corporation's income, deductions, and credits for the year. To avoid penalties and audits, small businesses must file accurate and complete information on their 1120 tax form by March 15th (or get a 6-month extension). 

Who Files Tax Form 1120?

For small businesses that operate as corporations in the U.S., filing Tax Form 1120 is a requirement. This form provides a comprehensive overview of a corporation's income, deductions, and credits for the year. In addition to traditional corporations, S corporations and some LLCs may need to file this form. Only timely or accurate filings may result in penalties and audits, which can be costly for small businesses.

When Do I File an 1120 Tax Form?

U.S. businesses that are structured as corporations have to file Form 1120 every year. The deadline for filing this form is the 15th day of the third-month post the end of your corporation's tax year, typically March 15th. Keeping track of the deadlines and ensuring timely filing is essential to avoid penalties and additional costs. If you require more time for filing, you can request an extension for up to 6 months. Electronic filing is an excellent option for faster processing and accuracy in tax returns.

Do I Have to File Form 1120?

Filing Form 1120 is mandatory for corporations and certain businesses with taxable income. Failure to file or pay taxes late can result in expensive penalties and interest charges. As the filing deadline approaches, it's wise to take proactive measures to ensure proper filing. By doing so, you can stay compliant and avoid unwanted legal troubles.

Who Uses Form 1120?

Corporations are required to file Form 1120 each year if they have a taxable income of $50,000 or more. This form is used to report the corporation's income, deductions, credits, and more for the tax year. Filing requirements and deadlines for Form 1120 depend on the corporation type and fiscal year.


In conclusion, Form 1120 is a complex tax form that business owners must file annually, and it is feasible to get it right to avoid penalties and interest charges. Understanding the basics of Form 1120 and its filing requirements can help you stay on top of your taxes and keep your business in good standing with the IRS. If you have any questions about filing your Form 1120, contact our team of experts for guidance. And if you found this blog helpful, share it with other small business owners who may need this information.

Cross-border companies face many challenges when operating out of the U.S. First, there is a lack of awareness about the right tools and processes that are required to run a business in the US. Then, there is the sheer complexity of understanding how to do it right and make it work for you.

Inkle aims to simplify these processes with a chat-based CPA service. On Inkle, you can work with a team of experts who will help you optimise your business and make sure you're following all the necessary steps for running a successful cross-border company.

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