Tax Services
Flow-Through Tax
Where the entity files but the owners pay. We prepare S-corporation, partnership, and LLC returns with the basis tracking and K-1 precision that pass-through taxation demands.
Returns Where the Owners Bear the Tax
Flow-through entities — S-corporations, partnerships, and multi-member LLCs — do not generally pay income tax themselves. Instead, income, deductions, and credits pass through to the owners, who report their share on their personal returns. This makes the entity return deceptively important: an error or missed election at the entity level ripples directly onto every owner's 1040. C&M LLP prepares Forms 1120-S and 1065 with the precision this structure requires.
The defining challenge of pass-through taxation is allocation and basis. We track each owner's stock or partnership basis and at-risk amounts, apply special allocations and §704(b) rules where partnership agreements require them, and analyze the deductibility of losses against basis. We model the qualified business income (§199A) deduction and the impact of guaranteed payments, reasonable compensation for S-corporation shareholders, and self-employment tax exposure.
Above all, we prepare clean, accurate K-1s — because that is what the owners actually rely on. We coordinate the timing and the figures so each owner has what they need for their personal return, and we flag basis limitations, distributions in excess of basis, and other items before they become a surprise.
What You Receive
Completed Entity Return
A fully prepared Form 1120-S or 1065 with all federal and state schedules, reviewed for accuracy. Delivered with a clear summary of how income and deductions are allocated among the owners.
Owner Schedule K-1s
Accurate, on-time K-1s for every shareholder, partner, or member — with clear explanation of each figure and any basis or at-risk limitation each owner needs to apply on their personal return.
Basis & Planning Schedule
A maintained basis schedule for each owner alongside planning observations — distribution timing, §199A optimization, reasonable compensation, and loss-limitation items to address going forward.
Which Entities Do We Serve?
We work with pass-through entities of every common form — S-corporations, general and limited partnerships, and LLCs taxed as partnerships or S-corporations. Our clients include professional service firms, real estate partnerships, operating businesses, and investment vehicles with multiple owners and varied allocations. We are especially well-suited to entities where the allocation is not simple: special allocations, tiered structures, owners entering or exiting mid-year, or significant basis and at-risk considerations. For entities taxed as separate corporations, see our Corporate Tax service.
Typical Clients
- S-corporations and their shareholders
- Partnerships and multi-member LLCs
- Real estate and investment partnerships
- Professional service firms