S-Corp Year-End Checklist for Fort Worth Business Owners

Running an S-Corp can deliver serious tax savings, but it also comes with year-end responsibilities that you can’t afford to overlook. 

Unlike a sole proprietorship or single-member LLC, you now have payroll, corporate filings, and tax forms that must be squared away before December 31.

If you own an S-Corp in Fort Worth, here’s a practical checklist to make sure you close out the year correctly and avoid IRS headaches.

1. Review Your Salary and Distributions

The IRS expects you to pay yourself a reasonable salary before taking distributions. If your salary looks too low compared to the work you do, it can trigger penalties.

Now is the time to double-check:

• Did you run payroll for yourself consistently this year?
• Does your salary reflect what someone else in Fort Worth would earn in your role?
• Have you documented why the salary you set is reasonable?

If you’ve taken too much in distributions and too little in wages, you may need to adjust before the year closes.

2. Confirm Payroll Filings Are Up to Date

As an S-Corp, you’re both an owner and an employee. That means you must file and pay payroll taxes on time. At year-end, review that:

• All federal payroll deposits have been made
• Quarterly Form 941 filings are accurate and complete
• Texas Workforce Commission filings are current (if applicable)

Getting behind on payroll filings is one of the fastest ways to rack up penalties.

3. Prepare Year-End Forms

By January, you’ll need to issue tax forms for both yourself and any employees. Common requirements include:

• Form W-2 for your salary
• Form 1099-NEC for contractors you paid more than $600
• Form 940 for federal unemployment tax

Make sure your bookkeeping is clean so these forms can be filed on time.

4. Check Your Books for Accuracy

Your S-Corp will file a corporate return (Form 1120-S). That means your books need to be in order. Go through your accounting software or work with your CPA to verify:

• All income has been recorded
• Business expenses are categorized correctly
• Shareholder distributions are tracked separately from payroll

Clean books make tax season smoother and reduce the risk of mistakes.

5. Plan for Taxes on Distributions

Remember, distributions aren’t subject to self-employment tax, but they are subject to income tax. Review how much you’ve taken out and whether your estimated payments cover the tax you’ll owe. If not, consider making an additional estimated tax payment before year-end.

6. Gather Documentation for Your CPA

Year-end is the time to pull together documents your CPA will need for the corporate return. That includes:

• Bank and credit card statements
• Payroll records
• Shareholder agreements (if you have partners)
• Copies of IRS letters, if any changes were made this year

Having everything ready avoids delays in filing your S-Corp return.

7. Look Ahead to Next Year

Year-end isn’t just about closing the books. It’s also a chance to plan ahead. Ask yourself:

• Should I adjust my salary for next year based on profit growth?
• Do I need to set up retirement contributions through my S-Corp?
• Would adding a health reimbursement arrangement (HRA) or other benefit help reduce taxes?

Thinking strategically in December helps you maximize the benefits of S-Corp status going forward.

Wrapping Up

Owning an S-Corp in Fort Worth can lower your taxes, but only if you follow through with payroll, filings, and recordkeeping. 

Treat year-end as your checkpoint. Review your salary, get payroll filings squared away, clean up your books, and prep for the corporate return.

Do this every year, and you’ll stay compliant, avoid penalties, and actually capture the tax savings that make an S-Corp worthwhile.

Until next time!