What California Form 100S (2013) Is For
California Form 100S is the annual tax return that an S corporation with California filing requirements files for the applicable tax year. The form reports California net income, calculates required business taxes, and determines tax liability owed to the California Franchise Tax Board.
The return supports pass-through reporting through Schedule K-1 and does not change the limited liability protection that California law generally provides to shareholders. An S corporation files Form 100S when California law treats the corporation as a business entity with a California filing obligation.
The filing requirement applies when the corporation registers with the California Secretary of State or earns income from California sources. Some corporations also coordinate payroll reporting with the California Employment Development Department to align payroll filings with the S corporation’s state tax reporting.
When You’d Use California Form 100S (2013)
Corporations use this form when an S corporation election is effective, and the corporation remains active during the stated tax year. The filing requirement continues even when the corporation operates at a loss or reports minimal taxable income.
S corporation status aligns with federal treatment after the corporation files Form 2553 and meets applicable federal income tax rules. Corporations file this form for initial return filings, amended filings, or late submissions requiring adjustment of income taxes and state tax obligations.
The return also applies when an entity transitions from C corporation tax status or updates its tax planning approach. Some corporations file because the corporation must report estimated payments or because the corporation requests an extension using the Payment for Automatic Extension for Corporations and Exempt Organizations.
Key Rules or Details for 2013
An S corporation must pay the minimum franchise tax when the corporation registers with the California Secretary of State or conducts business in California. Additional obligations apply through the Franchise Tax Board for corporations reporting taxable income using modified federal calculations.
Corporations often reconcile California and federal income differences by referencing federal Form 1120-S when preparing the California return. Corporations must prepare Schedule K-1 for each shareholder, report net income allocations, and maintain accurate Articles of Incorporation and corporate bylaws.
A valid Employer Identification Number supports accurate filing for each applicable tax year. Some corporations may also address Excess net passive income tax or complete the Net Nonexempt Income Determination requirements.
Step-by-Step (High Level)
Step 1: The corporation gathers financial records, confirms S corporation status, and verifies the correct fiscal year for the applicable Form 100S return.
Step 2: The corporation calculates taxable income using California adjustments and applies the state tax rate to determine required business taxes.
Step 3: The corporation completes Form 100S using accurate business name details, registered agent information, and California Secretary of State identification numbers.
Step 4: The corporation prepares Schedule K-1 for each shareholder and includes supporting statements for passive activity reporting.
Step 5: The corporation attaches required schedules, such as depreciation schedules or Net Nonexempt Income Determination forms, to support the return.
Step 6: The corporation assembles the filing package and documents estimated tax payments or electronic tax payments for quarterly estimated taxes.
Step 7: The corporation submits the return to the Franchise Tax Board and confirms that the agency processed the return and applied all tax payments.
Common Mistakes and How to Avoid Them
Frequent filing problems arise from procedural oversights that affect the accuracy of submitted records. Identifying these mistakes helps the corporation correct filing gaps and submit complete supporting documents. The corporation can prevent repeat errors by applying consistent review steps before submission.
- Late Return Submission: This mistake occurs when a corporation submits its return after the required deadline. The corporation must file the return by the statutory due date to avoid this mistake.
- Missing Federal Attachments: This mistake occurs when Form 1120-S or supporting schedules are not included with the state filing. The corporation must attach all required federal documents to ensure complete reporting.
- Incorrect EIN Entry: This mistake occurs when the Employer Identification Number is entered inaccurately on forms. The corporation must verify the EIN before submitting any filings.
- Incomplete Schedule K-1 Reporting: This mistake occurs when shareholder allocations or identifying information are omitted. The corporation must provide complete Schedule K-1 details for every shareholder.
- Unreported Estimated Payments: This mistake occurs when quarterly estimated taxes are not included on the return. The corporation must reconcile all estimated payments before filing.
What Happens After You File
The California Franchise Tax Board processes the return and verifies whether the corporation’s tax payments satisfy Form 100S requirements for the stated fiscal year. The agency reviews taxable income, evaluates adjustments, and confirms that the corporation attached the required supporting schedules.
Refunds or balances depend on tax liability after applying estimated payments recorded during the tax year. The Tax Board may request clarification involving passive activity statements, apportionment details, or attachments such as Form 1120-S.
Corporations may receive notices seeking verification of reported income or confirmation that Articles of Incorporation and corporate bylaws remain accurate. Shareholders must coordinate Schedule K-1 reporting with their personal filings once the corporate review is complete.
FAQs
Who must file California Form 100S for the 2013 tax year?
Corporations file this return when operating as an S corporation that California law treats as a business entity with California filing requirements. The filing applies when the corporation registers with the California Secretary of State or earns California income. Accurate tax returns support compliance across federal income tax and state reporting.
Does an S corporation pay the minimum franchise tax?
Yes, the minimum franchise tax applies when an S corporation remains active during the tax year. Entities should confirm eligibility for exemptions available only on the initial return.
Are federal documents required with Form 100S?
Yes, required attachments often include Form 1120-S supporting California adjustments. Additional schedules may apply when reporting Excess net passive income tax.
When is Schedule K-1 required?
Schedule K-1 is required for every shareholder receiving allocated income. Corporations must prepare accurate information reflecting ownership. Each form supports proper reporting at the shareholder level.
Does entity structure affect filing obligations?
Yes, an S corporation structure differs from a C Corporation structure and affects required documentation. Articles of Incorporation help establish the corporation’s business name and filing status.
