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An S-corp annual report details an S-corporation's activities during the previous year. S-corporations and other companies must file an annual report each year on the state level, typically through the Secretary of State's office in their state.

An S corporation financial institution is taxed at 9.0% on any income that is taxable at the federal level. An S corporation financial institution with gross receipts that are $6 million or more but less than $9 million is subject to the corporate excise at a rate of 2.67% on net income subject to tax.

S Corporation Taxes The tax is charged at a rate of about 21 percent of the excess passive income. Passive income includes income from royalties, interest, and rent. This tax practically disqualifies real estate businesses and investment firms from filing as S corporations. Federal Unemployment (FUTA) Tax.

A business corporation will only file a separate Form 355 or 355S to calculate its non-income measure of excise tax, if its year ends at a different time than the common year used to determine the combined group's income.

California does tax S Corps Most states follow the federal IRS rules and don't make S Corps pay income tax, but California is an exception. All California LLCs or corporations that choose S Corp taxation must pay a 1.5% state franchise tax on their net income.

The minimum tax is $456. Taxable Period: The taxable period for corporations is either the calendar year or the corporation's fiscal year. Estimated payments are made every three months during the taxable year. Federal accounting periods and methods have been adopted.