I have an S-Corporation that was incorporated a few years ago. It has not generated any sales/income as I do the work in my spare time. Each year I file an 1120S, but do not pay any estimated taxes. Am I required to?

The corporation was incorporated in DE but does business out of CA. In CA I know that I am required to pay $800 in Estimated Taxes regardless if the S-Corp makes any money or not? Is it the same for the Federal?

Any information would be greatly appreciated.

The good news for you is that the S corporation is generally not subject to federal income taxes. Thus, there is no need to pay any estimated federal income taxes.

The reason for this is that the net profits from the S corporation known as distributive share of profits to the shareholder are reported on form K-1 to each of its individual shareholder. The individual shareholder will include the amounts included on the K-1 on their individual tax return and pay taxes based on the extent of profits if any, reported on their K-1.

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