I am a one man S corporation in California. I incorporated in August 2012 and before that I was a sole proprietor - filed 2011 as such.

At the end of 2012 all income was based on my SS number and the customers send me 1099 reflecting that.
I did not take a salary during the year.

Questions:
1. How do I file my federal and state taxes for last year? As a sole proprietor, based on the 1099 or as a S corp?

2. If I file as a sole proprietor what happen to the S corp filing?

“1. How do I file my federal and state taxes for last year? As a sole proprietor, based on the 1099 or as a S corp?”==== One-person businesses can often operate as S corporations. Normally, if a corporation that files Form 2553 after the 15th day of the third month of its tax year 2012 but before the 15th day of the third month of the following tax year,2013, then the IRS considers the S-Corp election to be valid for the following tax year, 2013 and not valid for the preceding tax year, 2012; I guess you need to file your 2012 return as sole proprietor and need to file Sch C as long as the amount on Sch C line 29/ 31 is $400 or exceeds $400 Also as long as the amount on Sch SE line 2 / 3 is ALSO $400 or exceeds $400, then you need to pay self employment tax to the IRS.ou can file your 2013 return as a S corp.

“2. If I file as a sole proprietor what happen to the S corp filing?”======== You will have to file 2012 as a sole proprietor. But if you had no income or expense, then it shouldn't be a problem. A one-person sole proprietorship making, for example, $100k a year in profits probably pays about $13k in self-employment taxes. If this person operates as an S corp and can fairly pay a salary of $50k and then make a $50k distribution to its shareholder, the business owner cuts his or her payroll taxes in half--from around $13k annually to about $6.5k annually.