Bringing on investors, planning an exit, or just trying to keep more of what your C-Corp earns? The numbers behind double taxation, QSBS (the Qualified Small Business Stock tax break), and equity compensation get complicated fast. We’ll build the strategy around your Form 1120, so the plan is already in place before you need it.
The right strategy depends on where your business is today, raising capital, filing routine returns, planning an exit, or operating across state lines. Find the situation closest to yours below to see exactly what Fusion CPA handles for C-Corp owners like you.
QSBS Qualification & Documentation
We track your QSBS qualification from day one: gross assets, holding period, and active business requirements. That way the exclusion holds up at exit. Current law allows up to $15M, or 10x basis, for stock issued after July 4, 2025. The exclusion follows a tiered 3–5 year schedule, and the corporation’s gross assets are capped at $75M at issuance. Earlier stock follows the prior $10M, 5-year rule.
Equity Compensation Structuring
We advise on ISOs (incentive stock options), NSOs (non-qualified stock options), RSUs (restricted stock units), phantom stock, and 83(b) elections. That covers the tax impact for both the corporation and recipients, including AMT planning, withholding requirements, and exercise timing.
R&D Tax Credits (Section 41)
We identify which wages, supplies, and activities qualify for the R&D credit. Then we calculate it using the regular or alternative simplified method and document everything for IRS compliance.
Corporate Estimated Tax Management
We calculate your quarterly estimated payments based on projected income and apply safe harbor rules. Then we adjust throughout the year so you avoid underpayment penalties.
Form 1120 Preparation & Filing
We prepare your complete corporate return: all schedules, income and expense reporting, depreciation (MACRS), and book-tax reconciliation (Schedule M-1/M-3). It’s filed on time for your April 15 deadline.
Double Taxation Mitigation
We optimize your compensation, retirement contributions, deductible expenses, and distribution timing to minimize the combined tax burden. That’s the 21% corporate tax plus up to 23.8% on shareholder dividends.
State & Local Tax Optimization
We build state-by-state models across corporate income tax, franchise tax, gross receipts tax, and minimum taxes. That minimizes your combined effective rate across every jurisdiction you operate in
Accumulated Earnings Tax Rules
We monitor your retained earnings against the accumulated earnings tax threshold and document the business justification. That way, holding cash in the corporation doesn’t trigger an unexpected 20% tax.
QSBS Exit Planning
We verify your qualification, calculate the applicable exclusion, and prepare the reporting. That’s up to $15M, or 10x basis, for stock issued after July 2025. Earlier stock follows the prior $10M, 5-year rule.
Section 338(h)(10) Elections
A 338(h)(10) election treats a stock sale as an asset sale for tax purposes. We model whether that benefits both buyer and seller, and manage the filing if it does.
Equity Rollover & Earnout Structuring
We model the tax consequences of equity rollovers, earnouts, and installment payments. Then we advise on the structure that works best for your deal.
Pre-Transaction Tax Planning
Before you sell, we evaluate entity restructuring, QSBS stacking, accelerated deductions, and charitable planning with appreciated stock. We also build timing strategies to minimize the tax impact of your exit.
State-Level Corporate Returns
We prepare your corporate income tax returns, franchise tax filings, and composite returns across every state where your C-Corp operates. Each state has its own rates and requirements.
Apportionment Optimization
We model your apportionment whether the state uses sales, payroll, and property factors, or a single-sales-factor method. That helps us find the most favorable filing positions for you.
Transfer Pricing Documentation
We document your transfer pricing policies and prepare supporting analysis. That way, intercompany transactions with related entities hold up under IRS and state compliance.
International Tax Coordination
We manage the intersection of your corporate, international, and state tax obligations. That includes GILTI and Subpart F (rules on foreign income), foreign tax credits, and treaty positions.
Owner Compensation & Dividend Strategy
That mix, W-2 salary versus retained earnings versus dividends, changes your combined tax bill every year. We model the trade-offs before you lock in a plan, not after the return is filed.
Retained Earnings & Reinvestment Planning
We help you plan how much cash to hold in the corporation for growth, an acquisition, or a future raise. We also document the business justification and help you avoid surprises like the accumulated earnings tax.
Quarterly Planning & Estimated Payments
We check in with you quarterly and adjust estimated payments as the business changes. That means catching planning windows while there’s still time to act, instead of waiting until year-end.
Growth & Funding Considerations
We plan ahead for the tax consequences of new investors, new equity, or a fresh raise. That covers everything from QSBS eligibility to how it affects your state footprint.
If any of these sound familiar, your C-Corp tax strategy needs a closer look.
A C-Corp pays 21% on its profits. When those profits are distributed as dividends, shareholders are generally taxed again at up to 23.8%. More than a third of every dollar can disappear before it ever reaches your pocket.
Miss the Section 1202 paperwork in the first year, and there’s no going back to fix it. Come exit time, you could owe capital gains tax you assumed you’d avoid. There’s no way to qualify after the fact.
An employee exercises stock options and ends up with a five-figure AMT (Alternative Minimum Tax) bill they never budgeted for. Stock options and RSUs each get taxed at a different moment, and getting the timing wrong is what causes the surprise.
Once your C-Corp has people, customers, or a physical presence in more than one state, franchise tax and minimum tax can both apply. That’s true even in a year the business didn’t turn a profit.
Your industry shapes which levers matter most. A SaaS company leans on R&D credits and equity comp; a manufacturer leans on apportionment and depreciation. We bring that context into your plan instead of applying a generic template.
Connected Services
Your Form 1120 connects to your shareholder returns, your equity compensation plans, and your state filings. We look at all of it together, not as separate projects.
Considering a different structure? We help you weigh S-Corp pass-through treatment against staying a C-Corp. We model it against your actual numbers, not a rule of thumb.
Bringing on partners or restructuring ownership? We compare corporate versus partnership treatment for your specific ownership dynamics.
Shareholder returns coordinated with the corporate return, dividends, equity comp, and AMT exposure planned together, not filed in isolation.
Operating in more than one state changes your compliance picture fast. We handle corporate returns, apportionment, and franchise tax filings as one strategy.
Discuss your setup, challenges, and opportunities, then pick a time that works.
Schedule a free 30-minute discovery call with our team
Serving clients nationwide: Atlanta, Utah, Puerto Rico, and beyond.
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A Form 1120 filed on its own, without looking at the shareholder side, is only half the return. The real planning happens in the gap between the two.
A founder assumed their stock automatically qualified for QSBS. A funding round pushed gross assets over the threshold before the raise even closed. We caught it in time to restructure and preserve the exclusion.
A team exercised ISOs the same month with no AMT projection first. Several employees owed five-figure tax bills they didn’t see coming. We now run the numbers before anyone exercises, not after.
Scenarios are illustrative composites drawn from common C-Corp tax planning engagements and are anonymized. They describe situations we work through, not promised outcomes; results depend on each business’s specific facts.
You tell us about your business, your corporate structure, and where you're raising or planning an exit. You also tell us what's kept you up at night. We'll tell you honestly whether we're a fit.
We review your prior 1120 returns, entity structure, and equity records so nothing is riding on assumptions. If QSBS documentation or compliance gaps exist, we flag them before they become a problem.
You get a documented plan covering QSBS qualification, compensation and distribution strategy, R&D credits, and estimated taxes. It also includes a multi-state filing plan built around where your business actually operates.
As the business grows, raises capital, or moves toward an exit, we adjust the plan with you. Quarterly check-ins mean planning windows get caught while there's still time to act, not after the return is filed.
Here’s what that looks like in practice, in the words of the businesses we’ve worked with.
Meet the Fusion CPA Team – experienced CPAs and UHNW Institute advisors, led on the tax side by Katherine Harrington, CPA, MAFM – Tax Director
Frequently Asked Questions
A C-Corp pays its own federal income tax, currently 21% on profits. Then shareholders pay tax again, up to 23.8%, when profits are distributed as dividends. That double taxation is exactly why compensation strategy, retained earnings planning, and R&D credits matter. They’re the levers that keep more of that money in the business and in your pocket.
QSBS, Section 1202, can let founders and early investors owe little or no federal capital gains tax on a sale. For stock acquired after July 4, 2025, you can exclude up to $15M, or 10x basis. The exclusion follows a tiered 3–5 year holding schedule, and the corporation’s gross assets are capped at $75M at issuance. Stock issued earlier follows the prior $10M, 5-year rule. Qualification has to be documented from day one, not reconstructed after the fact.
Yes. Once your C-Corp operates in more than one state, the filing picture gets complicated fast. Rates differ, apportionment rules differ, and some states apply a minimum tax regardless of profit. We handle state-level 1120 filings, franchise tax, and apportionment as one coordinated strategy rather than state-by-state guesswork.
Business tax planning starts from $289 a month. The right number depends on your complexity, like how many states you file in or whether equity compensation applies. It also depends on how much planning versus pure filing you need. The most direct way to get a real number is a quick conversation: email info@fusiontaxes.com or call 404-955-7338.
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Read MoreFusion CPA provides C-Corp tax planning, Form 1120 preparation and filing, QSBS qualification and documentation, double taxation mitigation, equity compensation structuring for ISOs, NSOs, RSUs, and 83(b) elections, R&D tax credit analysis, and multi-state corporate compliance for C corporations across 40+ states. The firm coordinates your corporate return with your shareholder personal returns as one engagement. Operating from offices in Atlanta, Georgia, San Juan, Puerto Rico, Park City, Utah, and Tampa, Florida, Fusion CPA is a QuickBooks ProAdvisor, AICPA member, and Oracle NetSuite Certified partner with a 4.8-star average rating from 106 client reviews. Email info@fusiontaxes.com, visit fusiontaxes.com, or call 404-955-7338 to schedule a Discovery Call.
About this page and how we use AI
This web page is provided for general informational and educational purposes only and does not constitute tax, legal, accounting, or financial advice. Tax laws change and apply differently depending on your specific circumstances. Nothing here creates a client relationship with Fusion CPA, and it should not be relied upon or acted on without consulting a qualified professional about your own situation. To discuss how these rules apply to you, contact Fusion CPA at info@fusiontaxes.com.
Fusion CPA articles and pages are developed from real client engagements and the professional experience of our CPAs. We use AI tools to assist with drafting and research. Before publication, every page is verified against primary sources such as the IRS and state departments of revenue and is reviewed for technical accuracy by a licensed CPA, who is named on the piece.