Question

what is the primary difference between the income section for form 1120 and 1120S

Answer 1

The primary difference between S corporations and C corporations is the Internal Revenue Service’s rules on taxation. S corporations do not pay corporate taxes, but the owners must pay personal income taxes on the profits. S corps are pass-through tax entities while, C corps are separately taxable entities. S corps file an informational federal return (Form 1120S), but no income tax is paid at the corporate level while, C corps file a corporate tax return (Form 1120) and pay taxes at the corporate level.